Strengths and Weaknesses of Best Practice Models for HRM Strategy - Coursework Example

Strengths and weaknesses of ‘Best Practice’ models for HRM strategy The HRM strategy deals with the contingent alignment between the human resource policies and organization. This involves leveraging through HR procedures, and the process is appropriate in Best-fit approaches. The lifecycle models stress on the alignment of HR policies and various practices in the life stages of a business (Cheese et al. 2003, p. 87). The ‘Best Practice’ model provides a cost reduction focussed strategy because of the presence of the explicit and fixed job descriptions, the repetitive tasks which emphasize on efficiency and specialization. Also, the model allows for quality focussed strategy. This strategy is in line with the job descriptions that are competency-driven, the involvement at job level, the continuous development and training and the performance of the group and individuals targeting for the reward. However, the option offers an option for identifying the difficulties involved with the approach by pursuing the hybrid strategies as well as fitting the practices and policies of HR to the strategic focus of the 21st century business (Boyd 2001, p. 439). The reliance on rational planning and classical approach which do not recognize inherently the emergent and messy nature of the strategy is a disadvantage. Also, the reliance on generic and determinism competitive strategies is a significant challenge associated with the model. The model also allows for the reality alignment that focuses on fit, where the HR acts as a downstream of the strategic activity. Finally, the best fit model is disadvantageous in that it emphasizes on the external context at the expense of the internal context (Boyd 2001, p. 439). Despite of the disadvantages involved with the ‘Best Practice’ models, it can be concluded that when properly implemented, the models can be beneficial to the organization, and will facilitate the integration of competencies to boost the influence of the behaviour of the leaders towards the performance of an organization (Boyd 2001, p. 440). An organizational example of the best practice model is the big lottery fund in its implementation of new organizational structure aimed at developing the management capabilities as well as streamlining the structure of the business. Main obstacles hindering delivery of strategic HRM Technology and changes proliferation have increased importance of strategic human resources in the modern world. Most of the greatest obstacles arise from this angle to the core strategic functions (Brandenburg 2006, p. 89). The primary challenge hindering delivery of strategic HRM is lack of the appropriate talents. Finding and retaining the talent is quite challenging. Also, technology and globalization are a significant contribution to the obstacles experienced by the strategic HRM (Ulrich (1997). Despite the availability of capital exceeding availability of the vacant positions, the talent availability remains scarce. This significantly challenges the human resources. Existence of the knowledge-centric firms depends on the ability of HR department in hiring and retaining the rightful talent (Brandenburg 2006, p. 89). The retention of talent in an organization is relatively easier than hiring the employee and due to the increase in competition of the firms, the human resource identifies on the most appropriate ways of retaining the talent. This may incorporate possible interventions such as customized compensation services. Another significant challenge entails maintenance and assurance of the employee-employer fit. The traditional HRM involved hiring people with the skills or training the employees, and the new order requires for maintenance of employee fit, and this is quite challenging (Williams 2001, p. 99). The human resource departments also face challenges in balancing the training costs for new employees, since some quit before the realization of the investment of the organization. The departments focus mostly on talent management than training. The human resource departments face the problem of integrating the functional activities with the strategic goals of the company. Also, management of diversity, though underestimated, challenges the HR departments, especially with the new thrust of civilization (Williams 2001, p. 100). Most organizations fail in taking up the appropriate HRM practices. An organizational example is the organizations in New Zealand and Australia that require a humanistic approach towards its competition in the face of high infrastructure and labour. In conclusion, change is constant in every business environment. For organizations to maintain operations amidst such changes, new opportunities should be exploited, and a focused change intervention is critical in enhancing efficiency. Requirements for development of reward strategy Reward strategy refers to the pathway linking the business requirements and staff through reward practices and policies within an organization, and entails explaining and communicating the practices in the process. The development process follows five key steps. These include stating the mission and goals of the organization, defining the requirement required in delivery of the goals, outlining the strategies and principles of HR, specifying the reward goals, and highlighting the practices and policies of the reward (Verreault 2005, p. 526). Organization should consider the reward goals. Most of the implementation of changes in reward, in many organizations happens with no agreed success measures or objectives. Few and clearly understood goals in any organization are paramount. A number of goals may conflict, and hence, priorities should be established to reflect the choices and realities of the organization (Verreault 2005, p. 528). Organizations should also consider the organizational fit. The arrangement for the reward should be in correspondence with the organizational design. Failure to fit clearly with the structure of the organization leads to confused responsibilities for the management of the reward. The job evaluation should be in consistent, though its operation may be local for every business division. The reward strategies should be more than just a statement. Proper delivery of the strategies entails a reflection on the impacts of the operating realities within an organization in order to motivate and direct the staff towards delivery of the corporate goals of an organization (Siddique 2004, p. 219). An organizational example is the IES model that frequently works with employers to ensure the provision of close support to the existing internal project managers and teams. This is achieved through the provision of the initial briefings on the current developments. In conclusion, development of appropriate reward strategy is complex, and achievement of complete alignment may be challenging. However, the rewards strategy should incorporate the benefits to the organization and the people (Siddique 2004, p. 221). Contribution of recruitment and selection to strategic HRM Currently, the increase in competitive HRM practices in the global environment is critical, in strategic management. The HRM field integrates with strategic management process through SHRM. This reflects the growing awareness of the human resources being crucial in enhancing competitive advantage and effectiveness in many organizations. Prior to the recent emphasis on SHRM practices is the evolution of recruitment and selection processes. Undeniably, the effectiveness in recruitment and selection process is vital towards the success of an organization (Freitas 2001, p. 226). The recruitment and selection process are a representation of the two of four principal roles of HRM that are critical in supporting strategic goals of an organization. According to scholars, regardless of the HRM model and perspectives, recruitment and selection process should be strategically done, and should be considered an integral. The recruitment and selection process seek for retention of human resources within an organization to enhance the achievement of strategic goals, and this entails massive impacts on the workforce. The recruitment and selection reflect on the organization’s capability in support the delivery of corporate strategy. Some organizations have their recruitment and selection process fully dependent of the human resource practices, with the appointment decisions being crucial towards the success of the organization (Jain 2005, p. 166). The strategy linked recruitment and selection are essential in realizing the success of an organization. This increases the global competition and promotes a shift in workforce demographics. The recruitment and selection increase the value, as well as play critical role in ensuring the effectiveness of an organization, due to the differences between the applicants in their capabilities and characteristics towards contribution of the organizational goals (Jain 2005, p. 167). Performance management systems The steady shift in workplace relative to the human resources is common evidence today. Workforce requires skills and knowledge, and hence, the organizations depend mostly on human capital as the intangible asset. As a result, several organizations are optimizing the management of the assets. This happens through the establishment of appropriate performance management systems. Performance management systems encompass all levels of an organization. The organization sets the strategic goals through organizing for goals of each employee (Cascio 2000, p. 65). The PMS process entails gathering and updating of the current employee data in order to maintain human resource information systems (HRIS). This contains all the information about an employee to enable the HR department determine the validity of skills from the people in achieving the organizational goals. Effective performance management depends on communication between the staff and their supervisors. The assessment and review of the PMS provides an opportunity for documenting formal communication to reinforce the strategic plan of the organization. This aims at ensuring that an employee obtains feedback from supervisor based on their work performance at all times. The supervisor and employee identify areas for improvement, as well as setting goals for training and development of skills. The supervisor’s efforts towards enhancement of employee skills benefit both the organization and employee (Cascio 2000, p. 66). The PMS enhances the decision making process of employees and encourages employee development. These roles interrelated but rarely supported well by most organization. When used in decision making, the PMS entails the use of the appraisal information in creating promotions and assignments. Starting at the top in order to enhance commitment of the upper management is prerequisite for success. Failure of an organization in having strong PMS culture calls for training of the executive team on the critical role of the performance. Piloting new systems with a high level management teams used for gaining the support of employees is particularly critical. Equally crucial to the success of the SHRM is ensuring that PMS is in alignment with the HR systems within the organization (Blair & Kochan 2000, p. 78). The competences put in place act as the basis for PMS and should be similar to those used for recruitment, training and staffing. This alignment ensures consistency in hiring, training and appraising the employee based on critical job requirements. Employees thus rate the relevant factors to their job requirements. This involves informing them during the start of the rating cycle on the standards and expectations against which evaluation happens. The standards should be well documented, with the roles and responsibilities should be clearly defined. The substantiation of their evaluations entails keeping the documentation on both effective and ineffective performance of employees. Mangers should be accountable for conveying the performance information to the employees as required. The evaluations should also be reviewed by others, and employees may appeal when they disagree with the evaluation results. For instance, the Survey by the University of California of the HR managers for 55companies indicated that PMS is tremendously vital in decision making, and it recommended more research in performance management regarding the HR practices based on the nature of their companies (Blair & Kochan 2000, p. 78). An example of PMS theory is the organizational theory that outlines three fundamental theoretical approaches towards measurement of the organizational effectiveness. The goal-based approach outlines the evaluation of the organizational goals through by the goals set. Nevertheless, the organization has varied and contradictory goals that make comparisons difficult. The second approach is system –based that partially compensates for the drawbacks of the goal-based approach by allowing for consideration of simultaneous achievement of the multiple performance aspects. The two approaches fail in accounting for the differences the performance perspectives by the stakeholders, and hence, the multiple constituency approach comes in handy to factor in these differences and allow for examination of agendas for the various groups. In conclusion, effective PMS defines the expectations clearly, enabling the alignment of employee behaviour with business needs and the culture of an organization. The PMS should be well-developed to enhance development and management of talent within an organization. Use of competency-based approaches in modern HR strategies In contemporary workforce characterized by dramatic changes in the attainment of competence is an integral component of an individual and organizations. Competence is an abstract concept measured and defined through performance or behaviour. The human resource capital is critical in competitive improvement and innovation. Exploiting its potential and increasing its value to an organization entails systematic process to seek for competencies which are fundamental towards the achievement of enhanced job performance (Becker et al, 2001, p.43). Competency approaches entail measurement of the employee competence so as to determine the appropriate career development based on the objectives of the organization. The approach involves the systematic consideration of the current competences, identification of the gaps between the job description and competence, and to determine the fundamental aspects for development planning in order to achieve future competencies for the operations (Becker et al, 2001, p.43). The competency management correlates to the HRM and the strategic management. The strategic management deals with development strategy for identification of human resources and HRM harmonizes the strategic objectives of the organization in relation to the development of workforce. The tracking of human development requires that organizations define the models which reflect the HRM programs. The competency models entail the performance behaviours of individuals to enhance critical assessment of the corporate performance. The organizational competence links the essential values of an organization to the business value of employees. The competency-based approaches involve systematic comparison of superior performing people with the less successful persons. This enhances identification of operative behaviours and thoughts related to the successful outcomes (Brandenburg 2006, p. 89). The competency-based approaches directly link the competences of a person with strategic goals of an organization. This helps in developing the competence profiles for the roles or positions that match with the correct individuals for the underlying responsibilities. The approaches enhance continuous planning, refinement and monitoring of the competency profiles. As a result, the HR department conducts selection, training, development and evaluation of employees in an appropriate manner. Also, employer can use the competency models in hiring individuals with unique and rare competences. Organizations can utilize the competence approaches in ranking the competencies for both performance and compensation management (Brandenburg 2006, p. 89). In performance management, the competence models lead to application of common standard criteria across all ranges of personnel functions. This assists managers and employees to identify the development and training needs. Therefore, the organization can use the competency models in promoting the goals and objectives, and facilitate making of any changes by the management. As a result, the employees will know they must do in order to clarify for the milestones for career development (Williams 2001, p. 108). The competency-based models can be integrated and used in the organization. This simplifies the delivery of the HR services by increasing the perception of everyone regarding the competency-based approach. The integration of the competency based model ensures that all employees with the organization understand the competencies necessary to enhance performance of their jobs. The competency-based models also shape an organization based on the competencies that are required to achieve the overall success of the agency (Cheese et. al. 2003). In conclusion, competence approach enhances the gathering of diagnostic information in an effort to clarify certain situations and seek for information from appropriate sources. This is critical in analytical thinking, forward thinking, conceptual thinking and strategic thinking. All these relate with effective decision making to enhance organizational performance. Competence models allow for demonstration of the importance of technical skills and knowledge in an organization. The organizational learning concept can be attributed to the management perspectives, and can be accredited to the creation of action learning process. The concept of organizational learning entails all the changes taking place within an organization. According to Pedler, et al, a learning organization promotes learning of the staff and all its members and transforms itself continuously. Learning takes place within the individuals and organizational members, and this enhances interaction of the members. The authors stressed on the need for the activation of organizational goals and integration with strategic and operational functioning. According to their competency models, the authors believed that the role of a learning organization is dependent on people who believe on massive locked-up, under-developed and hidden potential in order to unlock and develop the potential. Their theory agrees with the organization being liable for the formation of structure which is capable of embodying the spirit of internalizing the structure in order to cause changes in the organization. The organizations require development and learning in order to be able to develop (Verreault 2005, p. 438). Continuous improvement is critical in the market place to enhance smarter and faster development. Learning organizational concept acts as a resource based approach which depends on the ability of organization in transforming the available resources to unique competencies. Historically, many organizations have their activities starting at local perspective. This includes effective adaptation of the overseas environment taking into consideration expectations and needs of the employees in a country (Verreault 2005, p. 441). The HRM systems and cross cultural aspect are considered insignificant at this stage (WH Smith). References List Becker, B., Huselid, M., & Ulrich, D. (2001). The HRscorecard: Linking people,strategy,and performance, Boston, Harvard Business School Press. Blair, B. E., & Kochan, T. (2000). The new relationship:Human capital in the American corporation, Washington,DC, Brookings Institution Press. Cascio, W. (2000).Costing human resources: The financial impact of behaviour in organizations, Canada, South-Western College Publishing/Thomson Learning. Cheese, P., Brakeley, H., & Clinton, D. (2003).The high-performance workforce study [Online] Accessed 6 April 2013. Available at: www.accenture.com Boyd, C. (2001).HRM in the Airline Industry: Strategies and Outcomes. Personnel Review 30(4) pp. 438-453 Brandenburg, S. (2006).Strategic Management of Human Resources in Construction."Journal of Management in Engineering 22(2), pp. 89. Freitas, W. (2011).Continuing the Evolution: Towards Sustainable HRM and Sustainable Organizations."Business Strategy Series 12 (5), pp. 226-234. Jain, P. (2005). A Comparative Analysis of Strategic Human Resource Management (SHRM) Issues in an Organisational Context." Library Review 54 (3), pp. 166-179. Pedler, M., Burgoyne, J. and Boydell, T. (1991), The Learning Company. A Strategy for Sustainable Development. Mc Graw-Hill, London. Siddique, C. (2004. Job Analysis: A Strategic Human Resource Management Practice. The International Journal of Human Resource Management 15(1), pp. 219-244. Verreault, D. (2005). Evidence for Increasing the Focus on Strategic Risk in HRM Audits. Managerial Auditing Journal20 (5), pp. 524-543. Williams, A. (2001). Economic Marginalism and the Microstate, the Impact of Donor Conditionality Requirements in International Aid Programmes on a SHRM Training Project in the Cook Islands, The International Journal of Human Resource Management 12(1), pp. 99-108. 1. Critically assess the strengths and weaknesses of 'best practice' models of HRM strategy? (1 page - 250 words) 2 Outline and discuss the main obstacles hindering or preventing HR departments from delivering strategic HRM? - (1 page - 250 words) 3. What should organisations consider when developing a reward strategy? - (1 page - 250 words) 4. How can recruitment and selection processes contribute to strategic HRM? (1 page - 250 words) 5. Critcally evaluates the role that performance management systems play in the delivery of SHRM. Discuss the main mechanisms used in PMS and explain the different options that can be used within them. Use organisational examples as appropriate to support your answer. (2 pages - 500 words) 6. Critically evaluate the use of competency based approaches in modern HR strategies. Explain in detail how they may be used in one specific area of HR such as performance management. Use organisational examples as appropriate to support your answer. (2 pages - 500 words) Read More