Talent Management
Assignment 1:
Q1: Discuss, how you would measure the effect of HRM on surplus of Business. Q2: Discuss the implications of a least two different HRM-approaches. Q3: Discuss, the two perspectives of diversity and finalize you discussion with a statement of what perspective you will use if you were a manager. Answers:
Q1: A significant amount studies are supportive of the idea that HRM has a positive impact on the surplus of the company but this effect is dependent on how coherent and aligned are the HRM practices with the market context. For example, a low-cost reduction business strategy will benefit by adopting a ‘hard’ approach to HRM and a more innovation-orientated company will receive positive turnover by utilizing a high-commitment (‘soft’) approach to HRM (Beardwell & Claydon, 2010, p.12).
Beardwell and Claydon (2010) provide an overview of some of those studies which explain how the effect of HRM can be measured by quantifiable improvements. One of them is that of Arthur (1992, 1994) which concludes that innovative organizations benefit from adopting a high-commitment HRM model resulting in ‘higher productivity, lower labour turnover and lower rates of rejected production’ (Beardwell & Claydon, 2010, p.13). In addition, the work of McDuffie (1995) supports the view that the various business and HRM practices need to be used together and in coherence. He summarizes three factors (flexibility, work agreements and HRM practices supplementing this flexibility) that used in alliance, provide a positive marked effect on the performance of a company. Moreover, they include the study of Ichinowski et al. (1997) where the findings indicate that adopting an innovative HRM system affects positively the productivity, the product quality (through the high-commitment of the employees) and increases the operating profits in time (Beardwell & Claydon, 2010, p.13).
On this basis, it can be concluded that the effect of HRM on the surplus of business is
Q1: Discuss, how you would measure the effect of HRM on surplus of Business. Q2: Discuss the implications of a least two different HRM-approaches. Q3: Discuss, the two perspectives of diversity and finalize you discussion with a statement of what perspective you will use if you were a manager. Answers:
Q1: A significant amount studies are supportive of the idea that HRM has a positive impact on the surplus of the company but this effect is dependent on how coherent and aligned are the HRM practices with the market context. For example, a low-cost reduction business strategy will benefit by adopting a ‘hard’ approach to HRM and a more innovation-orientated company will receive positive turnover by utilizing a high-commitment (‘soft’) approach to HRM (Beardwell & Claydon, 2010, p.12).
Beardwell and Claydon (2010) provide an overview of some of those studies which explain how the effect of HRM can be measured by quantifiable improvements. One of them is that of Arthur (1992, 1994) which concludes that innovative organizations benefit from adopting a high-commitment HRM model resulting in ‘higher productivity, lower labour turnover and lower rates of rejected production’ (Beardwell & Claydon, 2010, p.13). In addition, the work of McDuffie (1995) supports the view that the various business and HRM practices need to be used together and in coherence. He summarizes three factors (flexibility, work agreements and HRM practices supplementing this flexibility) that used in alliance, provide a positive marked effect on the performance of a company. Moreover, they include the study of Ichinowski et al. (1997) where the findings indicate that adopting an innovative HRM system affects positively the productivity, the product quality (through the high-commitment of the employees) and increases the operating profits in time (Beardwell & Claydon, 2010, p.13).
On this basis, it can be concluded that the effect of HRM on the surplus of business is
References: Beardwell, I. and Claydon, T. (2010). Human Resource Management: A Contemporary Approach. 6 edition, Pearson Education Limited 2011. Storey, J. (2007). Human Resource Management. A Critical Text. 3rd edition, Thomson. Steger, T., Lang, R. & Groeger, F. (2011). Expatriates and the institutionalisation of HRM practices. Baltic Journal of Management, Vol. 6, Iss. 1, pp. 7-24.