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21555- Human Resource Management | Portfolio

Portfolio Activity Topic: HRM

Theories and concepts

Human resources management refers to the policies, practices and systems that influence an employee’s behavior, attitudes and performance (Osman et al. 2011). HRM is the process of binding people and organization, helping them to achieve each other goals. The relationship between human resource management and performance can be linked to two approaches which are best practice and best fit. Best practice or high-performance work practice is described as human resource methods that have a positive effect on organizational performance. Characteristics of best practice are employee development, career progression, a well-structured recruitment process and teamwork. Best fit approach which also known as the contingency model emphasizes that HR strategies and organizational strategies must be aligned. According to this theory, HR strategies should be match in different circumstances along with culture and operational process as well (Armstrong 2012).

Evolution Human resource management has changed in name few times throughout history. This was happened due to the change in social and economic activities. Industrial welfare is the first form of HRM in the early 1900s-1940s. During the second world war, the focus has changed to industrial relations and personnel management (1940s-1970s). Strategic HRM was found in the period of 1970s-1990s. SHRM can be defined as the linking of human resources (HR) with organizations’ strategic goals and objectives so that, they can improve business performance and develop organizational culture that nurture innovation, flexibility and competitive advantage. By the end of 1990, best practice theory was emerged and focused on institutionalizing, benchmarking and comparing the HRM functions across organizations. In the beginning of 2000s, HRM best fit model turned up and focused on how organizations can cater for the individual needs of their employees; with some commonalities around ‘employee engagement’ from one organization to the next. In 2018+, HRM developed in response to the substantial increase in competitive pressures American business organizations because of such factors as globalization, deregulation, and quick technological change (Ghemawat 2017).

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The Future of HRM The McKinsey Global Institute estimates that by 2030, the world’s job will disappear and be replaced by technology which could be a robot. According to the 2017 Deloitte Global Human Capital Trends study, HR is not only works as a support system, but they are being asked to help lead the digital transformation sweeping organizations worldwide. Key Consideration and Practical Implications In practical, manager could use evidence-based theory to solve problems, find solutions and approaches that have a strong empirical basis. For example, in the hiring process, a manager of a company would create a high-pressure interview situation to see how the candidates will respond. The manager will also use application data and GPA to filter out candidates. However, the manager found out a research that the validity of the method in some cases are no better than performing a coin flip to make a hiring decision. As a result, the manager is using more structured methods and assessment for hiring decision while applying best practice techniques in the hiring process. References: Armstrong, M. 2012, Armstrong's handbook of human resource management practice, 12th edn, Kogan Page, UK.

Ghemawat, P. 2017, ‘Globalization in the Age of Trump’, Harvard Business Review, 15 August, viewed 17 August 2018, < https://hbr.org/2017/07/globalization-in-the-age-of-trump>

Osman, I., Ho, T. & Carmen Galang, M. 2011, ‘The relationship between human resource practices and firm performance: an empirical assessment of firms in Malaysia’, Business Strategy Series, vol. 12, no. 1, pp. 41-48.

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Portfolio Activity Topic: HRM lens

Toys 'R' Us to close Australian stores, hundreds of jobs lost

Toys R Us has officially announced to close the doors of its 44 Australian stores which will leave 700 Australians out of a job. However, staff entitlements such as super and unpaid leave will rank as a priority and were expected to be paid in full. Toys R Us also launched a final sale ahead of its closure with up to 70% discount (Johanson 2018). Theories and concepts Human Resources departments are transforming as the modern business faces numerous and complex challenges and exploit opportunities. The transformation of human resources today is a direct call of the rapid changes within businesses due to factors such as globalization. Globalization is the process of increasing pace of economic and cultural interconnectedness between countries. It has resulted in the increasing use of goods and services from many different countries (international supply chains) (Nankervis et al. 2014). The process of globalization includes a number of factors such as fast technology developments which allow global communications, political and transportation developments. These produce greater development opportunities for companies with the opening up of additional markets, allow greater customer harmonization as a result of the increase in shared cultural values, and provide a superior competitive position with lower operating costs in other countries and access to new raw materials, resources, and investment opportunities. However, globalization has negative impact in the market because it creates competition between businesses. Domestic companies have to compete with foreign companies, they are compelled to raise the standards and customer satisfaction level in order to survive within the market. High competition forces producers to find ways to cut costs, improve efficiency and raise productivity. Companies ended up in requiring less employees which affect the level of unemployment (Kiggundu 2002).

Key considerations

According to Toys R Us case, there are some reasons of why the business is failing. There is a change in demographics, the average number of babies Australian women are having has fallen to the lowest level in 10 years (Battersby 2015). As Toys R Us is targeting children, declining birth rates may have had an "adverse effect" on its business. The decline in sales can also be related to class 3

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discrimination as technology improved, children with gadget seems to be in a ‘high class’ rather than children with physical toys, this will affect the attitude and behaviors of the others resulting a negative shift in Toys R Us sales. Toys R Us is having a direct competition from other retailers such as Amazon and E-Bay which sell their products in lower prices. By age seven, most kids nowadays have largely set aside their physical toys in favor of virtual attractions (Popken 2017).

Practical implications

Globalization has created a competitive market where all of the firms try to find high-quality employees to benefit their business. HR managers need to consider what talent they actually need to achieve the business strategy and ensuring that they have enough supply to fulfil the demand. It is also important for them to think about the future goals while giving the employees continuous trainings so that they can develop their talent according to the organization’s needs. Due to the globalization, the world is getting more and more connected, through talent acquisition, managers could find the best candidates to achieve an excellence performance of their business. References: Battersby, L. 2015, ‘Baby drought as Australia's fertility rate falls to 10-year low’, Sydney Morning Herald, 30 October, viewed 24 August 2018, < https://www.smh.com.au/national/baby-droughtaustralias-fertility-rate-falls-to-10year-low-20151029-gklmvc.html>. Johanson, S. 2018, ‘Toys 'R' Us to close Australian stores, hundreds of jobs lost’, Sydney Morning Herald, 20 June, viewed 22 August 2018, < https://www.smh.com.au/business/companies/toys-r-usto-close-australian-stores-hundreds-of-jobs-lost-20180620-p4zmpa.html>. Kiggundu, M. 2002, Managing globalization in developing countries and transition economies, Praeger, Westport, UK. Nankervis, A., Baird, M., Coffey, J. & Shields, J. 2014, Human resource management, 8th edn, Cengage, Melbourne, AU. Popken, B. 2017, ‘Did Video Games and iPads Kill Toys R Us?’, National Broadcasting Company, 20 September, viewed 24 August 2018, < https://www.nbcnews.com/business/consumer/did-videogames-ipads-kill-toys-r-us-n802751>

Portfolio Activity Topic: Engagement and retention 4

21555- Human Resource Management | Portfolio

Survey result According to the employee engagement survey that I did, there is an alignment between the level of POS, LMX and PsyCap. I got the average of 2.62 for POS because I don’t think my organization is really care about me and my problem. There is no fulfilment of socio-emotional needs causing me fail to identify positively in the organization and I would not care about their problems. LMX took the second place with the average of 3.7. It was better than the POS because behind all that circumstances, somehow, I realize that my supervisor sees my potential and trust me with the work matters which makes me feel matters. For PsyCap, I got 3.92 and this is because I have been working in this workplace for a long-time, so I know much about the work environment. Also, I feel confident since I have been through all the difficult times and that leaves me with higher capabilities. The average of employee engagement was 3.9. I am actually happy with the work that I am doing but could not meet my expectations. While the intention to turnover was 5.3, this is actually quite high because I think that I could find better and more structured workplace. Lastly, the average of discretionary power was 5. To improve the low POS, manager needs to make sure that they treat their employees fairly and equitably which determine how resources such as pay, promotions and job assignments are distributed, the treatment of employees, such as with respect and dignity and informational justice.

Theory and practical implications

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For the benefit of employees and organization alike, it is important for organizations to recognize employees as valuable sources of human capital. Perceived organizational support (POS) defined as employees’ beliefs concerning the extent to which the organization values their contribution and cares about their well-being (Eisenberger et al. 1986). POS is strongly driven by effective leadership, favourable HR practices, desirable job conditions and fair treatment. For managers, there are few tactics to enhance POS. First, a recent met-analysis of Kurtessis et al. (2015) indicated that “training (developmental) opportunity was the job condition most strongly viewed as under the discretionary control of organizations and, presumably, most indicative of POS.” The training given for employees lead them to higher level of performances therefore will satisfy and support the workgroup. Second, appropriate rewards and recognition for the achievement of high performance are strong drivers of POS. However, the rewards should be based on reasonable goals concerning of what the employees can achieve given their current situations. Third, be fair and equitable in the making, monitoring and enforcement of all management practices. When organizations treat their employees fairly, they convey a sense of concern for the employees’ well-being (Rhoades & Eisenberger 2002). References: Eisenberger, R., Huntington, R., Hutchison, S. & Sowa, D. 1986, ’Perceived Organizational Support’, Journal of Applied Psychology, vol. 71, no. 3, pp. 500-507.

Kurtessis, J., Eisenberger, R., Ford, M., Buffardi, L., Stewart, K. & Adis, C. 2015, ‘Perceived Organizational Support: A Meta-Analytic Evaluation of Organizational Support Theory’, Journal of Management, vol. 43, no. 6, pp. 1854-1884.

Rhoades, L., & Eisenberger, R. 2002, ‘Perceived organizational support: A review of the literature’, Journal of Applied Psychology, vol. 87, no. 2, pp. 698-714.

Portfolio Activity Topic: Employee selection

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Job Advertisement Executive Assistant - Sydney EY

ABOUT EY As a global leader in assurance, tax, transaction and advisory services, we’re using the finance products, knowledge and systems we’ve developed to build a better working world. That starts with a culture that believes in giving you the training, opportunities and creative freedom to make things better.

QUALIFICATIONS 

Graduate of Accounting and have an in-depth understanding and demonstrated knowledge of Financial Markets

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A least 2-3 years in either previous EA experience or customer service and event support.

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Intermediate in the use of Microsoft Office suites

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Have some experience with HandiTax, HandiLedger, Xero, and MYOB

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Strong communication skills including telephone manner and interpersonal skills

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Experience in a professional services environment is highly regarded.

WHAT WORKING AT EY OFFERS We offer a competitive remuneration package where you’ll be rewarded based on your performance and the value you bring. Our Total Rewards package includes support for flexible working, career development, and an extensive range of wellbeing and benefit offerings.

Person-Organization fit refers to the “compatibility between people and organizations that happens when at least one entity provides what the other needs or they share similar fundamental characteristics or both” (Kristof-Brown et al. 2005). If similarity occurs, supplementary fit exists. Organizations and individuals can also be described by what they supply and demand in employment agreements (Kristof 1996). Based on the statement above, the person should be graduate in accounting because certain skills and knowledge are needed to enable them to develop and suggest relevant and efficiently implementable solutions and ideas. This will lead to high performance of

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employees which will drive respect from others, positive feedback and high motivation to even perform better. Experience of 2-3 years is needed because the person fit requires people to have similarity and compatibility between fundamental characteristics of person and organizations (e.g., values, goals, orientations). Through experience people could learn, have a better understanding so that they could assess the level of their skills and improve. EY requires people that have an intermediate ability of using Excel and other applications such as Xero, MYOB, HandiTax because employees with high PO fit are likely to have great levels of knowledge, skills, and information about their tasks and organizations so they could deal with the work-related issues and enhance organizational effectiveness. Strong communication skills are needed because it fosters a good working relationship with colleagues and enables workers to understand each other. This will lead to a similarity in perception resulting workers to exchange more positive and supportive attitudes and behaviours (Jin 2015). References: Kristof, A.L. 1996, ‘Person-Organization Fit: An integrative review of its concept-tualizations, measurement and implications’, Journal of Personnel Psychology , vol. 49, pp. 1-49. Kristof-Brown, A.L., Zimmerman, R.D. and Johnson, E.C. 2005, ‘Consequences of Individuals ‟ fit at work: a meta- analysis of person-job, person-organization, person-group, and person-supervisor fit’, Journal of Personnel Psychology , vol. 58, no. 5, pp. 281-342. Jin, S. 2015, ‘The Relationship between Person-organization Fit and Employee Creativity: The Mediating Role of Creative Capital’, Business and Management Research, vol. 4, no. 3, pp. 24-31.

Portfolio Activity Topic: Safety management

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Workplace stress management is a major concern, not just for staff and leaders but it affects the entire organization. Stress straightly impacts on the business costs and disrupts organization operations. It could reduce business productivity and increase absenteeism of the employees. HR managers need to “diagnose, treat, and rehabilitate” the employees who experience stress at workplace.

HR managers play important role in monitoring workplace stress. Managers should also be alert for the signs of stress amongst their staff which includes measuring the number of complaints present by employees and overtime working employees, change in an employee normal behaviour (irritability/withdrawn/unpredictability, uncharacteristic behaviour), absenteeism, change in their appearance, and sudden lack of concentration/commitment, and staff turnover (Balaji 2014).

Work-related stress could happen for many reasons, such as high work demands, low levels of control, poor support and recognition in workplace, lack of clarity, and organizational justice. Work demands are one of the most common sources of work-related stress. It is necessary for managers to make sure that demands should not exceed employees’ capability to cope. To deal with this problem, manager could have consulted with workers when determining performance targets, set targets that are realistic and achievable. Team-based targets are an effective measure for improving overall performance against the organisational goals and building effective teams. In addition, the way workers are supported is the key to reduce or moderate work- related stress. For practical support, managers could provide workers with training and development opportunities, conduct performance reviews and feedback, also provide additional assistance when workers are undertaking challenging tasks. Poorly defined or conflicted roles in organisations can bring stress to workers. Managers need to ensure that employees are aware of their role and ensure that all staff receives suitable training for their jobs. Furthermore, ensuring that the management structures across the organization are clear is crucial so that the workers know who they are accountable to and where they can go for help. Rewarding employees’ efforts and acknowledge their organisational contributions help to reduce the risk of work-related stress. Workers who feel appreciated are more positive about themselves and motivated to contribute more to the organization’s success. Rewards could be formal (prizes, commissions, bonuses, gift certificates) and informal (simple comments such as ‘thank you’ or ‘great work’ or assignment to a special project) (Queensland Government 2018). HR managers

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also need to do evaluation process to see how the employees are doing and to see the level of their involvement and whether they are satisfied with their work.

References:

Balaji, R. 2014, ‘Role of Human Resource Manager in Managing Stress of Employees in Manufacturing Concerns’, International Journal of Innovative Research in Science, Engineering and Technology, vol. 3, no. 4, pp. 11070-11703.

Queensland Government 2018, Workplace Health and Safety Queensland, viewed 12 October 2018, < https://www.worksafe.qld.gov.au/__data/assets/pdf_file/0006/91149/managing-workrelated-stress.pdf>

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Portfolio Activity Topic: Diversity Theories and concepts Organizational inclusive theory believes that organizations that adopt inclusive behaviors...