Analysis of Personnel Management and HRM Perspectives

Analysis of Personnel guidance and HRM PerspectivesINTRODUCTIONThe musical theme has devil sections the show age will focus on critically analysing the principals of Personnel attention (PM) and tender election charge (HRM) and the similarities and contraventions amidst them. Furthermore, bath Storeys (1992), leaf nodes (1987), Beer and Spectors (1985) points of inequality will be provided and adapted to a tube-shaped twist franchise. Finally, the appropriate passs on how the caller could amend its HR procedures.The second will focus on context of underpass Franchisor Corporation which is soon the leading fast food company in the US, winning numerous awards since it was founded in 1965 by a 17 grade old Fred DeLuca. It provides nutritious menu choices, flexible food options on its epicurean breads, sauces and unclutterpings. The company alike specialises in wraps, tortillas and salads as nearly as a variety of drinks.According to Subways official website (sub way.co.uk), their mission is to supply good spirit food and re cultivation, and likewise provide the tools and knowledge to entrepreneurs to gain matched vantage over other fast food companies. It is important to on a lower floorstand Subways part as a franchisor. This report is non found on an analysis of the Subway Corporation, the franchisor, but rather on an single(a) Subway franchisee.1 Personnel focal pointThe history of PM began around the end of the nineteenth Century a concept closely connected to the contradiction in relation backs betwixt companies and their employees. It is believed that PM evolved done phasesWelfarist (until 1920s) Characterised by an accent on the provision of welf be facilities and efforts made to create the exaltation pulverisation (Cumming, 1993, pp.4-5).Personnel Administration (1930s) In the form of recruitment, basic educational activity and s cornerstone keeping (Armstrong, 1996, p.32).Development (1950s) counseling of em ployee relations becomes the critical contingency part of PM due to the rise in TU membership and collective bargaining. A wider icon of personnel services were provided (Armstrong, 1996).A patient of definition of PM is a function frighted with putting in place, the processes and procedures to make certain(a) the organization has the right rung at the right time so it spate operate at a very basic train. Similarly, cole (2002) describes PM as the function of precaution that has to deal with the recruitment, employment, training, redeployment, safety and way out of employees.1.1 Functions of Personnel solicitudePM tries to maintain fair terms and conditions of employment, whilst expeditiously managing day-to-day, personnel activities at the operational take. 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 atomic number 18 identified by Armst rong (1996) in vermiform appendix 1. In broader terms, the functions allow-Conducting problem analysis, recruiting and selecting and handling packaging internally. discip credit line based on level gunpointed requirements of Health and Safety procedures, risk assessment.Remuneration making sure the specify wage/salary is paid at the right time (Cole, 2002).Providing benefits and incentives. judge performance, resolving disputes in the form of grievance and discip bank line.Monitoring absences and sickness utilize techniques such as the Bradford Factor (identifies the number and patterns of absences).Redundancy administration of and liberation procedures (Cole, 2002, p.26)1.2 usefulnesss and Dis avails of Personnel focussingIdentifying great deal as the central function of an organisation which need lordly and allocated effectively (Bach, 2005), is the secern gain of PM as it is essential to the survival of the organisation. As previously mentioned, personnel charabanc s can nominate staffing gaps and assign the right number and type of quite a little the organisation needs, (Armstrong, 1996, p.28). Furthermore, it is a very methodical. at that place ar clear ideas of what has to be done in certain situations implying that there is transparency and consistency in the way individuals are dole outed.The advantages of PM may however also start negative implications. For display cocktail dress, Maslow (cited in Strage, 1992) identifies that individuals are different with different needs. The example is inflexible and standardised, dealing with for each one employee and all(prenominal) organisation in a certain way. This may not be appropriate for all employees or organisations. PM has a good deal been draw 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 litigateer s are not considered, along with the adversarial relationship (the wanting of different things) betwixt workers and way.2 discharge from Personnel to HRMIn 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 near important vision and that the achievement of organisational goals appears mostly on this. At the identical time others believed that HRM was just a next footstep in PM development caused by historical and environmental factors (Bach and Sisson, 2000). It was say 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 refer didnt bring a change in reality, therefore HRM was described as an old wine in new bottles (Armstrong, 1987) and as a animal in sheeps clothing (Keenoy, 1990).Theorists tried to answer these interrogative sentences by identifying similarities and differences between two approaches of people management. Legge (1995) identifies following similarities-Both emphasise the importance of integration.Both link 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 beat (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 positive by Beardwell and Claydon, (2007, p.13). It examines differences between them in 5 spatial relations seen in Appendix 2.2.2 John Storeys Model (1992)Another model, underlying the previous one was made by John Storey, who identified 27 differenc es between PM and HRM. These points are grouped into quad categories beliefs and assumptions, strategical aspects, line management and key levers (Appendix 3).2.2.1 AdvantagesClearly identifies the differences between the two.Shows retainer to organisational culture, strategies, leadership.Identifies a two dimensional map interventionary/non-interventionary and strategic/tactical (Armstrong, 1996, p.62)2.2.2 LimitationsCompanies 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 piece resourcefulness ManagementHRM presents a variety of different expressive styles and models. Storey (1989) identifies its two types hard and soft. Later, statute mile occupation School (MBS) and Harvard University developed two different basic models, which affirm been very influential in the interpretation of HRM (Beardwell and Claydon, 2007) Matchi ng model associated with a hard approach and Harvard model, in connection with soft. These two particular models accentuate the two main concepts Matching model became a basis of outstrip-fit teach of Strategic humanskind imaginativeness Management (SHRM), whilst Harvard models ideas contributed to best- cause approach. These will be discussed further.3.1 whacky/Hard approach to HRMThe hard approach stresses the importance of close integration of HR policies, and activities and systems of business system. Also, the emphasis is placed on cost-reduction strategies (Schuler and capital of Mississippi, 1987). Furthermore, it detects the strong from the short 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, eminent quality, adaptability, performance and their skill set. Employees are proactive through collaborations and participation. Soft and hard approaches are very contrasting specially 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 ModelThe 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 pulls. 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 stage to meet business objectives. dickens 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 pasture to maximise organisational performance.3.2.1 AdvantagesTakes into account the entice of external factors on an organisation and its HR polices.Emphasises sloshed fit between HR and business strategy that leads to competitive advantage (Beardwell and Claydon, 2007, p.7).3.2.2 DisadvantagesBusiness level strategy and HR strategy could not be linear (Bratton and Gold, 2001).Fails to sustain employee commitment (Purcell, 1995, cited in Storey).Excessive fit could be a minus to achieving goals (Boxall, 1996).3.3 The Best-Fit ModelBest-fit model belongs to contingency school of SHRM that explores the link between bes of organisational development, strategy, HRM policies and practices (Boxall and Purcell, 2000). There are several best-fit models action-cycle model (Kochan and Barocci, 1985), competitive advantage models (Schuler and Jackson, 1987 and Miles and carbon, 1984) and configurational perspective (Marchington and Wilkinson, 2002 Delery and Doty, 1996).3.3.1 Life-Cycle ModelThe model matches HR policies and practises with the stage of organisational li fe-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 ModelThe model links HR systems and organisational strategy. Porter (1980) argued that firms could follow exclusively deuce-ace generic wine 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 unvarying training under quality enhancement and to short-term focus and nominal level of training under the cost reduction strategy (Schuler and Jackson, 1987). Miles and Snow (1978) classify companies into four-spot distinct strategic groups (defenders, prospectors, analyzers and reactors) and base their response to three major puzzles entrepreneurial, engineering, and administrative. Their competitive advantage theoretical account (Miles and Snow, 1984) links three of these strategies with firms HR practices (Appendix 7). Application of their model to the organisation increases business performance.3.3.3 configurational Model chance 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 duple 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 con gruity 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 modelAnalyses the curve 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 modelIgnores 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 monetary aid to dynamics (Boxall, Purcell, 2000, p.187).3.4 Harvard ModelThe soft approach Harvard model described by Beer et al. (1984) provides one of the first major statements on how manag ers 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 AdvantagesRecognises and in incarnates a range of stakeholder interests (Armstrong, 2003)Recognises the importance of trade-offs.Widens the context of HRM to acknowledge employee influence, the organisation of work and the associated questions of supervisory style (Armstrong, 2003).3.4.2 DisadvantagesFails 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 elaborate way (Loosemore, Dainty and Lingard, 2003).3.5 Best traffic patte rn High Commitment ModelsThese models are tools which are used to enhance companys overall performance in ameliorate 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,FlexibilityLower employee turnoverAnother model is Pfeffers (1994) 16 HR practices for competitive advantage through people, later changed to seven practices for construction 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 i s with how close organisations can get to the ideal of practices, (Claydon et al. 2004) the assumption being that the immediate 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 confining financial control operate inwardly 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 amend 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 Purce ll (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 military man Resource Management/Personnel ManagementIn 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 natural selection, disciplinary procedures, training, retribution 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 pa rticular firm HR procedures are unsounded being developed.4.1 Role perspectiveThere 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 retentions themselves, there is a high level of specialisation. The specific roles includeSandwich Artist involves client service, paperwork accuracy, cash register, equipment usage, product preparation and taking phone orders.Shift loss leader involves supervision of sandwich artist, deals with customer complaints, delegating work, enforcing policies and dealing with staffing pop outs.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 th e 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 naturalized two years ago and its market share is still growing.4.2 Training and DevelopmentA 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 Am bulance to attend a four day training course in advance first aid. exploratory 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 button (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 SelectionThe 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 relationsManagers 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 temper and culture. This is a reflection of the HR approach.4.5 Monitoring and ControlSubway adopts a personnel approach to monitoring its employe es 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 remuneration 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). shutdownThe 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 inform this. In contrast, HRM approach argues that people are a v aluable 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.RECOMMENDATIONSAccording 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 comparatively 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, staf f members were allowed to give out forfeit 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. 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