Human Resource Management

A problem of workforce motivation is tantamount to a problem of organizational functionality. Indeed, the economic and operational process of any organization are of little to no value in the hands of personnel who lack the personal drive to achieve high levels of quality or productivity. As the Human Resources Management Director for a firm suffering from just such a condition, it has fallen upon me to identify some ways that we can begin to improve motivation within the organization.

The recommendations offered here are designed to address structural and conceptual issues within the organization which have prevented it from properly moving its employees to participate at a high level. In attempting to improve workforce motivation, it is first necessary to identify some core aspects of motivational theory within the context of the achievement of organizational goals. Indeed, the attainment of such a condition requires a sensible balance between managerial commitment to the strategic interests of a business and to the human interests of its everyday operation.

Research and experiential evidence will tend to demonstrate that there is a symbiotic relationship between these aspects of organizational orientation which suggests that effective strategy must inherently consider the implications of the experience of the personnel who will implement business strategies. Therefore, we enter into this discussion under the assumptive basis that an organization’s performance success will be inherently based on the performance effectiveness of its personnel.

In relation, organizational management must therefore be devoted in a large part to the eliciting of motivation and performance effectiveness in personnel. As the HRM from the firm in question, I have considered at the initiation of this process such varied measures as the reconsideration of the factors which are typically used to evaluate organizational performance, the setting of benchmarks for employee performance, the consideration of metrics for assessment of employee and team performances and the overall shift from financial models of management to employee-centered strategies.

These are, importantly, all ways of motivating the employee which rely on the improvement of the visibility of performance expectations. I would argue that the greater the clarity applied to an individuals understanding of his or role in an organization, the less likely that this organizational member will suffer frustration, confusion or other obfuscating workplace experiences. Motivation theory also offers us something of a blueprint for improving levels of operational efficiency in ways that will ultimately encourage grater workplace productivity.

To this end, much of our strategy regarding employee performance management centers on the changing nature of business today, within which companies “must continually improve their performance by reducing costs, innovating products and processes, and improving quality, productivity, and speed to market. ” (Becker, 770) It is with this in mind that I have undertaken the duties of HRM, recognizing that the lackluster performance and related motivation obstacles at the firm are directly related to a failure on the part of the firm to remain in tune with progressive changes in the industry.

Therefore, by considering the primary aspects of operation as a function of employee performance, organizational management can direct its attention to evolving its operational capacity through personnel. As much of this discussion centers on how changes in the personnel scheme can have the effect of strengthening the correlation between employee performance and overall organizational performance, an important example comes to us from the twin histories of industrial development and the discourse on its psychological effects.

An example can be seen in Bethlehem Steel, the 19th and early 20th magnate of industrial development. Here, a highly regarded organizational theorist named Frederick Winslow Thomas began to observe the values in distributing labor according to performance indicators as a means to improving overall business functionality. In its embryonic stages, Scientific Management Theory began to show in Taylor’s principled reconsideration of labor division.

By beginning to designate tasks according to the individual strengths of laborers, by equipping the right laborers with the optimal supplies, by motivating workers with financial incentives relating to individual efficiency and by providing all workers and tasks with explicit guidelines to be induced during labor training periods, Taylor forever changed the face of industrial labor.

(Papesh, 2) Certainly, today, businesses are often too complex or segmented, their industries too competitive and diversified, to be understood simply in terms of financial balance or the achievement of strictly external market benchmarks. Traditional markers of company success, or of the success of individual performers in a company, have been understood in terms of the proportion between what an employee or department earns and what it costs.

(Marchington et al, 81) However, it is increasingly apparent that such strictly quantitative perspectives tend to cast too modest a net in attempting to wrangle an understanding of true performance values. More problematic than that is the threat that when reducing employees to quantified investment properties, it may often become difficult to effectively measure the qualitative value of individual or group performances. In this case, a failure to recognize the abstract, indirect or uncredited efforts of an effective employee may create a motivational backlash.

This will, in turn, diminish the firm’s access to a quality performance by a formerly effective if unfairly overlooked part of the team. This is why I have implemented a process of data gathering which will seek to measure performance success according to versatile and evenhanded metrics, specifically trying to best determine that which inclines employee commitment. In consideration of this subject, our reading leads to Maslow’s hierarchy of needs, which are reinforced by the commonly high priorities present in our discussion here.

Specifically, Maslow cites such conditions as the need for self-actualization, for socialization and for personal security all as having a direct bearing on the ways people will tend to prioritize when making major life decisions such as where and how to work. Here, the text demonstrate “the assumption that motivation comes from within and cannot be imposed. ” (Herbig et al, 563) This is something that we find is true from one culture to the next and, indeed, which will be crucial to our strategic reorientation in the face of operational and personnel challenges.

When properly understood, many organizations are today recognizing, performance values will be measured by a wide array of factors, but will be primarily dependent upon the management of personnel performances individually and in team contexts. To this extent, an organization such as ours must genuinely consider with an importance of equal or greater consequence such factors as customer satisfaction, process efficiency and innovation when coming to an understanding of personnel performance realities.

Drawing correlative relevance between these factors and observable performance traits will help to improve an empirical understanding of the relationship between performance and larger organizational indicators such as those relating to the marketplace or the organization’s practical structure. Additionally, these factors will supplement our organization’s understanding of financial figures, helping to better interpret the meaning of otherwise potentially misleading or untimely numbers.

(Rodrigue et al, 1) This is to say that we can ultimately make personnel decisions which are more ably informed, and which will therefore allow us to produce process changes concordant with the apparent needs of employees. Still, it is important to appeal to more traditional methods of motivational appeal as well. Though they cannot alone improve motivation and performance, economic incentives do play a vital part in meeting the interests of organizational personnel.

A crucial and preemptive approach to ensuring that project contributors are meeting performance expectations is to provide in advance all such contributors with benchmarks of achievement and, simultaneously, to provide them with distinctive offers of financial incentive, organizational advancement, more prominent stakeholding or some other level of recognition of performance achievement. This way, individuals are made aware of concrete and easily definable responsibilities and the positive prospects associated with effective or exceptional performance of these responsibilities.

“The importance of establishing baseline measures” is both instrumental to maintaining a gauge for performance quality and to ensuring that project contributors know how to read and respond to this gauge. (TSG, 1) Ultimately, clarity, fairness and a sense that they are a part of an effective and positive organization will promote motivation in our employees, which will help to improve productivity. Significant policy changes will be needed to accomplish these goals.

Works Cited

Becker, Brian & Barry Gerhart. (1996).The Impact of Human Resource Management on Organizational Performance: Progress and Prospect. The Academy of Management Journal, Vol. 39, No. 4, p. 779-801. Herbig, Paul & Alain Genestre. (1997). International Motivational Differences. Texas A&M International University: Department of Management and Marketing. Marchington, Mick & Adrian Wilkinson. (2005). Chapter 3: High Commitment HRM and Performance. Human Resource Management, p. 79-98. Online at http://www. cipd. co. uk/NR/rdonlyres/E3E9E634-ED62-4F0D-9089-B331BB116742/0/1843980622sc. pdf>. Papesh, Mary Ellen.

(1987) Frederick Winslow Taylor: Business Biography. University of St. Francis. Online at http://www. stfrancis. edu/ba/ghkickul/stuwebs/bbios/biograph/fwtaylor. htm Rodrigue, Rodney; Claudia Follet; Harvey B. Powell & Peter Weymouth. (2006). System and method to improve operational status indication and performance based outcomes. Time Wise Solutions, LLC. Online at <http://www. freepatentsonline. com/20060259338. html>. Tasmanian State Government (TSG). (2006). Evaluation. Project Management Guidelines. Online at <http://www. projectmanagement. tas. gov. au/guidelines/pm6_11. shtml>

This paper is an informative guide that will cover the definition of Strategic Human Resource Management (SHIRR). Importance of HER in organization, also the analysis framework of the SHIRR. Further, the guide also includes the understanding of the formulation and implementation of HER strategies that would analyses SHIRR process, assessment of the roles in SHIRR and lastly, the analysis of the development and implementation of HER strategies.

 Definition of strategic human resource management The Chartered Institute of Personnel Development or CUPID (2013) identified that SHIRR is an approach of the management within the organization that sets strategic framework that concerns business goals and outcomes including the long-term people issues such as their quality, structure, values and commitment.

Subsequently, Britton (2013) described SHIRR as a process involving human HER in the organization (2007) affirmed that SHIRR is a concept of integration of HER and the strategies of the organization is being achieved that includes how HER to get there, the coherence and supporting the strategies HER to be developed and implemented. According to Storey (2001), SHIRR is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce using an array of cultural, structural and response techniques.

Another approach to ‘defining’ SHIRR is to treat the task as the demarcation of an academic field of enquiry and/or a general field of practical activity. This is essentially what Boxful and Purcell (2003) do when they describe how their definition ‘allows for a wide variety of management styles’. They go on to state that ‘Human resource management (alternatively employee relations or labor management) includes the firm’s work systems and its models of employment. It embraces both individual and collective aspects of people management.

It is not stricter to any one style or ideology . In summary, SHIRR is all about the management of human resource in terms of labor and personnel in an organization by a specified approach in order to achieve the organization’s goals in the future. B. An explanation of the importance of human resource management in an organization . Facilitates Organization’s Growth Human resource is important because it facilitates the organization’s growth by producing effective employees by means of recruitment in order to attain its goals.

Recruitment is a major responsibility of the human resource team. The HER managers need to come up with plans and strategies for hiring the right kind of people. They design the criteria which is best suited for a specific Job description. Their other tasks related to recruitment include formulating the obligations of an employee and the scope of tasks assigned to him or her which would be the basis of the employee’s contract. HER manages the employment process from screening resumes to scheduling interviews to processing new employees.

Typically, they determine the most effective methods for recruiting applicants, including assessing which applicants are best suited for the organization’s needs. An organization’s growth is dependent on the strength of its work force and recruitment is one of the key functions of human resource. Provides guidance and mentoring Human resource provides guidance and mentoring to employees, such as one- to-one coaching which gives the necessary support to them. When needed, HER managers also provide training to the employees according to the requirements of the organization.

Thus, the staff members get the opportunity to sharpen their existing skills or develop specialized skills which in turn, will help them to take up mom new roles. Through this, it will enhance the knowledge and skills of employees Armstrong (2012). Mayhem (2013) stressed that as HER develops the organization, it identifies the capabilities and strengths of employees that could lead to leadership roles within the business. Handles People’s Problem Another importance of HER is handling the employee’s problems such as viewed this as an important part of the transactional role of HER.

Human Resource could address the employees’ negative behavior and under-performance by encouraging them to work according to their potential and by giving them suggestions that could help them improve their work. Performance appraisals help motivate employees since these enable them to form an outline of their goals with best possible efforts. HER may tackle the problem of absenteeism by initiating incentive plans and programs such as flex-time, wellness programs, and project completion perks, these are proven to increase morale and productivity of employees.

Maintains Harmonious Work Atmosphere

Another significant importance of HER is the role it plays in maintaining a harmonious work atmosphere, this is a vital aspect of HER because performance is argyle driven by the work atmosphere or work culture that prevails at the workplace. A good working condition is one of the benefits that the employees can expect from an efficient human resource team. A safe, clean and healthy environment can bring out the best in an employee.

Ensures Compliance and Manages Labor Disputes

Another important aspect of human resource is its role in ensuring lawful employment for all the personnel.

HER ensures that the organization complies with the country employment laws. They complete paperwork necessary for documenting that the company’s employees are eligible to work. They also monitor compliance with applicable laws for organizations that receive government contracts, through maintaining applicant flow logs, written affirmative action plans and disparate impact analyses. HER also manages some aspects of labor conflicts, it is the human resource department which acts as a consultant and mediator to sort out those issues in an effective manner.

Grievances are heard from the employee’s end and HER will come up with a solution that encourages amicable settlements and alternative dispute resolutions.  Sustains the Business Lastly, HER is important because it sustains the business. HER deliverables such as reasonable pay and competitive benefits; workforce diversity; a happy, healthy, and productive workforce; useful training and career development; dispute resolutions; positive community relations, and good working conditions for employees are elements of sustainability and all are crucial to the business’s ongoing success and stability.

An analysis of the framework of strategic human resource management The SHIRR framework provides HER strategies to be integrated with the organizations strategies. Strategy is the approach selected to achieve defined goals in the future. Strategic human resource management determines long term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out those goals.

It is worthy to note that critics have been questioning the effectiveness of the different frameworks and strategic models, the crucial issue is whether a particular business or enterprise needs for its continued development and success. It is imperative that we study and analyses some of the HER frameworks. HARM Integration and Strategic Fit Perhaps the most significant feature of HARM is the importance attached to tragic integration, which flows from top management’s vision and leadership, and which requires the full commitment of people to it.

David Guest (1991) believes that a key policy goal for HARM is strategic integration, by which he means the ability of the organization to integrate HARM issues into strategic plans, to ensure that the various aspects of HARM cohere and to provide for line managers to incorporate an HARM perspective into their decision making. Karen Allege (1989) considers that one of the common themes of the typical definitions of HARM is that human resource policies should be integrated with tragic business planning.

Keith Session (1990) suggests that a feature increasingly associated with HARM is a stress on the integration of HER policies both with one another and with business planning more generally. Strategic fit has received a lot of criticism for many years because its strategy has been systematically and intentionally designed to the business needs when developing HER strategies to achieve congruence between the HER strategies and the organization’s business strategies within the context of its external and internal environment.

As pointed out by (Buddha and Aware, 2013) strategic fit ignores employee’s interest, it is inflexible and somewhat lacks adaptability. This framework is more inclined to be more pro-management rather than taking into consideration the employee’s welfare when it is so important that there must be a balance between the employer-employee relationship. Best Practice Model This approach is based on the assumption that there is a set of best HARM practices that are universal in the sense that they are best in any situation, and that adopting them will lead to superior organizational performance.

A number of lists of “best practices” have been produced, the best known was produced by Prefer (1998) namely: Employment security; Selective hiring; Self-managed teams; High compensation contingent on performance; Training to provide a skilled and motivated workforce; Reduction of status differentials; and Sharing information Patterson et al (1997) associated “best practice” with sophisticated selection and recruitment processes; sophisticated induction programmer; sophisticated training; coherent appraisal systems; flexibility of workforce skills; Job variety on shop floor; use of formal teams; frequent and comprehensive communication to workforce; use of quality improvement teams; harmonize terms and conditions; basic pay higher Han competition; and use of incentive. “Best Practice” as a framework had been commented by many authors as over stated in the sense that if it works in an organization will not necessary work for other strategy due to culture, management style and working practices. Eisenhower and associates (2000) argued that whilst such routines and “elements of best practice” that constitute dynamic capability, work effectively during times of stability, they break down under more turbulent conditions and experiment replaces Eugene Breach (2011) claims that the work necessary to deem and practice the “best” is rarely done.

Most of the time, one will find “good” practices or “smart” practices that offer insight into solutions that may or may not work for a given situation. Scott Ambler (2011) challenges the assumptions that there can be a recommended practice that is best in all cases. Instead, he offers an alternative view, “contextual practice,” in which the notion of what is “best” will vary with the context. It appears that the “best practice” model may be beneficial to HARM but it also has certain flaws, before adopting this framework, it is necessary for HER managers is to identify what are most likely the organization’s needs and the practice that can be seed to address such needs.

Best practice often fails to take into consideration the organizational context and specific needs of an organization. As a strategy, best practice could more often than not become too rigid and inflexible to cater to employee’s needs, resulting in unrest.

Best Fit Model

The best fit model has three different models (life cycle, Competitive Strategies and strategic configuration). To give focus on the life cycle that demonstrate the development of the organization in starting-up, growth, maturity, and decline Armstrong (2011) suggest that HARM needs to use its full potential, to realize its full attention, it must fit to the organization stages of development, he added that as it continues to grow the more it becomes complicated.

The main thrust of the argument for the “best fit model” is that HER strategy becomes more efficient when it is linked or tailored to its surrounding context or environment of the business. Thus, strategic management and organizational effectiveness follows from achieving the best fit between an organization and its external environment. Strategic HARM has borrowed the central concepts of environmental analysis, organization-environment fit, competitive advantage, strategy formulation and implementation, as well as physical, organizational, and human resources. This strategy involves stakeholders as it considers different aspects that could influence the effectiveness of the organization.

This is what is meant of strategic configuration, wherein HARM policies and practices should fit or match the organization’s internal environment specifically its workforce, business strategies, management philosophies and interaction styles and external environment such as labor market conditions, unions, task technology, laws and social values. Broadly speaking, I am more inclined to agree with Armstrong conclusion that mongo the SHIRR frameworks, the best fit model is more realistic compared to other frameworks because it is more capable of addressing the different needs and aspects that influence organizational strategies. It offers highly customized and flexible solutions that are designed by balancing business and HER goals, and the company culture and processes. These solutions enable the organization to gain a competitive advantage by meeting the company’s specific needs which leads to enhanced business results.

Analyses the strategic human resource process The first part of the human resource process is recognizing the organizational sign and this determines how the organization should be structured and the different organizational functions. The organizational design should serve as a link between human resources management and the overall strategic plan of an organization. Specifically, Armstrong (2007) investigated that the management combines different integration of organizational operation whether there is precariousness in the external environment. This shows that HER managers should be involved in creating the organizational design which makes them vital in human resource planning.

Reilly (2003) stated that it process in which an organization attempts to estimate the demand for labor and evaluate the size, nature and sources of supply which will be required to meet the demand. Hence, HER has the full understanding of the whole organization’s behavior, its specific needs and the best possible course of action for proper implementation of such strategies. Moreover, the organizational structure determines the roles and responsibility of the people working within the organization. It also specifies the powering authority and communication. This structure can be identified as centralized or decentralized. Part II: Development and Implementation

The second part is the development and implementation of HER strategies, it is the responsibility of the line managers to implement and enact the policies within organization. They ensure that the policies are put into practice, hitting the organization’s targets and goals as they are expected to be done. HER must initially identify the infrastructure and system requirements to support full implementation; it must develop the competency profiles; implement the competency profiles in a staged-way to demonstrate benefits; and lastly report the success stories as competency profiles are implemented. When needed, HER must develop, revise and update competency profiles to meet changing demands of the organization and its personnel.

It must also monitor and evaluate applications to ensure that they are meeting organizational needs, and adjust programs and plans to meet evolving needs. Proper training for development could serve as guide for better execution of HER strategies. Assess the roles in strategic human resource management Armstrong (2012) identifies the various strategic roles of HER professional. He viewed these roles as an essential part of business strategies as they are involved in he implementation and development that is structured with one another. HER professionals. Managers also shape the lives of HER professionals as they strive to become “strategic partners”.

For HER professionals, the work of construing their modern social identity can be exciting as well as stressful (Glover & Butler, 2012). Looking ahead, we anticipate increased interest in understanding the dynamics of effective strategic partnerships between HER professionals and managers, for the promise of strategic HARM systems is more likely to be realized when this partnership thrives. The interdependence that characterizes elements of an HARM system extends to the organizational players who enact the system through their daily work. HARM systems come alive in social interactions among organizational members, including HARM system. This set of players HER professionals, line managers, and target employees-?is sometimes referred to as the “HER Triad” Jackson & Schuler, 2003).

HER professionals have become more actively involved in the business planning process; formal policies have become more subject to interpretation by individual managers as they strive to respond to specific and rapidly changing situations. One of the most important role is board of director they ensure that the organization will meet its goals and mission that is operated competently to the best interest of its stakeholders council (2013), in general their responsibility includes strategic planning, finances, organizational operation and human resources therefore the board must have expertise in all aspects to provide hands on management of In assessing the roles in strategic human resource management, it is significant to note that the concepts of partnership and interdependence play in the success of the organizational operation for HER professionals.

There must be high levels of interactions and coordination for HER professionals and the different departments of the organization. Analyses the development and implementation of human resource strategies. Who are involved, how are they involved, and extent of involvement In the analyzing the development and implementation of human resource strategies, we must first take into consideration the organization as a whole and decide who involved, how are they involved and the extent of their involvement. The persons involved are board and senior managers; line managers; and human resource. Primarily, the role of the board and senior managers is to approve and agree as to the strategic plan of the HER.

There may take disagreement in some ways but they will need to come up with certain decisions regarding the company’s human resource strategy and its implementation. Communication plays an important role in this decision making process especially when the changes involve the people within the organization as Armstrong (2001) expounded that there should be an appropriate temperate and leadership when managing changes. Incongruous goals, opinions, and policies among upper-level executives can obstruct the cross-system cooperation squired by the strategy. This impediment must be avoided at all times. Line managers identify the staffing needs that are incorporated in the HER strategy, they help HER define the performance criteria for employees and assist in developing the selection tools.

They are closely involved with HER in the implementation of HER strategy by allowing a dynamic partnership to thrive between them. HER has the responsibility to implement and enact the policies within the organization’s targets and goals as they are expected to be done. HER must establish itself as the driving force behind the strategy implementation effort. It must be emphasized that HER has the power to generate opportunities to bring employees together with managers and executives, leading from behind the scenes. Implementing the strategy means that HER must help employees to understand the HER strategy and comprehend the reason for the strategy.

HER must also ascertain that employees commit to the strategy and take all possible opportunity to augment the HARM practices can be substantial (Canter 1985) because the successful implementation of HER strategies depends upon the behaviors of employees, and employee behaviors depend, in turn, upon the HARM practices a firm uses. Canter (1984) claimed that employees within the company should at a certain extent be compliant to the policies and procedure of the organization. Adherence to company policies and procedure gives focus and direction to the organization’s targets and goals as they are expected to be done leading to a more effective HER strategy.

Besides ensuring compliance, HER must also encourage a culture of pride in the firm’s own achievements; reductions of layers in the hierarchy; but also the improvement of lateral communication and giving increased information about company plans. Translate HER Strategies In To Policies Armstrong (2012) cited Canter’s phrase that HER strategies are action vehicles, they must be translated to policies that provide guidelines on decision-making and HER practices which enable the strategy to work. As action vehicles, the strategies determine the long term goals and objectives of an organization, and the adoption of courses of action wherein the objectives and other deliverables are clear, fixed and stated.

Organizational Needs Must Be Identified

Armstrong (2011) believes that a significant stage in development and implementation of HER strategy is the identification of organizational needs to know he existing resources. Identifying organizational needs can be crucial for the company and it must be as precise as possible to deal with the various resources. An organization must identify the priorities and importance of the organization needs. There could be a need for training and development, career development, and organization development. HER must examine these in view of their importance to the organizational goals, realities, and constraints.

HER must determine if the identified needs are real, if they are worth addressing, and specify their importance and regency in view of the organizational needs and requirements. HER Plans Must Be Up -or Date Lastly, HER strategies must be up to date a regular basis by evaluating the success of the plan and so the benchmark is being measured. This will determine the overall strategic plan if it became successful in achieving the organization’s mission. Keeping an up-date-to-date HER plan is beneficial to an organization, as the plan is always relevant to changing times and the needs of the company. It is also an opportunity for the organization to review, assess and make improvements or make necessary changes on the HER strategy.

It’s a good practice to monitor the implementation of the HER strategy, it could be the guiding force in the organization’s reviewing of employee performance, awarding promotions, approving leave, hiring and other related concerns. Report strategies will be assessed and applied to the Boston Chocolate and Truffles Company as a rapidly growing business. HER strategies suggest what the organization intends to do to HARM policies as they are aligned and incorporated to the business strategies and company’s goals, objectives and intended deliverables wherein strategies are action. Armstrong (2012) stated that different organizations have also different strategies and that there is no such thing as a standard strategy.

However, some strategies and their intentions are quite general others are not they set out two types of HER strategies: general and specific. General HER strategy focuses on the whole organizational in a macro perspective point of view. It’s a strategy wherein its proposal will be put into practice which will later have a positive result to the organization performance. This strategy is likely to be expressed as broad-brush statement of aims and purpose, which set the scene for ore specific strategies. It provides a general framework for the plan’s goals and define the scope of what the department must undertake and implement to achieve the plan’s goals.

General or Overarching HER strategy may be applied to Boston Chocolate and Truffles Co to some extent because it provides the general framework for the company’s goal-specific plans and paves the way to more intricate details as regards to objectives, mission, goals and deliverables within the company. General HER strategy impacts everything the department undertakes and what it expects to achieve. Overarching HER strategy is geared towards the development of the entire company and encompasses its overall business activities . There are three main approaches which are: High performance management, high commitment management and high involvement management.

High performance working involves the development of a number of interrelated processes that together make an impact on the performance of the company through its people in such areas as productivity, quality, levels of customer service, growth, and profits. This is achieved by ‘enhancing the skills and engaging the enthusiasm of employees’. If one were to apply this particular approach to Boston Chocolate and Truffles Co, the focus will be the company’s performance based on the skills and enthusiasm of the employees. The benchmark would then be on productivity, quality, levels of customer service and profits. However, the disadvantage is that high performance approach pushes the employees to be productive. Areas of personal development, training and career enhancement for employees are often neglected.

High commitment management approach emphasized the importance of enhancing mutual commitment. High commitment management has been described as ‘A form f management which is aimed at eliciting a commitment so that behavior is primarily self regulated rather than controlled by sanctions and pressures external to the individual, and relations within the organization are based on high levels of trust. Boston Chocolate and Truffles Co could also adopt high commitment management because this approach gives importance to the company’s employees by engaging the mechanism for “checks and balance” is self-regulated and based on high level of trust which could be detrimental.

High involvement management approach involves treating employees as partners n the enterprise whose interests are respected and who have a voice on matters that concern them. It is concerned with communication and involvement. The aim is to create a climate in which there is a continuing dialogue between managers and the members of their teams in order to define expectations and share information on the organization’s mission, values and objectives. This establishes mutual understanding of what is to be achieved and a framework for managing and developing people to ensure that it will be achieved. The best approach for Boston Chocolate and Truffles Co is high involvement management, this approach focuses on communication and involvement.

The continuing dialogue between managers and of their teams to define expectations and share information regarding the organization’s mission, values and objectives through high involvement management is vital if not crucial to the Boston Chocolate and Truffle Company’s success. Next, is the specific HER strategies that covers areas such as: human capital management, knowledge management, corporate social responsibility, engagement, organizational development, resounding, talent management, learning and developing, reward and employee relation. Significantly, as the Boston Chocolate and Truffle Co strives to expand and continue to produce finest quality products it has to give focus particularly on the specific HER strategies that are applicable.

Since, one of the company’s objectives is to value employee, customers and other stakeholders, the employee relation strategies had been given emphasis since these strategies aid in defining Boston Chocolate and Truffle Co as an organization. At Boston Chocolate and Truffle Co we give emphasis on employee relations strategies which include guidelines coaching managers and employees on how to handle employee relations issues to avoid grievance aggravation and its legal impacts, we advise them how to handle and document corrective action plans and disciplinary action. These also include investigating, obtaining statements, and making recommendations for further action.

Being so, all organizations regardless of the dimension or porpoise, have human resources, and those human resources are all different, have different needs and require a different management, in order to achieve in the most efficient way the goals of the organization (Manager, n. D. ). But this hasn’t been always seen like that, In the past, employees and HER departments were regarded as necessary but expensive overheads, the costs of which had to be borne by the organization Inkers, et al. 2011) This vision was changed in 1933 when Elton Mayo reported In experiment he conducted in a factory in Western Electrics Hawthorne Works in Chicago from 1927 to 1932 (Buddha ; Are, 2007). This experiment consisted, in a first stage, in studying how the workers from that factory would react when manipulating various variables, such as increasing the illumination in the work place, being given scheduled work breaks and shorter working weeks.

The results from this first stage were very positive, since production and productivity increased during the experiment period (Mayo, 1933). On a second phase, Mayo spent considerable time interviewing the workers in order to realize why when the physical and environmental condition were improved, an increase in productivity was noticeable. Turned out that the main factor was not the physical changes, but the social and human factors, because during the period of experiment, the employees felt a genuine care from the company.

It was then born the Human Relations School, that believed that management is a people-oriented business, and to insure high levels of productivity and morale, the organization must provide a good working environment, offer fringe benefits, social benefits and appear to show genuine concern for workers at work and away from work (Mayo, 1933). And with this “revolution in management”, almost every organization developed a Human Resources Management Department.

This section of an organization focuses in ensuring that the company’s goals are achieved the most effective and efficient way, by the human resources available to the organization (Buddha & Are, 2007). “Successful organizations will be those that are able to quickly turn strategy into action; to manage processes intelligently and efficiently; to maximize employee nutrition and commitment; and to create the conditions for seamless change. (Lurch, 1998)

Part II – HARM Functions

In this stage of the essay we will be presented with the nine functions of a Human Resources manager in an organization, and we will see how some functions can influence the strategies of other functions. The first one is Industrial Relations systems and processes, according to Dunlop(1958), this is “the process by which human beings and organizations interact at the workplace, and more broadly in society as a whole to establish the terms and conditions of employment” (Dunlop, 1958).

In order to succeed in this field, the Human Resources Manager must have a wide understanding of the labor relationship, the laws that cover any work related relations, and all the dynamics, contradictions and tensions of the employment relationship (Inkers, et al. , 2011). The Industrial Relations scenario, must be taken into consideration, when designing Jobs for the employees, when creating remuneration strategies and most importantly, when resolving conflicts within the company. Read about limitations of Manpower Planning

A good management of this relationship can prevent a strike (avoiding extra costs for the company) and improve the morale of the employees, creating a deter work environment for everybody. The second function is Job Design strategies and processes; this is the process of gathering several elements required to form a job. While doing so, the Human Resources Manager must always bear in mind both and safety procedures. (Harley, s. D. ).

The success of this task will influence the attraction and retention of employees, being so, the Human Resources Manager, while designing a Job must also take into consideration not only the organizational objectives but also the human capabilities and limitations, the quality of work life and the environment (Inkers, et al. , 2011). Also a correct Job-design will permit effectiveness in the company and subsequently cost reductions with unnecessary labor.

Another function is the attraction and retention strategies and processes; this function contains two main processes, the first, the attraction process, refers to the “idea that people’s preference’s for particular organizations are based upon an implicit estimate of the congruence between their own personal characteristics and the attributes of potential work organizations ” (Schneider, et al. , 1986). Which means, someone will consider a Job attractive (or not), based on the analysis of both he organization’s goals and culture, as well as the employee’s own personality and needs (Schneider, et al. 1986). The second process of this function is the retention process. It’s the company’s goal, to keep current motivated workers on their staff line, in order to increase productivity and reduce hiring costs. It’s the Human Resources Manager’s Job to build and maintain good retention ratios in the organization, in order to do so, a retention strategy must be designed. The employer must try to meet the career and personal needs of the employees.

This function is usually connected tit the remuneration strategies, so that the Human Resources Manager must find a balance between a motivating pay-rate for the employee and low costs in wages for the employer (Garcia, s. D. ). Every worker in an organization is going to require training in a certain stage of his “Job-life” within a company. This training can be applied to a new worker who still lacks the skills to help the organization or to a staff member that wishes to acquire new skills.

That’s when the fourth function of the Human Resources Manager comes in to action (Inkers, et al. , 2011). Learning education and development strategies aim to help the organization improve the productivity by having more skilled and motivated employees, so when designing a learning and development program, the HER manager must take into consideration the Job design and description and also all the health and safety procedures.

Performance management strategies and processes is another of the HER functions, and it’s the Harm’s Job to review all the employee’s performances throughout a determined period (usually a year), and evaluating their performance based on some pre-designed criteria (Anon. , s. D. ). This will have an affect not only on the remuneration process but also might help the company understand flaws in their methods (I. E. If an employee is having trouble performing a task, the HARM might figure out that it’s not the employee’s fault, but instead realize that the procedure for that task is faulty.

He might be able to re-design that Job, not only improving productivity but also ensuring the Health and Safety procedures). Effective performance management requires: Identifying and controlling system influences on performance; developing an action plan an empowering works to reach solutions; erecting communication at performance rather than at the performer (Gomez-Mejia, et al. , 1986). This is probably the most known Harm’s function, remuneration strategies and processes it’s the financial part of the reward practices. This practice al. 2011). The remuneration budget must be approved by the company’s manager, since it has to be according to the business plan stipulated in the beginning of the year. It’s the companies remuneration strategy that will dictate the basic remuneration factors for all the organization, as well as all the rules applied to those actors (I. E. Each employee gets a pay raise every two years). Once again this function will affect the performance of every employee on the organization, but also the design of every Job/position (Anon. , s. D. ).

According to the Occupational Safety and Health Act of 1970, the HARM is responsible for the following activities: “Encourage employers and employees to reduce workplace hazards and to implement new or improve existing safety and health programs; provide for research in occupational safety and health to develop innovative ways of dealing with occupational safety and lath problems; establish separate, but dependent, responsibilities and rights for the employers and employees for the achievement of better safety and health conditions; maintain a reporting and record-keeping system to monitor Job-related injuries and illness; establish training programs to increase the number competence of occupational safety and health personnel; develop mandatory Job safety and health standards and enforce them effectively; provide for the development analysis evaluation and approval of state occupational safety and health problems” (Lodgers, 2005). The above mentioned act, must be taken into inconsideration any time any department decides to make any physical our procedure changes. A more safe work environment will create a more motivating atmosphere, subsequently increasing productivity and reducing any accident related costs. Work related conflicts are very common in any type of organization; usually they are born from different opinions or points of view.

Although most commonly seen as negative, sometimes good outcomes can be provided after a dispute is settled (Inkers, et al. , 2011). It’s the HARM function to be able to identify those conflicts and try to resolve he issue bringing up from that a positive outcome for the organization. If successful, the HARM might be able to not only improve professional but also personal work relations, which will lead to a better work environment (Anon. , s. D. ). One of the challenges an HARM must face, is to try to Justify the HER department’s costs. Since the Human Resources department doesn’t generate profit itself, the HARM must provide a way to evaluate the success of his department through the use of Evaluation Strategies and Processes (Inkers, et al. , 2011).

One of the ways to do so, s using Kaplan and North’s Balanced Score Card. This document allows the managers to monitor the accomplishment (or not) of the tasks settled at the beginning of the year. It’s divided into 4 perspectives: Financial, Internal Business, Costumer Perspective; and Learning and Growth (Inkers, et al. , 2011). In the BBS, the manager with the help of the HARM, establishes the goals for that period (one year, three years), for the four perspectives, and designs the measures to achieves those goals, so that the BBS can be presented to the stakeholders. The HER apartment must provide a plan for the Internal and Learning perspectives in order to help the organization achieve its final goal.

As already mentioned through this essay, all this functions have to meet the company’s/organization’s goals. It’s the Harm’s Job to make sure that the organization’s human resources reach the maximum helps the organization deliver high levels of Performance, Productivity and Flexibility while being Effectiveness Cost effectiveness to reach the final outcome of the organization: Profitability (Inkers, et al. , 2011). As seen, some examples of that are: he attraction and retention process, must keep the workers motives enough so that they will have high performances, and at the same time, must be cost-controlled, so it doesn’t exceed the budget; the Job-design must guarantee task effectiveness and cost reduction.

Examine the contention that how managers manage their people resources/assets will be shaped by either a ‘conventional personnel’ or a ‘human resource management’ approach. What differences exist between these two approaches, and where does this lead to in the management of ‘people in organisations’? Draw upon service industry examples and literature to add weight to your analysis, discussion and conclusions. The management of people in organisations can take many shapes and forms and has evolved rapidly over time. This is due to the changing role of the manager within organisations..

There are two methods of people management which have existed and still do exist within organisations today which will be examined in this essay. These methods are Personnel Management (PM) and Human Resource Management (HRM). This essay will discuss the history of the two methods, the key features and the implications of the methods, by implementing them in key areas of a managers responsibilities and then applying them to an industry – which in this case will be the service sector. Before we discuss the two methods of management, it is best to first discuss why we manage human resources.

This is best described by Maund (2001): “… the role of Human Resources is to assist in the long term viability of a business or a non-profit making enterprise… While it is recognised that other resources are essential to the efficacy of an organisations business, for example finance and production, it is the human resources that remain virtually limitless in their capacity to make an impact – both positive and negative – on an organisation (Maund 2001. p. 17)”.

Agazadeh (2003) shows in this quote “Successful HR Managers and departments have a significant strategic impact on their organisations (Agazadeh.2003. p. 201) that he also believes that good human resource management is at the core of a successful organisation. Managing people well, especially within the service sector, means happier employees which in turn means happier customers who will return in the future ensuring the long term success of an organisation. This is especially important in the expanding and extremely competitive service sector. Welsh (2007) notes there are over 10 million people working in the service sector in the UK.

The tourism sector alone annually contributed 5% (45 billion) of the UK’s GDP (Gross Domestic Product) according to Boella (2001). With an industry of that size which is growing more every year, the importance of good management is becoming increasingly obvious within the sector to ensure its profitable future. Aside from the debate over the most affective way to manage within an organisation, the actual term to use for people management is now being argued too. One of the prompts for this is that over the last decade the ‘Personnel Departments’ within organisations are now being referred to as ‘Human Resource Departments.

Cole (2002) notes that the changed title of his latest edition ‘Personnel and Human Resource Management’ is another reflection of the ever increasing use of the term. Welsh (2007) also points out that when looking within the job advertisements in any medium the increasing occurrence of ‘Human Resource’ positions instead of ‘Personnel’. The term ‘Human Resource Management’ is in itself an American term for Personnel Management and is the term used by those considered management ‘gurus’ (Cole 2002. p. 8).. However the UK could be said as more apprehensive about adopting the term.

This was made apparent in July 2000 when the professional body for personnel management in the UK was given chartered status and did not change its name to ‘Human Resource’ but to the Chartered Institute of Personnel and Development according to Cole (2002). Many authors on the subject believe there is not a lot of significant difference between HRM and PM. According to Beardwell (2004), the argument between PM and HRM only exists between academics, and in practice, the two methods are extremely similar, most of the time indistinguishable. Storey (1992) notes that HRM is just another term for personnel . Cornelius (2001. p.9) also suggests that “…

HRM is little more than a relabelling of personnel management”. Although PM and HRM are seen as two of the same thing in theory, in practice they have their own background and their attributes reflect this. Personnel Management could be said to be the original people management method. It was most effectively used in the 1970’s and 1980’s when trade unions were at their strongest. Personnel Managers’ responsibilities were to keep the peace between management and trade unions. Their responsibilities lay more in avoiding strikes than in focussing on positive change for the benefit of the company (Kessler 1991).

Human Resource Management came about as a result of the weakening of Trade Unions in the 1980’s. This was due to globalisation and the changes in employment law under the Conservative government. Individuals were given more rights and no longer needed to be part of a union to exercise them. Cole (2002) discusses that after all the changes, personnel managers found themselves suddenly able to concentrate on working in harmony with their staff as opposed to before when they were constantly threatened with strikes.

Human Resource Management differs from Personnel Management on a number of issues. When making broad comparisons of the two one could call HR the ‘soft, intangible’ approach to management and PM the ‘hard, tangible’ approach (Rosenfeld 1999). This refers to approach and results of using HRM or PM to manage. The HRM soft and intangible approach can be compared to the PM hard and tangible approach by discussing their attitudes towards managing people and in specific areas of management. Storey (1992) shows that the HRM’s managerial role is to be ‘nurturing’.

This shows that HRM want to look after employees and help them in whatever way they can to achieve the best outcome for the employee and the business. PM’s managerial role is to ‘monitor’. This is suggesting that the manager is there to watch in a ‘big brother’ sense, which is less working with the employee and is also seemingly waiting for the employee to make a wrong move or slip up. This is in the interest of the business as poor effort and mistakes can cost a business time and money. However it also an attitude which is not encouraging working together.

Nurturing employees makes them feel wanted and part of a team therefore boosting their motivation. PM management is less about individual relationships between line-managers and employees and more about the legalistic contracts where the employees are there to do their job and the line managers are there to oversee or ‘monitor’ their work to make sure everybody is sticking to the rules. This would be a good time to show the two attitudes to managing by each method in practice within the service sector. The HRM attitude to management was described by Storey as ‘nurturing’.

To nurture is “to support and encourage, as during the period of training or development” (Dictionary. com 2007). Nurturing may not be a tangible benefit that an employee can hold in their hand like a bonus, but it is something which will make them feel more valued and therefore motivated to work well for their organisation. Organisations can take an HRM approach to managing by offering intangible benefits like these and receiving tangible benefits back in the form of increased profits through harder work by employees.

A strong example of this would be within a company who invests a lot of time and support in its employees and in turn has reaped the benefits from increased profits. Starbucks Coffee started off as a small coffee shop in Seattle, Washington State in the 1970’s. It now has over 12,000 shops worldwide (This Is Money 2006) and last year’s sales were $244. 2 million in the UK alone (This Is Money 2006). According to the companies founder Howard Shultz, “Our only sustainable competitive advantage is the quality of our workforce.

We’re building a national retail company by creating pride in – and providing a stake in – the outcome of our labour (Sandeland 1997. p. 136)”. The article details Starbucks’ comprehensive benefit and training package for their employees which includes health care, stock options, career counselling and product discounts. Schultz believes that without taking the time and effort to make sure employees are looked after, happy and being rewarded for their hard work, be it tangible or intangible, they will not feel “… financially or spiritually tied to their job” Sandeland. 1997.p. 136).

Starbucks has succeeded not just on the popularity of their coffee, but on the service customers receive by the employees – a direct result of the nurturing involved in an HRM approach to management. Starbucks Head of Human Resources best sums up their attitude in the comment “We are in the people-development business almost as much as the coffee business”. The PM ‘monitoring’ attitude to management sat well during the times of Trade Unions when a Personnel Managers main responsibility was to ensure workers were only doing what was set out in their contract terms.

There was no striving for improving customer relations through change as this could risk discontent and strikes by Unions. However as the Trade Union power weakened and the focus could turn to increased productivity through change and studies were carried out to find the best way to achieve maximum output from employees. The Hawthorne studies were carried out in the early 19th century by Sir Elton Mayo and were originally set up to discover what working conditions encouraged better production rates (Bloisi 2006).

Whilst carrying out the studies on a selected group of employees, the results showed that no matter what element of the work they changed, be it temperature or brightness in the room, the productivity always increased. This became known as the ‘Hawthorne Effect’. The study discovered a fundamental concept that would seem obvious today. They found that workplaces are social environments and within them, people are motivated by much more than economic self-interest. The employees worked harder because they knew they were being treated differently and were not being seen as workers but as individuals..

This became knows as the ‘someone upstairs cares’ principal (accel-team 2007). Another two differing approaches to management by HRM and PM is the way in which they deal with business goals. According to Cole (2002) PM focuses on how a business goal will affect employees before it is challenged, but HRM has a total commitment to business goals. Previously, restrictive Trade Unions meant business goals had to come second to keeping employees happy. Of course this all changed. The 1990’s became known as the ‘decade of the consumer’ which meant that employees concerns now came second to customer needs.

These attitudes light up another significant difference in the two methods, how they deal with change. PM will support change but unlike HRM it will not encourage it. Change is becoming increasing important for today’s businesses. Rosenfeld and Wilson (1999) note customer’s demand changes constantly and a business needs to adapt quickly if it is going to stay competitive. As mentioned previously by Boella (2001), the service sector is an ever growing industry which contributes hugely to the UK’s economy every year.

With over 10 million employees in the sector and the majority of them coming face to face with customers as part of their job, it is essential that they convey the best image possible of the organisation. As mentioned before, Mound (2001) describes the strongest resource an organisation has is its human resources and when managed well can have the largest impact on an organisations success. One company’s who takes great pride in their image by looking after their employees, is John Lewis.

Over recent years there has been great debate about the impact of Strategic Human Resource Management. Critically evaluate the evidence that high performance human resource practices lead to high performance and successful results in organisations. Illustrate your answer with practical examples from UK or US organisations. Compare and contrast this with at least two examples from organisations in international markets. In such an intense competitive environment, especially with the impact of recession, organisations strive just to survive and retain the market shares from being grabbed.

Hence, the organisations’ performance becomes one of the crucial factors to keep and attract the customers from competitors. At the same time, the people have widely been viewed as the main factors that would affect the organisations’ performance. As based on a report from CIPD (2003), “people are only one of many variables influencing productivity in numerous ways such as the educational level, skills, motivation, willingness to innovate, and diversity which affect the overall performance. “

Therefore, the “employee performance appraisal (PA) and performance management (PM) systems have been extensively studied as a core responsibility of the human resource management (HRM) function, particularly in the United States and, more recently, in the United Kingdom (Varma A et al 2008, page 15). ” Such systems bring advantages and help organisations to improve and enhance performance. “As according to Torrington (2005), PM has been developed to coordinate some features such as targets, training, appraisal and payment in order to deliver effectiveness.

” Moreover, “research in US found that, organisation with strong PM system are 51% more likely to outperform their competitors on financial measures and 41% more likely to outperform their competitors on non-financial measures such as customer satisfaction, employee retention and quality of product and services (Bernthal et al 2003, Varma A et al 2008, page 16). ” The evidences from studies and researches lead to increasing numbers of organisation realised the huge impact of human resource practice on organisation’s performance.

These organisations view human resource practice as a large part of achieving successful results and started to focus on human resource functions. For this reason, “according to CIPD (2009), the intangible values of an organisation which emphasise on the people it employs is gaining recognition by accountants and investors, and are commonly believed that this has implications for long run sustained performance. “

As a result, human resource strategy should be linked to the corporate strategy in order to achieve the organisation’s goals. This is because the potentialities of people who implement the corporate strategies are the main factor which affects the output of organisation. Human resource department therefore, bear the responsibility to recruit and select the right people into the ‘big family’ or the team whom would fit in and be able to coordinate well with the rests in order to create values which uplift the organisation’s performance.

In addition, Human resource department also play an important role as a trainer to train and develop the skills and knowledge of both the managers and employees. It could neither by creating a learning environment which shape the organisation culture nor conduct a series of training programme based on training needs analysis of each individual. Through training, the performance and productivity will be increased.

The Korean history of HRM can be divided into 3 distinct periods. During these periods the HRM paradigm changed from “seniority based HRM” to “ability based HRM” and finally to “performance based HRM”. The period up to 1987 can be called as the ‘era of seniority” when the main factors determining promotion and pay were age, education level and the length of service. Then from 1988-1997 was the “era of ability” here the promotion and pay was determined by the employees ability to work. Finally came the “era of performance” i. e.

1998 till now where employees are paid on the basis of his/her achievements. Before 1987 Korean companies enjoyed the “golden age” i. e. an era where everything they made sold well. Hence the paternalistic seniority based HRM took deep root, emphasizing “harmony” rather than “competition” among employees. The 1987 democracy movement changed the scenario, and the long suppressed desires of the workers started erupting slowly. Hence the core issue of HRM practices was to abolish discrimination among employees on the basis of education, gender etc.

The 1997 currency crisis made Korea to adopt “the North American style performance-based pay”. (Kweon-Taek, Chung(July2008) ‘Korea’s Shift to Pay-for-Performance’ SERI quarterly. Available from URL:http://search. proquest. com) The Korean management practices can also be studied from the viewpoint of Hofstede Cultural Dimension Study. The Confucius focused on order and hierarchy. The decision of those who were in authority were seldom challenged. Secondly, men were considered to be superior than women (Miles,2006,2007).

Another characteristics of these societies is collectivism. They stress on the importance of human relations and the priority was given to the group goals rather than the individual goals. “Geert Hofstede, in his study on the relationships between national culture and organizational culture found Korea to be one of the most collectivist societies in the world. (Hofstede,1980a,b,1996,2003; Perry,2002) These characteristics contributed to the ideas about how firms were organized (Rowley and Bae,2002, p. 530,2004, pp. 59-61). This is shown in the management of chaebols.

“Chaebols are large private business group that consist of several smaller units”. Some examples of chaebols are: Samsung, Hyundai, Lucky-Goldstar, Hanjin and SK Corp. “Management within the chaebol is paternalistic and dictatorial, with the influence of the founder apparent in how the firm is led and directed”. (Cho and Yoon, 2001, p. 75). In this case there is centralization of decision making, and the employees are seldom delegated the powers. Seniority based reward system along with life time employment are common. (Yoon, 2007, p. 16).

Lastly, the Korean HRM practices are moving towards a new direction. “Confucian traits such as patriarchy, collectivism, an emphasis on solidarity and cooperation, are no longer regarded as compatible with the modern market system”. While introducing new policies or reforming the old ones the government or the policy makers should keep in mind the cultural dimension. (Miles, Lilian(2008) , ‘The significance of cultural norms in the evolution of Korean HRM practices’, International Journal of Law and Management, Vol. 50, No. 1, pp. 33-46. Available from URL:http://search. proquest. com)

Human Resource Management is defined as a management function that deals with the recruitment, management, and development of employees In order to maximize their potential and roles In the company or organization. Not only Is It utilized in personnel management but also in manpower, organizational, and industrial management. It is previously referred to as personnel management. Its functions include: Job analysis and planning, determining the specific personnel needs of a certain Job. Personnel and workforce planning, choosing whether to hire contractors or Independent employees.

Recruitment and selection. Hiring the best candidate for the job. Induction and orientation, making sure that the employees are aware of the organization’s goals and policies. Wage and salary regulation, making sure that employees are properly compensated. Training, development, and performance appraisal in order to enhance employees’ potential and utilize his expertise in the achievement of the organization’s goals. Benefits administration, to make sure that employees get what are due to them. Resolving labor disputes, making sure of good relations between the management and employees.

International Human Resource Management (IHRAM), on the other hand, is defined as a management function which deals with the management of personnel who are stationed In other countries or who are citizens of other countries that are hired to work In the organization. Like HARM, Its functions also Include recruitment, planning, training, performance appraisal, and compensation. Unlike it, however, IHRAM functions involve cross-cultural training such as orienting employees with different cultural, ethical, and religious values. It also involves global skills management. While

HARM is affected only by internal factors, IHRAM is affected by both internal and external factors because It Involves the management of employees that come from several countries. SIMILARITIES HARM plays a key role in any organization. It is the core of corporate strategy as HARM could help company improve their performance, form sustainable competitive advantages, and have a guiding role in the enterprise management. To quote from Dowling, et al. (2008: up), ‘General HARM refers to those activities undertaken by an organization to effectively utilize Its human resources’. This concludes the first molarities between the two.

As basic functions such as procurement, allocation, utilization and motivation are the same whether they are specific in one country or several countries. Both domestic and international HARM have same major functions and activities in HRS planning, recruitment, performance management, training and development, compensation, and industrial relations. Another similarity is related to constraints include political, economical, legal, and cultural have significant impact on how the HRS functions are carried both in domestic as well as global environment Sweatshops and Dash, 2008).

Finally, both of them have similar basic human resource management objectives. Firstly of all, is to ensure organization having maximum satisfaction in the human resource demands. Another objective is to ensure effectiveness in the organization through interventions. And then is to promote sustainable development of firms by maximizing the development of internal and external human resource management. The final similar objective is to maintain and encourage human resources within the company to upgrade the potential human capital.