Human Resource Management: The Importance of Strategic Fit for Organizational Performance

Learning outcomes

1. On successful completion of the module the student will have demonstrated:
2. An understanding of the role of management in business
3. An understanding of basic models, concepts, and organizational structures in business
4. An understanding of the environment in which the business operates an understanding of the role of accounting in business

Skills

1. An appreciation of the complexity of the business environment
2. An ability to engage in basic business strategy

The ASSESSMENT

The Alternative Coursework Assignment accounts for 100% of the assessment and you must achieve a mark of at least 40% to pass.

You are required to write an individual piece of coursework of approximately 3000 words (+/- 10%).

The Assignment brief is made up of three (3) parts and you are required to attempt all.

The term ‘human resource management’ has become more prominent in management discussion. How people are managed affects the strategic performance of an organisation – and this raises issues wider than those traditionally dealt with by personnel or industrial relations staff. Issues of job analysis, recruitment, selection and appraisal need to support the strategic direction of the organisation.

Factors stimulating the greater prominence of HRM, therefore, include more globally integrated markets, highly publicised ‘companies of excellence’, the changing composition of the workforce and declining trade union membership. HRM is important for organisational performance in that it aims to establish a close fit between business strategy and HRM strategy. An organisation’s HRM practices affect many aspects of employee well-being through their effects on matters like working hours, stress, and work–life balance. Such considerations should be included in assessments of the sustainability of its performance.

It is also important to note that companies operating internationally face the dilemma between standardising the HRM practices of overseas subsidiaries towards HQ practices, or favouring localisation, whereby overseas subsidiaries adopt management practices commonly used in that host country.

Using BMW as a case study (Visit the BMW website and see how the company presents itself and its cars), answer the following questions in a report form.

• What issues concerning the management of people are likely to be raised in a group such as BMW that has rapidly expanded production and distribution facilities?
• What image does BMW convey – and to deliver that image, what kind of behaviour would you expect of employees? What HRM practices may encourage/discourage that behaviour?
• How is increased overseas production likely to affect HRM policies?
• What are the advantages and disadvantages of performance-related pay?
• What benefits might BMW gain from a higher proportion of older workers? What do you think are the problems associated with an older workforce? How might human resource practices change to deal with this?

Managers who successfully influence other people usually do so because they understand what motivates them – this allows them to direct their attempts at influence in an intelligent way. Like any strategy, sustainable performance depends on people working with commitment to achieve it, which they will be more likely to do if their motivation is aligned with the goal of sustainability. There are theories that describe the factors that motivate people and presents what are termed ‘process’ theories of motivation.

Given the above basic information, provide answers (in a report form) to the following:

• Outline the basic assumptions of McGregor’s Theory X and Theory Y. Hofstede has pointed out that discussion about McGregor’s Theory X and Theory Y is based on observations in Western societies – which are different in many ways from the new economic powers in the East. What is your opinion?
• Explain Maslow’s theory of human needs. How does Maslow’s theory of human needs relate to the ideas of Frederick Taylor?
• Explain the difference between Herzberg’s hygiene and motivating factors.
• Describe the psychological contract. What are you expecting (a) from an employer in your career and (b) from an employer who provides you with part-time work while you are studying?

Operations management is the activities, decisions, and responsibilities of managing the production and delivery of products and services. This includes responsibility for people and process and product. The Operations transforms inputs to outputs, and the Transformation Process is the organisational system that takes these inputs: Facilities, Staff, Finance, Raw materials, Information, and transforms these into output – tangible goods or intangible services that can be sold in the market. The operations function adds value to the business. It outlines the nature of products and services and gives meaning to ‘quality’.

The growth of international trade brings challenges for operations managers as they seek to satisfy geographically dispersed customers in conjunction with equally dispersed suppliers. With the information above, and using ZARA (visit their website) as a case study, provide answers (report form) to the following:

• Good operations management is based on process consistency. What do you think are the major managerial challenges in setting up an operations system to serve a fast-moving and fickle market such as fashion?
• Do you think the tendency towards globalisation helps or hinders Zara’s success?
• Investigate the operational strategy of another large clothing retailer, such as Marks & Spencer. Can you identify any differences?
• While most organisations strive for excellence in some way or other consider the operational challenges in becoming and remaining a world leader.