For the purpose of this exercise we will first analyse and understand 3 HRM models and see how we can apply the learning's from these theories to "Lamplight Home and Fashions".
Boxall and Purcell (2003)
According to Boxall and Purcell there are three critical elements for viability of the firm,
defined business strategy, objectives, goals
Skilled, capable and motivated workforce 1
Supportive non-human resources, including adequate finance allocated to HR problems (e.g. sufficient funds for HR related technology/IT systems
In order to sustain competitive advantage and create organisation agility
Critical organisational success factors (e.g. ability to read current and potential markets, flexibility to adapt to environmental changes)
Employee behaviours and competencies 1
Formulate and implement relevant HR strategies and practices
Harvard Model of HRM
Human resource flows - recruitment, selection, placement, promotion, appraisal and assessment 1, promotion, termination, etc.
Reward systems 1 - pay systems, motivation 1, etc.
Employee influence - delegated levels of authority, responsibility, power
Work systems - definition/design of work and alignment of people
According to Beer et al (1984) the use of Harvard Model leads to achievement of 4 C's
commitment of employees (commitment to organisation and its culture)
competence of employees (talent, skills, abilities) 1
congruence (employee and organisational goals) 1
cost effectiveness of HR function
Michigan Model of HRM
Selection: matching people to jobs (right skills for the job) 1
Performance Management: appraisal 1
Rewards: reward short term as well as long-term achievements 1
Development: develop high quality and skilled employees 1
1 A couple of common themes identified across the three models
Application of the concepts:
An organisation need not necessarily follow one model it can create its own model by selecting relevant concepts from each model.
In the light of the current economic climate Lamplight Home and Fashions is currently reviewing its operations. The points emerged out of the review mainly require strategic and operational decisions, HRM will only be involved/contribute where issues have been identified relating to workforce, training requirement, recruitment of additional staff, review of reward structure etc.
HRM needs to align with revised business strategy (i.e. Lamplight vision to setup a presence in out of town shopping centres) and may require to recruit additional staff with the opening of additional outlets (May apply the Michigan...