Prepared By – Sheik Shami Ullah Chowdhury

Id – 2012121015,

HND Business Intake 1, 2012

Course Name – Managing Human Resources

Course Instructor – Sabreen Siraz

Topics of Speaking

- Guest’s Model of HRM- Difference of HRM, Personnel and IR Practices- Implications for Line Managers and Employees in Developing a Strategic Approach to

HRM

Guest’s Model of HRM

Prior to investigating Guest’s model of HRM; we must know about Hard and Soft HRM.

The Hard approach is concerned with aligning human resources strategy with business strategy. A manager employing the Hard HRM approach is strict and assumes only reason employees work is to acquire financial benefits.

On the other hand, the Soft approach encourages commitment to the organization by focusing on workers concerns. A manager employing the Soft HRM approach is more compassionate, trust the employees more, and gather opinion and take it on board with the belief that workers come to work with the intention to impress and progress.

Guest acknowledges the difference between these two approaches and incorporates both of them in an ideal model.

Guest’s Model seeks commitment to organizational goals through strategic management of an organization.

Guest’s Model focuses on the individual needs rather than the combined workforce which enables organizations to develop power and flexibility.

Guest’s Model emphasizes people as an asset which needs to be positively utilized by the organization. This results in high job performance, high problem solving, low turnover, low absence, and low grievance level.

Difference between HRM & Personnel Practices

According to Storey’s Definition of HRM human capability and commitment is what differentiates organizations.

Moreover, HRM needs to be implemented into the organizational strategy and needs to be integrated into the management functions because these will assist organization to achieve its goals properly.

Storey’s Definition of HRM identifies the following points of difference between Personnel, IR Practices & HRM Practices:

Personnel aim at careful delineation of written contracts whereas HRM try to go beyond the contract.

Personnel prioritizes devising clear rules whereas HRM pursues a can do outlook. Personnel guide to management action is based on procedures whereas HRM focuses

on business need. Corporate plan goes side by side with Personnel whereas HRM is integrated with

strategy. Pace of decision is a bit slow with Personnel compared to HRM. The key concern of Personnel is just labor management while HRM focuses on

customer. With Personnel management’s role is transactional whereas HRM focuses on

transformational leadership. Personnel maintain indirect communication whereas HRM follows direct

communication approach. Selection is a separate task for Personnel whereas this is an integrated process for HRM. Personnel believe in fixed grade pay while HRM believes in performance related pay. Job design is based on division of labor with Personnel while HRM aims to promote

teamwork.

Implications for Line Managers in Developing a Strategic Approach to HRM

A number of benefits exist in using line managers as developers of people.

- Line managers specialize in day-to-day people management.- They can manage operational costs effectively.- They can apply technical expertise where necessary.- Line managers organize work allocation and Rota.- They monitor and evaluate work processes.- They measure operational performance and check quality.- Line managers deal with customers and clients directly.

Implications for Employees in Developing a Strategic Approach to HRM

Employees play the most important role in HRM since they are the key asset and we also must remember that high-performing and innovative employees are the foundation of productivity.

Some major implications are as followed:

- Effective leaders can set direction and execute a corporate strategy that builds commitment.

- Employees help develop performance metrics for continuous improvement.- Support for employee innovation can dramatically increase productivity.- Employee collaboration and best-practice sharing improves efficiency.- Effective reward system for employees drive toward better performance. Non monetary

factors like better status can motivate employees in addition.- Effective communication and feedback from employees can reduce errors and

frustration at work.