The Advantages and Disadvantages of Universal and Contingent Approaches to Human Resource Strategy - Essay Example

Critically evaluate the advantages and disadvantages of ‘universal’ and ‘contingent’ approaches to human resource strategy. Give examples to illustrate your answer Table of Contents Introduction 3 Discussion 4 Advantages of Universal approach to human resource strategies 4 Disadvantages of Universal approach to human resource strategies 6 Advantages of contingent approach to human resource strategies 7 Disadvantages of contingent approach to human resource strategies 8 Analysis 9 Findings 9 Conclusion 10 References 12 Bibliography 13 Introduction In this competitive age, the term ‘sustainability’ sounds extremely interesting in the annual reports of the organizations but it’s quite tough to achieve. This is because; it might be attained only if the manager or the leader of the organization might tactfully handle varied types of situational problems in an efficient way. However, it might be possible only if the manager or leaders are supported by the experienced and talented human resources of the organization. But in order to attain such type of coordination from the down-level employees, they need to be managed and controlled in an effective way by the top-management of the organization. Since the human resources act as the cornerstone of an organization, that may enhance its productivity and total sale as well as strengthen the brand image and reputation in the market among others. Not only this, the position and supremacy of an organization might also get enhanced only if the employees and the leaders work optimistically and efficiently. Moreover, the brand value and position of the organization might get enhanced thereby amplifying its profitability in the market among many other existing rival players. Other than this, the organization might retain its portfolio in this competitive market only if it implements all sorts of universal or best practices within the organization in an effective way. Such practices might amplify the inner skills and talents of the employees that may boost their level of performance and total output of the organization to a significant extent among many other co-players. This essay is divided into five phrases mainly highlighting the importance of universal and contingent approaches within an organization. Along with this, it also discusses the pitfalls of implementing such types of approaches with an organization with relevant examples as well. Discussion Advantages of Universal approach to human resource strategies In order to maintain the efficiency and dominance in this aggressive market, the most essential strategy is extensive planning and scheduling of the human resource needs and requirements. By doing so, the organizational management might understand the desired requirements of the work-forces to accomplish the future goals and objectives of the business group. Apart from this, with the help of this type of planning’s, the organizational management might attain a link among human resource management and overall strategic planning of the group. This might prove effective for the organization to analyse the working capabilities of the existing work-forces, the type of trainings required to enhance the skills, retention strategy and many others. Moreover, with the help of these types of planning’s, the future requirements of human resources might also be easily predicted that may prove effective for the organization (Deb, 2009, pp. 233-245). Other than this, with the help of these strategic planning’s, the organizational management might clearly analyse the strategic gap within the current working situation and the desired output (Charles, 2001, pp. 52-64). Then, the management might implement varied types of universal approaches or strategies such as advanced machines, better working environment, proper trainings and many others in order to attain the below stated benefits. High performance- in order to attain high-level of performance, maximum extent of the organizations desire to offer varied types of technical trainings for its employees. Implementation of such type of trainings might prove effective for the employees in enhancing its inner skills and talents. Enhancement of skills and knowledge might help in amplification of the total productivity and profitability of the organization as well. For example: the management of Tesco Plc implemented a training and development program to enhance the skills and talents of its workforces. By doing so, the career opportunities of the employees enhanced thereby amplifying the total sale and revenue of the organization. High retention ratio of the employees- an individual employee might retain within an organization for a longer period of time only if his inner desires gets fulfilled such as proper remuneration, improved machines and many others. Only then, the employees might retain within the organization thereby assisting other employees in introducing varied types of inventive products and services for its customers. For example: Mr. Steve Jobs implemented the system of varied types of rewards and bonuses for its employees to enhance their level of performance and dedication towards work. This proved effective for the organization of Apple Inc thereby enhancing its retention ratio. Higher productivity- implementation of basic or universal approaches helps an organization to enhance its output and profit margin in the market among others. As a result of which, the brand image and reputation of the organization also gets enhanced significantly. However, it might be possible only if the organizational management or the leader acts in favour of the employees, thereby making their work easier and simpler (Saks & et. al. 2010, pp. 461-467). For example: implementation of technologically advanced energy boards in front of the front-desk members of Tesco Plc by Mr. Philip Clarke, CEO of the organization, proved extremely effective. It not only enhanced the inner motivation of the work-forces but also improved their power of dedication or commitment towards the assigned duties. High brand image- the brand image of the organization might also get enhanced only if the top and lower level employees work in a coordinated manner. However, to do so, they need to concentrate significantly over the future goals of the organization such as corporate social responsibility, proper returns to the shareholders, value–added products to the customers and many others. For example: implementation of LED or PIR renewable lights within the stores of Tesco Plc helped the organization to reduce the impacts of green-houses gases. As a result of which, the brand image and identity of the organization of Tesco Plc enhanced thereby amplifying its dominance and position in the market among others. Thus, it might be clearly depicted that implementation of universal approaches within the organization might not only enhance its recognition but also amplify it’s loyalty within the minds of the customers. Disadvantages of Universal approach to human resource strategies In this age, innovation is the most essential weapon that helps in retaining the reputation and position of an organization. However, introduction of inventive products and services might be possible only if the human resources of the organization might be managed and controlled effectively. This is because, human resources acts as the catalyst in developing varied types of innovative products and services to satisfy the demands of its customers. But, if an organization fails to satisfy or motivate the employees then, it might face varied types of below stated problems. High attrition ratio- as the organizational management failed to fulfil the needs and requirements of its employees, their rate of attrition may get enhanced. As a result of which, the organization may not become capable in satisfying the changing needs and requirements of the customers. Therefore, the brand image and position of the organization might get reduced significantly among many other substitutes. For example: in order to reduce the attrition ratio of the experienced and talented employees of Apple Inc, Mr. Steve Jobs implemented the system of rewards and incentives. This strategy proved effective for the organization to retain its employees and position as a leader in computer applications. High absenteeism rates- if an organization fails to implement the best or universal practices, then the inner morale and confidence of the employees might get hindered. As a result of which, the rate of absenteeism of the employees might get enhanced thereby hampering the productivity or efficiency of the organization. For example: due to the absence of various fridge benefits such as employee discount cards, the absenteeism rates might get enhanced. Therefore, in order to tackle this issue, the leader, Mr. Philip Clarke implemented the facility of club-cards for the employees. Thus, from these points, it might be revealed that, an organization may face varied types of negative impacts due to lack of proper concentration over universal approaches. Advantages of contingent approach to human resource strategies In this age of economic downturn, the market scenario is changing in every now and then. As a result of which, the universal approaches may not be used or implemented within the organization. This is because such types of strategies or approaches may not prove effective for the organization to tackle various situational challenges or changes. As a result of which, in recent age the businesses need to implement contingent or situational approaches to tackle business challenges in an effective way. Due to which, varied types of advantages might be attained by an organization, which are specified below. Ability to control the employees- in order to tackle the situational requirement, the organizational management need to control the working power of the employees in a significant way. The higher management of the organization might request the employees to offer high level of dedication in order to offer inventive products so as to retain the buying behaviour of the customers. For example: Mr. Steve Jobs requested the employees of Apple Inc to develop high-ended products such as Mc-book, Iphone, Ipod and others in order to retain its competitive advantage in this age of economic distress. By doing so, the organization became successful in enhancing its brand image and profitability as well to a considerable extent. Efficient utilisation of the human resources- in order to cope-up from various situational hazards, the organizations tries to present varied types of technically advanced products and services (Swart & et. al, 2012, pp. 79-89). In order to do so, the organization utilises the inner skills and talents of the employees in an effective way as compared to any other situations. For example: in order to enhance the brand image and distinctiveness of Tesco Plc among its rival players, it tried to offer a distinct shopping experience to its customers. Therefore, in order to fulfil such a strategy, the organization suggested the employees to assist each and every customer in their buying behaviours. This might prove effective not only for the organization but also for the customer as well. Increased pressure on management- due to high-level of commitment and dedication of the employees, the management is forced to offer extra benefits such as rewards and bonuses. As a result of which, the motivation and inner morale of the employees became enhanced that amplified their performance to a certain extent. Dealing effective with shortage labours- in order to tackle the situational hazard, the organization might significantly change the roles and activities of an employee. It is done in order to retain its reputation and dominance among others. For example: the employees in Tesco Plc had to perform both the functions of billing as well as customer service at time of economic downturn. By doing so, Tesco Plc retained its employees as well as its position in the market among others. Thus, from the above mentioned points, it might be revealed that contingent approaches play a significant role in retaining the supremacy of the organization in a challenging situation as well. Disadvantages of contingent approach to human resource strategies In spite of various advantages, the contingent approach also offers numerous pitfalls over the organization and its workforces. These are described in the below paragraph. Huge amount of expenses- in order to handle a problematic situation, recruitment takes place of an experienced employee or leader. As a result of which, the total amount of expenditure of the organization enhances as compared to its profitability. For example: In order to offer various advanced technologies, the organization of Apple recruited numerous engineers and technicians of high remunerations that offered various negative impacts over the organization. High amount of debt- due to the introduction of various new machineries in the organization to enhance the productivity in a challenging situation, the amount of debt enhanced to a significant extent among others. This type of debts might act negatively over the image and position of the organization thereby hindering its path of growth in future. Analysis In this age of changing market situations and customer preferences, human resource acts as the boon of the organization. This is because, if the organizational management implements varied types of effective strategies and policies for the human resources, then their inner morale and confidence might surely get enhanced (Beck, 2003, pp. 121-133). As a result of which, their level of performance and efficiency might get enhanced thereby amplifying the chances of presenting varied types of advanced products at competitive prices. Along with this, their retention rate might also get enhanced thereby reducing the attrition ratio, which is extremely essential for an organization to compete with other rival players. Moreover, with the help of high level of competency and experiences, any sort of problems or dilemmas might be resolved efficiently, without hindering the brand value and identity of the organization. Thus, it might be stated that both universal as well as contingent approaches are extremely effective for the business entities operating in this competitive scenario among many other rival contenders. Findings After analysing all the above paragraphs, it might be depicted that both universal and contingent human resource approaches are extremely essential. This is because, by implementing these approaches, an organization might operate successfully in the market among other contenders and retain its prosperity and image. Moreover, it might effectively tackle the challenges thereby amplifying the profit margin and equity of the organization in long run. Along with this, implementation of these above mentioned strategies might amplify its scope of opportunities thereby reducing its threats and upcoming risks. Apart from this, it also helps in retention of the experienced and skilled staffs thereby amplifying its scope to present varied types of inventive products and services. As a result of which, introduction of varied types of innovative products and services might attract a wide range of customers thereby enhancing its total revenues (Beatty & Schneier, 1997, pp. 237-245). Thus, it might be revealed that both the approaches mentioned above plays a vital role for an organization in this age of extreme rivalry. Hence, each and every organization needs to offer higher attention over these approaches in order to enhance the popularity and culture of the organization in the market. Conclusion Conclusively, it might be stated that an organization might work effectively, only if it maintains a uniform culture. However, uniformity and homogeneity might be maintained, if the employees are satisfied with the benefits and facilities offered by the organization. This means presentation of safe and secured working condition, advanced machineries, improved techniques and policies, high-ended training programs and many more. All these facilities act positively thereby amplifying the confidence and buoyancy of the employees to accomplish the future goals and objectives of the organization and to tackle situational changes. As a result of which, the organization might maintain its ranking and dominance among the new entrants thereby reducing the risk of substitute products. Hence, it may be stated that both universal and contingent approach act as the guiding forces that supports the organization and its employees from any sort of internal or external hazards. Along with this, presents the power to retain its effectiveness and competitive advantage in the coming years among other contenders. References Beck, R, C. 2003. Motivation: Theories And Principles, 4/e. New York: Cengage Learning. Beatty, R. W. & Schneier, C. E. 1997. New human resource roles to impact organizational performance: From "partners" to "players". Boston: Harvard Business School Press. Charles, G. R. 2001. Strategic Human Resource Management: A General Managerial Approach, 2/E . Boston: Harvard Business School Press. Deb, T. 2009. Managing Human Resource And Industrial Relations. London: Sage. Saks, M. A. & et. al. 2010. Managing Performance Through Training and Development. London: Sage. Swart, J. & et. al. 2012. Human Resource Development - Page 79-89. New York: Cengage Learning. Bibliography Adair, J. 2010. Effective Motivation: How to Get the Best Results From Everyone. New York: Cengage Learning. Read More