Table of Contents
2. HRM Transformation in general terms2
2.1 HRM phenomenon 3
2.2 Trends driving it3
3. HRM formulation for the manufacturing company 4
3.1 About the company4
3.2 Harvard HRM model 4
3.3 Situational and Stakeholders Aspects 5
3.4 Defining business strategy6
3.5 HRM policies 8
3.6 HRM Delivery9
4. Recommendations and Conclusions 10
4.1 Interpretational model and recommendations10
The first part of the report will provide an insight to what circumstances triggered HRM transformation. Then we’ll explore the complex issues debated around HRM transformation ...view middle of the document...
(Beardwell & Claydon, 2007, p. 4)
2.2 Trends driving it
Globalisation, economical and financial difficulties of the past 20 years, escalating complexity of regulatory environments, pace of business (Filippone, Youden, Pennington, & Fersh, 2012, p. 7) the demand for all business units to add value to organisational objectives (Beardwell & Claydon, 2007, p. 43) and a constant obligation to expand and gain profits have become main drivers for companies to transform in order to gain competitive advantage (Knapp, Mar 2004, p. 9)
3. HRM formulation for the manufacturing company
3.1 About the company
We are a UK automobile manufacturing plant producing several product parts for the industry. We are going through a difficult stage in our business. Due to the financial and economical downturn we are forced to deal with a decline of one quarter of manufacturing output. In addition, through internalisation and globalization of the industry we are forced to compete with other countries on a cost reduction dimension as well as an efficiency aspect.
3.2 Harvard HRM model
In our attempt to examine what effective HRM transformation would mean for the company we’ll take the Harvard HRM model as a useful analytical framework illustrated in figure 1.2.
Additionally we’ll present examples of effective HRM strategies based on benchmarking of some manufacturing companies cases.
Shareholders Management Employee Groups Government Community Unions
Long term consequences: Individual well being Organisational effectiveness Societal being
Commitment Congruence Competence Cost effectiveness
HRM policy choices:
Employee Influence Human Resource Flow Reward System Work Systems
Workforce Characteristics Business Strategy and conditions Management Philosophy Labour Market Unions Task Technology Laws and societal value
Figure 1.2 The Harvard HRM Framework
Source: Beer et al. (1984) as illustrated in Beardwell, J., & Claydon, T. (2007). Human Resource Management: A Contemporary Approach 5th Edition. Financial Times: Prentice Hall. p.9
The distinctive characteristic of the model is an acknowledgement that a strategy making process will be heavily conditioned by unique situational factors an organisation operates within and HRM policy choices will be influenced by various business stakeholders. (Marchington & Wilkinson, 2005, p. 5)
3.3 Situational and Stakeholders Aspects
Many organisations, faced with similar circumstances as ours, have followed the traditional ‘wisdom’ in dealing with the challenges and decided to retrench manpower excess. (Wong, 2001) This type of practice has been taken for granted in response to economic and regulatory changes (Kothen, McKinley, & Sherer, 1999)
It is important to make a distinction between simpler structures with minimum staff that naturally can make organisations more...