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Theories Of Human Resource
Rewarding performance in organizations
Rewarding performance in organizations
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This essay will discuss the theoretical issues related to human
resource management strategies, human resource planning, employment
relations, diversity management and recruitment and selection. The
essay will compare the differences in human resource management
between two airlines, American Airlines and Southwest Airlines.
Finally the essay will put forward recommendations to the two airlines
in the human resource area.
The human resource needs of today’s organisation need to be
continually analysed due to constant changing conditions. This
analysing is known as human resource planning (HRP) and it ensures
that the right number and type of people are available at the right
time for the organisation (Dessler et al 1999). There are many
factors that contribute to HRP and trends that influence the
organisation’s external environment. These factors are workforce
diversity, outsourcing, globalisation, technological development, new
organisational structures, casualisation and the shift from
manufacturing towards service and knowledge-based work (Dessler et al
1999).
Workforce Diversity
Workforce diversity is divergence from an assumed norm or set of
expectations. The government have created legislations confirming the
right of all members of society to experience comparable life and work
opportunities, irrespective of difference of sex, age, sexual
orientation, religion, physical abilities or whether they belong to
the dominant culture or language group (Human Resource Management
Study Book). The reasons that these legislations were introduced were
due to the changing of the workforce. More women joined the workforce
as did people of differing ethnic origins. The workforce has become
older because of the legal ruling of voluntary retirement age (Human
Resource Management Study Book). Due to these changes and
legislations employers have had to re-think their employment policies
and procedures in areas such as selection, training and promotion
(Human Resource Management Study Book).
Some forward thinking organisations have looked beyond the
government’s requirements and have used the changes to benefit
themselves in the long term. These organisations have taken this
opportunity to better understand and serve the wider community, to
gain a competitive advantage over more traditional organisations.
They have also tried to gain more knowledge of the needs and
preferences of specific groups in society and discovered the things
that might help to make the workplace more productive and satisfying
for all their employees (Human Resource Management Study Book).
Outsourcing.
Outsourcing is where organisations use external providers for those
activities that are either non-essential or demand an injection of
management resources and capital. This allows the organisation to
focus more on the core of the business operations (Dessler et al
1999). Outsourcing is extremely important where HRP is concerned. It
can be used as a strategy when skilling of resources will be expensive
and time consuming and it can also make forecasting easier if the
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
A. The Human Resources Framework The human resources framework is one of the four framework approaches identified by Bolman & Deal; this frame regards people’s skills, attitudes, energy, and commitment. The human resource frame defends the ideas that organizations can be stimulating, rewarding, and productive (Bolman, & Deal, 1991). The human resources framework focuses on leadership styles of support, advocate and empowerment, and provides efficient and transformative change for your organization by addressing human issues, leading to greater accomplishment of goals and better individual, team, and organizational performance. The leaders increase participation, support, share information, and transfer decision making down to employees in the
The 1920’s was a decade that changes American life. Frederick Lewis Allen describes the twenties as a “revolution in manners and morals.” The twenties has been named all types of nicknames, such as: “The Roaring Twenties”, “The Era of Wonderful Nonsense”, “The Decade of the Dollar”, “The Period of the Psyche”, “ Dry Decade” and the age of “Alcohol and Al Capone” (Gales Research, 1998). During the twenties, the way Americans lived had changed. The 1920’s was a time in history that has been remembered for its great prosperity but also for its great loss. The Great Depression is what ended the Roaring Twenties.
'Social Security—the nation's largest, costliest, and most successful domestic program has reached a critical juncture in its development. As its creators anticipated, nearly every wage earner now pays taxes into the system. In principle, all citizens may be eligible for "entitlements" at some point in their lives. Yet...senior citizens worry that their benefits will be cut; younger Americans are skeptical—if not cynical—about their own benefits upon retirement.'
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
Social security, since instituted in 1935, has kept many elderly people from running below the poverty line (Hosansky). In 2015, the Social Security Administration predicted that the funds would be depleted by 2034 (Max). This poses a serious threat to the living situation of future generations when they retire. Our elderly, by today’s standards, enjoy a comfortable lifestyle. They are able to retire and still make over one thousand dollars a month. Some people also have private pensions which allow them to live even more comfortably. But with social security funds running out, we must ask the inevitable question. Is it worth having social security anymore? Social security should be kept. One must never fully rely on social security. In addition
Ostrom, Elinor. 2007. “Institutional Rational Choice: An Assessment of the Institutional Analysis and Development Framework.”
Privatizing of social security has been a subject of debate over the years ever since former president George. W. Bush suggested it back in 2004.Over 96% of the American workers benefit from the social security after paying the social security tax (Aaron 12). This is to say that over 49 million people receive some amount of money from the system which fortunately for them is much higher than the taxes they contribute towards the same. While such payment may not be more than $895, nearly two thirds of the American retired population acquires half of their income from the social security payments. For some it is the only source of income. One importance of this social security is its ability to cover the users from unpredictable economic environment including fluctuations in demand and supply and inflation rates. Additionally the security covers them against possible disability or unexpected demise of loved ones. So with the increasing economic uncertainty both nationally and globally, social security is needed more than ever before and this is why privatizing it is the worst idea ever.
In the 1980’s, the birth of a new concept called ‘Human Resource Management’ was born. This trend comes after an intense period of Taylorisation, Fordism and now, McDonaldisation. HRM came to counter balance these trends and to consider the concept of the Man as a Man and not as a machine. For the last several decades, the interests of companies in "strategic management" have increased in a noteworthy way. This interest in strategic management has resulted in various organizational functions becoming more concerned with their role in the strategic management process. The Human Resource Management (HRM) field has sought to become integrated into the strategic management process through the development of a new discipline referred to as Strategic Resource Management (SHRM). In current literature, the difference between SHRM and HRM is often unclear because of the interconnections linking SHRM to HRM. However, the concepts are slightly different. Thus, we can ask, what is strategic human resource management? What are the main theories and how do they work? What do they take into account and how are they integrated? What are the links between SHRM and organization strategy? In order to answer to these questions, we will precisely define strategic human resource management, followed by a look at the different approaches built by theorists, and finally, we will see the limits between the models and their applications depending on the company’s environment. Discussion Strategic Human Resource Management: definition Strategic human resource management involves the military word ‘strategy’ which is defined by Child in 1972 as "a set of fundamental or critical choices about the ends and means of a business". To be simpler, a strategy is "a statement of what the organization wants to become, where it wants to go and, broadly, how it means to get there." Strategy involves three major key factors: competitive advantages (Porter, 1985; Barney, 1991), distinctive capabilities (Kay, 1999) and the strategic fit (Hofer & Schendel 1986). Strategies must be developed with a relevant purpose to sustain the organizational goals and aims. SHRM is one of the components of the organizational strategies used to sustain the business long-term. SHRM defined as: “all those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of the business. (Schuler, 1992)” or as “the pattern of planned human resource deployments and activities intended to enable the firm to achieve its goals.
Damen, Mark. "Herodotus and the Persian Wars." A Guide to Writing in History and Classics. N.p., 2013. Web. 18 Dec. 2013.
Furthermore, it provides many beneficial programs to the American people of the is not just a retirement program. Also, provides essential life insurance and disability insurance protection as well. Approximately 61 million people, or more than one in every six U.S. residents, collected Social Security benefits in June 2017 (Policy basics, 2017). Which include senior citizens make up about four in five beneficiaries, another one-fifth of beneficiaries received Social Security Disability Insurance (SSDI) or were young survivors of deceased workers. Currently, the government provides and support this program through taxes from the Federal Insurance Contributions Act (FICA); in which the Internal Revenue Service (IRS) Deduct from every working individual in the United States through payroll. FICA consists taxes of the old-age, survivors, and disability insurance, taxes, also known as social security taxes, and hospital insurance tax. Various rates do apply to these taxes. The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total (Miller,
Diversity: This is nothing new, diversity has been around for decades. However, organizations must figure out the right mix and approaches to improve diversity programs. Cultural diversity brings together people with various skills, creativity and knowledge for effective productivity. A diverse group has increased adaptability, a variety of viewpoints on an issue and innovation. Challenges of diversity include communication problems, resistance to change, differences of opinions and stereotyping. Which in my opinion leaves diversity with unanswered questions.
The role of today’s Human Resource Manager (HRM) is much more involved than in the past. Human Resources (HR) has ordinarily been referred to as Personnel. Formerly, the manager in this field, whether it was referred to Personnel or HR, held a narrow margin of responsibilities. Today’s HRM has the unique role of looking out for the interests of both the employee and employer. Technology, globalization and outsourcing have added a challenging twist to HRM responsibilities. Adding further to this unique challenge is the fact that many industrial and skilled labor workers as well as professionals and others belong to labor unions.
Noe, Raymond A., John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright. Human Resource Management: Gaining a Competitive Advantage. 7th ed. Boston: McGraw-Hill Irwin, 2010. Print.
have more of a major effect on the company's health. Irving Burstiner was quoted in in The