Lean HRM: Techniques, Importance And Impact On Organizational Profitability

Traditional Human Resource Management

Question:

Discuss about the Statistics and Business Research Methods for Text and Cases.

Human Resource Management is one of the important resources in the organization. On the contrary, lean HRM is the recent practice that has been evolving in the sector. It is majorly concerned with the cultural dynamics, people and leadership that are needed for the structure of the organization. Lean HRM is the modern trends that introduces cheaper and fast processes and are focused on adding value to the employees (Rajappan, 2011). However, in this research, lean HRM will be examined in a practical context by evaluating the concept of lean HRM and its techniques. Even more, the research will be substantiated if the study is supported by primary data that will be initiated in the research. Nevertheless, as the research is concerned, the study will guided through methodologies as well as plan which will help in guiding through the research outcomes.

Traditional Human Resource Management

Zirar, Radnor & Charlwood (2015) recognized human resource management incorporates people related guidelines that are implemented to manage and bring flexibility at the workplace by focusing on the policies, programmes, practices and philosophies. As a function, traditional HRM was more considered with the work in the business that enabled three functions namely providing HR functions that is through recruitment and selection, classification, training followed by regulations on the personnel laws and thirdly, establishing the main role in enhancing organizational performance.

Lean Human Resource Management

When Lean and continuous Improvement was applied to the organization, it mainly focused on human related issues that promoted the change in organization culture. The lean HRM can only be achieved through use of certain techniques like Six Sigma that not only links the HRM to the organization more effectively but rather lays a base to profitability of the organization. The prerequisite requirements for lean HRM include management commitment, open communication, organizational cultural change, team working and training employees (Sparrow, Hird & Cooper, 2014). There are two facets of Lean HRM; firstly, it is evident that it itself is a HR function and secondly, it is an ideal position to be a powerful ally in lean transformation by virtue of interactions. The following diagram below will give an overview of lean HRM.

Figure: Lean Human Resource Management

Source: (Human Resource: Washington Government, 2016)

Importance of Lean HRM

The lean HR roles improve when different techniques are applied based on different models and shared results. On the other hand, the improved efforts provide tools and resources for continuous improvement that helps in facilitating cross functional communication and coordinate training. The organizational change is nurtured and monitored by leadership to create a new environment for the staff to perform. In addition, the lean HRM techniques help in ensuring compliance by using minimal time, cost and effort (Aswathappa, 2013).

Need of Lean HRM

The need of lean operation plan in Human Resource Management is for the firm achieves success based on its value propositions as well as fir targets that not only helps in retention of the employees but also helps in maintaining its target clients (Tyagi, et al., 2015). According to Wealth management, RIA Trent Report, study evaluated on the best practices that can be integrated for profitability, operations and best practices is Lean Six Sigma for Service justifies that “30-80% of servicing costs are a waste and add no value from the perspective of the client.” However, to get started the company should ensure profitability on operations plan that deems on company’s objectives; gauge ROI of the improvements, timeline and cost (Goldman, 2016).

Lean Human Resource Management

Six-Sigma is a structure method that ensures to improve the business processes that supported by assorted DMAIC (Define, Measure, Analyze, Improve and Control) by an assortment of statistical tool. However, an organization mindset is based on the decisions that need to be undertaken based on the measured data that not only looks for the problems but also defines defects based on customer rather than internal requirements through the indicator to prevent them from happening (Pyzdek & Keller, 2014). The roles and responsibilities of Six Sigma are given using the figure below.

Figure: Six Sigma Roles and Responsibilities

Source: (Pyzdek & Keller, 2014)

Research Questions

The research questions that highlight the understanding of the study are:

1. What is the substantial role of lean HRM in establishing the financial practicality in any organization?
2. How lean HRM can be termed effective when it comes to an individual or the market as a whole in a business set up?
3. What are the suggested recommendation that needs to be carried out to improve the lean practices undertaken in an organization and the way it can positively impact the profitability of the organization?

Although, the research question will help in evaluating the study but to test the relationship between Lean HRM and profitability, following hypothesis is carried out.

Ho: Lean HRM does not have any significant impact on the profitability of the organization.

H1: Lean HRM have a positive yet significant impact on the profitability of the organization.

The research methodologies adopted for based on certain research inputs that can be effective in predicting the future outcomes of the research. However, the data collected and the methods used will help in determining the relationship between learn HRM and profitability of the organization.

Research Approach – A deductive research approach is followed in the research as it will help in outlining the phenomenon based on the research hypothesis that needs to be established. Moreover, this approach emphasizes on causality by testing the theory in new emerging area in the discipline (Engel & Schutt, 2014). The theory is dealt to provide a pattern in research on the emerging analysis on lean human resource management. The research can be directed as given below.

Figure: Deductive Approach

Source: (Brymen, 2015)

Research Design – The deductive research procedure has been adopted to provide intrinsic details on the research study that not only highlights the employee and managers details but also establishes a link between the two. Brymen & Bell (2015) perceived that a simple random sampling would be convenient when it comes to choosing the data procedure.

Research Strategy – The research strategy that have been adopted in the model are based on survey method and interview method. Survey method will help in gathering facts. However, survey method will be serving the study by collecting essential facts on lean human resource management techniques (Rubin & Babbie, 2016). On the other hand, interview method will provide valuable information to the employees and managers, it shows how the profitability position of the organization and how lean human resource management techniques have helped in achieving the same. Interview methods were personally taken through face to face conversations or through telephone and the questions were unstructured in nature (Seidman, 2013).

Project Plan

Task	Start Date	Duration	End Date
Literature Review	3-Dec	60.00	3-Feb
Data Collection	2-Feb	29.00	2-Mar
Data Analysis	2-Mar	30.00	3-Apr
Final Report Submission	5-Apr	60.00	5-Jun

Research Process

The research process will be guided in the following stages:

Stage 1 – This stage deals provides the base of the research topic by providing suitable literature review. However, the stage is analysed based on the lean human resource management technique that is suitable to assess the performance of the employee as well as the managers in the organization.

Importance of Lean HRM

Stage 2 – This stage deals with the carrying out of the research methods that are essential in data analysis and the procedures that will help in acknowledging the results of the research.

Stage 3 – This stage establishes the data analysis on the research strategies whether it has to be qualitative or quantitative method. Moreover, if qualitative then the interview method and quantitative then the survey method will be analysed on the given questionnaires to the employees as well as managers of different business enterprises. The sample would be structured on 50 middle ranked employees and 6 managers from different organizations for survey method and the interview method. In total, a sample size of 56 respondents would be considered.

Stage 4 – On the whole, a timeline will be devised that is time as well as cost effective that had been undertaken in carrying out the research h.

Stage 5 – This is the ultimate stage when the expected outcomes of the research will be evaluated based on the research.

Data Collection Methods

The data collection method adopted for the research has been both qualitative and quantitative in will be nature. The qualitative method with the help of interview method will be devised based on the interaction with the employees and the managers of the organizations. This will also helps in acknowledging the ideas, knowledge and the attitudes of the employees in the organization (Scheyvens, 2014). However, qualitative research is beneficial for the research to analyse the lean HRM techniques has been one of the part in the organization for maintaining its profitable situations as shown in the annual report.

Conversely, quantitative method will be analysed on the questionnaire that would be distributed to get mathematical, statistical yet meaningful analysis. However, the relationship of independent variable profitability and dependent variable lean HRM techniques can provide a methodological outline in establishing a relationship between the two (Davies & Hughes, 2014).

Both the interview as well as survey design would be based on primary data collection methods as different lean HRM techniques would be applied on different techniques but more emphasis will be given on six sigma approach as it is one of the popular lean approach applied in the organizations (Timans, 2014).

Data Analysis

The interpretation of the data will help the researcher to draw conclusions to the research study. The research will be evaluated on the responses gathered from the survey as well as interview method and it will be evaluated using MS Excel (Jackson, 2015). However, the analysis will be based on frequency tables, normal probability plots, regression analysis and correlation analysis of the lean HRM techniques applied in the organization. The financial data taken from the annual reports of the organization will hold an important part in data analysis.

Expected Outcomes

The research outcomes that can be drawn from the research study are respective of the different organization conditions that have undertaken different lean HRM techniques to increase the profitability of the organization. Moreover, these techniques are supported only when the organization is large and there is large inflow and outflow of quantity of goods taking place. However, many manager feel that it has a considerable amount of impact on the profitability of the organization whereas the same cannot be said for all the organizations in Australia. Although, lean HRM techniques has been a prominent development in the human resource development but there is considerable cost and time that has been undertaken at the initial stages which might create a hurdle in the profitability of the organization. However, only those organizations have adopted who are substantially sound and incurring variable costs would not add considerable change in their profitable conditions as there is lot of mechanisms and training of employees involved.

References

Applying Lean/Continuous Improvement to Human Resources. (2016).Human Resource: Washington Government. Retrieved 7 June 2016, from https://hr.wa.gov/WorkforceDataAndPlanning/LeanHR/Pages/Apply_Lean_HR.aspx

Aswathappa, K. (2013). Human resource management: Text and cases. Tata McGraw-Hill Education.

Bryman, A. (2015). Social research methods. Oxford university press.

Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA.

Davies, M. B., & Hughes, N. (2014). Doing a successful research project: Using qualitative or quantitative methods. Palgrave Macmillan.

Engel, R. J., & Schutt, R. K. (2014). Fundamentals of social work research. Sage Publications.

Goldman, J. (2016). The Lean Solution to Becoming a More Profitable, High Growth Advisory Firm. Wealthmanagement.com. Retrieved 7 June 2016, from https://wealthmanagement.com/viewpoints/lean-solution-becoming-more-profitable-high-growth-advisory-firm

Jackson, S. (2015). Research methods and statistics: A critical thinking approach. Cengage Learning.

Pyzdek, T., & Keller, P. A. (2014). The six sigma handbook (p. 25). McGraw-Hill Education.

Rajappan, P. (2011). Lean HR is a necessity, not an option !. Deccan Herald. Retrieved 7 June 2016, from https://www.deccanherald.com/content/75527/lean-hr-necessity-not-option.html

Rubin, A., & Babbie, E. (2016). Empowerment Series: Research Methods for Social Work. Cengage Learning.

Scheyvens, R. (Ed.). (2014). Development fieldwork: A practical guide. Sage.

Seidman, I. (2013). Interviewing as qualitative research: A guide for researchers in education and the social sciences. Teachers college press.

Sparrow, P., Hird, M. and Cooper, C. L. (2014) Do We Need HR?: Repositioning People Management for Success. United Kingdom: Palgrave Macmillan.

Timans, J. W. J. (2014). Continuous quality improvement based on Lean Six Sigma in manufacturing small and medium sized enterprises (Doctoral dissertation, University of Groningen).

Tyagi, S., Cai, X., Yang, K., & Chambers, T. (2015). Lean tools and methods to support efficient knowledge creation. International Journal of Information Management, 35(2), 204-214.

Zirar, A. A., Radnor, Z. J., & Charlwood, A. (2015). The relevance of the human resource management (HRM) to lean in the service sector: evidence from three exploratory case studies.