Combinations of Human Resource Management Practices - Coursework Example

Introduction Firms are increasingly considering the combination of human resource management practices as one way of achieving superior outcomes particularly in terms of employee productivity (Bluedorn, 1999). A number of human resource management practices that firms are seeking to combine include enhanced employer-employee communication networks, problem solving and self-directed teams, security of employment, job assignment flexibility, training and development of workers for multiple tasks and the use of incentive pay as a way of enhancing employee motivation. The purpose of this paper is to explore whether certain combinations of human resource management practices mentioned above lead to superior outcomes in the organization. Economic theoretical research has noted that the human resource management practices employed by the organization determine the workers level of productivity (Bluedorn, 1999). Some models have focused on ways through which a combination of human resource practices such as profit sharing schemes, compensation policies, efficiency wage payments and inactive pay can increase or lower the productivity of employees. Other theories have also explored how the combination of human resource management practices such as careful selection of employees, the use of teams in the organization, financial information sharing, voice mechanism provided to the employees, and security policies for employees can lead to better outcomes in the organizational setting (Abelson & Baysinger, 2004). Over the past 10 years, the number of models that address the role of combining various human resource management practices have emerged. However, there is need to address the specific issue whether the combination of the human resource management practices can lead to better outcomes in the organization (Abelson & Baysinger, 2004). The importance of human resources in achieving a competitive advantage in the organization cannot be overlooked. Hence, organizations must seek to maximize the potential of human resources in order to achieve a competitive position in their respective industries. Bailey (1993) noted that human resource bundles influence skills held by the employees through the development and acquisition of human capital the firm needs. Thus, the combination of recruitment procedures coupled with valid and reliable selection procedures are some of the basic bundles that can be combined to realize superior outcomes in the organization (Abelson & Baysinger, 2004). The combination of recruitment and selection procedures provides the organization with the right quality of skills required to drive organizational processes forward. Additionally, combining the recruitment and selection procedures with the appropriate informal and formal training provides the employees with enhanced skills, experiences and tools required to perform their job tasks effectively (Barney, 2001). Thus, providing the employees with basic training on the skills they posses, mentoring them, coaching, and development management is the rightful combination of human resource management practices that can influence the productivity level of employees in the organization leading to better outcomes. From the incentive contract theory perspective, a combination of human resource management practices can be used to motive the employees, especially when the performance of individual employees cannot be monitored or measured (Bartel, 1994). In the recent past, incentive contracts theories have suggested that different complementary HRM bundles can be used to enhance productivity among the employees that lead to better outcomes in the organization. Doyle (2003) held that even highly skilled workers in the organization can experience limitation in their performance effectiveness if appropriate HRM bundles are not applied to motive them to perform. Hence, HRM bundles are important because they can motivate the workers to work smarter and harder (Bartel, 1994). Firms use different approaches to motivate and direct their workers to perform better. Such approaches include the use of performance appraisals to evaluate individual performance. However, these efforts are futile if they are not tied with other HRM practices such as incentive compensation, internal promotions, and profit sharing schemes. Doyle concluded that HRM bundles are as important as the organization itself because they drive the organizational processes forward leading to better outcomes. Pffefer (2005) noted that the combination of human resource management practices such as employment security, career management programs and internal promotion of employees lead to better outcomes in the organization. Pffefer (2005:34) suggested that employment security increases the commitment of the employee towards the organization. In this respect, employees seek to improve their competencies and special skills that are valued by the firm. Employment security increases the contribution of employees towards the improvement of the organization because the employees feel as part and parcel of the organization. Such employees take a long-term and a more comprehensive view of their tasks and duties in the organization since they are assured of their being in the organization for a long time. On the other hand, organizations also take a long term view towards the development of their employees. Combining employment security with programs on career management further leads to better outcomes in the organization. Programs for career management help the employees in planning their career goals (Abelson and Baysinger, 2004). A well functioning system of career planning undertaken by the human resource department encourages the workers to improve their productivity by undertaking development programs that enhance their skills viewed as important to the organization. Importantly, programs for career planning enable the organization to have a wide variety and stock of skills required for success in future (Abelson and Baysinger, 2004). In this regard, human resource bundles such as career planning programs and employment security leads to better outcomes in the organization. Lepak and Snell (2006) held that the investment in the workers through training and development programs as well as providing the workers with opportunities for career planning through career planning programs coupled with internal promotion of employees is a combination of human resource management practices that lead to better outcomes. Internal promotion motivates the workers to perform their duties and responsibilities with utmost competency and effectiveness as an initial step towards seeking avenues for promotion (Lepak and Snell, 2006: 31-48). The internal promotion philosophy also indicates that the organization is committed to the success of its employees something that prompts the employees to work hard to achieve the stated objectives of the organization. By identifying with the organization, other benefits such as positive word of mouth lead to better outcomes in the organization. Hence, HR bundles, when utilized effectively can lead to greater performance levels and lead to better outcomes in the organization. Arnold and Feldman (1992) observed that HR bundles such as job security, compensation schemes for better performances, number of variables that define the demographic composition of the employees such as education, gender, age, presence of employee union, and organizational commitment to the workers through flexible working arrangements and proper pay, contribute significantly to the success of the organization. Arnold and Feldman (1992: 34-56) noted that these HR bundles reduce the rate of employee turnover that give the save the organization from losing key people required in the organization. Reduction in employee turnover increases the organization’s productivity and hence leads to better outcomes both in the short term and long term. Other HR bundles suggested by Arnold and Feldman (1992: 34-57) as contributing significantly to the reduction of employee turnover include interventions for job enrichment and job previews that realistically address current needs of the employees. For instance, job previews that introduce flexible working arrangements for female employees so that they can go on maternity leave. Furthermore, Bartel (2004) noted that HR bundles that take into consideration the transformational strategies that emphasize on dispute resolution and cooperation as the means of leading the employees lead to lower costs experienced by the firm that translate into higher productivity on the part of the organization (Begin, 2001).Transformational HR bundles lead to fewer disciplinary actions and fewer grievances that lead to greater productivity on the part of the employees. Transformational HR bundles include involvement of the employees in decision making processes, increasing the participation level of employees through consultations and practicing hands-on management where employees are encouraged to be independent in the decisions they make (Begin, 2001). Such HR bundles increases the freedom of the employees in the organization and eliminates bureaucratic issues that hinder the employees from executing their duties effectively in the organization. Abelson and Baysinger (2004) suggested that not only does the combination of human resource management practices or human resource bundles lead to better performance on the part of the employees, but it also leads to the improvement in the quality of services offered to the clients as well as improvement in the quality of products produced by the employees particularly in the manufacturing sector. The combination of HR bundles such as employment security, better pay, profit sharing schemes motivates the employees to provide high quality services and goods from the realization that the organization they work for remunerates them well (Pffefer, 2005). Additionally, employment security increases the commitment of the employee to the success of the organization as a means of being assured of employment in the long term. In conclusion, it is evident that certain combinations of human resource management practices lead to better outcomes in the organization. The combination of training and development, employment security and career planning programs enhances the commitment of the employees to the organization. Combination of HR bundles such as better pay, profit sharing schemes, compensation schemes and incentive contracts motives the employees to exceed their targets in order to receive large amounts of compensation from the organizational management. All the above HR bundles lead to better outcomes in the organization. References Abelson, M. & Baysinger, B. 2004. Optimal and dysfunctional turnover: Toward an organizational-level model. Academy of Management Review, 9: 331-341 Arnold, H. & Feldman, D. 1982. A multivariate analysis of the determinants of turnover. Journal of Applied Psychology, 67: 34-57 Bailey, T. 1993. Discretionary effort and organization of work: Employee participation and work reform since Hawthorne. New York: Columbia University Press. Barney, J. 2001. Firm resources and sustained competitive advantage. Journal of Management, 17: 99-120 Bartel, A. 1994. Productivity gains from the implementation of employee training programs. Industrial Relations, 33: 411-425 Begin, J. 2001. Strategic employment policies: An organization’s systems perspective. Englewood Cliffs, New Jersey: Prentice Hall. Bluedorn, A. 1999. The theories of turnover: Causes, effects, meanings. New York; Sage Publishers. Doyle, M. 2003. Management development: A contemporary perspective. London: Pitman Publishers. Lepak, D., & Snell, S. 2006. The human resource architecture: Towards a theory of human capital allocation and development. Academy of Management Review, 24(1): 31-48. Pffefer, J. 2005. Competitive advantage through people: Unleashing the power of the workforce. Boston: Harvard Business Press. Read More