Approaches to Value and Contribution in Human Resources
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HR aims to guarantee that an organisation employs those that they believe are skilled, motivated and committed to achieving the sustainable competitive advantage that is needed for a business. There are a few strategic areas that need developing by HR to ensure that a company meets its objectives. The first area is the emphasises on investing in employees; organisations need to ensure that these individuals can generate an added significance within the company. By achieving a strategic fit between opportunities and resourcing, it can deploy the resources that can bring added value to the organisation.
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This report aims to evaluate the approaches that the level of high-performance management takes onboard, whereby development looks at the area of quality, customer service, productivity, profitability and growth through the skills and enthusiasm of the organisation’s employees. Another model that will be looked at is the one-off high-commitment, where there can be a decrease in the layers of management but an increase in what is seen as the flexibility in the job description. This path can lead to employees showing the case of self-regulated behaviour, whereby performance is looked at the belief within teamwork and ensuring of circulating information. Another model that will be looked at is the high-level involvement approach that sees the engagement of employees viewed as partners within the organisation. The aim is to create a shared understanding of what it takes to achieve and manage people to ensure that they perform (Armstrong 2006).
P1. Evaluate the importance of organisational design theory in the context of organisational structure and fulfilling organisational strategy, using specific organisational examples
Kaleidoscope Change Model
The Kaleidoscope model looks at the changes within the different level of management and discusses the routing means that is needed to manage the renovation of the business, like technology through their aims and processes. According to Buchanan et al. 2013, it was confirmed that the most efficient modification model which is used by organisations such as the likes of Liquid Telecom is the kaleidoscope change model. This model presents the business world and brings in the different vital changes that can occur.
Diagram: Kaleidoscope Change Model Source: Galig (2011)
The kaleidoscope change model is known to have an outer ring which highlights the different change settings that can occur within a business; the inner circle is seen as the alter specialist menu and the starting point to any changes. The context base highlights the knowledge method and the specific complete change settings. For this model, an example will be used from Liquid Telecom, which will show how the business applies this model across the board. For the company, choosing this model links it to their design principally path which is based on the starting point, styles, goals setting, levers, and role process (David and Buchanan, 2013).
In Liquid Telecom, it is seen that to implement changes within the business there is a certain level of power that is required, the level of care is essential in understanding changes in activity (Buchanan et al., 2013). The amount of time that is needed for change must be determined to ensure that the organisation can conduct its aims and objections (David and Buchanan, 2013). In Liquid Telecom, the scope is essential to see the need for change that will lead to opportunities and trade (David and Buchanan, 2013). Liquid Telecom uses support to mention the need to control necessary resources, property, culture and practice through the changing of times. It means the difference that can occur between employees and their performances; this change can also reflect the skill set of the leader and how they deal with the changes in power. Capacity is accessible for the business to bring about changes in business resources, for example, time, human resources and financing (Galgun, 2015). The planned changes in preparation have revealed the encouragement and business preparation of workers (David and Buchanan, 2013).
McKinsey’s seven framework
It is generally known that the McKinsey’s 7s model can be separated into two different categories; in one hand it is seen as a substantial component and in the other side as a soft component (Johnson et al., 2015). The hard element factors are seen as the techniques, structures and systems of the business. Whereas the soft material will be based on the sharing of values, skills, style and staff. It can be considered that the key benefits of this model for Liquid Telecom for its business to gain an advantage in their industry is:
- The conduct of an organisation to perform.
- The reorganisation of institutional change.
- How good the implementations of the system of measures close.
- Examine the effect of a particular change in the impact of an organism.
Diagram: McKinsey’s 7S Model Source: free-management-ebooks.com. (2019)
- Strategy – The competition of Liquid Telecom has been designed to develop and continue the competitive advantage within the business. The approach in place within the company helps ensure that there is an understanding of the long-term challenges that be an advantage, strengthening the perspectives of the values and missions of the organisations. To ensure that there is a sense of effective strategy throughout the business, the company should develop their shared values of skilled, experienced employees, the business system, the structure of the organisations and lastly the effectiveness of the leadership strategies. (Johnson et al., 2015).
- Structure – This strategy will involve the planning of each business department and will look closely at who will lead each departmental team. It is essential that a company like Liquid Telecom has an organisational chart that is available so that it can allow for the straightforward change of any structure and provide an effective development plan within the business. The key to business success in this area will be to make sure that they hire people with appropriate management and leadership skills that will match the business strategy. Liquid Telecom will also need to grow its approach based on its system so that it can gain shared values (Johnson et al., 2015).
- Systems – Liquid Telecom uses the operations of method and actions to show the regularity of the events and selections made within the business. Orders that are set up, are the procedures that are intended to work harder to complete the industry, and this will be the critical focus to guide organisers.
- For Liquid Telecom to develop effective systems, there will be a need for employee people at management level with the appropriate management and leadership styles required in the organisations. Effective business systems are an essential factor when developing the strategy and structure of the business that will eventually ultimately provide shared values (Johnson et al., 2015).
- Shared values – For Liquid Telecom, the focus within their take on the McKinsey’s 7s model is the organisations shared values. The emphasis on the company’s shared value is generated towards honouring their employees, ensuring to devote themselves to the environment and to continually work towards the efforts to remove waste that is produced by the business. To achieve the shared values of Liquid Telecom, they will be a need to introduce skilled and experienced staff who will have the proper management and leadership styles required to achieve the organisation's goals. Strategies are essential to gain shared values (Johnson et al., 2015).
- Skills – The effectiveness of Liquid Telecom staffing system has been done seamlessly; it is shown to have both a balance of competitiveness and power within the environment. It was noted that during the management's transformation, questions arose regarding the strength of the new structure and strategy transformation and if this would be efficient for the business. The skills of those that are employed by the company play an essential part in the development of the systems and strategies that determine the standards of the business (Johnson et al., 2015).
- Staff – The staffing section would look at the employees and refer to their overall competition within the business. Organisations should not only look at the advantages to staffing but the disadvantages, it could arise that there could be a concern in the staffing module and how this should be organised. A skilled workforce with effective management style is vital for the progression of the business structure & system and strategies shared (Johnson et al., 2015). This process will allow for the business to ensure that workers are organised efficiently, that they are educated, rejuvenated and fulfilled
- Style – The style method looks at organisations, such as Liquid Telecom, and their regulations through senior managers and their processes through the kind of practical actions that they intake and their original value. Suitable management styles are necessary for staffs to be able to gain the knowledge and skills that are needed to develop business strategies for creating shared values (Johnson et al., 2015).
The importance of organisational design theories in the context of the corporate structure
The organisational design theories have been classified, according to Mullins (2014), have been divided into three main theory organisation sections:
1. The classic
2. The non-classic
3. Moreover, modern
Amongst this general view, the classic approach is an essential context of the organisational structure. This theory viewpoint is that it considers the organisation as the machine and that employees are the elements to that machine. The conventional theory approach will look at the organisation, the goals & objectives of the business and make sure that they are reached. The classical theories are also measured at three crucial points:
a) The scientific managing approach which was established by F.W. Taylor; this concentrates on the tasks that are completed at operational stages.
b) The process & administrative managing approach developed by Henry Fayol looks at the principle and management occupations.
c) The bureaucratic model, which was developed by Max Weber, focuses on the bureaucracy method of rational organisation.
The non-classic organisational theory looks to supports the corporate formation; the non-classical method comprises of two principles:
a) the relations of humans
b) the science behind human behaviour
The relation bind the individual approach was founded by Elton Mayo and Roethlisberger; this methodology saw that there was a vital connection in the psychological and social influences that would determine the fulfilment and efficiency of staff. The behavioural theory was established by different experts, where the essential theorisers are V. Vroom, F. Herzberg, D. Mc. Gregor and A. Maslow.
Their tactics focused on interpersonal interactions, the inspiration of employees, individual ambitions, dynamics group, and guidance (Kashyap, 2017).
M1 Apply appropriate theories and concepts to critically evaluate the importance of organisational design, using specific corporate examples
At Liquid Telecom, the Kaleidoscope model of change has been utilised to evaluate the importance of their organisational structure.
- Design Choice: their design choices have been picked mainly based on the design directions, the point of start, style form, roles, aims and levers, (David and Buchanan, 2013).
- Power: The level of control within the business is essential in implementing the different changes across departments. The level of care and ability is crucial in bringing the changes in the industry (Buchanan et al., 2013).
- Time: It is essential that the company allocates the right amount of time for the overall change to occur within the business, this is highly needed as this will determine how the market will be conducted (David and Buchanan, 2013).
- Scope: The need for the range is a required essential to see the change of opportunities and trade that will indicate the business outcomes (David and Buchanan, 2013).
- Preservation: The business preservation, indicates the need to control the necessary resources, culture, property and practices through the changing times (Buchanan et al., 2013).
- Diversity: This theory looks at the changes between employees and how their behaviours are connected. With Liquid Telecom, this theory change will force people to attend an exact assembling; for example, management will have to be separated into collections. Changes in the support assembly can affect the diversity within the business and can lead to a reversal to the new changes (David and Buchanan, 2013).
- Capability: The capability theory looks at the changes that happen when dealing with the changes in power and how leaders utilise their skills during this period, these specific changes within Liquid Telecom can lead to a sense of acceptable administrative influence. Looking closely at the structure of Liquid Telecom, there seems to be an adequate sense of qualifications across the board, that can see and make the changes that are needed within and for the business. The inquiry into the capability change can lead to a cause for global change both as a negative and positive outcome. (Buchanan et al., 2013).
- Capacity: Capacity is a welcoming platform for Liquid Telecom as it brings a certain level of change in the field of time, human resources and financing (Galgun, 2015).
- Readiness: In Liquid Telecom, this proposed change in training has brought about encouragement and business preparation of their workforces. The variations adopted in the mixture by the management group was significant enough; but those who refused to bundle together were less responsible and hopeful (David and Buchanan, 2013).
P2 Analyse the different approaches and techniques used for attracting, maintaining, developing and rewarding human resources to create a skilled and dedicated workforce
The Motivational theories
Maslow Needs Theory
Motivation is the most critical factor for any kind of organisation such as Liquid Telecom, but like any business, there can be cases where members of staff can show a sense of domination. Within these occurrences, it is necessary that managers must demonstrate a level of control within their department; this factor will ensure that there is a sense of job satisfaction. Throughout this process, it is an essential factor that the management of human resource ought to guarantee that there is a sense of efficiency that will allow them to be able to motivate workers of the organisation. In today’s modern world, motivation plays a critical factor in the work environment; it can be said that there are numerous kinds of motivational theories. These theories are explained below:
Diagram: Maslow's Motivation Theory Source: Mullins (2015)
Maslow’s theory highlights the physiology order and the need for safety which workers look for at the beginning of each work process. From the Maslow structure, it can be seen that an individual first concern will be to ensure that a suitable salary will be able to accommodate their lifestyle. Their second concerns are the work environment - the physiological demands and the safety of the workplace. When exploring the theory of Marlow, it is often seen that the design structure is portrayed as a five-level pyramid. With the lowest and the highest points being depicted as being the necessity that an individual requires. The minimum fulfilment that individual requires is the need for food, accommodation, security, social-needs, self-satisfaction and self-gratitude.
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According to this theory, organisations such as Liquid Telecom should initially ensure that they can offer an attractive salary package that will meet the employee’s physiological needs. The organisations must guarantee that there is a level of safety and security in place that will enable a sense of safety for their employees. It would be essential for Liquid Telecom to develop a work culture that would allow for a taste of respect from each of its employees that would meet the needs of belonging within their employees. It is necessary for Liquid Telecom to look at their incentive system that is offered to employees, in many cases the sense of promotion often meets the esteem needs of employees as this is seen as a path of growth within the business. The final suggestion for Liquid Telecom is that they can offer individuals positions at senior management level who they believe have shown the required skill sets and experience that has to meet their self-actualisation needs.
The Herzberg-Hygiene Theory
According to Mullins (2015), the Herzberg theory gathers factors that have been made from the satisfaction and performance review of the work environment; the Herzberg theory aims to look at the climate of the workplace and the level of employee motivation. When comparing Liquid Telecom against Herzberg’s approach, it can be seen to show that there can be a level of insufficient that can lead to a period of de-motivation for both employees and customers.
Diagram: Herzberg's Two Factor Theory Source: Mullins (2015)
The Herzberg’s theory has been categorised into two different sections: Motivation and Hygiene, these categories have indicated that they have a specific leave of features that are linked to both the Herzberg’s job satisfaction and dissatisfaction. The theory divides the individual needs based on the work environment elements, according to the Mullins (2015) design, the first design is the "hygiene needs." This model contains the primary three factors produced in the Maslow theory - pay, work safety and the work environment. The purpose of Maslow’s theory is partly focused on the motivation factors, whereas Herzberg’s approach focuses on both the aspect of the motivational and hygiene theories. It does seem that the motivational factors of both methods do influence employees through recognition, authority, autonomy and achievement. On the other hand, the hygiene element looks at to develop relationships through the sense of good working condition, the increase in salaries and job assurance (Mullins, 2014).
The Human Capital Theory
The organisation's rewards system plays an essential part in the motivation of an employee. Even do the rewards system is based on the performance systems of an individual, this system can only be successful when they have met their targets. Therefore, the reward system has a positive and negative effect on the employee’s motivation. As ethical impacts can be, prizes can vary based on the different results the award system can give to appropriate individuals, the reward system aims to increase the inspiration of the employee but at the same time can decrease that inspiration.
The effectiveness of the reward system looks to enhances the protection of employees, this helps organisations, such as Liquid Telecom, to meet the organisational aims, objections and goal that have been set. Liquid Telecom can increase, what they consider, the level of reduced productivity and activities by actioning effective reward schemes. By putting this scheme into action, the organisations will be able to see that employees will be more motivated to provide a sense of enjoyable activities and productivity throughout the business. In addition to this, the style of effective rewards will help the employee to contact the business operation line, in doing so will see for a stronger working relationship amongst departments.
According to Gatewood and Barrick, 2015, it can be complicated to assert an effective reward system throughout individual organisations. For example, for an organisation that operates at an international level like Liquid Telecom, the results can have a negative impact whereas the reward is rewarded to the wrong individual - this can result in clashes with employees and departments. It is crucial that prizes are frequently checked and assessed as the results of rewards can be affected. It has been stated that if the rewards systems are not fully utilised, it can lead to a sense of adverse consequences which can affect the organisation’s performance and rise total employees’ expenses (Hosalyd, 2015).
Knowledge management is the resolution of the challenges that occur within the business and the approach that is used to share the knowledge that is needed to meet the goals of the organisation, Buchanan and Huczynski (2015). Management aims to manage the experience within the business and to ensure that they produce, maintain, allocate and capture the knowledge that is needed for future successes.
One of the primary purposes of Liquid Telecom is to be able to manage their source of information in operation for modification, development as well as internalisation. On the transferral of knowledge, Liquid Telecom highlights three main objectives, which are, managerial, strategic and objectives financial. Liquid Telecom uses there procedures within two basic principles – the Organisational and Strategic fit, for the organisational size, matches the targeted choices and ensures that it matches their culture & management practices.
M2 Use specific examples to critically analyse different approaches and techniques to motivation, human capital and knowledge management
To motivate employees at work, organisations such as Liquid Telcom use numerous innovative to achieve this goal. The two most motivational theories that are generally used throughout most organisations are Maslow's Hierarchy of Needs and Hertzberg's Motivation & Hygiene Factors theories. Maslow's Hierarchy of Needs Theory indicates that there are special requirements that are set out for or by employees. In this practice, it can be said that if Liquid Telecom fails to meet their aims and objections that are required of the business, employees will feel a sense of unqualifiedly which would lead to a reduction in the performance and productivities of the workplace.
At the same time, these theories can be seen to categories employees into five groups that are separated by the physical, social, recognition demand, security and self-implementation requirements. According to Mullins (2015), the Hertzberg's Motivation and the Hygiene Factor Theory motivates the health issues that finds inspiration from Maslow's theory. This theory applies to Liquid Telecom, as it allows for the inspiration that is needed within the workplace for employees - these inspirational theories have a great connection as it helps to link the award system together. It can be said that the awards systems are seen to be defined and applied throughout Liquid Telecom to promote employees’ motivation.
D1 Make appropriate recommendations supported by justification based on a synthesis of knowledge and information to show how to improve the delivery of sustainable performance
The performance of Liquid Telecom can be determined through the path of analysing the operation of the business, the use of technology throughout each department and the financial status of the company. According to David and Buchanan (2015) the state of Liquid Telecom must firstly show that the company can exist in today’s global market and that, secondly, the organisation will be able to operate efficiently at an international level (Clegg, Kornberger and Pitsis, 2016). The organisation must also show that it can function continuously with their procedures and their internal supply chain – this can be an operative accomplishment as this will increase the production of the organisation's trade chain (Johnson et al., 2017).
It can be said that the business can accomplish their techniques by achieving the skills, profits, and fame that is required throughout the company. An appropriate management information system is beneficial for the company, as this will enable them to increase their entire business activities in each area of the organisation (Laudon and Price, 2015). Thus, Liquid Telecom can apply innovative information systems to ensure that they can maintain a strong relationship with its stakeholders. It is essential that Liquid Telecom has a reliable database management system set up, as this will allow for the development of their data fields, the growth of their sales and the improvement that is needed to mention stakeholder’s relationships.
This process is an essential aspect of the business as it ensures to decrease the operational expenditure that can occur throughout each department. Broadbent and Cullen (2015) stated that for a company to succeed financially, their management system must be developed at a level that it can partake in every aspect of the company no matter what area of the organisation it is. So, for Liquid Telecom to be able to develop its investment capacity, it could be ideal for the business to look at two aspects of the company, which is the culture and structure of the organisation. These two aspects must continuously be examined so that it can be seen if any areas might need a certain level of changes to enable them to meet the needs of the business. Investigating these aspects of the company will allow management to be able to assure that there is an actual level of inspiration that will be generated over the financial performance of each department.
P3 Conduct research and use contemporary knowledge to support evidence for emerging HR developments
The development of an emerging HR
In today’s international market, human resource management is facing daily challenges that they have not encountered before. There is a continues to need for managers to think ahead and to update their principles consistently that will meet the philosophy needs of the company. There have been a few issues that have created challenges for HR managers; those key challenges have been around globalisation, employee satisfaction and maintaining points – other problems that managers have also come across is the management of the work environment and the legal complaisance (Mullins, 2014).
Globalisation and the Global Human Resource (HR)
Globalisation has boosted the speed that organisations have been working at over the last couple of years, organisations across the global aim to expand their business at a worldwide level. With the expansion of technologies, specialised networking, intranet, and social media, organisations have been able to communicate with their staffs at a different level than ever before. Technology, such as information sharing through audio, video and online conference, has increased the training and development that employees receive from HR managers within the international market. Globalisations has helped in supporting the business market when it comes to hiring people from different global market fields, organisations have also seen that they can lower prices within the business to help reduce the cost HR (Mayhew, 2018).
Workforce legal compliance and management
Workforce organisation in the international market plays a critical factor in all organisations around the world; this is because of the cultural issues that can differ from country to country. Consequently, HR managers can sometimes experience complications in recognising the changing needs of the labour market at an international level - they face problem in changing HR policies, management styles, and organisation policies. With different countries having altered regulatory and legal frameworks, it can sometimes be difficult for HR managers to be able to fulfil their regulatory and legal obligation in a global workplace. The key legal issues that have arisen are organisational rights, employee rights, workplace health and safety, race and sexual discrimination.
In the international market, organisations such as Liquid Telecom face challenges in dealing with a generation that has a multigenerational difference, the variety of a cultural can cause a sense of problems towards the effect that HR policies develop. For instance, there can be a generation of individuals who appreciate the face-to-face interaction of their managers, whereas there is another generation who prefer the lines of communication to be done electronically. Therefore, management can find it confusing when trying to implicate the best leadership and management style.
There have been many key HR issues that have a raised over the century, but the one question that has always found itself at the forefront of most items has been the long-term retaining and satisfying of employees. It is, therefore, the job of HR management to be able to provide the extra care that is needed to engage and make employees satisfied in the workplace - HR managers must see that they ensure that they motivate staff members so that they are aligned with the goals and objectives of the organisation. It is the case for HR developers that they must effectively aim to develop motivation and benefits that will see that organisations can retain their employees. There is a sense that leaders must show a level of friendliness but also a style of flexibility in their leadership so that they can influence their supporters towards the aims and goals of the organisation.
The impact of technology within HR:
The role of HR has changed so much in the global market over the last century, with the development of technology has seen changes in the behaviour and culture of organisations and the workplace. Technology has influenced HR practices, and the skills that are required to operate a business internationally, with the use of technology has allowed for HR managers to be able to contact employees directly, analyse performance and to store the necessary data that is needed to develop a business. The advances in the technological effects have shown that there is a sign that it can influence the cross-cultural arrangements that organisations have with their employees. The changes in technology have also seen the shift from offline recruitment to online as this includes emails and internet service connectivity – also the growth of smartphones has improved the level of communication to make it easier via emails, messaging apps and texts. With the introduction of data analysing, HR can analyse the data from employees so that their department can guarantee more efficient staff policies. Also, a big leap in technology has been the establishment of the cloud service; this has been a support to HR managers as it has allowed for departments to be able to store much more data on employees and the organisation.
Challenges of HRM in an international market
HR management faces numerous daily challenges because of the financial variation, diplomatic factors,
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