Chapter 1- Understanding the Different Perspective of Human Resource Management
1.1 How the ‘Guest model’ of human resource management (HRM) is adopted at Harrods
In human resource management a model has been showed by Guest (1987). Guest model is different from compliance based personal management. It is actually a commitment based human resource management model. Guest model introduce some new concept of human resource management, those are:
• Human Resource Management (HRM) of an organization is linked with the strategic management of that organization.
• According to Guest model, HRM seeks commitment of the employees towards the goals of the organization.
• Guest model allows the organization to develop its power, and helps the
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Harrods organizational structure was too hierarchical, which actually hampered the flow of operation. That’s why Harrods implemented new organizational structure which is flatter and employees are taking more responsibility. This change in organization structure will enhance the job satisfaction and bring flexibility as well.
• To enhance the commitment of the employees towards the goal of the organization Harrods change leadership. By changing the environment, where employees are encouraged to make more decision by themselves.
• To achieve the organization goal Harrods improve their communication system. This improved communication system allows the employees to know strategy of the company properly.
• To maintain the quality, Harrods make it sure that every employees understand the brand value of Harrods. In addition, Harrods also do regular survey on the customer and on the employee, and depending on the result they took new strategy to improve the quality of their service.
All these steps have been taken by Harrods to adopt the ‘Guest model’ in their human resource management practices.
1.2 The difference between storey’s definitions of HRM, Personnel and IR practices, by reflecting the HRM practices at Harrods and Unilever
In the past hundred years, Human Resource Management has changed a lot. In the past, Human Resource Management was called personal management or personal administration. That personal management used to
This model focuses on the development of HRM & business strategies by harmonizing & integrating the interests of the various stakeholders including employees in bringing organizational effectiveness. In doing so, the model emphasizes the style of employee management applicable to increase organizational performance.
HRM should ensure employees are focused on understanding customer needs and expectations of the organisation, if employees are aware of this, then are all aiming for the same goal and objectives of the business. This can be effective through clear communication. Understanding and communicating well with employees and managers is an important skill for HRM which, can only be leant by spending time and understanding the language of the employees and by using the language
The model emphasize on the vertical integration between the business strategy and HRM function. It promotes “Unitarism approach” i.e. managers and employees cannot have conflicting views as they are working to achieve the same goal and effective management of people will vary from organisation to organisation depending on organisation culture.
Scott, Clothier and Spriegel (2002) have defined Human Resource Management as that branch of management that is responsible of operations which are mainly concerned with the relationship of management to employees and employees and to employees with development of the individual and the group. People are responsive, they think, feel and act moreover cannot be operated like machines. They therefore need a tactful handling by personnel management.
P 2.2 – Outline the stages that Harrods can adapt in planning human resource Requirements
term which encompasses all sub-disciplines related to managing people whether employer or employee centred. HRM concepts such as high commitment management (HCM) and high performance work systems (HPWS) are also, in theory, designed to allow employee involvement and increase employee satisfaction whilst also improving organisations‟ performance (Legge, 2005).
We can see a perfect adaption of Guest theory with the Harrods. Harrods treat the employees of the company as an asset and by using the individual force of the company; they want to make a overall workforce. As Guest indicates the approach will focus the high performance rather than compliance, so Harrods try to
The success of many large organisations exceedingly depend on their employees. How organisations hire new employees, are pushed harshly or gently to complete tasks or responsibilities, how they are rewarded and the flexibility that organisations allow all have an impact on the organisation. The aim of this report is to investigate human resources management at Harrods whereas also making recommendations of new practises that can be used to form the best of employees. A brief explanation on two theory approaches and their effectivity to Harrods
Human Resource Management is the term used in the organizations for the formal system of
Guest’s theory(1989) of HRM(further explanation in appendix 1.2) is an expression of this approach, which is known to be a prescriptive model based on four HR policy: Strategy integration, commitment, flexibility and quality, to generate the desired organisational outcomes which are high job performance, problem solving, change, innovation and cost effectiveness; and low employee turnover, absence and grievances. However, the goals identified in this theory are unattainable without emphasis to factors in the environment that will help to shape human resource strategic choices. It also fails to recognise the different stakeholder interests that impact on employee behaviour and performance, resulting to high labour turnover, growing cultural sickness, low morale and disengaged
Human Resources Management (HRM) terms had widely replace personnel management (PM) as in the process of managing people in the organizations. What actually is human resources management? Well, it is said that human resources management is an organization’s most valuable asset. Organization thinks that human resources department plays a huge role in terms of staffing, training and assisting to manage people so that the employee and the organization are capable to maximize the resources in the organization. (McNamara, 1998). Besides, in the global business, human resources management had effectively replaced other management traditions like Industrial Relations (IR) and Personnel Management (PM) as a tool to reshape
HRM is an organization that undergoes the process of managing people in a structure and manner. It is also a process of making the efficient and effective use of human resource so that the goals are achieve. Superior human resources are an important source of competitive advantage. And any factors that allow an organization to characterize its product or service from competitors to increase the market share are called competitive advantage. Competitive advantages can best be achieved by seeking improvement in the managing people, through better utilization of HRM. And also by translating strategy into HR policy and practice to produce the employee competencies and behavior that the company requires.
The goal of HRM is to guarantee that employees of an organization are utilized in a way that the employer acquires the best conceivable advantage from their capacities, and the employees
Posh Nosh is an up market organization, which offers take away, catering services and eat-ins in the UK already having a chain of 10 outlets around London as per the Case. Human resource management (HRM) and personnel management both related to managing human factor in the organization. However one needs to understand the difference between two. Today, HR manager plays an important role not only in staffing but in shaping and managing human resource with participating in the business strategy. However, according to a way of thought by some experts, HRM is nothing more than a renovation of progressive personnel management. This is because they emphasize on the fact that most of the firms in the UK have cost centric strategies till date (Bratton & Gold, 2012). Therefore the role of HRM, difference between HRM and personnel management
Human resource is one of the important factors to be utilised for achieving organisational goals. Human Resource management (HRM) is a premeditated methodology to manage the human resource of the organization with the help of functions like recruitment, training and development, utilizing and retaining this asset etc. (Simons, 2011). The nature of workforce in every organization demographically and psychologically vary. Therefore, every organization has its own tailor made HRM policy and the procedures.