- Human Resource Bundles
by ava Smith Assignment Help WrittingHuman
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.
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