HUMAN RESOURCE MODEL EFFECT ON ORGANIZATION
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HUMAN RESOURCE MODEL EFFECT ON ORGANIZATION

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Abstract: The study is undertaken to assess the major features of the diversified human
resource management (HRM) models comprising diagnostic approach, training and
development approach and international models and focus in the practical implementation
on organizational effectiveness. The study follows mainly textual information to arrive at
specific conclusion. Of the 3 Models in HRM, the international Human Resource
Management model has the highest coverage in global perspective due to international growth
strategies, degree of decentralization, firm’s size and need for expatriate compensation etc.
Keywords: HRM, Training and development, and International HRM.
The Cost and Management
Vol. 33 No. 4
July–August 2005, pp. 56-62
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and other feed back. Appraisal is important in the sense that unless it is proper, job
performance can’t be properly diagnosed. Common appraisal methods are objective measures
of performance and behaviorally anchored rating scale. The earlier one follows actual output,
scrap rate, value of sales etc. Special performance test is made in standard conditions.
Judgmental methods follow ranking and rating techniques for measuring performance. The
behaviorally anchored rating scale (BARS) provides performance dimensions and fixes
anchors viz. behavior of each performance.
Objectives
The main objective of the study is to make a comparative analysis of the major characteristics
of the different human resource management models like diagnostic approach, training and
developments approach and international HRM models and assess their impact on
organizational effectiveness.
Methodology
The study is theoretical in nature based on extensive desk study followed by wide review of
relevant research studies done earlier and textual knowledge available in different books
and journals.
The following analyses have been done:
a) Nature of human resource management activities
b) Detailed phases of diagnostic approach of HRM comprising human resource conditions,
HR objectives, HR activities and evaluation of results.
c) Basic features of training and development approach consisting of nine major areas.
d) Fundamental characteristics of international HRM model covering six major aspects.
e) Attributes of HRM models prescribed by Morgan.
f) Factors favoring successful implementation of the different HRM models in global
perspectives.
Literature Review
Ali Ahsan published the article on “Use of Markovain Assumption and Efficiency Scale in
Human Resource Valuation Model” (Ahsan, 1997). The practice of giving value to Human
Resource is not new. The concept can be traced back to the early days of slavery. But with the
abolition of slavery the practice of valuing Human Resources have been discontinued.
Recently, behavioral scientist and financial specialists have questioned the accounting practice
of not including value of Human Resource. It is one of the most important resources of an
organization and the future of an organization depends to a large extent on systematic
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Models of Human Resource Management
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development of such resources. With the view in mind, many Human Resource valuation
models have developed to give value to Human Resources of an organization. The author
proposes a new Human Resource valuation model to overcome the shortcomings of the
previous models.
AFM Abdul Moyeen and Afreen Huque authored the article on “Human Resource
Management Practices in Business Enterprises in Bangladesh”(Moyeen and Haq, 2001). This
paper explores the human resource management practices in medium and large business
enterprises in Bangladesh. Using data from 92 organizations, this study indicates that business
enterprises adopt training programs for their employees, a performance appraisal system
and a system of rewarding good employees, a policy of job sharing as well as a health and
safety plan. The study also examines whether the presence of such practices are related to
the firms’ characteristics. The study finds a positive relationship between a number of HRM
practices, size of firms and union status. The findings of this study have some important
implications for business managers, the educators and researchers of HRM.
Mohammad Mohiuddin and Monowar Hossain Mahmud made an important study entitled
“Personnel to Human Resource Management: A Developmental Perspective Analysis”
(Mohiuddin and Mahmud 2001). This paper reveals that human resource management is
sometime thought of as an extended form of personnel management. This is not true. The
present paper is an attempt to illustrate the development of HRM as a new dimension as
well as a paradigm shift in people management in the organizational context. It has focused
on the relevant literature and the dimensional difference among various approaches. This
paper will help us to understand the nature and characteristics of the new approach in dealing
with human elements of the organization. It will also be useful in designing the competent
Human Resource strategies to combat the present day complexities of Human Resource
Management and to gain competitive advantages in the world of technological uniformity.
Sajid A. Kuraishi made a study on “Human Resource Management: Emerging Trends and
Policies” (Kuraishi, 1990). In his article, he said that innovations in the management of human
resources have been taking place over the past decade. These innovations and changes are
part of a general shift that will have a great impact on the role and skills and capabilities of
the human resources manager.. Yesterday’s personnel department has become today’s Human
Resources Management. HRM now treats seriously the issues of how to attract, develop and
motivate people and how to utilize them effectively.
Md. Hasibur Rashid and Md. Kismatul Ahsan, in his paper on “Privacy in Personnel
Management in America: An Ethical Consideration” (Rashid and Ahsan, 1997). This paper
argues that ethics can play vital role in reducing the attitudinal differences between the
personnel manager and employees on the issue of maintaining privacy of employee
information. The importance of ethics in personnel management has received inadequate
attention in the previous research. The need for employee information for decision making
and its disclosures within and outside the organization are examined. On the basis of ethics,
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personnel manager’s behavior is classified as ethical and unethical. The privacy act of USA,
technological development, and absence of appropriate legal framework has put the personnel
manager in a paradoxical situation. On the basis of the secondary data and its analysis, this
paper concludes that personnel manager should give importance to the ethical side of
disclosure of employee information whether that is within or outside the organization and
try to avoid unethical side of disclosure of personal information. Possible future researches
on privacy in personnel management are suggested.
From the above literature reviewed it is clear that HRM has immense role in developing
organizational effectiveness, but no such study has yet been conducted. Keeping this in
mind the study is planned to have an in depth analysis of HRM models.
Major Characteristics
Human Resource Management is a series of decisions that affect the relationship between
employees and employers; it affects many constituencies and is intended to influence the
effectiveness of employees and employers. Organizational efficiency and equity are the major
goals of such efforts. Changing condition expectations of the society technology and
employees’ interest, affect the decision-making. Managing the dynamic process makes the
Human Resource decisions more important and challenging.
Diagnostic approach
Diagnostic approach to HRM have four phases like: Assess Human Resource Conditions,
Set Human Resource Objectives, Choose and Apply Human Resource Activities and
Evaluation of Results.
Human Resource conditions
Human Resource conditions comprise external conditions, Organizational conditions &
employee conditions.
External conditions
External conditions cover economic conditions, govt. regulations and union expectations.
Economic conditions are employment rates, nature of inflation affect the behavior of the
human resources showing reluctance to leave job, demand for overtime etc. Govt. regulation
like pension and benefit regulations, health and safety guidelines and immigration provisions
etc. affect the Human Resource decisions. The existence or unions prevents the flexibility in
designing Human Resource Programs. Union strategies and their negotiation have greater
impact on external conditions.
Organization Conditions
This comprises mainly the internal environment like nature of the organization, nature of
the work and employee conditions.
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Nature of the organization includes strategies and objectives, financial situation, technology
and culture etc. Financial, material and human resources are organized with strategic
directions. The work to be performed influences the skill and required training, the
compensation and rewards available and manner of job designing.
Employee Conditions
Experience, wage, performance lavels i.e. demographics are important. Younger people
consider pensions in different ways. Experienced work force prefers less turnover rates.
Human Resource Objectives
Integrating of efficiency and equity is highly relevant in this context.
Efficiency
Human Resource efficiency follows market share return on investment and quality of
public service influenced by job performance, unit labors cost, attendance, employee
separations etc.
Equity
The decisions about Human Resources involve both process and context. The process refers
to how decisions get made and includes human resource conditions, setting objectives,
choosing and applying programs and reviewing the available results. The diagnostic model
develops an interesting framework blending the content in technical knowledge in the field
with the process. The major characteristics of the model are conditions in the external
environment, the organization, the nature of the work and that of employees affect human
resource decisions and then effectiveness in achieving objectives.
Human Resource Activities
HRM activities include planning, staffing, development employee union relations,
compensation etc. Planning establishes the links between the organization’s overall strategies
and its human resource strategies. Staffing activities determine the composition of an
organization’s human resources. Development activities aim to help employees learn new
skills or refine existing skills. Employee relations’ activities promote harmonious relationships
among managers and employees.
Evaluation of Results
Actually evaluation of results determines the effects of Human Resource activities. Manager
evaluates ethically by comparing performance ratings or absenteeism rates. To evaluate
employee’s perceptions of equity, managers may examine responses to satisfaction.
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Training and Development Approach
American Society for Training and Development prescribes a model comprising following
nine major areas of HRM. Training and development, organization and development,
organizational job design, human resource planning, selection and staffing, personnel research
and information systems, compensation benefits, employee assistance, union relations etc.
The major outputs of human resource areas are quality work life, productivity and readiness
for change. This model focuses the major activities grouped into acquisition development,
motivation and maintenance. Acquisition covers resource planning, recruiting - internal,
external and employee specialization. Development consists of employee training,
management development and career development. Motivation follows job design,
performance evaluation, rewards, job evaluation, compensation benefits and decipline.
Maintenance emphasizes safety and health, employee relations’ etc. The external influences
are govt. regulation labor union management practices and equal employment opportunity.
International HRM Model
Peter J. Dowling and others prescribe that International HRM refers to those activities
undertaken by an organization to utilize its human resources effectively. These activities
refer to the following aspects:
(a) HR planning
(b) Staffing
(c) Performance management
(d) Training and development
(e) Compensation and benefits
(f) Labor relations.
Morgan presents a model of international HRM having three basic activities like procurement,
allocation and utilization. These three activities are scattered over in host, home and other
countries. HRM is the interplay among these three dimensions - human resource activities,
types of employees and countries of operation. International HRM involves the same activities
as domestic HRM (e.g. procurement refers to HR planning and staffing). Domestic HRM is
involved with employees within only one national boundary. Practically the complexities of
operating in different countries and employing different national categories of workers is a
key variable that distinguishes between the two approaches.
Dowling states that complexities of International HRM are related to more HR activities, the
need for a broader perspective, more involvement in employees’ personal lives, change in
emphasis as the work force mix of expatriates and locals differs, risk exposure and more
impact of external influences.
Conclusion and Recommendation
HRM process is a continuous process. Due to inter relatedness of all the Human Resource
functions, more specificity is important. Right number of people insight places in right time
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Models of Human Resource Management
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made available through HRM is required to achieve the objectives. Job analysis selection process
adapted to the organization’s culture and working environment are more helpful for the
purpose, with the organizations change over time there must be good matching of individual
abilities with organizational needs for the future. Employee training and management
development are duly emphasized for the same purpose. Effective performance depends on
extrinsic term like, Job design working condition, job security and satisfactory supervision
and intrinsic factors of achievement, recognition responsibility from the work etc.
While using the different models of HRM in international prospective it is clear that the
cultural environment, the nature of the multinational industry, the extent of reliance of the
MNCs (multinational companies) on its home country, domestic market and the attitudes of
senior management play a significant role in minimizing the human resource activities
between domestic and international perspectives. A global perspective in MNCs, degree of
centralization or decentralization, limited resources, nature of operations, firm’s size,
professionals with international experience, need for expatriate compensation and
international growth strategies etc. have also severe impact on the successful implementation
of any of the models of HRM as detailed earlier. Practically HRM output is the central point
in selecting the feasible model applicable in the environmental context.
Nowadays in competitive global context, introduction of MBO (Management by Objective),
Management by Exception, Human Resource Development activities through proper
recruitment, selection, training and motivation would facilitate the increasing productivity
of the available human resources. All these might be facilitated through application of different
human resource models in the context of the environmental strength, opportunity, threat
and weakness of the concerned business.

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