Approaches To Human Resource Management

Running head: APPROACHES TO HUMAN RESOURCE MANAGEMENT 1

Approaches to Human Resource Management

Name of the Student

Name of the Institution

Running head: APPROACHES TO HUMAN RESOURCE MANAGEMENT 2

Approaches to Human Resource Management

The human resource management can be used to refer to systems which are put in place

to manage organization’s employees. The human resource practices have a significant role in an

organization’s success particularly in their retail segment. There are three approaches to the

Human resource management namely, best fit, best practice, and the configuration models. These

approaches will be looked into, in this essay as applied by Woolworths Limited which is a

leading retail outlet Australia.

This model assumes that there exist Human resource management practices that can be

applied universally in all situations that an organization may encounter (Armstrong, 2011). These

practices include selective recruitment, having teams that are self-managed, and offering training

to employees. The other practices include; security in employment, sharing of information,

reducing differences in status, and offering compensation on the basis of performance. This

model has been criticized since it is hard for there to be universal practices that can be applied in

all organizations. Furthermore, some practices may work well in a particular organization and

may not fit in a different one due to the differences in culture, style of management, and culture

(Banfield & Kay, 2012).

Regarding Woolworths Limited the organization has managed to recruit the best

candidates by advertising their job vacancies through an online platform where the candidates

are also required to apply online. By doing this, the organization has ensured that the process of

their recruitment becomes and remains transparent. Additionally, the purpose of the online

recruitment process is to ensure that all candidates receive equal treatment. Moreover, in

handling the personal information of the candidates the organization has constantly acted in

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agreement with the Privacy Act where the information is kept confidentially. After selecting the

right candidate, the company takes the new employees through a program through which they

receive training.

Furthermore, the organization also has a system of managing talents where employees are

trained and developed. The training has ensured that employees that are newly employed do not

waste much time before getting integrated into the organization (Arli et al 2013).The

organization's retail segment which continually keeps changing has benefited most from the

development and training of their employees (Gibert, 2013). Woolworths Limited has also

applied the best practice approach in its human resource management by developing better

communication methods (Wilkinson & Johnstone, 2016). The organization has to the process

design team continually engaged their staff to communicate the benefits of having a process

approach regarding their projects. Furthermore, the organization through the Woolworths

Business Process Management has ensured continuous communication between the management

and the staff

Moreover, the constant appraisal of the employees has assisted the organization in

gauging the operational performance of their workers. Woolworths Limited analyses their

employees based on the skills which they possess currently and the ones which they may need to

develop for their career in future. Additionally, the organization engages their employees during

their decision-making process with an aim of enhancing satisfaction in their jobs.

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In comparison to the best practice, this model seems more realistic, as it holds the view

that what is regarded as best depends on the circumstances within an organization (Fottler et al.

2010). Though the best fit model is better in comparison to the best practice, it does not take into

account the processes involved in change. Additionally, the model holds the view that the

practices of human resource management are dependent on which are contextual like employees

groups, country, and the organization’s strategies among others (Wilkinson & Johnstone, 2016).

Woolworths Limited has had a high rate of turnover in recent years which has provoked the

management to look for ways to decrease the high turnover rate. Through the best fit model

which ascribes to the expectancy theory, the management has gained an understanding that the

key to success is people. This belief has led the management to look for ways of retaining their

employees (Gordon & Kaswin, 2010).

Some of the ways of retaining their employees which have been used by the organization

include among others; providing their employees with health care plans, disability benefits,

retirement funding schemes, and also offering scholarships and educational training to them

(Woolworths, 2017). Furthermore, parental leaves and fitness centers are among other benefits

provided which have assisted the organization in retaining their employees (Sawang & Kivits,

2014). This is a human resource approach which combines both the internal and external fit of an

organization (Armstrong, 2011). This model develops and implements different practices in the

human resource management which helps in complementing and reinforcing. The configuration

approach holds the view that the performance of an employee is based on both their motivation

and ability. Therefore, the practices which an organization uses in managing its human resource

should aim at improving both the employee’s ability and motivation.

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Furthermore, institutions mostly use the configuration model with the aim of achieving

performance which is high by maintaining consistency. The consistency is attained by jointly

reinforcing the human resource practices and policies that are already developed to contribute

jointly to the achievement of the organization’s goals, and strategies. Additionally, this approach

is usually used to match an organization’s resources to its needs, improve its performance and

assist it in gaining a competitive advantage in the market. Though the configuration model is

most favored by many organizations, it brings with it a few challenges. One of them includes the

company may become unable to select the best configuration or bundle which is suitable for the

organization (Armstrong, 2012).

In relation to Woolworths Limited, the organization has used this model by carefully

selecting and training their employees while at the same time offering non-financial incentives

like parental leaves and fitness centers to their employees (Sawang & Kivits, 2014). By doing

this, the company has put together the best-fit and best practice models in managing their human

resources. Additionally, the company has through the use of the configuration model established

reward systems which address all employees in the entire organization. The configuration model

which puts together various human resource practices has assisted the organization to encourage

high performance by rewarding employees whose performance is extraordinary. The

organization’s managers assist in identifying employees who are best-performing and award

them on the spot. The managers give the awards frequently as they walk around the

organizations (Woolworths, 2017).

Additionally, the company has established the ‘difference awards’ which are given to

employees who contribute extraordinarily to the company. All employees are involved in

choosing the person who will become the winner. The organization gives this award to

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encourage the other employees to work harder for them to receive the awards. Moreover, besides

these two awards, Woolworths Limited gives out the yearly CEO award to individual employees

and groups that are performing highly. The company also offers opportunities for developing

one’s career as a way of promoting its employees. There is no single approach which can be

deemed suitable for all organizations. Therefore an organization should strive to use the

approach which is most beneficial to their employees and also the company as a whole.

Woolworths Limited has used both the best fit and practice approaches to managing their human

resources, which indicates that the approach mostly used by the company is the configuration

approach.

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References

Armstrong, M. (2011). Armstrong's handbook of strategic human resource management. Kogan

Page.

Banfield, P. & Kay, R. (2012). Introduction to human resource management. Oxford University

Press.

Fottler, M., Khatri, N. & Savage, G. (2010). Strategic human resource management in health

care. Emerald Publishers.

Sawang, S., & Kivits, R. A. (2014). Greener workplace: understanding senior management's

adoption decisions through the Theory of Planned Behavior. Australasian journal of

environmental management, 21(1), 22-36.

Wilkinson, A. & Johnstone, S. (2016). Encyclopedia of human resource management.

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