Critical Commentary on Guests Approach to HR Management - Essay Example

 Critical Commentary on Guest’s Approach to Human Resource Management Decision Making Introduction Business organisations to exist in today’s competitive world operate based on certain set strategies which pertain to each and every department of the concern. Like marketing and operations the business managers also generate some strategic outlines in regards to the human resources functioning of the company. These human resources strategies are so designed that fit with the other strategic decisions taken by the company relating to marketing and operations. In the course of designing strategies pertaining to human resources certain considerations must be kept in mind which can be outlined as follows. In the first case human resources strategies must be so designed as would effectively fit or match with the external policy considerations of the company. Secondly the human resources strategies must also help in meeting the needs of contingencies in relation to both internal and external environment. Thirdly the human resource strategies designed by the company should be of a generalised mode. In that the strategies designed for one concern should fit in with the organisational philosophy of other organisations. Finally in the fourth case the different human resource strategies must be complementary to each other such that it works like a full package effective in the long run. The above context of fitness of human resource strategies was first conceptualised by Guest in his strategic human resource model (Armstrong, 2000, p.46). The paper now proceeds to render an elucidation of the above strategic points as conceptualised by Guest in his strategic human resource model. Critical Commentary on Strategic Fit of Human Resource Decisions with other Business Decisions The following discussion would present a critical commentary on the parameters stated by Guest in regards to the planning of human resource strategies. a) Fit as strategic integration: The strategic human resource planning activities must be integrally fit in regards to the external and internal environment of the business organisations. To this end the policies designed in relation to human resource must fulfil the needs of the different stakeholders whether external or internal. The human resource policies must be designed keeping in view the needs of the consumers, the employees working across international borders and also must satisfy the legal and ethical requirements of the country. Thus the human resource decisions must be made through integrating such with the marketing, administrative and financial units of the company. Similarly focusing on the internal aspect the human resource decisions must be made in close integration with the different human resource activities pertaining to recruitment, selection and also the appraisal functions. The human resource policies turn effective if the same helps in gaining the right quality of personnel who are selected through a professional manner and not based on bias. The payment packages should be so planned so as to be effective to the company and also in regards to the employees. Cost to the company must be evaluated while estimating the payment structure of the different categories of employees. Similarly the appraisal and performance evaluation programs must be designed as to help motivate the employees and also to enhance business productivity (Bach, 2000, p.8-11). b) Fit as an ideal set of practices: The human resource decisions in regards to a company must be taken in such a manner as to meet the requirements of different companies in the same industry. Thus the designing of human resource policies must be based on some core directions which tend to be homogeneous in regards to the industrial structure. In the first case the human resource policies must be so designed as to help in creating a safer work environment for the employees of the concern. In the second case the human resource policies should work in cultivating a transparent atmosphere in the concern wherein the people would get access to potential company information in times of need. Similarly the transparency must be so set as to help in rendering important feedback to the internal people. Thirdly the human resource policies must entail in rendering bonus to the employees. However the best set of practices entail that such bonuses need to be calculated depending on the performance parameter of the people and not otherwise unless indicated in the memorandum of the concern. Fourthly the human resource decisions in regards to performance appraisal must be carried out in a full 360 degree mode to enhance the effectiveness of such appraisal activities. Such appraisal programs would help the employees to get a total understanding of their shortfalls being reviewed by their own peers, the subordinate staffs and finally by their superiors. The human resource managers in the fifth case must also look forward in aptly rewarding the employees by conducting reward programs which would help in largely motivating the people (Sharma, n.d., p.1-2; Sears, 2011, p.35-36). c) Fit as Contingency: The human resource decisions of the company must be made keeping in mind the rise of business contingencies. Business managers need to take several strategic decisions pertaining to both operations and marketing and other issues to tackle the emergence of business contingencies. Thus human resource decisions must also be made so as to effectively relate to the marketing and operational context. The introduction of new technology to enhance the business potential must be incorporated with also designing special training modules of the staff to efficiently work with such innovations. The business houses sometimes have to take cost-effective decisions in regards to rendering products and services without compromising on the quality to compete against the competitors. Thereby the human resources techniques must be rightly adapted to reduce the cost of wages and salary to help in sustaining profitability for the concern in times of contingencies (Greer, 2001, p.306). d) Fit as Bundles: The human resource decisions pertaining to the different parameters must be taken in a complimentary manner so as to strategically fit the business and operational needs of the concern. For example the policies pertaining to involvement of employees in taking strategic business decisions with also generating an environment for carrying on teamwork to pursue business objectives can be carried out in a business environment granting job security and transparency. Thus the human resource decisions must adequately match the philosophy of the business concern. In that the human resource decisions must strategically fit to the business decisions and philosophy and must reflect as being complementary to each other (Marchington and Wilkinson, 2005, p.82). Conclusions Human Resource Management decisions in order to be effective must be tuned in relation to the other business decisions taken in the company. In regards to the paper endeavours to understand the four approaches as rendered by Guest in regards to the generation of effective human resource decisions. The paper reflects that how the human resource decisions aim to be strategically fit to the larger business objectives of the concern in terms of meeting the interests of both the internal and external stakeholders. Similarly the human resource decisions must be taken in such a manner as to help the business corporation in meeting of business contingencies which emerge from time to time. Moreover it is found that human resource decision making earns due effectiveness is the same is tuned to the organisational philosophy. In that the human resource decisions must act in a complimentary fashion with the other business decisions which thereby appears to be as strategic bundles. Human resource decisions taken in one company must be formulated in such fashion as to act in a universal manner in relation to other business corporations. This four approaches being rightly met would help in the evolution of strategic human resource decisions which would be effective in the long run. References Bach, S. (2000). Hr And New Approaches To Public Sector Management: Improving Hrm Capacity. [Pdf]. World Health Organization. Available At: http://www.who.int/hrh/en/Improving_hrm_capacity.pdf. [Accessed on November 5, 2011]. Sharma, G. (No date). Top 10 Human Resources Best Practices. Empxtrack. [Pdf]. Available At: http://www.empxtrack.com/article-content/Human-Resources-Management-Practices-top-ten.pdf. [Accessed on November 5, 2011]. Armstrong, M. (2000). Strategic human resource management: a guide to action. Kogan Page Publishers. Greer, C. (2001). Strategic Human Resource Management. Pearson Education India. Marchington, M., and Wilkinson, A. (2005). Human resource management at work: people management and development. CIPD Publishing. Sears, P. (2011). A New Way of Seeing:Insight Led HR. PeopleManagement.co.UK. Evaluation of Guest’s Approaches in relation to Current Organisation Culture in United Kingdom Introduction Human resource strategies pertaining to an organisation must be prepared and produced keeping in mind the changes in the external and internal business environment. These human resources decisions must me made compatible to the business decisions taken in the company. Such strategy would help in enhancing the effectiveness of the human resource decisions and thereby would help in enhancing the organisational productivity. Organisations in United Kingdom like manufacturing, chemical and others like those pertaining to the automobile sector are found to follow to a considerable extent the four factors as underlined by David Guest in his model of human resource management. The paper thereby tends to further elucidate the process through which the United Kingdom Company’s tend to bring about human resource decisions to enhance their competitive potential. Fit as Strategic Integration and Companies in United Kingdom The human resources decisions in the companies pertaining to United Kingdom are taken while keeping a view on the external and internal environmental changes. This is done so as to enhance the fitness of such decisions in regards to meeting the external and internal demands. It is found that the human resources decisions pertaining to companies belonging to the chemical industry in United Kingdom largely follow the different legislations in relation to health and safety of the workers. Framing human resources decisions based on such external legislations helps in enhancing the relevancy of such (Marchington and Wilkinson, 2005, p.111). In another case it is found that the case of Yorkshire Water Plc located in United Kingdom it is found that the company in order to enhance its business focus in meeting the needs of the different stakeholders decided to modify its human resource practices. The company in order to enhance its services to the stakeholders focused on encouraging the people to work in a more involved manner in the concern. Thus the human resource policies were needed to be framed which would excite or motivate the people to work in an involved fashion in the concern. Human resource policies like designing apt reward systems and rendering effective feedbacks on their performance helps in creating a transparent and motivated organisational atmosphere and thereby enhances productivity of the concern (ABE, n.d., p.14-15). Fit as an ideal set of practices and Companies in United Kingdom In regards to the domain of best practices the companies pertaining to United Kingdom are found to focus on large scale involvement of employees through encouraging them to take part in organizational decision making. Similarly specific training programs are organized by the organizational managers in companies in United Kingdom to help enhance the effectiveness and the potential of the people. In terms of best practices the United Kingdom concerns also takes resort to rendering flexibility in the organisation. Making flexibility as an organisational practice helps in enhancing the productivity of the organisational personnel. Again the concerns in United Kingdom are also found to incorporate outsourcing staffs over which the responsibilities of the organisation are extended. Thus the organisation can focus on enhancing the salary and wage packages of the internal people more than the industry average and thus help in motivating them to work in a productive manner. In another best practice initiative the organisations also encourage the employees to render effective feedbacks which would thereby help in enhancing the productivity of the concern and also in motivating the employees to take part in company’s decision making activities (Cooke, 2000, p.7-13). Fit as Contingency and Companies in United Kingdom In regards to this discussion set it is observed that several organisations in United Kingdom pertaining to manufacturing, automobile and financial dimensions tend to bring about new human resources decisions and policies to counter the effect of external contingencies. In such manner an evaluation made in regard to such companies however reflects a contrary result. It is found that though such business organisations have brought about large changes in human resources policies yet such changes failed to meet the needs of external contingencies. Contrary results were reflected for in the first case a sample of 1050 banks and around 97 manufacturing firms reflected an effect of strategic fit yet on the contrary in the second case a sample of automobile manufacturing concerns in United Kingdom however failed to reflect any such strategic fit for human resource decisions to counter external contingencies (Stiles and Kulvisaechana, n.d., p.13-15). Fit as Bundles and Companies in United Kingdom Many companies in United Kingdom and in several European countries are found to organise separate bundles of human resources functions to help achieve organisational productivity. The nature of human resources bundles needs to be selected based on the organisational framework. It is found that organisations focusing on cost reduction activities tend to render low importance to training programs and other personnel development activities. Again companies tending to focus on innovation techniques tend to render increased impetus to the process of organisational innovation and also modification of business contracts. Some companies which focused higher on improving the quality of products and services tended to render increased focus on increasing the payment for the employees in the concern. Such increase in the wage structure would help in the motivation of employees to become largely involved with developing the quality aspects in terms of goods and services. In another combination the companies also tended to mix both the parameters of increasing the salary and wage structure of the employees with also encouraging the people to largely participate in the organisational decision making. With the above bundles in question the company can also work to promote the people in the concern to rise up the organisational hierarchy. Such practices would certainly help the companies in increasing its productive aspects both in regards to operation and human resources (Marchington and Wilkinson, 2005, p.112). Conclusions The above analysis conducted over the companies based in United Kingdom shows that such companies tend to render equal importance to the human resource functions as they render to the other marketing and operational activities. Speaking on the factors as underlined by David Guest it is found that human resource decisions are taken while keeping in mind the interests of both the internal and external group of stakeholders. Such practice helps in formulation of effective human resource decisions which would help in satisfying both the consumers and the employees. Similarly the companies also work on certain sets of human resource policies which are considered as the best practices in the industry. They tend to render effective and adequate training and also through strategic moves tend to pay an above average package to the employees. Other than best practices the human resource policies are also designed and modified keeping in view the emergence of certain contingencies. However in that the United Kingdom companies pertaining to different industries like automobile, manufacturing and chemicals taken as samples tend to largely differ in their actions. Some tend to reflect changes in the human resources paradigm depending on changes in the external environment while others reflect little or no change. Finally the different human resources decisions are sometimes taken in bundles or in certain configurations which suits the culture of business enterprises in which it is taken. In that different companies in United Kingdom possessing different cultures like being highly innovative or highly cost conscious in nature also tend to modify their human resources policies accordingly. Thus strategic sets are created through the creation of effective bundles of human resource policies keeping in view the need of the organisation. References ABE. (No date). Strategic Human Resource Management. The Association of Business Executives. [Pdf]. Available At: http://www.nishanw.org/_STRATHRMAN.PDF. [Accessed on November 5, 2011]. Cooke, F. (2000). Human Resources Strategy to Improve Organisational Performance: A Route for British Firms? ESRC Future Work Programme. [Pdf]. Available At: http://www.leeds.ac.uk/esrcfutureofwork/downloads/workingpaperdownloads/paper9.pdf. [Accessed on November 5, 2011]. Stiles, P., and Kulvisaechana, S. (No date). Human capital and performance: A literature review. University of Cambridge. [Pdf]. Available At: http://www.bis.gov.uk/files/file38844.pdf. [Accessed on November 5, 2011]. Read More