Hr In Context

HRM in Context 1

HRM in Context

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HRM in Context 2

Human Resource Management, HRM from now on, is concerned with the efficient

running of an organization. HRM policies and practices are meant to guide the company

towards achieving its objectives while maintaining a harmonious relationship among the

employees (Wilton, N. 2016, 4). Policies act as guidelines for the managers and employees

while setting out the intent and principles of the organization. Practices refer to the activities

used to manage the human capital in a manner that coincides with the objectives of the firm.

Some companies have an entire HR division while others, smaller ones, have one manager

overseeing everything. Senior managers and line managers play a primary role in HRM,

especially in smaller companies.

Senior managers are in charge of running the entire organization while line managers

are closer to the employees. Line managers are responsible for direct staff management,

appraisal, discipline, and supervision of employees (Wilton, N. 2016, 18). The success of a

company heavily relies on its human capital, and all managers are aware of this fact. It is vital

for the line and senior managers to collaborate on the strategy to make sure that they come up

with the ideal policies on HRM. The HR policies are an indication of the ethos and objectives

of the entire firm. Line managers have direct access to the employees, and they are

responsible for monitoring all their activities on a daily basis. However, all employee

activities must be in line with the objectives of the company as a whole. Senior managers will

work with their junior counterparts to see to it that all employee policies and practices

dovetail with the business plan of the firm.

Senior managers and their counterparts both have vested interests in working to

ensure the success of the company. When the two work together, the line managers will

receive more proficiency in tactical HR functions. On the other hand, senior HR managers

will have more time to deal with the strategic issues. Staffing is one of the core functions of

any HR department since it is responsible for picking the appropriate individuals to fill the

HRM in Context 3

company positions. Senior managers and line managers will hold regular meetings to

determine the qualifications and skills necessary for a seamless functioning of all departments

(Wilton, N. 2016, 22). Line managers will evaluate any existing vacancies, and then the

senior managers will review this job description to ascertain its accuracy and level of

necessity. During the selection and recruitment process, the top managers will discuss with

their juniors on the criteria to identify the right candidates to fit the company philosophy.

Corporate agility is an essential factor for any firm. The ability to change with the

times and technology determines the demise or survival of a company (Gothelf, 2017). The

rate of change is accelerating, and managers need to factor them into their corporate strategy

to achieve efficient supply chains. HR managers must adapt accordingly to maintain a

workforce strategy that makes the company competitive. They will meet with line managers

to draw out future expectations and projections in advance. They determine whether to train

existing workers to cope with future challenges or to hire qualified personnel from outside.

These decisions possible when they assess the capabilities of the current workforce and the

cost-effectiveness of hiring new people. Any change in policies or new practices is discussed

by the line managers and their seniors before any strategic decision making (Gothelf, 2017).

Performance management is a crucial undertaking that determines the abilities and

conformity of employees to the company expectations. Senior managers will advise their

juniors on HR practices such as how to provide the workers with constructive feedback and

how to perform unbiased performance assessments (Sahu, R. 2007, 9). The two managers

must work together to make sure that the firm maintains a consistent performance

management strategy. Inconsistency and bias may lead to lack of job satisfaction for

employees, which is an unwanted outcome. This appraisal will determine whether additional

staffing and training is necessary

HRM in Context 4

Conflict resolution is another reason why line and senior HR managers ought to work

together. Today companies are full of employees from different work ethic and cultural

backgrounds. This diversity leads to workplace conflicts that could escalate into major

situations to affect the business. Line managers are the initial line of defense during conflict

resolution. They will seek the guidance of the senior managers on how to resolve the issues

between workers. It becomes easy to find quick solutions since the line managers provide the

link between top management and the employees. If workplace conflicts fester for long, they

could result in low employee morale or possible resignations.

Every company has a clear structure of the compensation, benefits, and bonuses

offered. The company management determines these figures, and the line managers are there

for enforcement. Employees receive their benefits and rewards based on their performance,

which is regulated by the line manager. The managers take note of the deserving employees

before passing the information over to the senior management for the expedition.

HRM has a role in ensuring the organization operates in observance of the law and

ethics. Companies hire line managers and give them all the relevant information regarding

adherence to the laws (Wilton, N. 2016, 141). Businesses cannot operate in contravention of

the prevailing government regulations. Line managers internalize this information and pass it

down to the employees while applying sufficient oversight. The company policies and

practices that guide the employees must show deference towards the law. Any changes in the

rules are communicated from the senior management and implemented by line managers. A

company that is in contravention of the law is liable to receive hefty fines. Business ethics

reflect on the image and focus of an organization. Every employee is an extension of the firm

hence they must behave by the ethical code, which is determined by senior management.

HRM in Context 5

The combined efforts of senior managers and line managers are intrinsic towards the

success of a firm (Maxwell, G. and Watson, C. 2008, 85). Both share a common goal of

achieving the organization’s objectives by ensuring workforce efficiency. Line managers help

out with the tactical aspects of HR while the senior managers are left to concentrate on

strategic issues. These managers must receive initial training from the top HR on the matter

of people management. Organizations should not assume that all line managers are good at

working directly with employees on a daily basis.

Part 2

Every employer wishes to have a sufficiently motivated workforce geared towards

achieving the company objectives. There is high competition in all factors of production, and

the labor market is indeed not left behind. Organizations are experiencing challenges in the

retention of their competitive employees. The situation is occurring in all companies

regardless of technological advancements or size. The high turnover rates are a problem for

companies since they are forced to search for recruits and train them, which is an expensive

undertaking. The leading cause of the reduced retention rates boils down to the strategic issue

of employee motivation.

It is becoming increasingly apparent that employees receive motivation from many

factors in the company except financial gain (Sunderji, 2017). Progressive managers must not

assume that money is the solution to all demoralized workers. Motivation can be intrinsic or

extrinsic depending on where it originates. External motivators come from the company

management in the form of punishments or rewards (Sunderji, 2017). Workers will be

motivated to work and earn rewards or to avoid penalties. Managers must fully enforce

whichever approach they take. Intrinsic motivators originate from the employees and involve

factors like job satisfaction. Factors that come from within the worker are the most effective

HRM in Context 6

since it is a voluntary force of will. External factors might give rise to rebellious tendencies,

especially the acts of punishment.

Organizations will experience significant impacts when they lose any part of their

workforce. The skilled labor and top management are a scarce commodity, and hence they

are valuable assets to the company. Managers who seek to gain a competitive advantage are

implementing measures to keep the employee motivated to avoid the distraction and cost of

resignations (Ramlall, S. 2004, 52).

There are several schools of thought with diverse approaches to the reasons that keep

people motivated at the workplace (Sunderji, 2017). Organizations use numerous ways to

encourage employees, but sadly, some are unfounded on sound theories. Businesses use a lot

of resources to train the workforce hence it is imperative to study some of these tried and

tested approaches to determine how to motivate workers despite a shortage of money.

Motivation requires a primary objective, ability, and a desire to work. The theories will guide

the managers into implementing important strategies that will leave employees motivated.

Solutions

Abraham Maslow’s Hierarchy Theory

Maslow thought that human capital was severely underrated when he came up with this

approach. He suggests that human beings are motivated by self-actualization, which seats at

the peak of the pyramid. The theory stipulates that employees are driven by five main factors

which fall hierarchically:

Self-actualization- is the ultimate measure of employee motivation since it involves

utilization of their talents and abilities. People are motivated by the need to reach the highest

pinnacle of their profession. Managers can achieve this stage by providing new challenges to

employees as well as encouraging creativity.

HRM in Context 7

Esteem- self-confidence and the need to feel respected by peers. People with a high esteem of

themselves will command respect from their colleagues, which is also a factor towards the

feelings of appreciation. Delegation of duties will make people feel confident in their abilities

and encourage participation. Managers should make a point of congratulating productive

workers regularly to boost their morale.

Affiliation- this step refers to the emotional factor of feeling wanted and loved. Maslow

suggests that people need to be in associations where their opinion and effort is valued.

Entrepreneurs should encourage the socialization of workers to build up their team spirit.

Organizing activities like tugs of war is an excellent way of bonding.

Security- this step reflects on the general environment and its conduciveness for the

employee. A worker who feels insecure is unlikely to stay motivated. Insecurity could also

refer to a lack of financial uncertainty in the future (Ramlall, S. 2004, 54). Employees have a

psychological response to managerial behavior that makes them feel insecure such as

ignorance of their welfare. Managers should secure the external environment to eliminate any

risks to the worker’s life.

Physiological- these include the necessities necessary for survival in the job environment

such as shelter, clothing, sleep, water, and food. Availability of drinking water and vending

machines are examples of ideas to keep the employees motivated.

Chip Conley is the owner of Joie de Vivre chain of boutique hotels, as well as

working for Airbnb. He used Maslow's hierarchy to determine the level of satisfaction of

hotel visitors, starting with the essential requirement of a room to sleep. Moving up the

pyramid, they increased the number of amenities that attract high-end business clients

(Hofman, 2007).

HRM in Context 8

McClelland’s Need Theory

This approach postulates that personal achievement is the most powerful motivating factor

for employees (Ramlall, S. 2004, 55). According to David, there are three critical motivators

for every person regardless of age or gender:

Achievement- the need to achieve something challenging. Managers can motivate employees

by creating challenging tasks that are part of their strategic objective. Giving these people

mundane assignments will result in boredom and detachment.

Power- the need to exert control over other people. These include those who want to control

others and those who organize to guide and provide an example to peers. Managers can

delegate minor leadership duties to these employees to help them exercise their desire to run

things.

Affiliation- people want to feel loved and belong to a group setting instead of standing out.

Leaders should provide feedback to such employees to make them think their opinion was

appreciated. Giving group activities to these employees will keep them motivated.

Samsung Electronics offer an excellent example of the application of this theory. The

strong relationships between workers dovetails with the need for affiliation (Li, H. and Lee, J.

2009. 192). The company has realized significant achievements to make them a household

name. There are plenty of opportunities and challenges for the employees on a daily basis.

The company policy to promote from within is motivational in the context of power since

people gain more responsibilities (Samsung.com, 2017).

Equity Theory

HRM in Context 9

It is an crucial motivation theory that reflects on the feelings of equality among

employees. It postulates that the workers in a company are concerned about their reward

package in comparison to their peers. People will be satisfied when there is a sense of fair

play in the structuring of rewards or duties. Managers should make sure that people in the

same job group, and similar responsibilities, are treated consistently regarding responsibilities

and remuneration. This theory does not focus much on a high amount of compensation but

rather an equitable one. People will become demotivated when their equal peers receive

proportionally higher wages. Any bias and preferential treatment could lead to disgruntled

feelings among the workforce.

Samsung is an equal opportunity employer that sources men, women, and the disabled

people. They believe in the policy of fairness and equity in working conditions and

remuneration (Samsung.com, 2008).

Expectancy Theory

It was forwarded by Vroom, and it postulates that employees will put in an amount of effort

equal what they expect in return. Commissions and other compensation are the primary

expectation, but workers could be looking for other forms of recognition. It relies on the

premises of:

Expectancy- belief that a particular effort will result in the desired outcome.

Instrumentality- the belief that the reward will come after the task.

Valence- the value of the reward to the employee.

Proactive managers must seek out the factors that employees expect in return while setting

achievable goals (Osabiya, B. 2015, 71). Some could be looking for increased recognition

HRM in Context 10

and leadership positions. When leaders know what their employees expect, it is possible to

act on some of them and end up in increased motivation.

Hallmark Company have a policy for recognizing the efforts of employees in real

time. The company sees immense value in recognizing the accomplishments of the workers,

however small. Recognition is a gratifying process, and it is assured at all times, even on the

go via a real-time platform. Employees know that their efforts will receive recognition

(Hallmark Business Connections, 2017).

Hertzberg’s Two-Factor Theory

Herzberg carried out an elaborate research study using 200 engineers and accountants

to determine the factors that contribute towards employee satisfaction (Ramlall, 2004). After

the research, he discovered that some people described job satisfaction in the context of

intrinsic factors. These factors were referred to as motivators and included variables like

recognition, achievement, the job itself, advancement, growth, and responsibility. On the

other hand, he noticed that other factors resulted in dissatisfaction of employees. He labeled

them as hygiene factors because they came from external sources that were unrelated to the

job. These factors included coworker relations, supervision styles, salary, and company

policies.

According to Herzberg, eliminating the causes of dissatisfaction would lead to

neutrality instead of improved satisfaction. He found that the two concepts, hygiene, and

motivators, were independent of each other. Increasing motivation in the company is only

possible when managers address the motivators. The hygiene factors will just help to placate

the workers instead of offering motivation. Managers can use this theory to create job

satisfaction for workers (Burton, K. 2012, 10). They should look into adjusting the nature of

the actual job such as increasing the level of challenge and responsibility. Offering

HRM in Context 11

opportunities for personal growth, advancement, and recognition will help workers to feel

satisfied and motivated. Managers can also introduce new tasks to offer freshness as well as

an avenue for growth and learning.

Virgin Media have established schemes for apprentices based on their behavior as well as

abilities. Successful individuals receive mentoring, training and coaching in simulated

situations before meeting the customers of the corporation. Workers can grow and learn more

(Businesscasestudies.co.uk, 2017).

Management by Objectives

Peter Drucker came up with this theory to prove that employees will gain motivation

depending on their involvement in the formulation of objectives. The first step in this

approach is determining the goals of the organization according to the mission and vision.

Then managers must communicate these strategies with the employees for a clear

understanding (Osabiya, B. 2015, 74). This theory suggests that employees ought to be part

of the strategic planning of objectives. They should participate in the process to determine

where their strength applies and how they can make relevant contributions. Workers gain

more commitment to the company objectives since they are tailored to suit their strengths.

The goals must be achievable, measurable, and specific to avoid confusion. Managers should

strive to include employees in the process of formulating objectives to increase their

commitment levels.

HP, a computer company, has used this theory in their operations. They have

managed to develop and integrate company objectives with those of the managers. Bill

Packard, one of the founders, believes that MBO is efficient since it considers the input of the

employees (The Economist, 2009).

Conclusion

HRM in Context 12

Employee motivation is a critical determinant of success, and hence it is a part of the strategic

management process (Burton, K. 2012, 5). Managers must understand these theories that

determine the motivation of employees and how to apply them in their situation. The high

employee turnover rates will reduce when managers understand how to use these verified

theories to determine other factors that motivate their workforce apart from money. In fact,

managers can use these approaches to create competitive advantage by focusing on effective

employee motivation and retention. Loss of crucial employees is an untenable position for the

firm since they are tough to replace. We have seen that numerous reasons keep an employee

attached to their positions. The theory chosen by managers should be conversant with the

type of employee as well as job specifications.

Managers hold a great deal of influence on the company activities hence they have the power

to change the organizational culture into one that focuses on employee motivation. All

employees have different motivational factors that the managers are obliged to understand

and internalize into their HRM policies (Burton, K. 2012, 5). Managers should also show

sufficient enthusiasm for their duties since it rubs off on the workforce. When leaders appear

demoralized and unfocused, the employees are unlikely to feel motivated. Leading by

example is vital since managers will create an enabling environment for maximizing the

potential of all the employees.

Business leaders should be keen when hiring employees to ascertain that the most

efficient criteria are applied. They must consider the factors that motivate workers before

anything else (Osabiya, B. 2015, 74). A worker could be qualified but not excited by the

prospect of working for a particular firm. It would be erroneous to hire such a person and

expect to retain them in the long-run. The ability to use personal skills and talents ranks

highly among the factors that promote job satisfaction. Staffing should occur in a manner that

connects the workers with the right skill-set and mind-set to the existing opportunities. These

HRM in Context 13

theories should act as a template upon which managers can choose the appropriate fit for their

organization. The real-life examples serve to show that these policies are conversant with

existing situations. When employees feel motivated, they are happy, and hence they can work

towards the achievement of the company objectives.

HRM in Context 14

References

Burton, K. (2012). A Study of Motivation: How to Get Your Employees Moving. [ebook]

Bloomington: School of Public and Environmental Affairs. Available at:

https://spea.indiana.edu/doc/undergraduate/ugrd_thesis2012_mgmt_burton.pdf

[Accessed 5 Nov. 2017].

Businesscasestudies.co.uk. (2017). Motivating and engaging employees for better business.

[online] Available at: http://businesscasestudies.co.uk/virgin-media/motivating-and-

engaging-employees-for-better-business/herzbergs-two-factor-theory.html [Accessed

5 Nov. 2017].

Gothelf, J. (2017). How HR Can Become Agile (and Why It Needs To). [online] Harvard

Business Review. Available at: https://hbr.org/2017/06/how-hr-can-become-agile-

and-why-it-needs-to [Accessed 5 Nov. 2017].

Hallmark Business Connections. (2017). The Hallmark Approach to Employee Engagement.

[online] Available at: http://The Hallmark Approach to Employee Engagement

[Accessed 5 Nov. 2017].

Hofman, M. (2007). The Idea That Saved My Company. [online] Inc.com. Available at:

https://www.inc.com/magazine/20071001/the-idea-that-saved-my-company.html

[Accessed 5 Nov. 2017].

Li, H. and Lee, J. (2009). Wealth Doesn't Last 3 Generations: How Family Businesses Can

Maintain Prosperity. New Jersey: World Scientific.

Maxwell, G. and Watson, S. (2008). Line Manager Challenges in Human Resource

Development. International Journal of Hospitality and Tourism Administration, 7(1).

HRM in Context 15

Osabiya, B. (2015). The effect of employees motivation on organizational

performance. Journal of Public Administration and Policy Research, 7(4), pp.62-75.

Ramlall, S. (2004). A Review of Employee Motivation Theories and their Implications for

Employee Retention within Organizations. The Journal of American Academy of

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Sahu, R. (2007). Performance management system. New Delhi: Excel Books.

Samsung.com. (2008). Respecting Global Diversity. [online] Available at:

http://www.samsung.com/us/aboutsamsung/sustainability/integritymanagement/downl

oad/RespectingGlobalDiversity.pdf [Accessed 5 Nov. 2017].

Samsung.com. (2017). Social Performance. [online] Available at:

http://www.samsung.com/us/aboutsamsung/corpcitizenship/environmentsocialreport/e

nvironmentsocialreport_OpenToAllOpportunitiesAndHumanRights.html [Accessed 5

Nov. 2017].

Sunderji, M. (2017). Why money is not an employee motivator. [online] The Globe and Mail.

Available at: https://beta.theglobeandmail.com/report-on-business/careers/leadership-

lab/why-money-is-not-an-employee-

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motivator/article33755286/?ref=http://www.theglobeandmail.com& [Accessed 5

Nov. 2017].

The Economist. (2009). Management by objectives. [online] Available at:

http://www.economist.com/node/14299761 [Accessed 5 Nov. 2017].

Wilton, N. (2016). An introduction to human resource management. 3rd ed. Thousand Oaks,

California: SAGE.

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