The concept of Human resource management refers to a strategic as well as a comprehensive approach that allows an organization to effectively manage individuals along with establishment of a positive workplace culture and environment. In addition to this, it allows a business to enable its employees to be highly effective as well as productive in accomplishing the set goals and objective of the organization. The following report is based on the case study of Trufflebags which is a long-established family business. The organization in recent times has faces disses related to the management of its human resources resulting in high rate of turnover as well as absence levels which have made their business operation unproductive. The following report will analyze the contemporary issues as well as key theories relative to HRM that help in demonstrating the awareness of the implication for practice. In addition to this, it will assess strategic HRM approaches along with analyzing the internal and external context of the organization through analytical tools in order to demonstrate the awareness relative to the impact of various contextual factors in development of role of HR, strategies as well as practice. At last the report will provide suitable solution to the specific business problems based on the given case study.
Analyzing contemporary issues and key theories related to HRM that demonstrate awareness of the implications for practice.
There are various contemporary issues within HRM that impact the overall performance as well as productivity of an organization. This makes its vital for a business and its management to understand various contemporary HRM issues in order to enhance their overall human resource perfaronce (Bissola and Imperatori. eds., 2019).In context to the Case study of Trufflebags, the organization has various contemporary issues that influence its productivity in a negative manner. This has resulted in issues such as high rate of turnover and increased levels of absence. Moreover, the business has received negative media attention as various employees of the organization have given statements of terrible work environment as well as culture. Given below are some contemporary issues that the management of Trufflebags needs to evaluate in order to improve its HRM practices:
Job stress: The aspect of high level of job stress is a contemporary issue within HRM as it has a major influence on the overall performance of the employees and impacts their productivity. In context to Trufflebags, it is vital for the business to ensure that it is able to reduce the overall stress of its employees by providing them a positive workplace environment. This will help the business to retain its employees in an effective manner as well as change their perspective relative to the work culture of the business resulting in higher level of performance.
Safety issues: The overall issues of safety have a major impact on the perfaronce as well as motivation of the employees within an organization. In addition to this, it also increases the rate of turnover as employees feel unsafe (Flamini, Pittino and Visintin., 2021). In context to Trufflebags, the employees of the business have reported unsafe working environment at the workplace. This makes it crucial for the management of Trufflebag to re-evaluate its safety policies in order to provide the employees higher level of motivation to work. This will help the business to keep its employees productive.
Employee burnout: The issues of burnout is a major aspect within HRM as employee can feel burnout due to various elements such as minimum wages and long working hours that negatively impact their motivation and productivity (Taylor., 2022). In context to Truffeebags, the management of the business must focus on developing employee engagement programs in order to understand their concerns and gain the ability to provide them the required support. This will help the business to understand employee concerns such as low wages and long working hours resulting in a positive work environment which is productive in nature.
Human resource manage theories refer to strategies, tactics as well as objective that are utilized by an organization in order to administer polices and procedure relative to employees. Given below are some HRM theories in context to Trufflebags:
Organization Lifecycle Theory: This HRM theory is based on overall life-cycle of the organization relative to its growth and development. The organization at any stage of its life cycle can be impacted by external environment circumstance as well as internal factors. In context to Trufflebags, it is crucial for the management of the organization to use this theory as it will allow in understand how external factors are influencing the performance of their employees as well as internal elements such as safety (Brewster and Cerdin., 2018). This will help the business to keep its employees motive and optimize their overall performance.
Strategic contingency theory: This theory of HRM is based on developing contingency plans in order to make the organization pro-active. In addition to this, its states that a leader should become a central part of an organization and utilize skills to solve issues and problems (Chaudhry and et. al., 2019). In context to Trufflebags, this strategy can help the management of the business to develop plans based on various situations within their human resource and contemporary issues. This will help the leaders within the business to solve the issues in an effective as well as efficient manner improve organizations HR performance.
There are various HRM approaches that can be utilized by an organization in order to overcome various issues relative to human resources. In context to Truffelbages, the strategic HRM approaches can allow the management of the business to improve upon their current HR situation and attain a higher level of perfaronce as well as productivity. Given below are some strategic HRM approaches in context to Trufflebags:
Proactive approach: This strategic HRM approach states that a HR manager must be able to anticipate the challenges as well as issues before they arise along with focusing on the aspect of prevention is better than cure (Almarzooqi, Khan and Khalid., 2019). In context to Trufflebags, it is vital for the management to become proactive in order to develop strategies based on the various issues within its HR. taking this approach will help the business to overcome the issues in an efficient manner and ensures high level of productivity form its employees.
Commodity approach: This strategic approach of HRM states that individuals are a commodity and the aspect of money matter the most in influencing their overall performance and productivity. In context to Trufflebags, the utilization of this approach can help the business to overcome the issue of paying its employees minimum wages. It is vital that the management to recognizes the efforts of its workforce in order to keep them motivated and performance at a higher level.
System approach: This approach of HRM states that there is a set of interrelate elements within HRM that work together in order to achieve a common goal (Subramanian and Suresh., 2022). In context to Trufflebags, this approach will help the management understand the relation between HRM elements such as training and development along with rewards. This will help the management to understand how it can improve it HRM practices in order to provide structured and systematic support to its employees and improve their overall performance.
Analyzing the internal and external context of the organization through appropriate analytical tools that demonstrate the awareness relative to the impact of various contextual factors on the development of the role of HR, HR strategies and practices.
There are various internal as well as external factors that impact the development of the role of HR as well as strategies along with practices. These factors influence the overall performance of HR operations within a business and impacts its productivity. In context to Trufflebags, it is vital for the management to evaluate these various internal and external factors in order to develop appropriate plans what will allow in optimal HRM practice which will provide highest level of performance as well as productivity. Given below are factors that impact the development of the role of HR, HR strategies along with practice in context to Trufflebags:
Condition of workforce market: The overall conduction it’s the workforce market have a great influence on the overall development of the role of an HR. in context to Trufflebags, the changes in the supply and demand of workforce with impact the role of selection and recruitment within in HR. This makes it vital for the management to understand external market conditions in order to understand the overall requirement of workforce within the business and attain efficiently (van Harten and et. al., 2020).
Political legal factor: The changes in the legal factors such as employment laws along with changes in minimum wages influence the overall role of HR. In context to Trufflebags, the changes in minimal wages with later the role of its HR as it will require re-structuring the finances required as well as the overall need of employees in order to save cost.
Organizational strategy: The overall strategy of the organization has a major influence on the role of a HR as the strategy can be oriented towards motivating its employees or be based on achieving the set goals of the business at any cost. In context to Trufflebags, it is vital that the business to prioritize an organizational strategy that is balance and pays emphasis on supporting its employees in order to attain maximum performance.
Culture of the organization: The culture of an organization has a huge influence on the development of the role of HR within an organization. In context to Trufflebags, it is vital for the management to have structured and appropriate value, beliefs as well as norms in order to enable the HR to effectively manage the workforce and attain higher level of productivity (GÜN., 2021).
Talent management: The factor of talent management is a vital aspect that affects HR strategy within an organization as it involves identification, retention as well as development and engages with employees. In context to Trufflebags, it is vital that the HR focuses on talent management in order to develop suitable strategies that will help in retantion of employee in an optimal manner.
Recruitment: The factor of recruitment impacts the development of HR strategy within an organization as it involves understanding the necessary requirement of the business in order to attain high level of performance (Gupta., 2020). In context to Trufflebags, the HR will need to understand recruitment requirements in order to develop specific HR strategy that will allow the business and workforce to be productive.
Offering security to employees: The factor of security affects the HR strategy within an organization as it influences the overall perfaronce as well as motivation of employees. In context to Trufflebags, the management must ensure that it is able to provide all its employees with highest level of safety in order to keep them motived and maintain a higher level of perfaronce (Yoon and Sengupta., 2021).
Non-bias and performance based compensation: It is vital that the business is able to evaluate the perfaronce of its employees in a non-bias manner in order to provide appropriate compensation which impacts the HR practice. In context to Trufflebags, it is crucial that the HR is able to evaluate the perforamnce of each employee in an effective manner in order to keep them motivated.
The STEEPLE analysis allows an organization to effectively measure macro-environmental external factors. This allows in overviewing several external fields in a structured and systematic way. Given below is the STEEPLE analysis in context to Trufflebags case study:
|
STEEPLE |
IMPACTS |
|
Social |
The organization of Trufflebags has provided its customers with high quality products which have helped in building its brand. Although in recent times the business has established a negative image due to exploitation of employees which has reduced its popularity. |
|
Technological |
The organization has utilized optimal technology in development of its products which has allowed it to be efficient. Although it can use technology to improve its other operation and reduce the workload of employees in order to improve their motivation. |
|
Economic |
The organization has faced economic issues relative to loss or market share as well as profitability due to negative publicity and not being able to keep up with the competition in the market (Cheng and Hackett., 2021). |
|
Environmental |
The organization follows all the necessary environmental requirements as well as laws in order but have encountered issues as the employees of the business have reported that the products are not handled in an appropriate manner and are sourced from plantations that harm the environment. |
|
Political |
The organization is not impacted by political factors as it operated in a relatively stable political environment which allows it to maintain optimal operations. |
|
Legal |
The organization can face various legal issues as they are not able to prove their employees with proper safe working environment. This can lead to both legal and brand image issues. |
|
Ethical |
The organization of Trufflebags have major ethical concerns as the business has allegedly sourced raw material form plantations that use slave labor along with he utilization of single-use plastic in their packaging. In addition to this, the business has exploited its employees as well (Hans, Fernandes and Crasta., 2019). |
The Socio-cultural factors are related to the social along with cultural factors that consists of patterns, beliefs along with common tradition which are found present in population groups. The various socio-cultural factors that impact HRM intervention are given below:
Culture: The overall culture of the organization plays a vital role and need to be evaluated by the management of Trufflebags in order to keep develop a positive work environment for its employees and keep them motived.
Preferences of customers: It is vital for Trufflebags to understand the perspective of the customers as they have received feedback of poor customer service. This makes it vital for the business to understand the perspective of customers and develop suitable strategies (Podgorodnichenko, Edgar and McAndrew., 2020).
Work ethics: The aspect of work ethics has a major influence on the HRM of Trufflebags as the business has encountered issues relative to unethical work structure. It is vital that the management develop optimal strategies in order to overcome the issue (Adla and Gallego-Roquelaure., 2019).
Socio-economic factors is referred a factor of individual which consist of social status, level of income along with the background of occupation. The different socio-economic factors that impact HRM interventions are elaborated below:
Age: It is crucial that the management of Trufflebages needs to focus on hiring young employees within the organization who are motived and will provide high level of performance.
Unemployment: The organization has encountered high level of turnover within the business. This makes it vital for the management to develop strategies that will reduce this issue.
Income: The management has to evaluate the factor of income as the business has exploited its employee relative to minimum wages which has impacted its performance (Marchisio., 2022).
Stakeholder interest and recommendation about HRM activities:
The stakeholder of a business has interest in the overall activities of an organization and affects the performance of the business. The different stakeholder in context to Trufflebags consists of Employees, board of directors and staff members (Yedder., 2018). The evaluation of stakeholder interest in context to Trufflebags is elaborated below:
|
Stakeholder |
Justification |
|
|
Own interest |
Perspective to other interests |
|
|
Employees |
They have their own interest relative to work and enhancement of their own skills, Knowledge as well as experience to get a job in a reputed organization. |
In this the employees have to work according the assigned work by the superiors in order to attain success as well as growth. |
|
Board of directors |
The boards of directors are liable to all the operations and how thing work. |
They are the most crucial stakeholders as they are responsible for the entire business and its operations. |
The recommendations to HRM activities that can help the organization to move forwards without conflict are as follows:
Employee training and development: It is vital that Trufflebags provide the employees with proper training as well as development in order to keep them motived and improve their performance (Podgorodnichenko and et. al., 2020).
Employee engagement: The management needs to develop an employee engagement program that will help the management undersnt the perspective of employees relative to change (Aust, Muller-Camen and Poutsma., 2018).
Proposed solution for specific problem:
High rate of turnover: In order to reduce the high rate of turnover it is vital for the organization to develop an employee engagement program which will help in developing positive work environment.
Ineffective customer service: The organization has to focus of providing employee proper training and development in order to improve customer service. This will help the business improve its operations.
Conclusion
From the above report it has been concluded that, it is crucial for an organization to evaluate its HRM in order to identify issues that negative impact its HR operations. In addition to this , the management of the business must evaluate various HRM approaches and how they can provide support to the business. Moreover, the report was able to conclude that various internal and external aspects influence HR role, strategies as well as practices. Furthermore, the report conclude that it is vital for a business to use analysis such as STEEPLE in order to evaluate external facts and develop suitable solutions in order to overcome issues related to it.
References
Books & Journals:
Adla, L. and Gallego-Roquelaure, V., 2019. The gift in shared HRM ethics in SMEs. Employee Relations: The International Journal.
Almarzooqi, A.H., Khan, M. and Khalid, K., 2019. The role of sustainable HRM in sustaining positive organizational outcomes: An interactional framework. International Journal of Productivity and Performance Management.
Aust, I., Muller-Camen, M. and Poutsma, E., 2018. Sustainable HRM: A comparative and international perspective. In Handbook of research on comparative human resource management. Edward Elgar Publishing.
Bissola, R. and Imperatori, B. eds., 2019. HRM 4.0 for Human-centered Organizations. Emerald Group Publishing.
Brewster, C. and Cerdin, J.L., 2018. HRM in mission driven organizations. Cham: Palgrave Macmillan.
Chaudhry, N.I., Aftab, I., Arif, Z., Tariq, U. and Roomi, M.A., 2019. Impact of customer-oriented strategy on financial performance with mediating role of HRM and innovation capability. Personnel Review.
Cheng, M.M. and Hackett, R.D., 2021. A critical review of algorithms in HRM: Definition, theory, and practice. Human Resource Management Review, 31(1). p.100698.
Flamini, G., Pittino, D. and Visintin, F., 2021. Family leadership, family involvement and mutuality HRM practices in family SMEs. Journal of Family Business Strategy, p.100468.
GÜN, G., 2021. KNOWLEDGE-BASED HRM PRACTICES, TASK PERFORMANCE AND IS-BUSINESS STRATEGIC ALIGNMENT. Journal of International Social Research, 14(77).
Gupta, P., 2020. SUSTAINING COMPETITIVE ADVANTAGE THROUGH HRM: DEVELOPING STRATEGIC INTENT. Annamalai International Journal of Business Studies & Research, 12(1).
Hans, V.B., Fernandes, D.J. and Crasta, S.J., 2019. Contemporary Issues in HRM: lessons we learn. NOLEGEIN-Journal of Human Resource Management & Development, pp.14-24.
Marchisio, E., 2022. Law and HRM Challenges in Generational Transition of Family Firms. In Research Anthology on Human Resource Practices for the Modern Workforce (pp. 1578-1600). IGI Global.
Podgorodnichenko, N., Akmal, A., Edgar, F. and Everett, A.M., 2020. Sustainable HRM: toward addressing diverse employee roles. Employee Relations: The International Journal.
Podgorodnichenko, N., Edgar, F. and McAndrew, I., 2020. The role of HRM in developing sustainable organizations: Contemporary challenges and contradictions. Human Resource Management Review, 30(3). p.100685.
Subramanian, N. and Suresh, M., 2022. Assessment Framework for Agile HRM Practices. Global Journal of Flexible Systems Management, pp.1-15.
Taylor, A., 2022. Contemporary HRM Practices in Japanese Small Business. In Small Business Management and Control of the Uncertain External Environment. Emerald Publishing Limited.
van Harten, J., De Cuyper, N., Guest, D., Fugate, M., Knies, E. and Forrier, A., 2020. Introduction to special issue on HRM and employability: mutual gains or conflicting outcomes?. The International Journal of Human Resource Management, 31(9). pp.1095-1105.
Yedder, M.B., 2018. Human resource management in family business succession: victim or saviour?. Journal of enterprising culture, 26(04). pp.401-421.
Yoon, Y. and Sengupta, S., 2021. The role of business strategy on the adoption and effectiveness of broad-based employee share ownership. Journal of Organizational Effectiveness: People and Performance.
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