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Assignment 1
QUESTION 1-A: Provide a brief description of the models of HRM discussed in the first chapter
of the textbook, and explain how each one relates to strategic human resource management.
Bratton and Gold (2012, pp. 18-25) in their book Human Resource Management: Theory and
Practice showcase numerous HRM models. These all have a strategic meaning and are applied
First of all, the Fombrun, Tichy and Devanna model was one of the earliest models in strategic
HRM. It consists of four parts (a) selection, (b) appraisal, (c) development and (d) rewards.
Secondly, the Harvard model is a significant improvement from the first model. The perception
according to this model is changed, as it forms a cycle/loop, where policies are developed to
consequences.
The third model was developed by Guest. His approach is radically different from the first two -
he suggests that the primary focus should lie in creating trust and commitment, and there is a
Next, there is the Warwick model a model that heavily borrows from the Harvard model. Its
core strength is that it is based around context outer, inner, business strategy, HRM context
(including the role, definition, organization, HR outputs, flows, work systems, rewards and
The Storey model is trying to create and recruit an ideal employee, which is what numerous
organizations have been doing they start off with the position development and the
suggested ideal candidate, and then find an individual that resembles the ideal candidate as
closely as possible.
The Ulrichs strategic partner model of HRM is attempting to overcome the traditional
strategic decisions, as these have a strong impact on the organizational design and
QUESTION 1-B: Which of the models of strategic HRM do you feel best represents a strategic
While each of these models are clearly related to strategic HR management, they each have
different priorities and in addition to that they may prioritize and focus on different aspects of
strategic HRM, they all share some similarities. The model that best represents the strategic
HRM in my opinion is the Ulrichs framework where the HR is considered to be the strategic
Many organizations and their top management make the decisions involving reorganization or
major change of strategy, and fail to reflect the need to develop and support HR as a strategic
partner that will be vital in the implementation of said strategy. While the other models are
frequently quite comprehensive, (such as the Warwick model), they do not prioritize strategy
above other functions even if we are meant to pay attention to the context, it does not tell
us, what the strategy is, should be; or how to modify it.
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If we put (promote) our HR professionals to the role of a business partner, rather than just use
the business strategy which should be one of the first and foremost priorities for the
organizations.
Even though there are some doubts about the effectiveness of this model (Bratton & Gold,
2012), it is important to note that these will be frequently associated with the challenge to
implement (such as do we have our CEO on board and fully committed to prioritize the strategic
HR needs?).
While it may appear that this model is overly focused on the strategy itself, it is important to
also mention that the employee championship is also encouraged and emphasized in this
model which may not be apparent initially. However, none of the contemporary problems
that the HR managers frequently face today are mentioned in these models directly, i.e.
QUESTION 1-C: Considering the issues raised in the commentaries and the text, how
economic and social policies? How important is it for them to develop a more pluralistic
Many of the dominant world economies have now adopted the neo-liberal model. It has been
on the rise since the 1980s, and it is considered to be a new perspective on the Human
Resource management. This is because the old ways of government involvement, worker
unionization, and other collective policies have been (or are in the process) of being
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abandoned, and individualism is on the rise. Neo-liberalism views employees as any other
resource which is to some degree a problem, because humans are unlike other resources.
Their management is much more complex, multidimensional, and they should not be solely
This will be in particular important for certain disadvantaged groups of populations, especially
for example people with disabilities, that should (according to the neo-liberalist policies) not
work, because they would be outperformed by healthy people. For this reason, some social
Finally, economic efficiency should not be a single measure of the value of the worker since
this frequently gets adopted and becomes the proverbial value of the human being as is. Neo-
liberalism may seem as too corporate to some people, because it is, and because this is what
the shareholders these days demand all secondary objectives are simply not as much of a
priority. Of course, the previous economic models had their shortcomings as well, but certainly
they (aside those primarily focusing on the utility), they have approached the concept of work
also incorporating the needs of human beings as well on aggregate, not just the individual
level.
QUESTION 1-D: Do you think the massive inequality between CEO salary increases and
Massive inequality between the CEO and employee salary is to some degree inevitable, and to
some degree there could certainly be a greater equality. The traditional argument of
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competitiveness is the evidence that the businesses in fact must pay their CEOs exorbitant
salaries. These also vary greatly, and from the employers (or in this case board and
shareholder), the more attractive the compensation package, the greater competitiveness for
the position of the CEO (and ultimately ideally a better performance). The jobs of the CEOs are
both time-consuming and highly stressful, and for this very reason these positions command
highly competitive salaries, in multiples of the salaries of regular workers. However, these
arguments aside, the CEOs happen to make too much if the salary of the CEO is 2,785% of the
regular salary (lower in Canada, but still a significant difference), this creates a sense of
inequality and resentment among the workers. No matter how many times they get told that
they are the most valuable resource, if their compensation (and a representation of their
value) does not reflect this at all, this information will not be taken seriously.
The final argument for stark salary differences would be to motivate workers to work hard to
make it to the top. This would be one way to motivate workers to accomplish things, however it
is far from the traditional empowering method that every CEO claims they are doing. In
particular, the CEOs willingly accept this inequality. On the other hand, the comparison should
not be made between the top 1% of the CEOs and the general population, in particular if most
which you are familiarand relating that to the discussion in Chapter 2 and the course
commentarydescribe the HRM practices of that organization, and explain which of these
One of the organizations that I am familiar with is Starbucks, which is also an organization that
is well-known for carefully managing their staff. Starbucks is well-known not only for the
excellent training of the employees, focused on both hard and soft skills, but also on retaining
employees and rewarding them effectively. For many organizations similar to Starbucks (having
a large number of low-skilled workers), this presents a major challenge, in particular with
According to the Bratton and Gold (2012), there are three traditional poles of a strategic plan,
and these are the corporate values, resources, and the environment. The management of
Starbucks can be considered effective, because these elements were all clearly reflected in their
managerial approach, as well as they are communicated very clearly to the public.
First of all, the resources (human resources) are quite vast and distributed across numerous
countries. Over its 25-year-old history in this country, Starbucks has recruited over 14,000
The mission of Starbucks is: to inspire and nurture the human spiritone person, one cup, and
one neighbourhood at a time with a special focus on inspiring positive change within the
respective communities (Starbucks, 2017). This mission is very clearly communicated, and in
respect with the employees or partners since this is how Starbucks traditionally refers to
them; everyone follows the same organizational strategy. Partners can freely transfer from one
store to another, without any loss of knowledge, or change in values. This is clearly showcased
also in how Starbucks interacts with the customers, not only the employees, however the
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strategy and values needs to originate with the employees, otherwise the strategy will not
work.
If the strategy of Starbucks is examined from corporate, business and functional perspective,
we can see that from the corporate perspective, the majority of the resources are concentrated
(invested in) the staff along with the coffee products. Secondly, the business strategy
Starbucks utilizes is the differentiation strategy. The service is highly distinctive (for this reason
there is also a very high HR investment over the board), and the culture plays a key role in this
business. On the functional level, there is some hierarchy, however the organization is relatively
flat. Headquarters aside, there are only the baristas, shift managers, store managers (general
store staff), and then the management goes through regional and country managers up to the
CEO.
From the corporate social responsibility (CSR) perspective, Starbucks is not without fault,
however the company has been seen to carefully listen to the customer feedback and modify
their offering based on it. For example, simply due to its scale, Starbucks has a huge power on
the supplier market, which is one of the areas the company has been criticized for. Starbucks
now places greater effort in fair-trade or other purchases. There seems to be no major conflict
between the social strategy and the general corporate strategy, as the business is highly
profitable globally. Overall, it can be said that the business is estimated to be sustainable at its
References
Bratton, J, & J. Gold, (2012). Human Resource Management Theory & Practice. 5th Edition.
Starbucks. (2017). Our Canadian Story. Starbucks Coffee Company. Retrieved 1 June 2017, from
https://www.starbucks.ca/careers/our-canadian-story
Starbucks. (2017). Working at Starbucks. Starbucks Coffee Company. Retrieved 1 June 2017,
from https://www.starbucks.ca/careers/working-at-starbucks
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Assignment 2
QUESTION 1-A: Looking at the different work systems available to Canadian organizations,
what factors do you believe will result in an organization choosing one system over another
Bratton and Gold (2012) identify several work systems available to Canadian organizations.
a. Scientific Management
b. Fordism
a. Team-Based Systems
All the systems described above have evolved over time and strongly reflect the different
priorities and the perceptions of the role of HR. As an example, the first systems were focused
on fragmenting the job as much as possible in the effort to reduce the skill required to do the
job in this way, each worker could be easily trained to do a very simplistic job. Of course, this
type of a job design had numerous challenges associated with it, and some revisions were
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necessary. Over time, the machinery has entered the job design and the mechanization was a
sign of the progress, and workers focused yet again on repetitive and easy tasks. With high
automation, this kind of a job design continues to the present times, in particular as the
machines are replacing the human workers, and there is a focus on training workers on how to
operate the machines (i.e. Fordism), rather than simplistic tasks. The work of the labourers
actually requires specialized knowledge, and there is a difference between the same job a few
hundred years ago and today. However, the vast majority of the industries that rely on
manufacture are now concentrated elsewhere, and they do not have a large impact on the
Canadian employers and their work, so these more traditional systems do very little to achieve
The new approaches to management are much more relevant for the Canadian workforce as
well as managers who are managing this workforce. For example, Hackman and Oldmans work
engagement framework (skill variety, task identity, task significance, autonomy and feedback)
can be - and should - still be applied today and is highly relevant for Canadian managers. This
way, they can still increase the engagement of the workers, and this framework is actually
highly applicable across numerous job types and industries. Similarly, with an increased focus
on individual performance (and individual excellence at the workplace) lends itself to the
companies gravitating towards high performance work systems one of the newer work
systems.
Since the vast majority of the Canadians work in services, and fewer workers are in
manufacturing and traditional style jobs, the original/classical work systems are becoming
outdated. Even the workers in farming, forestry, and other prominent industries have to re-
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engineer the business processes and refresh the job design based on the industry innovation.
The majority of the workers still rely on their knowledge (for this reason there is a high amount
of training and skilled workers available and in demand in Canada). Organizations who choose
these designs need to select the most appropriate one based on their very own strategy, but
also they need to be competitive in their industry, i.e. if all car manufacturers are highly
automated using highly skilled knowledge workers, our business will not succeed with the
Fordism.
QUESTION 1-B: If you were the Director of HR at a large Canadian organization, what HRM
As a director of a major Canadian organization, I would have the power to determine and shape
In the previous part of this assignment, the evolution of the work systems over time was
presented. While each of these systems can be categorized and it may appear as an individual
unit, todays workplaces are actually much more complex and messier they do not fall under a
single category, and the workers working for the very same company can be a part of
completely different systems, or even a combination of systems to create the most effective
strategy for the business. They are much more complex, and the individual dimensions are
frequently interlocked the cultural, behavioural, technical and other dimensions are all
interconnected (Bratton and Gold, 2012). Even the expected behaviours at work that are
based on the corporate culture, but also they may change over time.
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One of the largest contemporary problems that is easily perceived in the workplaces nowadays
is the always on and the requirement (or the expectation) to be always connected, always on
call, have the instant access to email, phone, and just generally be immediately responsive. For
the vast majority of the people, this kind of commitment to work contributes to burnout, rather
than increases productivity. As it was described in the text, the just-in-time production
creates extraordinary pressures on employees and work organization (Bratton and Gold, 2012,
p. 137). This is a sign of an organizational design that is, in fact, not sustainable. There is a great
necessity for the people to have some time off work a time that is private and not spent on
reading emails and answering work-related texts. Yet, workers who make the distinction clear,
turn off their phones, or do not stay long hours at work may appear to be uncommitted, which
makes them look like bad employees in comparison with the staff that conforms. This may be
environmental change that also influenced the work systems over time.
Some of the strategies that I would adopt to minimize the shortcomings of the contemporary
workplace would be to first of all acknowledge that this kind of workplace culture and a work
system; where in an effort to appear committed to the management goals, employees are at a
risk of becoming overworked, or even burning out. This is highly stressful and may be a
the workplace as well as the wellbeing of the employees. As a HR manager, I would then have
the ability to redesign the organizational structures and introduce more flexible work patterns,
with a particular importance of ensuring that we do not promote the always on culture and
that all employees have the ability to take the very much needed time off.
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textbook chapters and Study Guide commentaries? What difficulties might you anticipate,
Having solved the work-life balance problem, there is another contemporary issue that is highly
prevalent in todays workplace and that issue is workplace diversity. Organizations tend to have
one dominant culture, however frequently there are numerous other cultures mixing in as well.
For this reason, the role of the HR manager will be to first of all to understand the culture, as
organizations, and this diversity (or even a social fabric) of the organization should be
Since every organization has its own culture, the HR managers need to recognize how it
manifests itself. For example, many companies utilize particular symbols to represent
meaningful content, trophies, or products. Culture has its enablers and constraints, and it
should not be solely on the shoulders of the CEO to develop, communicate, and potentially
Numerous organizations have diverse workforce from various national or regional backgrounds.
In such case, the research of Geert Hofstede will be very helpful. He divides and categorizes
national culture based on their power distance, individualism vs. collectivism, masculinity vs.
femininity, and uncertainty avoidance (Bratton and Gold, 2012). For example, the simple
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difference between individualist and collectivist cultures in the workplace may create major
Employees in multicultural workplaces may anticipate many challenges associated with trying
to manage the workplace. Due to different values, beliefs, languages, backgrounds, sexualities,
races and other factors, two employees with the same qualifications may end up being
completely different and even unable to work together sometimes. Canada in particular is a
highly multicultural country, with many nationalities working together. In general, the Canadian
population is highly tolerant, even welcoming to people from other cultures, however no
employee is equipped to deal with the vast diversity of specific cases. Employers should think
about whether to accommodate for their employees and to what degree. Some accessories,
religious wear, or other items may be highly desirable, even a commonplace to wear, however
As an employer, it is most important that the employees are treated with dignity and respect at
all times. At times, there may be a complete lack of understanding of the opposite culture, or
approach and strive for organizational stability and consensus (Bratton and Gold, 2012).
However, it is important not to fall for the trap of ethnocentrism and believe that ones own
culture is the best and should be always adopted across the board.
reflect our organizational goals (whatever they may be), and at the same time making sure, that
In respect with the green HR and sustainability, the businesses first of all need to critically
evaluate their current operations, policies and practices, and screen them for sustainability.
Organizations can get inspired from best industry practices, as well as follow in the footsteps of
the green pioneers companies who made it their core mission to become green.
References
Bratton, J, & J. Gold, (2012). Human Resource Management Theory & Practice. 5th Edition.
Assignment 3
QUESTION 1-A: Do you agree that Strategic HRM is crucially interested in HRD and employee
participation? In your answer, discuss the problems and tensions embedded within HRD and
employee participation.
Strategic HRD should be one of the key priorities for any business with a long-term outlook for
growth (Bratton & Gold, 2012, p. 283). Clearly, companies need to be forward-looking to
I would argue that HR representatives in their effort to think strategically about the people
working for the company indeed are interested in both HRD and employee participation,
however frequently they lack in the area of implementation, or have challenges with adoption
of the effective development programs. The vast majority of the employers are tracking
employee turnover, which can be used as the very basic measure of employee satisfaction (in
particular the voluntary turnover if it is well-above industry standards is a very clear warning
signal for the company). This can be an evidence that HR is failing to motivate and engage their
influence employee loyalty ((Freeman, Boxall, & Haynes, 2007) cited in Module Commentary
(2017)).
Furthermore, the vast majority of the employers focus on performance as is, rather than
focusing on employee learning (in the long-term). There may be a disconnect within most of the
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organizations in what they should be doing, and what they do. After all, it is the primary role of
HR to maintain the core competencies of the workers and focus on hiring for the current
mission. Additionally, HR does a lot of problem-solving, grievances and takes care of other
employee-related issues. With priorities set up this way, development programs may either be
put aside, or outsourced to contractors who may not fully understand the needs of the
workforce and the culture at that specific company. Even if the corporate needs are correctly
evaluated, the delivery may not result in the desired outcomes (specific skills that employees
need to gain).
Does HRD necessarily have to be internal? There are external online learning resources that
frequently may do a better job of training employees than outdated learning management
systems. While a lot of formal learning is done through learning/development programs, most
of the employees learn the most from their direct supervisors, since these are the most
innovation (such as IT), innovation is the only way to achieve sustainability and to carve a place
in the industry. Using the example of Facebook its innovation driven culture is well-reflected
in its Move fast and break things motto, encouraging their workers to innovate and to take
There are two major prerequisites to effective organizational learning supportive learning
climate and support from senior managers and leaders (Bratton & Gold, 2012). The vast
majority of the tensions could be solved if these two requirements are met. As it was
mentioned in the opening case study for this chapter in Bratton and Gold (2012); even though
the training opportunities are provided and HR seems to be highly involved in organizational
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and HR development, the implementation may be one of the major shortcomings in the
initiative. If the employee spends three work days being trained, yet at the end of the training
still has problems with transferring this knowledge to an improvement in his or her work duties,
a change needs to be made. Otherwise, the three days worth of productivity (and financial
resources) were just wasted and the employees supervisor needs to additionally train the
managers frequently make the trade-off between educating employees at scale and providing
focused training per position since resources generally tend to be limited and it is nearly
impossible to tailor the training for every specific position within the company, especially in the
changing workplace where even the whole positions may become redundant within the period
of few years.
On the more systematic level, nations attempt to manage the workplace through either skills
development and employability programs (if there are major skill gaps) or alternatively through
utilizing foreign workers and skilled immigration. In such cases, general economic situation
(recession or growth) has a meaningful impact. For example, there are significant cuts in
funding on employee training during recession (Bratton & Gold, 2012). In such periods of time,
a great number of the organizations may face the challenge of either cut the non-vital HR
opportunities budgets may be cut, and other steps may be taken to save as much resources as
possible. In particular, during recession, some companies may either make the cuts or face
layoffs in such cases, even though there may be a strong interest in HRD in the times of
Performance evaluation programs are frequently lacking in tracking the amount of personal
development of the worker. The performance in the current task or role is what is most
important, as well as the employees potential is considered (in particular for the leadership
and management roles), however most employees do not measure and reward how much has
the employee grown personally and professionally, except limited promotion opportunities.
All in all, in general, HR is very much interested in the strategic development activities as well as
in increasing employee participation in general, however frequently there are both internal and
external tensions that cause these efforts to fail. Mostly, it is either external influences (such as
recession) or challenges with implementation that prevent this goal from being achieved.
fast for the employees to be stagnant. Finally, the sources of learning do not necessarily have to
be formal, however there must be a commitment from the leadership to develop the
employees, and in particular the line managers need to prioritize the learning within their
teams, as they are the informal and highly effective sources of knowledge.
How might organizations work with unions to achieve strategic HRM goals, and how might
Unions used to have a significant bargaining power and frequently could challenge
management decisions made by the organization (Module 3, 2017). Aside from the unions
overall losing their significance nowadays, some also pointed out that the relationship between
organizational learning, labour unions, and general modernization efforts is generally weak and
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Learning, the original neo-liberal goals to empower and support learning and self-management
(and employee autonomy) have at times turned to tools to better oppress and control the
employees.
When trying to achieve strategic organizational goals, such as organizational learning, Field
(2004) cited in Module 3 (2017) points out that the whole organization rarely learns, and the
actual learning is focused on a smaller, more specific interest group. This is in spite of the fact
that both the unions and management may support the idea. In this case, the question remains,
whom do the unions support and what is the level of the union involvement?
federations (may or may not be working with NGOs) who have the role of social auditing
(Module 3, 2017). The role of the unions was also sometimes described as creating industrial
democracy in a strongly corporate neo-liberal world with very little oversight. However, even
in such cases, their effectiveness is limited: [I]n most cases, employee representatives [in the
input into decision making (Freeman, Boxall, & Haynes, 2007, p. 177) cited in (Module 3,
2017). In this case, even though representation exists, the participation is failing (does not exist
in spite of the structures developed to support it) and more work needs to be done to increase
In particular, from the globalization point of view, the scenario where the HRM strategy may be
directly at a conflict with the union goals (and general worker protection and representation). A
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case in point would be numerous Canadian (and Western) manufacturers that relocated to
South East Asia, Eastern Europe, Latin America and other regions with significantly cheaper
labour and more lax regulatory environments, in particular when it comes to the environmental
protection and workers rights. In such cases, the local unions (and even governments) while
they may actively lobby to keep the workforce at home, go directly against the corporate
strategic goals, and it is very difficult to find a reasonable middle ground beyond generous
severance packages.
On the other hand, unions (not necessarily labour unions) actually may have a positive role in
supporting worker mobility, as it is in the case of the European Union and to some degree in
NAFTA and CETA (which are trade unions rather than specifically labour unions). Vast majority
of the countries around the world have their own employment, vocational training, and skills
development programs which work in unison with the industrial needs (where strategic
corporate goals are clearly identified and considered), yet on the international mobility level, a
lot of this work is eliminated (and resources are saved), especially if the common labour market
balances out the labour shortages. Even though the full reliance solely on the market forces are
the market forces ultimately also help the workers and the corporations, and play much more
active role in strategic HR than labour unions in the traditional sense. Finally, in the world
where the vast majority of the workforce works in non-unionized smaller and medium-sized
companies (Union dues-paying workers comprised 31.8% of all employees in Canada in 2015
(Statistics Canada, 2015, n. p.) and only 10.7% of the workers in the United States (US Bureau of
Labour Statistics, 2016)), it is very easy to see why these institutions lose the power and ability
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to effectively help the workers, just as much as to support strategic corporate goals in any
meaningful way.
Argue both for and against the argument that employers exploiting emotional labour are
contravening employee rights and reinforcing gendered, classed, and raced social relations.
For
It should certainly be acknowledged that emotional labour exists and some positions are
managed, manipulated, and controlled and as forces creating unwanted resistance to change as
well as promoting productivity (Bierema, 2008, p. 56). However, it could be argued that
employees should have the right to retain some degree of emotional privacy, or at the very
least the emotional labour should be fairly compensated, since in many positions, the
emotional element of the position (while challenging, even straining for the individual) is
The expectations on the individual positions are to some degree also created and reinforced by
the society itself, as well as by the cultural expectations. Opengart (2003) interviewed women
managers and concluded that expectations for emotional expression are gendered, and the
nature of patriarchy may require women to engage in more emotion work since women are
expected to emulate masculine traits, and the social structure is replicated through emotional
expression as cited in (Bierema, 2008, p. 59). This idea can be also transformed further to the
expectation on women to take the maternity leave and to take care of children, as well as
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similar preconceived ideas, to which even the employers are not resistant. Employees are very
clearly exploiting emotional labour, as it has become an expectation, in some industries more
so than others. Service workers are often instructed that the customer is always right and are
forced to accommodate rudeness, harassment, and sometimes sexual advances (Price, 2008)
cited in (Bierema, 2008, p. 59). Employees are simply expected to handle it. The vast majority
of the research tends to be focused around gendered work, however there are also racial and
Against
Some may argue that the emotional element of the job was already acknowledged and the
individual (whatever their background may be) has accepted such conditions by applying for
such job. At the level of the individual organization, work is itself gendered, racialized and
classed. As such, there are important unpaid aspects of work that demand identity-based
performance that are linked to race, gender and class hierarchies (Chong, 2009, p. 178). To
expect that each job will be comparable in terms of salary and required work is unrealistic. The
diversity is simply too great. Secondly, employers specifically use this to their own advantage.
Emotion can be manipulated to preserve power relations, and women tend to be segregated
in jobs that require higher degrees of emotion work, particularly in the service industry
(Bierema, 2008, p. 59). If there are clear benefits for the employers, there will be no desire to
stop the practice. Finally, when individual identities are isolated, each employee has the
individual bargaining power to select the job that is suitable specifically for that employee
based on their preferred characteristics, and the employer should not play the role of the
References
Bierema, L. L. (2008). Adult learning in the workplace: Emotion work or emotion learning? New
Directions for Adult and Continuing Education, 120, 5564. Retrieved from http://0-
onlinelibrary.wiley.com.aupac.lib.athabascau.ca/doi/10.1002/ace.316/pdf
Bratton, J, & J. Gold, (2012). Human Resource Management Theory & Practice. 5th Edition.
Chong, P. (2009). Servitude with a smile: A re-examination of emotional labour. Just Labour, 14,
177185. Retrieved
from http://www.justlabour.yorku.ca/volume14/pdfs/ss_06_chong_press.pdf
development/services/collective-bargaining-data/reports/union-coverage.html
U.S. Bureau of Labor Statistics. (2016). Union membership rate 10.7 percent in 2016: The
Economics Daily: U.S. Bureau of Labor Statistics. Bls.gov. Retrieved 20 June 2017, from
https://www.bls.gov/opub/ted/2017/union-membership-rate-10-point-7-percent-in-
2016.htm
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Assignment 4
What are the key arguments supporting a best practice/best fit approach to strategic HRM?
The arguments of best practice vs. best fit in strategic HRM refers to the strategy that the
company will utilize. The first option that the company can use is to simply follow the already
established best practices in the industry we could argue that there is no need to reinvent the
wheel and throughout the decades of research, corporations and HR managers have already
learned about strategic HR as much as possible and they should simply be aware of these rules
and consistently follow and implement them in the operations. High commitment
management practices are associated with better economic performance, better workplace
well-being and a better climate of employment relations but just 14% of all workplaces have a
majority of them in place (MBA Tools, n. d., p. 1). It has been already proven that following
best practices in HRM is associated with employee performance (i.e. when we try to measure
net profit per employee) we can see a rising trend associated with adoption of these best
practices.
The best fit approach, on the other hand, takes the contextual information and appropriateness
to the situation into consideration. The official argument is that HR strategy becomes more
efficient when it is linked / tailored to its surrounding context or environment of the business
(MBA Tools, n. d., p. 1). This theory can be further sub-segmented to two elements the
external fit and the internal fit within the organization. The external fit refers to the actual
strategic direction of the organization within its competitive environment for example if the
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company uses the general strategy of differentiation, it will adopt different practices than a
company that uses low-cost approach (which generally also applies to the labourers). The
disadvantage of this solution is that in some rapidly changing industries, the strategy itself may
change very fast as the company needs to be quite agile and this would also necessitate the
change of HR strategy (i.e. the company makes the decision to move from low-cost to become
much more services oriented and this change needs to be reflected on the employee HR
strategy). In respect with the internal best fit strategy, we need to examine whether our actual
behaviour as a HR department is in line with the strategy we are trying to achieve. For example,
we may be a service oriented company, but are we rewarding our staff for providing
exceptional service, or are our employees still evaluated based on the number of clients they
can assist a day? If the strategy and practice is incongruent, even if we use the best practices,
This approach impacts HR professionals in quite a profound way. Even though each solution has
its advantages and disadvantages, HR professionals need to take the context and the
environment to the account, not just to rely on the best practices. Of course, the latter
approach requires extra work on the part of the HR staff, however it should bring additional ROI
to the company as opposed to the companies that only follow what works.
How can best practice/best fit be married to different organizations such as a worker co-
organization. If we wanted to apply the best practice approach there would be nothing wrong
with that, we would simply recruit, select, reward performance and compensate our employees
and/or volunteers in line with the already developed best practices. There is already a great
amount of knowledge related to the volunteer management and coordination of their work, as
well as specifically how can non-profits reward their volunteers in many other ways beyond
giving them money. Many workers volunteer for personal reasons, or they want to develop
their skillset, or they have a strong personal connection to the specific cause that the charity
Yet, these best practices can be additionally extended by the contextual and environmental
factors that will influence the local volunteers as well as all the other stakeholders that the
company deals with (i.e. in particular the clients or the people in need). For example, one of
the issues within non-profits is generally that the volunteer turnover tends to be quite high.
While nonprofits are increasing staff and hiring, about 20% of that hiring is filling slots vacated
by turnover. Not surprisingly, turnover, again according to the Survey, is the greatest human
resources challenge facing nonprofits (Otten, 2014, n. p). So how do we solve the turnover
problem? We can have a look at the specific community composition to determine what are the
most likely barriers to volunteering. For example, Nanaimo is a community with a large
percentage of senior population, and for example retired volunteers are less likely to have
other commitments (i.e. other jobs) than if we tried to recruit student or working professional
volunteers). All these factors will have an impact on our retention strategy, however we need
to consider them first. How do we modify our strategy to fit the local community, as well as to
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ensure that we still behave as an organization in line with the best possible practices for
volunteer management?
Next, if we were to operate a public service, such as a hospital or a school, we would pay a very
close attention to the demographics of the community as well, and we would certainly look
organizations, we need to align the business (and HR strategy) directly with the community
strategy (or potentially development), which is not always necessarily true in for-profit
organizations. We would then tailor the role descriptions performance evaluations to target
specific community needs, so employees who are meeting these goals are directly motivated
and rewarded.
How can such an approach to strategic HRM meet ethical and sustainable global corporate
obligations?
Following the best fit approach is generally directly tied also to the ethical and sustainable
global corporate obligations. For example, from the international business context, we can
make an effort to develop so-called learning units types of the subsidiaries rather than simple
implementers (Bratton & Gold, 2012). This strategy will help the multinationals develop the
local markets as well, and it will support sustainable growth not only of the corporation and its
workforce throughout various geographies, but also the local communities that will become
more productive, in line with the company requirements, and their skills will very likely spill
over to the other domestic projects. In a global environment, it is extremely difficult to develop
some form of an universal HRM model, due to differences in national cultures, standards,
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practices in HRM and in values, norms and cultures of the people (Bratton & Gold, 2012). There
are generally major gaps between the nations and organizations alike, and for this reason it yet
again makes sense to follow the best practices, but also apply the local context in the decision
making (the best fit approach). The evidence also supports this claim: For students of HRM,
the highly dynamic, complex and political nature of the global-local issue affirms the need for
lessons for managers of recent comparative HRM research are to avoid generalizations of
trends towards convergence or continued diversity, and to adopt a more nuanced cross-cultural
The final chapter of the textbook also readily points out that the HRM is in fact in crisis,
following the recession, suffering from poor ethics and inadequate practices and it needs to
move toward a greater sustainability. The investment banks that were too big to fall were
readily engaging in unethical practices, and the consumers ended up paying the price in lost
investments, homes, and through loss of employment. The managers need to find the balance
between regulating the employee behaviours, as well as empowering the employees (where
they would give up some of the control over them). All in all, it is difficult to find the right
balance, and the contemporary (and the future) strategic HRM practices should not simply rely
on the simplistic linear models and old practices. As the authors mention in the textbook, the
notion of critical reflexivity could be applied a sustained analysis and the unmasking through
tyranny workplace life as it is (Bratton & Gold, 2012, p. 545). This reality certainly needs to
References
Bratton, J, & J. Gold, (2012). Human Resource Management Theory & Practice. 5th Edition.
MBA Tools, (n. d.). Best Practice v. Best Fit. How do we know what is an appropriate HR model
http://www.mbatools.co.uk/Revision%20Sheets/OMP/BEST%20PRACTICE.pdf