- 1 Different Perspectives of Human Resource Management
- 1.1 1.1 Executive Summary:
- 1.2 1.2 Introduction:
- 1.3 1.3 Understanding the Different Perspectives of Human Resource Management
- 1.4 1.4 Guest’s Model of HRM as Applicable to Lloyd’s TSB:
- 1.5 1.5 The differences between Storey’s Definition of HRM, Personnel and IR Practices:
- 1.6 1.6 Implications for Line Managers and Employees of Developing a Strategic Approach to HRM in Lloyd’s TSB:
- 1.7 1.7 Understanding Ways of Developing Flexibility within the Workplace:
- 1.8 1.8 Applying Model of Flexibility in Practice:
- 1.9 1.9 Types of Flexibility:
- 1.10 1.10 The Use of Flexible Work Practice from Employee and Employer Perspective:
- 1.11 1.11 Impact of Changes in Labour Market on Flexible Working Practice:
- 1.12 1.12 The Impact of Equal Opportunities within the workplace:
- 1.13 1.13 Forms of Discrimination that Can Take Place in the Workplace and the Way to Minimize Discrimination:
- 1.14 1.14 Practical Implications of Equal Opportunities Legislation for Lloyd’s TSB and How Lloyd’s TSB Management is Committed to This Policy:
- 1.15 1.15 Comparing the Approaches to Managing Equal Opportunities and managing Diversity:
- 1.16 1.16 Understand Approaches to Human Resource Practices in Organizations:
- 1.17 1.17 Comparison of Different Methods of Performance Management of Other Companies and Lloyd’s TSB:
- 1.18 1.18 Approaches to the Practice of Managing Employee Welfare in Lloyd’s TSB:
- 1.19 1.19 The implication of Health and Safety Legislations on Human Resource:
- 1.20 1.20 Evaluating the Impact of E-Recruitment on Human Resource Practices at Lloyd’s TSB:
- 1.21 1.21 Conclusion:
- 1.22 1.22 References:
Different Perspectives of Human Resource Management
1.1 Executive Summary:
Lloyd’s TSB is a UK based large group serving mainly as private banking, commercial banking, mortgage and insurance service etc. Their success is said to be a contribution of their human resource management policy. Through their HRM they have strategically found out competitive edge over their competitors and worked successfully even in a global scale. Flexible working practice has worked for them. Their HRM policy is a textbook for any similar organization.
Lloyd’s TSB is one of the largest and most famous financial organizations in UK that operates in a global scale. They have to compete in the highly competitive global market. To stay ahead in competition successful organizations adopts several policies. In case of Lloyd’s TSB the innovation they brought in to stay ahead in market was to put on a range of innovative human resource management policies. All their policies are aimed at keeping the employees happy, motivated and committed to perform their level best and satisfy the customers. The management of human resource of Lloyd’s TSB is the main discussion of this report. We will discuss it by analyzing the different perspectives of human resource management of Lloyd’s TSB, the ways of developing flexibility within workplace, the impact of equal opportunities within the workplace and the approaches to human resource practices to organizations.
1.3 Understanding the Different Perspectives of Human Resource Management
1.4 Guest’s Model of HRM as Applicable to Lloyd’s TSB:
Before looking at the application at Lloyd’s TSB we first see the 6 dimensions of Guest’s model as he described. The dimensions are- HRM strategy, HRM practices, HRM outcomes, behaviour outcomes, performance outcomes and financial outcomes etc (Di Staso, 2003).
Guest did a basic thing in his job and that is differentiating between traditional personnel management and human resource management. The basic assumption of Guest’s model is that there are differences between traditional personnel management and human resource management and the root is in strategic management. In this idealistic model it has been shown that a direct relationship exists between the fundamental approaches to HRM like commitment and valued business consequences. Guest also talked about hard and soft approaches. Hard approach is the strict way of managing the employees whereas soft approach is compassionate to the employee needs and Guest supports the soft approach.
Figure: The 6 dimensions of Guest’s Model
In the case of Lloyd’s TSB we have seen that the organization has enacted flexible work schedule for its employees. This is the soft approach as it takes care of the employees’ need for flexibility of time. With the changing situation in the society there are necessities of such work schedule as discussed in the case. It also is helpful for the growing number of women employees. Besides, Lloyd’s TSB has a large portion of women employees. For the work life balance of the employees it is now important to enact flexible work schedule rather than the standard schedule (Dobbin, 2009). With this flexible work schedule employees in Lloyd’s TSB feeless pressure and enjoy their work. Lloyd’s TSB has been able to maintain a group of motivated employees with this innovation in their human resource management. This works as a competitive advantage. Such motivated employees are able to give the best outputs in behaviour, performance and finance with their intimate efforts. Ultimately it leads to customer satisfaction. According Guest’s model a positive business consequence has come.
But as said by Guest we must not forget that commitment is a messy concept. We cannot directly say that the performance of Lloyd’s TSB is the contribution of a bunch of motivated employees.
Figure: How Guest’s model works
1.5 The differences between Storey’s Definition of HRM, Personnel and IR Practices:
There are differences between HRM and Personnel and IR Practices. Professor John Storey has identified the basic differences between them with his definitions of them and also by indicating more than 25 areas of differences. These clearly point out the differences in the philosophy of the two approaches- HRM and Personnel management.
Personnel management works more on personal basis. Selecting the appropriate person for a job, listing the needs for personal development, fixing salary appropriately, finding out training needs and managing training sessions etc are some of the basic parts of personnel management. It strictly follows the contract and rules. The evaluation is done by be norms and practices. On the contrary, human resource management is utilizing the employees properly in order to achieve the organizational goals through strategic management. It is not that strict in rules and contract. Evaluation is done on the basis of creating value or attaining mission (Perry, 2010).
In the given context of Lloyd’s TSB personnel management would not have allowed the flexibility that employees in Lloyd’s TSB enjoy. There would have been some rigid rules of arriving in and leaving the workplace. It would not have bothered for the flexibility of the employees. But Human resource management in Lloyd’s TSB allows the flexibility that can be helpful to the employees and bring in positive consequence for the group also. That is why human resource management in Lloyd’s TSB has adopted innovation and allowed a flexible work schedule for the employees so that they can work with more attention and interest and provide the best output.
1.6 Implications for Line Managers and Employees of Developing a Strategic Approach to HRM in Lloyd’s TSB:
Firstly we will have a look at the implications for line managers of developing a strategic approach to HRM. In a company like Lloyd’s TSB line managers have some important things to do. They have to look after the day-to-day people management. As an organization working in a global scale there are so many employees in Lloyd’s TSB. These employees must be led in a proper way to go with the global competition. That’s why line managers must control them strategically so that they perform with best effort and also with interest. With that the line manager must also try to be cost efficient in daily operations. In some cases their technical expertise can be useful. They need to allocate the tasks properly and then monitor the employees. One of the most important tasks of them is to deal with the clients directly (Wade, 1973).
The employees are a crucial part to the development of strategic approach to HRM. Employees can assist in developing the performance metrics to ensure continuous improvement. It is important to motivate the employees to drive them towards better performance. Not only monetary rewards but also non monetary rewards are very effective to motivate the employees. Increasing status is a good example of non monetary reward. Feedback should be taken from them on a regular basis. Maintaining communication with the employees is a must.
These are the implications for line managers and employees to develop a strategic approach to HRM for Lloyd’s TSB.
1.7 Understanding Ways of Developing Flexibility within the Workplace:
1.8 Applying Model of Flexibility in Practice:
Applying flexibility in service organization can give it competitive advantage and is regarded as a good idea to apply in service organizations. Lloyd’s TSB is an organization that deals with financial services like private banking, corporate banking, insurance and mortgage etc. As a service organization they can advantage from flexibility model.
Flexibility model within the workplace is defined as changing the nature of the workplace or some rules in it for the betterment of the employees which ultimately leads to better performance by the organization (Delery and Doty, 1996).
For Lloyd’s TSB here we describe a way to apply flexibility within workplace. Firstly, an employer will have to request for some sort of flexibility he or she thinks is needed for better performance. Then the duty of the employer is to judge and ensure whether the flexibility will allow him or her to perform better than what he or she is doing right or not. The financial and non-financial benefits with the flexibility given should be checked out to see if it will be good to provide the flexibility. Then it should be judged if the flexibility given to the employee will also bring in positive consequences for the organization and its goals to be achieved. The flexibility agreement should be done in written form. After completing the arrangement the employer must give a copy of the agreement to the employee and retain a copy also.
Things that should be included in the agreement are work hours, overtime rates, penalty rates, allowances etc.
An employer can never be forced to allow flexibility. Also an employee cannot be forced to comply with flexibility. The termination policy of the flexibility should also be clearly mentioned in the agreement.
1.9 Types of Flexibility:
There are different types of flexibility that Lloyd’s TSB can develop. Here are some of them suitable to Lloyd’s TSB:
Part-time working can be a way. It is allowed in many organizations. These are works in which employees work standard time or less than full time hour.
When employees work in a free time of starting, finishing and take break in order to employer this is called flexitime- another popular method.
Some organizations allow staggered hours in which employees have different starting time, break time or finishing time. It allows the organization to open for longer hours.
Compressed hour is a very popular category. In this type of flexibility employees work for particular hours in total in a week but wish to complete that limit within particular days, for example 5 days.
Term-time work system is very good for employees who are still students as they are allowed to work for fewer hours when their educational institutions are open.
1.10 The Use of Flexible Work Practice from Employee and Employer Perspective:
Flexible work practice has been a boon for both employee and employers. Although there are negative sides also associated with it, there are much more positive sides we see in it. The use of flexible work practice for Lloyd’s TSB is described here from the point of view of both employee and employer.
As it improves competitiveness Lloyd’s TSB find it easy to manage the human resource. The operations hour can be used with much more efficiency. It leads to increased profitability. Moreover, employees have better job satisfaction. They work with much more pleasure. They become loyal to the organization. Other than increasing efficient working hour it also cuts down unnecessary costs. So profitability increases in this way also. Absence rate slows down a lot. Employee turn-over rate also comes down. The better performance by the employers also cause improved customer satisfaction.
The employees can enjoy a better work-life balance. They can spend more time with their beloved family members. They can also possess good health. They can work for Lloyd’s TSB with more enthusiasm. They become loyal to the organization. They can even cut down their travelling costs. In total they can get the chance to lead a happy life.
But it must be kept in mind that some tasks should not be taken under flexible time facility. They may become tough to carry on. Also flexible schedule may curtail the salary. One more thing to remember is that it must not hamper the spirit of team work in Lloyd’s TSB.
1.11 Impact of Changes in Labour Market on Flexible Working Practice:
The changes in labour market have huge impact on flexible working practice. Change is various social attitudes and behaviours have changed the look of labour market. This change of pattern in labour market has impacts on flexible practice of work.
A glaring example is the rapidly increasing acceptance of women in the labour market. More and more women are now joining the labour force. It is now seen as a normal thing. Women are warmly welcomed now in the workplace. UK has been experiencing rapid increase of presence of women in labour market. Because of their presence in labour we now see the trend of dual-career parents. Both father and mother work outside of home. Children do not get as much as they could before. So mothers want some flexibility in the workplace to find time for her personal life a child care. Men also now want to maintain work-life balance more than ever as their spouses cannot give much time these days in home. So flexibility in work practice has now become very important. If it is not allowed then employee turn-over rate may go high which will ultimately incur more costs. The demand for temporary employee team for some projects has also increased. Because of all these reasons flexible working practice is now adopted by more and more organizations. Strict and bureaucratic organizational management is thus declining day by day.
1.12 The Impact of Equal Opportunities within the workplace:
1.13 Forms of Discrimination that Can Take Place in the Workplace and the Way to Minimize Discrimination:
Discrimination in the workplace is largely talked about issue in the past few years. It is not new sensation. We have seen so many instances of such discrimination for a good long time. But now people are more conscious and it has been raised as an issue to consider highly in almost all the countries. Discrimination means giving less favour to someone on the basis of sex, race, ethnicity, religion, disability etc. or doing something unlawful to him that goes against the person.
Direct discrimination refers to discrimination because of sex, race etc. Direct discrimination is experienced more than any other type of discrimination. So often we have heard that skin tone has been termed as the cause behind discrimination. Many have experienced discrimination because of his or her disability. Women have been the victim of discrimination for long time (Delery, 2008).
Indirect discrimination occurs because of the process described in recruiting a candidate. Sometimes some clauses cause some candidates to face disqualification unlawfully. Harassment is also a highly occurred discrimination.
To prevent workplace discrimination some steps can be taken. First of all, training to educate employees about this problem and teaching them not discriminate is probably the most important thing to do. When someone does any discriminatory act it should be documented. It will work as warning. Also company policy to prevent discrimination should be well described.
1.14 Practical Implications of Equal Opportunities Legislation for Lloyd’s TSB and How Lloyd’s TSB Management is Committed to This Policy:
The implications of equal opportunities legislation for Lloyd’s TSB have been discussed below.
Equal opportunities policy is maintained by Lloyd’s TSB by developing recruitment, promotion and training methods for the employees.
For this they set objectives and achievements to earned and tell them to the employees. Employees get a prior knowledge that what actions are going to be taken and what tasks are to be done. An action plan set before helps the employees.
Lloyd’s TSB review their recruitment policy from time to time. The selection and training method is also reviewed regularly to see if they are compliant to the current equal opportunity legislations.
The job criteria are set very carefully. All the criteria are justifiable and objective. The criteria are also demonstrable.
1.15 Comparing the Approaches to Managing Equal Opportunities and managing Diversity:
Whereas equal opportunity drives externally managing diversity drives internally. Proper and sound arguments are the basis of equal opportunities. On the contrary, managing diversity is dependent on business case.
Moreover, equal opportunities are operational but being strategic is the main thing of managing diversity. Equal opportunity deals with process. Outcomes are what managing diversity deal with. The focus of action for equal opportunity is discrimination. Improvement is the focus for managing diversity. The first one is a group of initiatives and the later one is universal of initiatives (Armstrong, 2000).
1.16 Understand Approaches to Human Resource Practices in Organizations:
1.17 Comparison of Different Methods of Performance Management of Other Companies and Lloyd’s TSB:
Performance management is the job done by managers to see whether employees are working according to the goals of the organization. It is a regular process. Without proper performance management it is not possible to guide the organization towards its goals.
Money is not the only motivator in Lloyd’s TSB. Non monetary motivators are given heavy emphasis. Other organizations working in global scale are also adopting non monetary reward policy.
Lloyd’s TSB maintains a total reward strategy. Integrated approach is the basis of their reward strategy. Not all companies have been able to design such an integrated reward strategy.
The performance management system of Lloyd’s TSB gives attention to the employee needs. Employees are considered highly there. Compassionate performance management has made them different from other organizations.
Employee involvement is carefully ensured there. Flexible working condition has given it competitive advantage. Loyal employees have been created by their wonderful performance management.
1.18 Approaches to the Practice of Managing Employee Welfare in Lloyd’s TSB:
Employee welfare means looking after the well being of the employees. Employee welfare is a way to attract skilful people to the organization.
Lloyd’s TSB takes several steps to the well being of its employees. The approaches have been stated below.
Lloyd’s TSB allows its employees a well established medical benefit. Employees are served with this medical benefit. Lloyd’s TSB has earned goodwill for their medical benefit. Also their workplace contains medical facilities.
Even pure drinking water is served to the employees by Lloyd’s TSB.
Educational facilities are also provided to the lower level employees. Accommodation facility is provided. Recreational facilities are also available to the employees. A safe and clean environment is ensured for the employees.
1.19 The implication of Health and Safety Legislations on Human Resource:
The implications are as follows.
An employee has the right not to be subjected to any detriment for reasons related to health and safety (Anthony, 1996).
If any employee is dismissed because of health and safety reasons that will be automatically regarded as unfairly.
If the work place gets closed down by health and safety laws then the employees may be eligible to get payment for those days.
These are the main implications of health and safety legislations on human resource.
1.20 Evaluating the Impact of E-Recruitment on Human Resource Practices at Lloyd’s TSB:
E-recruitment is a recent sensation. Lloyd’s TSB also has e-recruitment system. E-recruitment is basically done through corporate websites or job boards. Since mid 90s e-recruitment has earned popularity and now it has become more popular than ever before.
Lloyd’s TSB has been recruiting people over internet for some years. It has put some impact on their human resource management. It lessens the cost of traditional recruitment. It is cheaper. Less unqualified candidates are applying making the task of the recruitment easier. Young and educated ones are the major applicants in online. Better candidates are being found out. It also saves a lot of time. Resumes can be solicited easily (Agarwala, 2008).
In fine, this has made the HRM even smarter and faster.
The HRM of Lloyd’s TSB is modern and sophisticated. They have been the pioneer in many of the management policies of modern organization.
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