- Human Resource Bundlesby ava Smith Assignment Help Writting
Human Resource Bundles has been observed recently by the HRM experts that the different HRM practices when used in combination, can improve the efficiency and performance of the organization. HRM practices which are associated with training system, incentive systems, flexibility in job assignments and performance appraisal system are individually effective themselves to improve the performance of the organization by improving the capability of the employees, motivating them to work better, giving them the choice of work, etc. Till now, the researchers have focused on these individual HRM practices and tried to find out their isolated effects on the performance of the organizations. Though each of these practices have their positive effect on the organizations, experts feel that instead the organizations must try to combine different HRM practices for further increasing the organizational performance because the positive effect of each of these practices when combined work cause a synergy and improve the performance more than the practices would have done individually. This improved and better than expected performance of the organizations who tried to adopt the approach of using the combined HRM practices was observed by the researchers recently and now they have started researching more about their effects on the organization. The reason of improved performance of the organizations due to the use of HRM Bundles is that the when the HRM practices are used in combination, the individual effect of one HRM practice gets enhanced due to the simultaneous effect of the other HRM practice which are used in combination of the first. Similarly, the effect of the other HRM practice is enhanced by the positive effect caused by the first HRM practice. This means if the isolated effect of first HRM practice were ‘x’, it gets increased to ‘x+a’ due to effect of simultaneous use of second HRM practice. Similarly if the isolated effect of second HRM practice were ‘y’, it gets increased to ‘y+b’ due to effect of simultaneous use of first HRM practice. This means that the increase in performance of the organization becomes ‘x+y+a+b’ instead of just ‘x+y’ which the organization would have observed in case of isolated implementation of the two HRM practices. The use of complementary HRM practices however must be decided first based on the context of the problem for example the strategy of organization, type of organization and the culture of organization and society. It is not necessary that one HRM bundle will have similar effect on two different contexts and which HRM bundle will work on a particular organization, will depend on the factors such as strategy, type and the culture.
It was found on the study conducted on small size firms that when the flexibility of assignments given to the employees is coupled with adequate training for the employees which is called as Functional Flexibility Bundle, there was marked improvement in the performance of the employees and the innovation in the organization increases because of this combination which was far greater than expected by the HR managers. It was seen that the workers could complete the work in shorter time and in a better way than they used to do it before the application of the combined practices of flexibility in the assignments and appropriate training was done to the organization’s setup. This is due to the fact in small organizations generally labors work on contract basis and when they receive proper training of the job expected from them and flexibility in terms of timings and job enrichment, there is more motivation for these people to work for the organizations with which they are associated only by an contract which itself is not a great motivator to contribute to the performance of the organization. In larger organizations, this study did not result into any conclusive proof for the improvement in the performance of the organizations as there was already a job security and more opportunities to get involved in different tasks than in smaller organizations and thus no great effect of application of this HRM bundle was observed.
It was also found in another study conducted on the IT sector organizations, that combination of performance appraisal system combined with the variable pay system which is called Performance Management Bundle, improves the performance of the organizations as the employees are more motivated to work extra and harder for the organizations (Brewster, et al, 2004). This improvement was as per the expectations made by the HR managers of the organizations. The reason for this improvement was that the performance appraisal system not only evaluates the performance of the employees but also helps in finding out the efficient and dedicated employees and differentiating them from inefficient employees. At the same time the variable pay based on their performance thus helps the manager reward the better employees and motivate the employees themselves to work with their complete efficiency, so that they can also become eligible for the rewards and higher variable pay based on their individual performance. The same level of effect of this HRM bundle was not observed much in manufacturing sector organizations. This is due to the fact in IT sector, the people are more prone to shift themselves to different organizations and are more dissatisfied with the kind of work they are asked to do. The better appraisal of their performance and better pay according to the efforts made by the employees gave the similar results in manufacturing sector as well. But it was not found to have the effect with the magnitude, which was found in IT sector organizations.
Created on Dec 31st 1969 18:00. Viewed 0 times.