Analysis of personnel management and human resource management perspectives - Free Essay Example

Analysis of personnel management and human resource management perspectives INTRODUCTION The report has two sections; the first will focus on critically analysing the principals of Personnel Management (PM) and Human Resource Management (HRM) and the similarities and differences between them. Furthermore, John Storeys (1992), Guests (1987), Beer and Spectors (1985) points of difference will be provided and adapted to a Subway franchise. Finally, the appropriate recommendations on how the company could improve its HR procedures. The second will focus on context of Subway Franchisor Corporation which is currently the leading fast food company in the US, winning numerous awards since it was founded in 1965 by a 17 year old Fred DeLuca. It provides nutritious menu choices, flexible food options on its gourmet breads, sauces and toppings. The company also specialises in wraps, tortillas and salads as well as a variety of drinks. According to Subways official website (subway.co.uk), their mission is to supply good quality food and service, and also provide the tools and knowledge to entrepreneurs to gain competitive advantage over other fast food companies. It is important to understand Subways role as a franchisor. This report is not based on an analysis of the Subway Corporation, the franchisor, but rather on an individual Subway franchisee. 1 Personnel Management The history of PM began around the end of the 19th Century; a concept closely connected to the contradiction in relations between companies and their employees. It is believed that PM evolved through phases: * Welfarist (until 1920s) Characterised by an emphasis on the provision of welfare facilities and efforts made to create the ideal factory (Cumming, 1993, pp.4-5). * Personnel Administration (1930s) In the form of recruitment, basic training and record keeping (Armstrong, 1996, p.32). * Development (1950s) Management of employee relations becomes the critical contingency factor of PM due to the rise in TU membership and collective bargaining. A wider range of personnel services were provided (Armstrong, 1996). A broad definition of PM is a function concerned with putting in place, the processes and procedures to make sure the organisation has the right staff at the right time so it can operate at a very basic level. Similarly, Cole (2002) describes PM as the function of management that has to deal with the recruitment, employment, training, redeployment, safety and departure of employees. 1.1 Functions of Personnel Management PM tries to maintain fair terms and conditions of employment, whilst efficiently managing day-to-day, personnel activities at the operational level. Heavily based on administrative tasks; It involves hiring and developing employees so that they become more valuable to the organisation. More specifically, the functions of PM are identified by Armstrong (1996) in Appendix 1. In broader terms, the functions include:- * Conducting job analysis, recruiting and selecting and handling promotion internally. * Training based on legal requirements of Health and Safety procedures, risk assessment. * Remuneration: making sure the correct wage/salary is paid at the right time (Cole, 2002). * Providing benefits and incentives. * Appraising performance, resolving disputes in the form of grievance and discipline. * Monitoring absences and sickness using techniques such as the Bradford Factor (identifies the number and patterns of absences). * Redundancy: administration of and dismissal procedures (Cole, 2002, p.26) 1.2 Advantages and Disadvantages of Personnel Management Identifying people as the central function of an organisation which need controlling and allocated effectively (Bach, 2005), is the key advantage of PM as it is essential to the survival of the organisation. As previously mentioned, personnel managers can identify staffing gaps and assign the right number and type of people the organisation needs, (Armstrong, 1996, p.28). Furthermore, it is a very methodical. There are clear ideas of what has to be done in certain situations implying that there is transparency and consistency in the way individuals are treated. The advantages of PM may however also have negative implications. For example, Maslow (cited in Strage, 1992) identifies that individuals are different with different needs. The model is inflexible and standardised, dealing with each employee and every organisation in a certain way. This may not be appropriate for all employees or organisations. PM has often been described as routine and very process driven. This may be ideal for large organisations however not for smaller firms. The process is costly and time consuming to manage effectively. Finally, the culture and individual values of the workers are not considered, along with the adversarial relationship (the wanting of different things) between workers and management. 2 Shift from Personnel to HRM In the 20th Century there was a broad discussion whether or not HRM represents a fundamental change in people management or it just a phase of PM (Beardwell and Claydon, 2004). Some theorists emphasised a transformational shift from PM to HRM (Spector, 1985). Tyson and York (1993) believed that people are a businesss most important resource and that the achievement of organisational goals depends mostly on this. At the same time others believed that HRM was just a next step in PM development caused by historical and environmental factors (Bach and Sisson, 2000). It was stated that in PM, employees are seen as a variable cost, while HRM shows that they are a variable asset to the organisation. However, some theorists argued that change in name didnt bring a change in reality, therefore HRM was described as an old wine in new bottles (Armstrong, 1987) and as a wolf in sheeps clothing (Keenoy, 1990). Theorists tried to answer these questions by identifying similarities and differences between two approaches of people management. Legge (1995) identifies following similarities:- * Both emphasise the importance of integration. * Both linked employee development with the achievement of organisational goals. * Both sought to ensure that the right people were in the right job. * Both gave the responsibility of people management to line managers. 2.1 Beardwell and Claydon Model (2007) In contrast, Beer and Spector (1985), Guest (1987) and Storey (1992) compared the models and identified several points of difference which are summarised in a single model developed by Beardwell and Claydon, (2007, p.13). It examines differences between them in 5 perspectives seen in Appendix 2. 2.2 John Storeys Model (1992) Another model, underlying the previous one was made by John Storey, who identified 27 differences between PM and HRM. These points are grouped into four categories: beliefs and assumptions, strategic aspects, line management and key levers (Appendix 3). 2.2.1 Advantages * Clearly identifies the differences between the two. * Shows consideration to organisational culture, strategies, leadership. * Identifies a two dimensional map: interventionary/non-interventionary and strategic/tactical (Armstrong, 1996, p.62) 2.2.2 Limitations * Companies often combine both approaches and therefore cannot be characterised under just one. * Organisations beliefs and assumptions as these are often invisible and non-tangible (Beardwell and Claydon, 2007). 3 Human Resource Management HRM presents a variety of different styles and models. Storey (1989) identifies its two types: hard and soft. Later, Michigan Business School (MBS) and Harvard University developed two different basic models, which have been very influential in the interpretation of HRM (Beardwell and Claydon, 2007): Matching model associated with a hard approach and Harvard model, in connection with soft. These two particular models underline the two main concepts: Matching model became a basis of best-fit school of Strategic Human Resource Management (SHRM), whilst Harvard models ideas contributed to best-practice approach. These will be discussed further. 3.1 Soft/Hard approach to HRM The hard approach stresses the importance of close integration of HR policies, and activities and systems of business strategy. Also, the emphasis is placed on cost-reduction strategies (Schuler and Jackson, 1987). Furthermore, it detects the strong from the weak i.e. those whose attributes and skills help the company to achieve strong strategic positioning and competitive advantage. The soft approach recognises employees as valued assets to attain competitive advantage through their commitment, high quality, adaptability, performance and their skill set. Employees are proactive through collaborations and participation. Soft and hard approaches are very contrasting especially when implementing a single approach. Soft and hard approaches show an obvious gap between what would be characterised as rhetoric and reality. 3.2 Matching Model The model is developed by MBS (Fombrun et al.,1984). It shows an interconnection between different environmental forces (political, economical, cultural), business structure and strategy and HR policies and practices. It emphasise a close relationship between the last two (Appendix 4). The model is associated with a hard version of HRM that is characterised by using HR in order to meet business objectives. Two basic assumptions form a model (Beardwell and Claydon, 2007): * Effective way of people management is not universal: it depends on the particular organisation. * Employees should follow the same business views as managers and the owners in order to maximise organisational performance. 3.2.1 Advantages ÂÂ · Takes into account the influence of external factors on an organisation and its HR polices. * Emphasises tight fit between HR and business strategy that leads to competitive advantage (Beardwell and Claydon, 2007, p.7). 3.2.2 Disadvantages * Business level strategy and HR strategy could not be linear (Bratton and Gold, 2001). * Fails to generate employee commitment (Purcell, 1995, cited in Storey). * Excessive fit could be a disadvantageous to achieving goals (Boxall, 1996). 3.3 The Best-Fit Model Best-fit model belongs to contingency school of SHRM that explores the link between stages of organisational development, strategy, HRM policies and practices (Boxall and Purcell, 2000). There are several best-fit models: life-cycle model (Kochan and Barocci, 1985), competitive advantage models (Schuler and Jackson, 1987 and Miles and Snow, 1984) and configurational perspective (Marchington and Wilkinson, 2002; Delery and Doty, 1996). 3.3.1 Life-Cycle Model The model matches HR policies and practises with the stage of organisational life-cycle (Appendix 5). In the start-up phase, HR polices should be flexible and attract talented and skilled employees. The growth stage should have more formal HR procedures, efficient management and organisational development. The maturity stage is characterised by cost control, HR strategy and, finally, in the decline stage, the company shifts to rationalisation with a reduction of workforce and redundancy implications (Kochan and Barocci, 1985). 3.3.2 Competitive Advantage Model The model links HR systems and organisational strategy. Porter (1980) argued that firms could follow only three generic strategies: cost leadership, differentiation or focus strategy. Schuler and Jackson (1987) matches these with a firms HRM polices (Appendix 6). The emphasis shifts from long-term focus, coordination and broad career path under the innovation strategy to fixed job descriptions, immediate focus and continuous training under quality enhancement and to short-term focus and minimal level of training under the cost reduction strategy (Schuler and Jackson, 1987). Miles and Snow (1978) classify companies into four distinct strategic groups (defenders, prospectors, analyzers and reactors) and base their response to three major problems: entrepreneurial, engineering, and administrative. Their competitive advantage framework (Miles and Snow, 1984) links three of these strategies with firms HR practices (Appendix 7). Application of their model to the organisation increases busi ness performance. 3.3.3 Configurational Model Contingency school was criticised for its lack of sophistication, because of its attempt to relate only to one variable. Configurational model is a more complicated approach that focuses on multiple independent variables that effect HRM strategy. This approach represents non-linear synergistic effects and higher order interaction to maximise performance of the company (Delery and Doty, 1996, p.808). The model emphasises internal congruence with organisational systems such as management style, finance and culture (Paauwe, 2004) as well as their vertical integration with strategic configuration (Marchington and Wilkinson, 2002). 3.3.4 Advantages of Best-fit model * Analyses the influence of external environmental factors on organisation and its HR practises. * Emphasises congruence and coordination between internal HR practises (Delery and Doty, 1996). * Matches HR system with strategic management processes (Schuler and Jackson, 1999). 3.3.5 Disadvantages of the Best-fit model * Ignores unique characteristics of individual businesses that could be the main source of competitive advantage (Beardwell and Claydon, 2004, pp.48-49). * Ignores employee interests. * Simplicity of classical approach in describing competitive strategies. * Lacks sufficient attention to dynamics (Boxall, Purcell, 2000, p.187). 3.4 Harvard Model The soft approach Harvard model described by Beer et al. (1984) provides one of the first major statements on how managers should practise SHRM (Appendix 8). The analytical framework consists of six basic components: situational factors, stakeholders interest, HRM policy choices, HR outcomes, long term consequences and a feedback loop through which outputs flow directly into the organisation and to the stakeholders. It is associated with the goals of flexibility and adaptability and implies that communication plays a central role in management (Storey and Sisson, 1993). 3.4.1 Advantages * Recognises and incorporates a range of stakeholder interests (Armstrong, 2003) * Recognises the importance of trade-offs. * Widens the context of HRM to include employee influence, the organisation of work and the associated questions of supervisory style (Armstrong, 2003). 3.4.2 Disadvantages * Fails to show corporate or business strategy as key determinant of HRM strategies and polices (Tyson, 2006). * This model does not explain SHRM functions in a detailed way (Loosemore, Dainty and Lingard, 2003). 3.5 Best Practice: High Commitment Models These models are tools which are used to enhance companys overall performance in improving employee spirits, behaviours, lowering labour turnover and absenteeism. The aim is to improve productivity, encourage high levels of expertise, and enhance quality and efficiency (Claydon et al. 2004). There are two approaches: the best practice SHRM and universalism. The best practice according to Guest (1989) has four objectives: strategic integration, commitment, flexibility, and quality. These objectives mentioned are required to achieve:- * High job performance, * Good problem solving among employees, * Flexibility * Lower employee turnover Another model is Pfeffers (1994): 16 HR practices for competitive advantage through people, later changed to seven practices for building income by putting people first (Appendix 9). This type of model signifies that HR enables organisations to adapt and innovate to gain a competitive advantage. With the universal approach, the concern is with how close organisations can get to the ideal of practices, (Claydon et al. 2004) the assumption being that the closer a company gets, the better the company performs. Other best practice models vary depending on the relationship of organisational performance. This can be seen in Appendix 10. Limitations of best practice models are: difficulty in determining whether or not the HRM practices lead to enhanced organisational performance or whether it is the current financial position which leads to increases in performance. It is also very difficult to determine how organisations with tight financial control operate within highly competitive markets and how they can invest in some of the HR practices advocated in the best practice models (Storey, 1995). Other limitations include: improved performance through efficiency and its tight financial control could be associated with the hard HR policies as mentioned in Storeys 27 points of differences. According to Boxall and Purcell (2003) high commitment models tend to fudge the question of pluralists goals and interests (Boxall et al, 2003) which has also led to negative comments of how best practice models assist with the organisations overall performance. 4 Subways Approach to Human Resource Management/Personnel Management In this part we explore and critically evaluate Subways Leicester based franchisees HR practises and procedures and assess their PM and HRM characteristics. Mannys Classic Subs Limited is a typical example of Subway UK based franchisee. HR practises in this company are conducted by the HR manager and Managing Director (MD), which include planning, advertising, interviewing, recruitment and selection, disciplinary procedures, training, payment and wages review, rewards system and retention. Some fundamental HR procedures are communicated from the head office; however, the way in which they are implemented depends on the management of individual franchisees. In this particular firm HR procedures are still being developed. 4.1 Role perspective There are several top management roles such as the MD, Restaurant Managers, and Company Secretary. These are however, not clearly defined. When looking at lower roles: within the stores themselves, there is a high level of specialisation. The specific roles include: Sandwich Artist involves customer service, paperwork accuracy, cash register, equipment usage, product preparation and taking phone orders. Shift Leader involves supervision of sandwich artist, deals with customer complaints, delegating work, enforcing policies and dealing with staffing issues. Assistant manager involves hiring, training and supervising procedures, weekly inventory and paperwork, food service certification, service counter marketing (Subway Operations Manual, 2009) According to Storey (1992) and Guest (1987), characteristics of PM can be seen at the lower levels and HRM at the top levels. It can however be said that the level of standardisation is high in general. This is because strict guidelines are passed down from the corporate Franchisor to each Franchisee in relation to its operations. In addition to this, communication throughout the company is direct in reference to HR approaches. This could be associated with the size of the company and with the stage within its life cycle. This company has 46 employees and therefore classified as a small firm. In addition, Subway is in the growth stage because it was established two years ago and its market share is still growing. 4.2 Training and Development A two week training program, in the corporate headquarters, in management, book-keeping and personnel procedures, is offered to new franchisees. Plus an additional 34 hours of job training at a nearest subway (Subway Staff Handbook, 2009). In contrast, staff training is provided by the local managers or supervisors however, when training employees in first aid, they are sent in groups to St Johns Ambulance to attend a four day training course in advance first aid. Preliminary courses are also organised before sales training. This way of controlling access to courses when training staff relates directly to PM. Furthermore, the Subway Staff Handout (2009) states that employees could be sponsored to obtain relevant qualifications that may be beneficial to their development within the company. 4.3 Recruitment and Selection The recruitment processes within Subway include e-recruitment (company website), job fairs and word-of-mouth from current employees. They clearly identify what they want from candidates especially in relation to punctuality, accuracy, communication, ability to take direction and follow rules and most importantly, customer friendliness. The selection process begins once the company has received candidates applications. The HR manager identifies the key characteristics of a candidate for example, age, availability and previous work experience. On the second stage of selection, the HR manager selects appropriate candidates for a telephone interview to discuss in detail the requirements of the role. The candidates that match the companys criteria are then invited to a face-to-face interview; ultimately leading to the selection of one candidate and the signing of the contract. The company contract is simple and generic as it applies to most employees. All requirements included within this contract are clearly stated implying a personnel approach. 4.4 Employment relations Managers treat employees according to the business needs. The main focus is on company stakeholders especially customers, who they believe is the heart of their business (Kang, 2009). Internal relationships between staff are fundamental to the company. If conflicts occur, they are de-emphasised and the main role for management is to manage climate and culture. This is a reflection of the HR approach. 4.5 Monitoring and Control Subway adopts a personnel approach to monitoring its employees so that all procedures and regulations set by senior management are followed. The monitoring system used is called KADCAM which ensures every transaction is processed accordingly and any errors within the process line inform the manager that employees are not following the rules. 4.6 Pay and Rewards Wage starts at 7 per hour for all staff apart from store managers, after a trial period. These are then reviewed annually and depend upon company results and in accordance with the HR approach; pay is also based on individual performance. Company policy also includes promotion for suitable candidates with an appropriate level of experience and essential competencies (Subway Staff Handbook, 2009). CONCLUSION The first section of the report critically analysed PM and HRM and evaluated the similarities and differences between the two approaches. It was identified that PM sees employees as a cost and the objective is to minimise this. In contrast, HRM approach argues that people are a valuable asset and its practices are aimed to increase the employees commitment. They allow for HR policies to fit company strategy and ensure the company maximises business performance. In the second part of the report Subways approach to people management is analysed using comparative frameworks by Beer and Spector (1985), Guest (1987) and Storey (1992) and identified features of both personnel and HRM approaches in Subway. RECOMMENDATIONS According to the companys life cycle which is at the growth stage, and strategy involving maximising return on investment and providing excellent customer service (Subway Staff Handbook, 2009); they have relatively appropriate HR strategies in place. However, in order for them to adapt to the changing dynamic environment, they could improve and develop some of their procedures. From speaking directly with staff at the franchise, it was identified that the employees are given a high level of empowerment. When management first implemented this, staff members were allowed to give out free upgrades but werent given appropriate instructions on procedures. It is recommended that management provides training and supervision (in the form of instruction booklets) before employees are empowered. Subway currently closely controls its staff, but it could shift from PM, monitoring approach to nurturing in order to build trust between the company and its employees. As this franchise in particular is in the development stage, some HR procedures such as rewards and promotions are not clearly identified yet. The company could improve this in order to increase enthusiasm within employees, thus leads to achievement of organisational goals. Subway already emphasises the importance of teamwork however this can always be improved and develop for example by the use of team building workshops. They could also have an additional rewards set for teamwork as opposed to just individual rewards. Finally, rate of pay is fixed as there is no difference between weekend and week pay. Separate teams are allocated to work weekends and mid-week. With a separate team just working on the busier weekends, dissatisfaction may occur. In compliance with other fast food companies within the UK, a recommendation would be to increase the hourly pay rate for the members that work on the weekends. REFERENCE LIST Armstrong, M. (1987) Human resource management: a case of the emperors new clothes?, Personnel Management, 19(8), pp.30-35 Armstrong, M. (1996) A handbook of Personnel Management Practise 6th Edition, Kogan Page Ltd, pp.27-63 Armstrong, M. (2003) Human Resource Management Practice 9th ed. 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(2007) Human Resource Management: A Critical Text, 3rd Ed, Thomson Learning APPEDNIX 1: FUNCTIONS OF PERSONNEL MANAGEMENT (Armstrong, 1998, p.31) APPENDIX 2: BEARDWELL AND CLAYDONS MODEL Personal Management HRM Planning perspective Beer and Spector, 1985 Guest, 1987 Storey, 1992 Reactive Piecemeal interventions in response to specific problems Short-term, reactive, ad hoc, marginal Piecemeal initiatives Marginal to corporate plan Proactive System-wide interventions with emphasis on fit Long-term, proactive, strategic, integrated Integrated initiatives Central to corporate plan People management perspective Beer and Spector, 1985 Guest, 1987 Storey, 1992 People as variable cost Cost-minimization Monitoring Mutuality People are social capital capable of development Maximum utilisation (human asset accounting) Commitment Nurturing Can-do outlook Employment relations perspective Beer and Spector, 1985 Guest, 1987 Storey, 1992 Self-interest dominates; conflict of interest between stakeholders Seeks power advantages for bargaining and confrontation Pluralist, collective, low trust Pluralist Institutionalised conflict Collective bargaining contracts Coincidence of interests between stakeholders can be developed Seeks power equalisation for trust and collaboration Unitarist, individual, high trust Unitarist Conflict de-emphasised Towards individual contracts Structure/system perspective Beer and Spector, 1985 Guest, 1987 Storey, 1992 Control from top Control of information flow to enhance efficiency, power Bureaucratic/mechanistic Centralised, formal, defined roles External controls Procedures High standardisation Restricted flow of communication Participation and informed choice Open channels of communication to build trust and commitment Organic Devolved, flexible roles Self-control Business need Low standardisation Increased flow of communication Role perspective Guest, 1987 Storey, 1992 Specialists/professionals Personnel/IR specialists Largely integrated into line management General/business/line managers (Beardwell and Claydon, 2007, p.13.) APPENDIX 3: STOREYS 27 POINTS OF DIFFERENCE NO. DIMENSION PERSONNEL HRM BELIEFS AND ASSUMPTIONS 1 Contract Careful delineation of written contracts Aim to go beyond contracts 2 Rules Importance of devising clear rules can do outlook, impatience with rules 3 Guide to management action Procedures Business need 4 Behaviour referent Norms/customs and practise Missions/values 5 Managerial task on labour Monitoring Nurturing 6 Nature of Relations Pluralist Unitarist 7 Conflict Institutionalised De-emphasised STRATEGIC ASPECTS 8 Key relations Labour management Customer 9 Initiatives Piecemeal Integrated 10 Corporate Plan Marginal Central to 11 Speed of decision Slow Fast LINE MANAGEMENT 12 Management role Transactional Transformational 13 Key managers Personnel/IR specialists General/business/line managers 14 Communication Indirect Direct 15 Standardization High (parity is an issue) Low (parity not relevant) 16 Prized management skills Negotiation Facilitation KEY LEVERS 17 Selection Separate/marginal task Integrated/key task 18 Pay Job evaluation Performance related 19 Conditions Separately negotiated Harmonisation 20 Labour management Collective bargaining contracts Towards individual contracts 21 Thrust of relations Regulated through facilities and training Marginalised 22 Job categories and trades Many Few 23 Communication Restricted flow Increased flow 24 Job design Division of labour Teamwork 25 Conflict handling Reach temporary truces Manage climate and culture 26 Training and development Controlled access to courses Learning companies 27 Foci of attention of interventions Personnel procedures Wide ranging cultural, structural and personnel strategies (Storey, 1992, p. 35) (In grey shaded areas is the implementation of the model on Subway) APPENDIX 4: MATCHING MODEL (Devanna et. al.(1984) cited in Beardwell, J and Claydon, (2007)) APPENDIX 5: LIFE-CYCLE MODEL HRM function Life cycle stages Start-up Growth Maturity Decline Recruitment, selection and staffing Attract best technical/professional talent Requite adequate numbers and mix of qualified workers, management succession planning; manage rapid internal labour market movements Encourage efficient turnover to minimize lay-offs and provide new openings; encourage mobility as reorganisations shift jobs around Plan and implement workforce reduction and re-allocation Compensation and benefits Meet or exceed labour market rates to attracted needed talent Meet external market, but consider internal equity effects; establish formal compensation structures Control compensation Tighter cost control Employee training and development Define future skill requirements and begin establishing career ladders Mould effective management team trough management development and organisational development Maintain flexibility and skills of an ageing workforce Implement retraining and career consulting services Labour-employee relations Set basic employee relations philosophy and organisation Maintain labour peace and employee motivation and morale Control labour costs and maintain labour peace; improve productivity Improve productivity and achieve flexibility in work rules; negotiate job security and employment adjustment policies (Kochan and Barocci, 1985) (Mabey et al.,1998, p.65) APPENDIX 6: COMPETITIVE ADVANTAGE MODEL 1 Strategy Employee Role Behaviour HRM Polices Innovation A high degree of creative behaviour Long-term focus A relatively high level of cooperative interdependent behaviour A moderate degree of concern for quality A moderate degree of concern for quantity A moderate degree of concern for process and results A greater degree of risk taking: a higher tolerance of ambiguity and unpredictability Jobs that require close interaction and coordination among groups and individuals Performance appraisals that are more likely to reflect long-term and group-based achievement Jobs that allow employees to develop skills that can be used in other positions in the firm Pay rates that tend to be low, but allow employees to be stockholders and have more freedom to choose the mix of components that make up their pay package Broad career path to reinforce the development of a broad range of skills Quality enhancement Relatively repetitive/predictable behaviours A more long-term or immediate focus A moderate amount of cooperative interdependent behaviour A high concern for quality A modest concern for quantity of output High concern for process; low risk-taking activity, commitment to the goals of the organisation Relatively fixed and explicit job descriptions High level of employee participation in decisions relevant to immediate work conditions and job itself A mix of individual and group criteria for performance appraisal that is mostly short term and results orientated Relatively egalitarian treatment of employees and some guarantees of job security Extensive and contentious training and development of employees Cost reduction Relatively repetitive and predictable behaviours A rather short-term focus Primary autonomous or individual appraisals Moderate concern of quality High concern for quantity of output Primary concern for results, low risk-taking activity, relatively high degree of comfort with stability Relatively fixed and explicit job descriptions that allow little room for ambiguity Narrowly designed jobs and narrowly defined career paths that encourage specialisation, expertise and efficiency Short-term results-orientated performance Close monitoring of market pay levels for use in making compensation decisions Minimal levels of employee training and development (Schuler and Jackson (1987)cited in Beardwell et al.(2004)) APPENDIX 7: COMPETITIVE ADVANTAGE MODEL 2 Strategy Key characteristics HRM strategies Defender Narrow and stable product market Single, capital-intensive technology Functional structure Production efficiency and cost control Build human resources little recruitment on entry level selection by dismissing inappropriate employees training and development includes extensive skill-building programmes Prospector Search of new products and opportunities Response to environmental trends Diverse product line Multiple technology Divisionalized structure RD projects Acquire human resources -sophisticated recruiting at all levels selection by psychological testing limited training Analyzer Simultaneously operates in two different types of market ( relatively stable and changing) Limited basic product line Moderate level of search for new products Cost-efficient technology for stable projects and RD projects for new products Matrix structure Allocate human resources Matching recruitment, selection and developing strategies to the nature of product and its phase of a life-cycle (Miles and Snow (1984) cited in Storey (1999)) APPENDIX 8: HARVARD MODEL (Beer et al., 1984, p.62) The situational factors influence managements choice of HR strategy. This normative model incorporates workforce characteristics management philosophy, labour market regulations, societal values and patterns of unionization and suggests meshing of both product market and social culture logics (Evans and Lorange, 1989) The stakeholders interest recognize the importance of trades-off, either explicitly or implicitly, between the interests of owners and those of employees and their organizations, the unions. The Human Resource Management Policy choices emphasize the management decisions and actions in HR management can be appreciated fully only if it is recognized that they result from an interaction between constraints and choices. The Human Resource Outcomes are high employee to commitment to organizational goals and high individual performance leading to cost-effective products or services. The long term consequences distinguish between three levels: At individual employee level the long term outputs compromise the psychological rewards workers receive in exchange of effort, at organizational level increased effectiveness ensures the survival of the organization and at societal level as a result of utilizing people at work some societys goals are attained. (Bratton and Gold,2007, p.23) APPENDIX 9: HUMAN RESOURCE PRACTICES FOR HIGH COMMITMENT Building profits by putting people first High commitment Human Resource Management Employment security And Internal promotion Selective hiring And sophisticated selection Extensive training And learning and development Sharing information Extensive involvement and voice Self managed teams/teamworking Self managed teams/teamworking and harmonization High pay contingent on company performance High compensation contingent on organisational performance Reduction of status differentials (Pfeffer (1998) cited in Claydon, T. et al 2004 p.57) APPENDIX 10: COMPARISON TABLE FOR HIGH COMMITMENT MODELS Pfeffer (1998) (1) Kochan Osterman (1994) MacDuffie (1995) Employment security Self-directed work teams Self-directed work teams Selective hiring Job rotation Job rotation Extensive training Problem solving Problem solving Sharing information TQM TQM Self managed teams Suggestions forum High pay contingent on Company performance Hiring criteria, current job versus learning Reduction of status differentials Contingent pay (Source: Claydon, T et al (2004)) Induction and initial training provision Huselid (1995) Arthur (1994) Delery and Doty (1996) Contingent pay Self directed work teams Internal career opportunities Hours per year training Problem solving groups Training Information sharing Contingent pay Results oriented Job analysis Hours per year training Profit sharing Selective hiring Conflict resolution Employment security Attitude surveys Job design Participation Grievance procedure Percentage of skilled workers Job descriptions Employment tests Supervisor span of control Formal performance appraisal Social events Promotion criteria Average total labour costs Selection ratio Benefits/total labour costs (Source: Academy of management journal, vol. 39, issue 4, pp.779-801.) GLOSSARY Best Practice is a school of strategic human resource management, which is based on the assumption that the adoption of certain best human resource practices would result in enhanced organisational performance (Beardwell and Claydon, 2007). Best Fit is a contingency school of strategic human resource management that explores a close link between strategic management and HRM by assessing the extent to which there is a vertical integration between an organisations business strategy and its HRM policies and practises (Beardwell and Claydon, 2007) Organisational Context it is internal and external factors organisation, which includes firms structure, resources and functions, behaviour and culture as well as external factors such as economical, political, technological and business environment (Capon, 2003). Personnel Management is an administrative discipline of hiring and developing employees so that they become more valuable to the organisation. It includes conducting job analyses, planning personnel needs, and recruitment, selecting the right people for the job, orienting and training, determining and managing wages and salaries, providing benefits and incentives, appraising performance, resolving disputes, communicating with all employees at all levels (businessdictionary.com). Human Resource Management is a distinctive approach to employment management which seeks to achieve competitive advantage through strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques (Storey, 1995, p.5). Strategic Human Resource Management is an approach to the strategic management of human resources in accordance with the intentions of the organisation on the future direction it wants to take. It is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need (cipd.co.uk) Resource Based View -The resource based view argues that firm possess resources, a subset of which enable it to achieve competitive advantage, and a subset of those that lead to superior long-term performance. Resources that are valuable and rare can lead to the creation of the competitive advantage (fsc.york). Resource based approach to HRM is viewed human resources as a basis of competitive advantage (Beardwell et. al, 2004). Human Capital -In an organizational context, human capital refers to the collective value of the organizations intellectual capital (competencies, knowledge, and skills) (businessdictionary.com). Group Working is a method of aiding a group or members of a group toward individual adjustment and increased participation in community activity by exploiting the mechanisms of group life (dictionary.reference.com). The more the group works together toward its common needs and goals, while still satisfying the needs of its individual members, the more effective it will be (Brandler and Roman, 1999). Team working a team could be defined as a limited number of people who have shared objectives at work and who co-operate, on a permanent or temporary basis, to achieve those objectives in a way that allows each individual to make a distinctive contribution (cipd.co.uk). REFLECTIVE ASSESSMENT Murinder Kang (P05294573) The way in which the group has worked together is quite remarkable as we planned a Total Quality Management procedure to ensure the work in which we have compiled is to the best of our knowledge, contains theories as well as our ideas of what we think of HRM and Personnel management. Future recommendations would be to improve our organisational skills and our time management structure although we worked well as a group I think we could of done a lot better if we met sooner than later. Other recommendations would be that lecturers should inform us of what they expect from us in week 1 instead of week 4 this way groups could meet up a lot earlier to start the research process. Furthermore, I think each individual contributed equally to this assignment as no problems arose while compiling this report. Everyone met up on time, minutes were taken, and then information was shared among everyone using the DMU email system. Communication within the group was very effective for everyone to understand what they were asked to do and if it was unsure no one hesitated in contacting each other for help and guidance. The mark in which we should get for this particular assignment is 80 due to the fact that vast amount of research was carried out in a short amount of time, everyt hing asked for in the mark scheme has been included and contacting Subway directly about their HR policies also meant we made contact with them to get actual data about how they work and what type of approach they use. Visiting Frank Rowbotham for guidance also ensured we were aiming for above 75 and any mistakes we were making were rectified immediately. Sameera Alimohamedi (P09270281) As a group we worked together and each member contributed equally as the work responsibility was divided efficiently. My group worked really well and efficiently because we had group meetings and discussions where different ideas and opinions were discussed. Each member had tasks assigned so it was easier to work and once the task was completed, we had to email it to Deniz Cakin so she could put it all together and check the grammar. If any problems arose, it was well communicated over e-mail or if problems arose that needed proper discussion this would take place in one of our meetings Each member contributed towards the assignment in their own ways. The group worked together as a team and each member was very helpful and cooperative. Each member contributed towards the report and there was good flow communication between us. If opportunity given to work with the same group again I would recommend that each members should do more research about everything and not only the part they were given so its much easier to contribute ideas. Veronika Khromykh (P08001199) I believe that our group worked in a very professional way. Every member of the group did broad reading around the topic and all together we spent a lot of time in the library discussing and evaluating PM and HRM approaches and analyzing the way Subway treats its employees. I think every member of our group equally contributed to the whole report: after the first meeting, where we discussed both theories, our team was divided into two parts and every sub team was responsible for their area of expertise. There was not only a lot of e-mail communication, but also a face-to-face communication. We shared our ideas and discussed different approaches all together that definitely helped us more deeply understand the variety of opinions about differences between the two approaches. The final version of the report itself was also written by the whole group. Our group consists of very hardworking, intelligent and ambitions people that helped us quickly find a common language and start to operate like a solid body. Every member of our group had their particular role. I want to make special mention of Murinder Kang, who contributed to organizing and motivating the team and Deniz Cakin, who demonstrated a high level of knowledge and very good academic writing skills; and I also want to thank other members for their active participation and their important contribution to the report. I also tried to put into our work the very best that I know. I always participated in group discussions and expressed my ideas and thoughts. However, our team work still could be improved: I recommend us next time spend more time on analyzing the task and identifying the material. Also, next time would be better to complete the work not several days, but the week and a half before in order to have more time to proof read it. It was my first experience in team wo rking and I really enjoyed the process. I believe that we are a very good team and our work deserves a very high mark. Deniz Cakin (P09247095) I think the enormity of the task was underestimated especially in relation to the time it took to come to conclusions about Subways Personnel/HR approaches and in making recommendations as a group. Therefore, I would recommend for next time that each group member researched all aspects of the report before reaching this stage. And perhaps give ourselves more time to proof read the final report. From our first meeting, strengths were identified in group members and tasks were allocated according to these strengths. We were divided into two teams initially to complete part two of the main report. Part three in particular was very much a group effort as everyone was able to contribute because of the individual research and work they had completed for the previous section. Each member contributed equally to get the report done on time. We worked well as team in communicating and drawing together everybodys specific ideas. I believe everyone felt comfortable enough within the group to voice their opinions if they believed we were heading in the wrong direction. We also met up at least once a week to make sure we were progressing and heading in the right direction. The role I played in the group was that of the person who compiled all the work together (after completing my individual bit) to make sure the report flowed from section to section, that there was consistency in the language used throughout and the report had minimum grammatical errors. Finally, we are all like-minded people and want to achieve the best we can. Haoying Tian (P08015442) The process in our group for doing the assignment could be seen in four stages. Firstly we organised a group meeting which was aimed at understanding the objectives of the assignment and collect the information, because for the assignment everyone had their own opinions and understandings, so there were some problems with understanding what was needed and how to write the reports. The first meetings aim was to agree on and organise the information we got in the first meeting and choose roles for everyone. Secondly, according to the structure that we made in first meeting, we did our individual tasks. It normally takes one week or ten days to finish it, and then we organise another meeting to discuss what we did, and revise it together find the relevant and not so relevant bits. After that, we took our work back and rewrite it. Thirdly, after two group meetings we all clearly knew what to do and how to write it properly, after we finish our parts we sent it t o Deniz Cakin to check for mistakes, then she sent the final report to everyone to have double check. Finally, we printed the hard copy of our assignment and asked a tutor to have a read and then made some changes following the tutors feedback. I am feeling really good on working with those guys in my group. I learnt a lot of things from those people through doing the course work, because I am not bilingual sometimes when I was writing the academic report, I always have some mistakes on grammar or cant explain my idea clearly, my friends in my group helped me a lot on checking my grammar and rewrite some sentences in my report, make it more clear and exactly to explain my opinion. Other then the course work, the members in my group are all beautiful people, they always be very kind and friendly with others, we take care about each other, we also chill together after the class or when we finished our course. Yihuan Ma (P08015456) This is the best group I have seen in my student life. Everyone in this group is friendly and knowledgeable, and they taught me lots of knowledge about my study and work, it is very useful for my future life. Everyone in my group had tried their best to finish this group report, and spent a lot of time on it. In order to finish the report, we had found lots of books and researched the information about it. Through finishing the report, we had learnt and understood lots of knowledge about HRM. So I am very pleased with them.