Human Resource Management of Contingent Workers - Case Study Example

Human Resource Management of Contingent Workers Human Resource Management of Contingent Workers 1 Introduction: 2 Unitarist approach to HRM: 2 Trend of Contingent Workers: 5 Importance of Human Resource Management: 6 Conclusion: 7 Reference: 8 Barry D 1997: Strategy Retold, Towards a narrative view of strategic discourse, Academy of Management Review, Vol 22, No 2, pp 429-52. 8 Curran, CJ 2009, ‘Taking an organization to the next level,’ OD Practitioner, vol. 41, no. 4, pp.12-17 8 Daly, F, Teague, P & Kitchen, P 2003, ‘Exploring the role of internal communication during organizational change’, Corporate Communications, vol. 8, no. 3, pp. 153-163, (Online ProQuest). 8 Festing M 1997, International HRM strategies in multinational corporations, Management international Review, January 1997 8 Finlay-Robinson, D 2009, ‘Practitioner comment: What's in it for me? The fundamental importance of stakeholder evaluation,’ Journal of Management Development, vol. 28, no. 4, pp.380-388 8 Martin, Beaumont P, Pate J, A Process Model of Strategic HRM/LR Change in MNCs: The Case of AT&T and NCR in the U.K, pp 143-167 8 Mintzberg H 1994, Strategic Planning, The rise and fall of strategic planning, pp 458, 1994, Free Press 9 O’Neill, A & Jabri, M 2007, ‘Legitimation and group conversational practices: implications for managing change,’ Leadership & Organization Development Journal, vol. 28, no. 6, pp. 571-600 9 Piderit, S 2000, ‘Rethinking resistance and recognizing ambivalence: a multidimensional view of attitudes toward an organizational change,’ Academy of Management Review, vol. 25, no. 4, pp.783-794 9 Wilkinson A 1988, Empowerment, theory and practice, Personnel Review, Vol 27, No 1, pp 40-56. 9 9 Introduction:                           Human resource management is one of the most important methods that have been developed in the 21st century to ensure that the production process is carried out in an efficient and economic manner through the minimal usage of resources. There have been a number of resources that have been developed over the years to ensure that these are implemented in the most effective manner possible. In the following paper there shall be conducted a detailed discussion on the usefulness of the Unitarian approach towards human resource management of contingent workers by organizations. This will help ensure that both the approaches are studied and a well informed conclusion is drawn.   Unitarist approach to HRM: The unitarist approach to management of human resources is most commonly found in the American based companies, and it is most familiar to the American continent. This view point was first developed from the liberal theory and is based in this ideology of liberalism and individualism. The main emphasis that is laid under this form of human resource management is on the individual and the individual needs of the individuals. This is the basis of this form of strategic management of the human resource by the organization that adopts it. The unitarist approach believes that all individuals are unique and work in accordance to their own understanding. They believe in the autonomy of the individual and that all individuals are rational human beings (O’Neill, A & Jabri, M 2007). It draws upon the fact that each individual hails from a different background, and thus the needs of each individual is different. Thus, to ensure that the workers work at their most efficient there has to be ensured that the human resources manage each as a separate individual unit. This allows for the whole system to function smoothly, where if one individual is not functioning properly, then it can be dealt with in a singular manner without involving the whole work force (Piderit, S 2000). This approach is an important approach that has been developed in the recent years, and is the result of a modern day practices of free market economy. As is suggested by the name of the school of though that has developed this form of human resource management strategy, the workers are treated as individual compartmentalised units and each unit functions separately, while the managers coordinate their activities to ensure that the organization functions as a well oiled machinery. This method is important in today’s day and age as there has to be realised that all individuals are a part of the organization but yet are separate (Daly, F, Teague, P & Kitchen, P 2003). This method allows them to function in their own capacity while they are a par of the organization. This is especially true in the case of the contingent workers who are not permanent members of the work force of an organization but are in fact employed for a certain period of time on the basis of a contract. Thus, there has to be ensured that they are dealt as separate units which have to regulated and coordinated by the managers to achieve efficiency and economy without any burden on the organizational resources. Over the years with the growing competition in the markets among organizations and with every organization trying to maximize its output there has developed what is normally referred to as the motivational theory where it is discussed as to how can one increase the productivity of the employees so as to ensure a better working environment and increase their efficiency. The fact remains that with the coming of the global economic order there has been observed that there is a greater need for efficiency and economy (Mintzberg H 1994). There are many reasons as to why the Unitarian approach is a better approach to be adopted when ensuring that the human resource management that is adopted by an organization today in relation to contingent workers is economic and efficient. These reasons include the challenges that have developed with the coming of a globalised system of market economy and include: Cross culture: international emergence of HRM has lead to intermingling of a number of cultural practices. These have a positive and negative impact on the human resource management. Emergence of a global economy has had a direct effect on the human resource management policies that have been adopted by the various organizations. Emergence of international organization: the emergence of the international organization is perhaps one of the most important if not the most important factor affecting the international HRM (Curran, CJ 2009). The emergence of the international organizations has lead to the development of the cross local border policy of HRM. Labor Markets: the effects that labor markets have on the organization and implementation of the human resource management in the 21st century is of utmost importance as it directly affects the HRM and has evolved in correspondence (Barry D 1997). E-HRM: with the emergence of the e retailing and business management, there has emerged a strong global HRM for maintaining and regulating the e-HR. these have come to be implemented in the international HRM also. Trend of Contingent Workers: The human resource has always been an important part of the process of production. There has been observed that the role that is played by the human resources has changed in the recent past (Finlay-Robinson, D 2009). Earlier the employees that were employed by the organizations were employed on the basis of the their work, and they were a part of the organization, who were paid monthly salaries and enjoyed a number of other advantages including medical insurance, PF and others. But there had developed in the current scenario the trend of employing contingent workers who are employed on the basis of a contract and they do not enjoy the other amenities that employees of an organization do (Martin, Beaumont P, Pate J). The company does not pay for their insurance. In fact they are not permanent workers of the organization but work only for a stipulated period of time which is specified in the contract. The contract may or may not be renewed by the organization depending on its need and the managerial decisions. Thus, the contingent workers are paid workers who are employed for a stipulated period of time (Festing M 1997). Importance of Human Resource Management:                       Human resource management is really important in ensuring that the working capacity of the company is maintained and for ensuring that there exists a high work atmosphere which inspires the employees to work better so as to ensure that there is greater productivity of the organization as a whole. Human resources of an organization are the only resources that can be changed and altered according to the need of the organizations so as to ensure that they are able to incorporate the changing trends and requirements of the market and the economy. There have been conducted a number of studies by HR firms to study the changes that have taken place in the HR Management of firms, and they have identified the problems and the requirements of the organizations. All organizations in the global market aim to ensure that their human resource management is such that they are able to change to accommodate the turbulences in the economy, so as to ensure the sustainability of the companies in the market. The role that is played by HRM is varied; it looks to ensure that the human resource function at its complete potential, at the same time tries to ensure that the needs of the employees are upheld by the management.  In general, productivity depends on 3 things: resources utilized employee's ability to perform, and employee's willingness to work or motivation to perform (Li, 2001). Although motivation is not the sole determinant of productivity, it is a determinant of crucial importance. Without motivation, resources and ability will be of little avail, or may even result in undesirable behavior. Thus, the managers motivate the workers to perform better through punishment in case of failure, or through constructive criticism in case of problems, while in the case of better performance the employees can be praised, motivated through promotions, bonuses, monthly credit and other such effects. Conclusion: The role that is played out by HRM is an important and varied one and there has to be ensured that these are developed by the organizations to ensure that the production process continues in an economic manner.  The definitions of human resources have changed to a great extent in the late 20th and the 21st century, due to the various developments that have taken place in the global market. One of the most important changes that have been experienced is the development of the system of contingent workers to work in place of the permanent workers. This helps the various organizations be more economic in their usage of the limited resources at their disposal and ensures that the work force is exploited to its maximum. Reference: Barry D 1997: Strategy Retold, Towards a narrative view of strategic discourse, Academy of Management Review, Vol 22, No 2, pp 429-52. Curran, CJ 2009, ‘Taking an organization to the next level,’ OD Practitioner, vol. 41, no. 4, pp.12-17 Daly, F, Teague, P & Kitchen, P 2003, ‘Exploring the role of internal communication during organizational change’, Corporate Communications, vol. 8, no. 3, pp. 153-163, (Online ProQuest). Festing M 1997, International HRM strategies in multinational corporations, Management international Review, January 1997 Finlay-Robinson, D 2009, ‘Practitioner comment: What's in it for me? The fundamental importance of stakeholder evaluation,’ Journal of Management Development, vol. 28, no. 4, pp.380-388 Martin, Beaumont P, Pate J, A Process Model of Strategic HRM/LR Change in MNCs: The Case of AT&T and NCR in the U.K, pp 143-167 Mintzberg H 1994, Strategic Planning, The rise and fall of strategic planning, pp 458, 1994, Free Press O’Neill, A & Jabri, M 2007, ‘Legitimation and group conversational practices: implications for managing change,’ Leadership & Organization Development Journal, vol. 28, no. 6, pp. 571-600 Piderit, S 2000, ‘Rethinking resistance and recognizing ambivalence: a multidimensional view of attitudes toward an organizational change,’ Academy of Management Review, vol. 25, no. 4, pp.783-794 Wilkinson A 1988, Empowerment, theory and practice, Personnel Review, Vol 27, No 1, pp 40-56.                        Read More