...CHAPTER-1 THE CONTEXT OF HRM 1: APPROACH, ORGANISATION AND LEGAL FRAMEWORK Definition of Human Resource Management “Human Resource Management is a central philosophy that people in the organization are managed and transition of this into policies and practice. To be effective the policies and procedures must be aligned with business or organizational strategy.” (Torrington and Hall) Nature of the human resource in organizations Human Resource Management brings organizations and people together so that the goals of each are met. The nature of HRM includes: 1. Broader function: HRM is a comprehensive function because it is about managing people in the organisation. It covers all types of people in the organisation from workers till the top level management. 2. People Oriented: Human resource is the core of all the processes of human resource management. So HRM is the process which brings people and organizations together so that their goals can be achieved. 3. Action Oriented: Human resource management believes in taking actions in order to achieve individual and organizational goals rather than just keeping records and procedures. 4. Development Oriented: Development of employees is an essential function of human resource management in order to get maximum satisfaction from their work so that they give their best to the organization. 5. Continuous function: As human resource is a living factor among all factors of production therefore it requires...
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...objective of the paper is to analyse the challenges related to reward and performance of business that is examined in case study organisation, which is “Construct It.” Moreover, the paper will explain the impact on employee psychological contract in engaging workforce effectively in order to achieve changes in working conditions or practices. Furthermore, the paper will also explore critically the influence of line manager in helping shape, which drives the changes needed. In this way, specific attention must be paid to the issues around professional and ethical practices. Discussion Challenges from case study in developing effective link between reward and performance “Construct It” has the biggest issue of recruiting effective project and site managers. Since there is general shortage of good managers within industry therefore, they demand high salaries in behalf of their services. Thus, the organisation is planning to consider the aspect of performance, which is related to reward to packages for the level of staff that try to assist recruitment along with retention. According to Michigan model by Fombrun, Tricky and Devanna in 1984, holds hard HRM, which states that people must be managed with other resources that must be obtained cheaply, developed, and economically. However, this model is based on selection, development, appraisal, and reward that is attained by considering the organisational performance. The hard HRM model (Fombrun, Tichy and Devanna, 1984) is conceived...
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...BA (HONS) BUSINESS & MANAGEMENT ACADEMIC ASSESSMENT SUBMISSION FORM STUDENT REGISTRATION NUMBER GRADE | 13011410 | MODULE REFERENCE NUMBER | UN609770 | MODULE TITLE | Strategic Human Resource Management | LECTURER NAME | Louise Cameron-Mowat | SUBMISSION DATE | 12th December 2013 | ASSESSMENT TASK | Essay – 2750 words | In submitting this work, I confirm that I have understood UHI regulations relating to plagiarism, and that: * I have completed this assigned work by myself, in my own words and using my own notes, figures or rough workings (except where group work specifically forms part of the assignment) * I have acknowledged fully any sources used by means of in-text citations, and the creation of a List of References in the UHI approved system of Harvard referencing system * I have endeavoured to ensure that my work has not been made available for copying by other students (with or without my permission) * I am aware that student assessments can be scrutinised through the JISC plagiarism software.In submitting this work for assessment, I agree to be bound by the conditions laid out above, and by the latest version of the UHI academic regulations. UHI REGULATIONSPlagiarism: unacknowledged incorporation in a student’s work either in an examination or assessment of material derived from the work (published or unpublished) of another. Plagiarism may therefore include: * the use of another...
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...“Performance management and the psychological contract are both critical in getting the best from employees.” One could describe an organization's relationship with an employee as an exchange of sorts; an employee exchanges his/her labour for economic rent and an employer facilitates the transformation of the labour into a value added return. But such exchanges require that the employee be supported, nurtured, and developed in line with organizational aspirations (Behery, Paton & Hussain, 2012). Therefore, in Human Resource Management, the relationship between performance management, the psychological contract and their effects on organisational performance is becoming an area of increased discussion. It has been argued that, in order to generate a work environment where employees know what is expected of them and perform in such a way that the strategic goals of the organization are supported, it is crucial that the parties have confidence that the other party will deliver on their promises (Rousseau, 1989, as cited in Braekkan, 2012). The management of performance is a major element in determining the psychological contract within an organization, particularly in circumstances of change. (Stiles, Gratton, Truss, Hope-Hailey, McGovern, 1997) Global forces have placed performance at the heart of the employment relationship. Simultaneously, performance management has become, at least implicitly, Human Resources Managements primary goal for strategic purposes (Davila &...
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...two copies of contracts that the staff should sighed with the enterprise, one is written on the paper which is the employment contract, and the other one is psychological contract which is written in the mind between employer and employee. In relation to the psychological contract, there are several concepts to explain it, and the earliest concepts of psychological contract can be traced back to the early work of Argyris (1960). However, the key concept of psychological contract that in common used, which was established by Rousseau (1995). According to Rousseau and Tijoriwala (1998, p. 679), the psychological contract was defined as: “An individual’s belief in mutual obligations between that person and another party such as employer” Therefore, the psychological contract is the metaphor contract between the individual employee and the organization to maintain and develop the inner power of the enterprise. This essay will first clarify what is psychological contract and why it is essential for firms to establish a psychological contract with their employee. Secondly, it will explain the process theories of motivation and what theories are include in the process theories of motivation. Finally, assess which process theories of motivation can help manager to establish appropriate psychological contract with the employee. With the help of Rousseau’s argument, it is obviously that the psychological contract is an exchange relationship between the individual employee and the organization...
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...The Changing Nature of the Psychological Contract and its Impact on Modern Organizations by Kheeran Dharmawardena kheeran.d@its.monash.edu.au Executive Summary Drawing on recently published work by experts in the field of organizational behavior, this paper aims to outline the aspects of the psychological contract that need to be considered in todays demanding work place. It shows how the contract affects the individual, the managers and the organization. The paper further discusses the advantages of recognizing the changing psychological contract and how an organization could form contracts that are beneficial to both the employee and the employer. Introduction Psychological contract, the unwritten agreement between an employer and employee, is changing in the post job security economic environment. With the popularity of contractual, short term employment within organizations, employees are now seeking to create a psychological contact which is more about self-actualization. This change in the psychological contract has implications on organizations that seek to have a work force that is motivated and committed towards the organizations goals. What is The Psychological Contract? The psychological contract according to recent definitions is an individual's beliefs concerning the obligations that exists between the employee and the organization (Lester, Turnley et. al., 2002) . The contract is composed of an individual's perceptions...
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...and employee engagement: A Literature Review Managing Human Resources: BHRM702 Introduction The term employee engagement is somewhat a new construct, in the late 1950s it was work motivation which was the main topic of discussion however over the past decade this notion has expanded to many new constructs ‘work engagement’ being one of them, Albrecht (2010). Moreover in recent years there has been growing interest in employee engagement within organisations, Saks (2006).This is due to the fact that many researchers have concluded that employee engagement is a key factor for an organisational success, Macey et al (2009). Despite the significance of employee engagement being linked to organisational success, it is clear that little empirical research has been undertaken, and little academic literature has been published. As Saks (2006) put it, “there is a surprising dearth of research on employee engagement in the academic literature” (p. 600). This literature review will focus on ‘work engagement’ and employee engagement as two main constructs. As it will become prevalent, the central issue of employee engagement is the fact that there has yet to be a clear definition of “employee engagement” and how it should be measured, Saks and Gruman (2014). It is also evident that there are unanswered questions about the antecedents and consequences of engagement, Menguc et al (2013). The first section of the literature review will look at antecedents and consequences of employee engagement...
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...2.5 A psychological contract is an unwritten agreement between employer and employee where both parties have an unwritten understanding to ensure balance in mutual expectations of each other and encourage discretionary efforts. “The beliefs individuals hold regarding the terms and conditions of the exchange agreement between themselves and their organizations”. Rousseau (1989).The psychological contract reduces insecurity in the employment relationships as all aspects are not covered in a formal written contract. A psychological contract is based on employees trust and belief that employee will honor the ”deal” between them and this may encourage an employee to put in extra efforts and time without being asked to do so or an employer to...
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...and how large differences in pay have impact on employee morale and employee relations.” The study is divided into two parts based on the following issues: (1) What are the factors at play which determine the pay and conditions of London underground train drivers Top company executives Investment Bankers (2) To what extent may large differences in pay within an organisation impact upon employee morale and employee relations? If so what can be done to address the issue? 1.Introduction: From our basic knowledge, we know that for a job, there are different factors that help in determining the salaries and bonuses of an employee, job criteria and other work related issues. Similarly, to determine the pay and conditions of the London underground train driver, top company executive and investment bankers, there would be pay determining components/factors. However, since the above mentioned three jobs are different and unique, there pay determining factors too would be different. For the purpose of the study, Dunlop model has been considered. Now we will be having a close look at each of these pay determining factors one by one: 1/13 | P a g e Inputs Transformation Outputs Actors (Employers, Employees, State) Contexts (Technological, Market, Power) Ideology Bargaining Conciliation Arbitration Legislation Judgements Rules Input General Environment Figure: Dunlop System Model from Employee Relations Management, (Kumar and Singh...
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...of the employment relationship that inform our understanding of HRM. Workshop Tutor: Andrew Burnett Table of content Introduction 3 How can HRM be understood? 4 What is employment relationship? 4 Elements of employment relationship 4 What is individual contract of employment and how it works? 5 Duties of employer and employees 6 What is psychological contract? 6 Socio-political dimension of the employment relationship 8 Conclusions 9 References 10 Introduction What will be covered in this essay? This essay will reflect on what is employment relationship in HRM. What is the purpose in applying of HRM practices, why it is so important to manage people, their performance and expectations. How we can “ensure that individual have the ability, motivation and opportunity to perform effectively” (Wilton, 2013). This course-work will look closer what is an employment relationship, how it affects individuals in the workplace and company in total. It will also cover the elements of employment relationship, terms and conditions that affect both employer and employee, what are duties both parties need to comply. It will be explained what is contract of employment and psychological contract and why it affect individual attitude. After that, the three key perspectives are outlined on employment that are unitarism, pluralism and radical(Marxist). Each approach to employment relationships is different in the ideology, who holds real power, how conflicts are resolved...
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...that impact on the employment relationship There are many factors that can impact on the employment relationship, both internal and external. External Factors - The availability of alternative jobs is a external factor of the labour market and can impact the employment relationship due to staff being head hunted by other companies, they know that they can easily find a new job should they not be enjoying their current job role. - The general economic climate is another external factor however it relates to the product market. This can affect the employment relationship as there will be a drop in demand of products should the economic climate be low resulting in less work, meaning redundancies may be made when there is less money coming in and organisations can no longer afford to keep all of their staff. However should there be a rise in demand of products due to the economic climate being strong then this will result in more work. - A positive external factor is social impact. Where by the retirement age is increasing each year, organisations area able to retain a older workforce resulting in a higher retention of specialised knowledge and skills. Internal Factors - The size of the organisation will impact on the employment relationship as the larger the organisation the greater room there is for career progression, however the smaller the organisation there will be a lack of career progression. - Work life balance is another internal factor which can impact on...
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...STUDENT NAME (print): Manal Al Aswad | PROGRAMME START DATE: March 2014 | PROGRAMME TITLE: CHRP | COURSE LOCATION: Abu Dhabi | PERSONAL TUTOR: Tim | ASSIGNMENT TITLE: (3MER) Supporting Good Practice in Managing Employee Relations | SUBMISSION: 1ST 4th Extension (delete) | DATE OF SUBMISSION: April 20, 2015 | Before submitting your work to www.bradfield.co.uk please read the following statements and tick the appropriate box to show that you have understood and completed what is required. 1. I have read my work through and have checked it for spelling and grammatical errors using, where appropriate the spell and grammar checker on the computer. | | 2. I have written my name at the top of each page of my work and have numbered each page. | | 3. I have read the definition of plagiarism. I realise that plagiarism is cheating and can confirm that the assignment I am submitting is my own work. | | The definition of plagiarism is given below. Read it carefully and note what it says. ‘Plagiarism is the act of presenting the ideas or discoveries of another as one’s own. To copy sentences, phrases or even striking expressions without acknowledgement in a manner which may deceive the reader as to the source is plagiarism; to paraphrase in a manner which may deceive the reader is likewise plagiarism. Where such copying or close paraphrase has occurred the mere mention of the source in a bibliography will not be deemed sufficient acknowledgement;...
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...Wiley (2012:2) identifies employee engagement as: 'The extent to which employees are motivated to contribute to organisational success, and are willing to apply discretionary effort to accomplishing tasks important to the achievement of organisational goals'. In contrast to this Swarnalatha and Prasanna (2013:52) claim that: 'Employee Engagement is a measurable degree of an employee's positive or negative emotional attachment to their job, colleagues and organisation that profoundly influences their willingness to learn and perform is at work'. This description opposes that engagement is distinctively diverse from employee motivation, organisational culture and employee satisfaction. The reality is that there is no one agreed definition of employee engagement as there are over 50 definitions that all have variations between them. Although recent reviews by researchers show that there is a similarity in the key components of the varied definitions, these common components that are acknowledged include employee association with organisational goals and a compliance to exert discretionary effort, commitment, enthusiasm for work and organisational pride (Schneider et al, 2009). In the recent years there has become a gradual interest in employee engagement. Firstly the reasons for this is the correlation with organisational performance. By improving employee engagement it can beneficial to companies in order to improves its organisational performance. McLeod and Clarke (2009) suggests...
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...external, which impact on the employment relationship There are several external and internal factors that might impact on the employment relationship such as the following examples: External Factors: 1. Given the state of the recession and how it might have affected an organisation’s finances, this has a large impact on the employment relationship i.e. due to cuts there be maybe redundancies, therefore leading to loss of jobs. 2. Another external factor that might impact on the employment relationship is the social impact. Organisations must be able to meet the demands of the business whilst managing the needs of their employees who due to social factors such as family etc. means organisations have to offer incentives such as flexible working, home-working or job sharing and other benefits such as holidays etc. in order remain competitive in order to attract candidates. Internal factors: 1. An internal factor that might impact on the employment relationship is the employment contract. ACAS notes: “A contract of employment is an agreement between an employer and employee and is the basis of the employment relationship”. ACAS also notes “A contract of employment will contain some terms such as: Statutory terms- “imposed, varied or regulated by law such as the minimum statutory notice period”. Express terms: “these are terms that have been specifically mentioned, either in writing or orally, and have been agreed by both employer and employee”. Implied terms:...
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...suppliers have as much impact on the organization structure as customers and competitors have had in the past. Organizations are viewed as open systems, continually interacting with their environment and in dynamic state of temporary equilibrium as they adapt to environmental changes. Successful organizations are in constant state of flux in response to their environment, many companies are looking at media technologies as way to market their product and learn about their competitors. This presence could produce a large following depending on the interest in the content created and information shared. The change stemmed from the speed at which information travel in the media arena. In most cases, the information environment outside the organization is changing far more rapidly than the information environment internally. Customers, partners, prospects, and employees can find, access, and share information in a way that corporate infrastructure, security, culture, and policies inhibit. Organizations are having a difficult time responding to or taking advantage of – these new environments. The path of information regarding the organization is no longer just the role of the marketing department. Employees talk to customers, colleagues, and suppliers. They share their experiences, impressions and expectations regarding their jobs, the organization and management. The speed at which the information travels is beyond the control of the organization. Every employee, customer and supplier...
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