MBA (Full Time)

YEAR 1 SEMESTER 1 (10/11)

MODULE: HR0469.
STUDET: !100"#$94.
DATE: 10
%&
January 2011.
Beardwell and Claydon (2010, p.4) have defined Human Resources ana!emen" (HR) as a
collec"ion of policies which are used "o or!anise wor# in "he rela"ionship of an employee wi"h
"he or!anisa"ion and also has "o mana!e "he people who "a#e on "he wor#. $hey have also
said "ha" HR deals wi"h recrui"men", selec"ion, learnin! and developmen", rewards,
communica"ion, "eamwor# and even performance mana!emen". %n "oday&s compe"i"ive world
where "here is in"ense compe"i"ion amon! various or!anisa"ions i" is impor"an" for any
or!anisa"ion "o selec" "he ri!h" #ind of people who can ad'us" "o various cul"ures and also "o
have ri!h" #ind of a""i"ude "owards "he wor#. (ccordin! "o Carroll (1))*) a new prac"ical
approach "ha" has led "he HR "o form a +rid!e +e"ween s"ra"e!ic and or!anisa"ional
performance which will "ransfer i"self from old "radi"ional HR policies and which will
focus more on micro level issues, "ha" are rela"ed "o an employee has !iven rise "o ,"ra"e!ic
Human Resource ana!emen" (,HR). $hey have fur"her s"a"ed "he charac"eris"ics of
,HR as a lon! "erm vision, a lin# +e"ween HR and s"ra"e!y process and "he role played
+y +o"h "he line mana!ers and "he HR professionals "o ma#e HR more s"ra"e!ic. $he
prime concern of HR is no" only mana!in! people +u" crea"in! an environmen" where
employees can wor# freely. (s people have differen" mindse"s "owards various wor# assi!ned
"owards "hem. ,HR is +ased upon "he idea "ha" all "he impor"an" or!ani-a"ional a+ili"ies or
ac"ivi"ies done are necessary for a par"icular +usiness s"ra"e!y Ca+rera (200.). $hen main aim
of ,HR is "o produce employees "ha" are s#illed, commi""ed and well mo"iva"ed which will
help "he or!anisa"ion "o achieve "heir compe"i"ive advan"a!es in "he mar#e" (rms"ron!, Baron
(2002, p.42). $he impor"ance of HR +ein! s"ra"e!ic which !ives mana!ers from various
depar"men"s "o develop a common s"ra"e!ic plan ($yson 1))* , ci"ed in /rancis 200.). %f
HR is s"ra"e!ic in na"ure i" will properly synchronised all individual HR fac"ors and
pu""in! "hem in"o prac"ise will have a direc" influence on an employee&s a""i"ude and also on
his +ehaviour which will help "he or!anisa"ion "o achieve i"s !oal 0an! (2001). $reen (2000)
also s"a"ed "ha" ,HR is nei"her an op"ion nor a possi+ili"y +u" i" declares "he e2ac" pa"h in
e2ecu"ion of s"ra"e!ic plan which if ne!lec"ed may lose "he or!anisa"ion&s compe"i"ive
advan"a!e. %" is easy for any or!anisa"ion "o imi"a"e "he na"ural resources, various
"echnolo!ies and "he plans from o"her or!anisa"ions +u" "he +i!!es" advan"a!e "ha" HR has
"ha" is an invisi+le asse" which will help "he or!anisa"ion "o opera"e more s"ra"e!ically in any
wor#in! condi"ion Chan! and Huan! (200*).
$here can +e "wo consis"en" approaches "ha" could !o wi"h ,HR as su!!es"ed +y Redman
and 0il#inson (2003, p.12) "he firs" one su!!es"s "ha" ,HR should +e consis"en" wi"h
+usiness s"ra"e!y and i"s implemen"a"ion should also consider various HR fac"ors. $he second
approach is "ha" HR fac"ors should no" only +e considered in implemen"in! "he policy +u"
also influencin! which +usiness s"ra"e!y should +e used.%n "oday&s world HR is "ryin! "o +e
more s"ra"e!ic where i" focuses more on employee and also on mana!emen" of "he employees
which can now +e fur"her divided as ,of" HR and Hard HR. ,of" HR consis"s of
providin! sa"isfac"ion "o employees, mana!in! people, "rainin! and developmen",
empowermen" whereas Hard HR consis"s of providin! profi" "o "he or!anisa"ion, improvin!
"he curren" process and measurin! and s"eerin! "he performance of an employee /ar4uharson
(2002). ,"orey (2005, p.11) descri+es "he sof" HR model as mainly dealin! in providin!
"rainin! "o "he employees, chan!in! "heir a""i"ude which leads "o commi"men" of an employee
"o an or!anisa"ion whereas a Hard HR model deals more in"o +usiness focus s"ra"e!y and
also i" follows a ra"ionale approach "o mana!e "he employees. 6ran" (1)))) suppor"s "ha" sof"
model also consis"s of employee&s +ein! mo"iva"ed, sa"isfied and commi""ed whereas "he hard
model reflec"s "o "he s"ra"e!y and o+'ec"ives of "he or!anisa"ion. %" is now lef" for an
employee on how "o loo# a" +o"h "he models as every individual has differen" ways a" loo#in!
"hin!s. 7r!anisa"ions will mos" cer"ainly pu" a !rea"er impor"ance on havin! a close
rela"ionship wi"h employees in ,of" HR as compared "o Hard HR.
,evara'h (2003) descri+es "ha" for HR "o +e more effec"ive i" should chan!e i"s policies as
"he company !oes "hrou!h "he developmen" s"a!e (rms"ron! (2001, p.1.0) s"a"es "ha" chan!e
is "he cons"an" "hin! "ha" happens in any or!anisa"ion. %n "oday&s world where "hin!s are
chan!in! rapidly in "he or!anisa"ion i" is necessary "o adap" "o "hose chan!es. $his led "o "he
forma"ion of a differen" depar"men" for HR over personnel mana!emen". 8ersonnel
mana!emen" (8) deals mainly in"e!ra"in! various employees in order "o wor# "owards "he
or!anisa"ions !oal +y also #eepin! in mind "heir na"ure of wor# and "he specific
charac"eris"ics possessed +y "hem and also "he a"mosphere of "he or!anisa"ion for which "hey
are wor#in! for Russo (1))5). 9ue "o "echnolo!ical chan!e "here was shif" +e"ween "he
mana!ers "hin#in! process "hey were now more concerned "owards human resources as "hey
were aware of "hrou!h rapid chan!es "ha" were happenin! around. $his indica"ed "o a close
rela"ionship +e"ween mana!ers and "heir employees as a resul" personal mana!emen" was no
lon!er wor#a+le. $he indus"ries "ha" had compe"i"ive advan"a!e was due "o human resources
which led "o mana!e more ac"ively and s"ra"e!ically "ha" led "he or!anisa"ion "o +e more
successful Henderson (2001 , p.1). Ba#er (1)))) also su!!es"ed "ha" ini"ially employees were
no" "rea"ed as a resource durin! "he personal mana!emen" period +u" la"er due "o developmen"
of HR i" led "o uni4ue approach in mana!in! employees. :e!!e (1))*, p.54) differen"ia"es 8
and HR s"a"in! "ha" in 8 all mana!ers mana!e "heir "eam whereas in HR, i" is concen"ra"ed
more on +usiness mana!ers "ha" are responsi+le for co ordina"ion +e"ween various resources and
direc"in! in order "o achieve "he desired !oal of "he or!anisa"ion.(9avid 6ues" model, ci"ed in
Bra"on and 6old 2005, p.24 ) clearly differen"ia"es HR from 8 in sui" such a way "ha"
HR is more s"ra"e!ic where i" focuses more on commi"men" of an employee "owards an
or!anisa"ional !oal. %" is more uni"ary wi"h i"s focus on an individual. %" resul"s in employee&s
performance and also ma2imum u"ili-a"ion of resources. HR is mos"ly concen"ra"ed on
mana!in! human capi"al such as recrui"men", selec"ion, placemen" and re"en"ion which leads
"o compe"i"ive advan"a!e ,nell 200)). $he final !oal of any HR e2ecu"ive is "o crea"e a value
in an employee "hrou!h HR func"ion Bo2all (1))3). %f HR is s"ra"e!ic i" will lead a company
"o !ain i"s compe"i"ive advan"a!e. Beer (1))5) have s"a"ed "ha" !lo+ali-a"ion, and con"inuous
chan!es happenin! in mar#e"s and "echnolo!y are "he main reasons "ha" has lead "o
"ransformin! of "radi"ional Human resources and res"ric"in! "hem accordin! "o "he la"es"
s"andards. (s HR does no" suppor" "rade unions i" considers every individual as an impor"an"
asse". %f "he HR func"ions and "heir wor#in! na"ure are uni"ed wi"h "he s"ra"e!ic !oals of "he
or!anisa"ion i" will lead "o an increase in "heir s"a"us ,chuler (1)15). 8 has a shor" life span
whereas HR has a lon! "ime span. HR is mainly concen"ra"ed on mana!emen"; employee
rela"ionship and 8 is more focus on mana!emen" and "rade unions rela"ionship. $he main
o+'ec"ive of HR is !ainin! commi"men" from employees, encoura!in! every employee "o
+e self disciplined and also ma#in! him an ini"ia"or ,isson (1)).,p..1). 9aniel (2003) also
defines more role for HR where he +elieves "ha" HR is no" only responsi+le for #eepin!
privacy a+ou" all i"s employees financial and heal"h informa"ion in addi"ion "o i" has "o #eep
an eye on "he insider informa"ion "ha" will !ive "he company a compe"i"ive advan"a!e.
$he mos" impor"an" "hin! for a HR "eam is "o crea"e a ri!h" #ind of cul"ure where employees
can wor# freely and also wi"h "he ri!h" #ind of an a""i"ude. (lso i" is impor"an" "ha" "he
employees have a vision "owards "he or!anisa"ion&s !oal. $his has +een suppor"ed +y Bill and
,hannon (200.) s"a"in! "ha" in hi!h performin! or!anisa"ions effec"ive HR prac"ises are
carried ou" +y line mana!ers wi"h "he help of HR depar"men" "ha" provides "ools, !uidance
and counsellin! which lead "o +e successful. HR is "he downs"ream of a s"ra"e!ic ac"ivi"y.
,nape et al. (1))*) ar!ues "ha" HR !oals are no" sui"e for all +usiness s"ra"e!ies +u" "hey
sui" more "o +usiness o+'ec"ives "ha" are more compe"i"ive in na"ure due "o "he hi!h amoun" of
difference. (s differen" +usiness s"ra"e!ies re4uires differen" way "o approach "owards "hin!s.
(s HR is uni"ary i" is achieved +y implemen"in! various sys"ems and #eepin! in mind "he
same ou"loo# +e"ween mana!ers and wor#ers 6eare, <d!ar and c(ndrew (2003) which
even"ually leads "he en"ire wor#force "o "hin# in "he same direc"ion and also "o have a
sys"ema"ic approach "owards "he assi!ned "as#. HR and $= are in"e!ra"ed wi"h each
o"her which resul"s HR "o +e more s"ra"e!ic "ha" leads HR "o +e more effec"ive and also
resul"s "o u"ili-a"ion of human resources ,immons, ,hadur and 8res"on (1))*). $he mos"
efficien" way for HR "o !ain s"ra"e!ic impor"ance is "hrou!h inves"in! more in human
capi"al mana!emen" which curren"ly seems "o +e far away >im+er (200.).HR prac"ices are
no" implemen"ed +y a sin!le decision ma#er "hey are implemen"ed +y "a#in! a mana!erial
poin" of view in mind /erray (200)). (f"er "rainin! provided "o "he employees "he employees
have "o 'oin "he depar"men" for which "hey have +een "rained and only mana!ers can #now
wha" #ind of "rainin! should +e provided so "ha" "he employee can +es" sui" "he or!anisa"ion.
(ccordin! "o c!uire, ,"oner and ylona (2001) devolvin! is an impor"an" aspec" for HR
"o +e more s"ra"e!ic. 9ue "o devolvin! : can en!a!e "hemselves more in"o mana!emen" of
people and also "heir decision ma#in! process whereas HR can wor# on s"reamlinin! "he
or!anisa"ions processes. ?%n many or!anisa"ions "he mos" si!nifican" involvemen" of line
mana!ers in "he HR9 process over "he years has +een "hrou!h a s"aff performance and
8o"en"ial Review process@ 0al"on (1))), p.1)1). : play a very impor"an" role in "he s"ar"
of any process and i" has impac" on "he employees e2perience as well +ecause :&s are
"heir immedia"e poin" of con"ac" Redman and 0i#inson (200), p.40). %f : have a proper
a""i"ude and also "he ri!h" #ind of +ehaviour "hey can indul!e "hemselves in"o HR
ac"ivi"ies and also in"e!ra"e wi"h "hem (6ues", 1)15, ci"ed in 6ra""on, 1))), p.1..) . Renwic#
(200.) +elieves "ha" if : involve "hemselves in"o HR acivi"ies i" raises a cer"ain dou+" in"o
an employee&s mind on whe"her "he : is concerned a+ou" "hem which mi!h" also lead "o
HR losin! i"s mo"ive. : and HR are "wo sides of "he same coin Bondarou#, :ooise and
:empsin# (200) ) s"a"es "ha" if : and HR wor# "o!e"her in considera"ion wi"h each o"her
i" will help HR "o perform much +e""er and will also lead "o much +e""er implemen"a"ion of
HR ac"ivi"ies. (s every or!anisa"ion has a differen" wor# cul"ure i" depends upon on every
: have "o deal wi"h "heir "eam mem+ers and use "hem efficien"ly if an employee is lac#in!
somewhere his : can wor# wi"h his HR "eam so in order "ha" he can +e produc"ive "owards
"he or!anisa"ion. cConville (2003 ) sa"es "ha" if any chan!e is "o happen such as selec"ion,
appraisal, reward and developmen" which are rela"ed "o HR ac"ivi"ies has "o +e done wi"h "he
considera"ion of : as "hey are "he ones "ha" will #now much +e""er a+ou" "heir "eam
mem+er. %f "here is no suppor" from HR specialis" i" has lead poor decision ma#in! process
on +ehalf of : "ha" has affec"ed rela"ionship +e"ween : and employees Cunnin!ham and
Hyman (1))*).
8urcell and Hu"chinson (2005) commen" "ha" "he policies implemen"ed +y HR may have an
effec" +u" as mos" employees rely on "heir : due "o "heir rela"ionship +e"ween "hem and "his
may also reflec" in "heir wor#in! environmen". 0hen a employee is +ein! recrui"ed in"o "he
or!anisa"ion and !one "hrou!h "he "rainin! process he wor#s in a "eam which is +ein! lead +y
"he : so his firs" rela"ion inside "he or!anisa"ion is wi"h : so which direc"ly or indirec"ly
influences employee and also "he wor# cul"ure around him. ( research done +y (0hi""a#er
and archin!"on , ci"ed in Conway, <del(200.) in one of "he A> company s"a"ed "ha" if
HR and : has "o wor# "o!e"her "hen HR mi!h" have less num+er of HR specialis"s in
"heir "eam which mi!h" lead "o a s"ra"e!ic disadvan"a!e "o "he or!anisa"ion as "he : has no"
only "o loo# af"er "he "as# assi!ned "o "hem +u" also "o mana!e people. 9evolvin! is no" a
pro+lema"ic process +u" "here mi!h" +e a difference of opinion of : dependin! upon "heir
hierarchy and which mi!h" have an effec" in "he wor#in! cul"ure Hera"y and orley (1))*).
%f devolvin! of HR has "o succeed "hen : should +e properly "rained in all "he HR
ac"ivi"ies. %f : implemen" HR policies i" will have an effec" on employees as "he employees
+ecomes more mo"iva"ed and "his will cer"ainly lead him "o +e more commi""ed "owards "he
or!anisa"ion and will also help him "o perform +e""er in "he or!anisa"ion. (6ennard and >elly
1))5, ci"ed , ,heehan 200*) su!!es" "ha" if HR and : wor# "o!e"her "hey can +enefi" "he
or!anisa"ion as "heir final mo"ive is "o solve "he +usiness issues "ha" have arisen in "he
or!anisa"ion. Bu" ,heehan (200*) has a differen" view he ar!ues "ha" HR mana!ers mi!h" no"
unders"and "he +usiness s"ra"e!y which mi!h" no" lead "o "he or!anisa"ional !oal and : may
no" accep" "o "a#e decisions which are "a#en +y HR. $yson (1))5, p..5) indica"ed "ha" :
will +e more involved in framin! "he HR s"ra"e!ic, policies and also i"s implemen"a"ion +u" i"
mi!h" involve "hem less in "o adminis"ra"ive de"ails of HR. %n every or!anisa"ion "he mos"
impor"an" "hin! is "o achieve "he "ar!e" and i" can +e !ained if : are properly framed wi"h
HR. %f : com+ines "he rela"ion +e"ween HR in"e!ra"ion and or!anisa"ional performance i"
will !ive posi"ive resul"s "o "he company +ecause all "he decisions are "a#en +y "he : +y
consul"in! HR specialis"s 9any, 6uedri and Ha"" (2001). : have "o apply sof" and hard
models of HR +u" more sof" models as "hey s"ress more on commi"men" of an employee.
$his is impor"an" +ecause "he more amoun" of "ime an employee is re"ained in "he company i"
will cer"ainly !ive him a holis"ic view of an or!anisa"ion. $he advan"a!e of devolvin! of
HR "o : is if "here is a difficul" issue and "he "op mana!emen" are findin! i" difficul" "o
solve "hen "he : can solve i" as "hey are more prone "o local pro+lems. %" would also help
"he personnel specialis"s "o perform more s"ra"e!ically. %" would help "o improve "he wor#in!
s"yle of :&s and also ma#e "he or!anisa"ion more effec"ive. %" will help "o +uild "he fu"ure
!enera"ion of mana!ers as devolvin! will cer"ainly increase "heir decision ma#in! capaci"y
Harris, 9ou!h"y and >ir# (2002).
%" can +e concluded "ha" due "o increasin! compe"i"ion in "he world i" is necessary for : "o
unders"and "he impor"ance of HR as i" is more rela"ed "o an employee&s re"en"ion where +es"
people "ha" are +eneficial "o "he or!anisa"ion are "o +e re"ained. %" can +e achieved if HR
+ecomes more s"ra"e!ic. Considerin! curren" si"ua"ions i" is impor"an" "o have "he +es" people
in "he or!anisa"ion in order "o !ain compe"i"ive advan"a!e over "he compe"i"ors. $his is "he
difference +e"ween company "ha" is performin! +e""er and "he company "ha" is no" achievin!
"heir desired !oal. (s HR is "he only "hin! "ha" varies from or!anisa"ion "o or!anisa"ion and
canno" +e imi"a"ed +y any one. %" is "he mos" impor"an" "ool "ha" will decide "he company&s
success. $he or!anisa"ion should concen"ra"e more on HR fac"ors li#e commi"men" from
employees, "rainin!, developmen", rewards, processes "ha" will help "he +es" people "o +e
re"ained, as "hese fac"ors are mos" cer"ainly re4uired +y an or!anisa"ion in "he fas" movin!
world. Based on "he resources a+ove i" is s"ill no" clear wha" roles should +e defined for HR
and : +u" "hese "hin!s are difficul" "o implemen" in "he or!anisa"ion. $hese "hin!s are !ood
in "heory +u" "ou!h "o implemen" i" prac"ically. %f we loo# from a "heore"ical poin" of view i"
is !ood "o have a : doin! HR ac"ivi"ies +u" : are involved in HR roles such as selec"ion,
"rainin!, developmen" , commi"men" and re"en"ion +ecause every employee spends more "ime
wi"h his : and even : can +e""er unders"and "heir needs. $he HR specialis"s should also
#now a+ou" "he +usiness s"ra"e!ies and also "heir mission if "hey have "o wor# wi"h :. %" is
"ou!h "o have a uni4ue HR policies as differen" or!anisa"ions have a differen" cul"ure and
also "he wor#in! environmen" is differen" i" now depends on HR "o wor# "o!e"her wi"h :
and develop new se" of rules "ha" will help "he or!anisa"ion "o perform much +e""er in various
cul"ures.
ReferencesB