Human Resource Management Models for Business Growth

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Managing Human Resources

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................1
TASK 1...........................................................................................................................................1
(1)............................................................................................................................................... 1
Guest’s Model of HRM.........................................................................................................1
Differences in Storey’s definition of HRM, personnel and IR practices............4
Implications for line managers and employees for developing strategic
approach to HRM.................................................................................................................. 5
(2)............................................................................................................................................... 7
How a model of flexibility may be applied in Ford Motors....................................7
Different types of flexibilities...........................................................................................8
(3)............................................................................................................................................... 9
How the employer and employee will be affected due to flexible working... 9
Impact of changes in labor market on flexible working practices.................. 10
TASK 2........................................................................................................................................ 11
(4).............................................................................................................................................11
Forms of discriminations that can take place in Ford Motors...........................11
Practical implications of equal opportunities legislation.....................................11
Approaches to managing equal opportunities and managing diversity....... 13
(5).............................................................................................................................................13
Compare & contrast different methods of performance management.........13
Approaches to managing employee welfare...........................................................14
(6).............................................................................................................................................15
Implications of health and safety legislations on human resource practices
.................................................................................................................................................. 15
Impact of work life balance............................................................................................16
CONCLUSION............................................................................................................................16
REFERENCES............................................................................................................................18

INDEX OF TABLES
Table 1: Guest Model of HRM...............................................................................................2
Table 2: Differences between HRM, Personnel and Industrial Relations.............5

INTRODUCTION
Human resources are the most vital assets that any business organization
possesses regardless of the nature of its functions as well as the type of
industry it may be operating in (Bohlander and Snell, 2006). Procuring
manpower and then managing them in such a manner that they give their best
performance and contribute to organizational goals and objectives can be a
very difficult job. In this report, Guests’ model of Human Resource
Management (HRM) has been explained along with differences between
definitions of HRM, Personnel and IR practices as developed by Storey. Other
than this, the paper also discusses about application of a flexibility model in
Ford Motors.
TASK 1
(1)
LO 1.1 Guest’s Model of HRM
Managing human resources, i.e. the employees is a very difficult duties
that has to be performed by management of a company. There are a lot many
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models and approaches of HRM that can be considered by management at
Ford so as to be able to effectively manage and handle their human resources
and also extract the best performance out of them with an objective to
improve their contribution to organizational goals and objectives (Verburg and
et. al, 2010). In 1987, David Guest developed the model of HRM which stated
that there are four main outcomes that management of a business
organization must focus on and must design & develop such policies &
procedures for the same. These outcomes are greater integration at strategic
level, increased level of employee commitment, greater flexibility among staff
& adaptability, and a high-quality workforce. According to the model, if these
outcomes are attained, then there are substantial chances for the firm to fulfill
its goals of increased job performance, consistent strategic goals and
objectives, reduction in employee attrition rate, etc (Strandberg, 2009). Main
idea behind the model is that HRM practices and policies of an organization
must well linked and strategically related to firms’ overall operational
strategies in such a manner that they lead to improved performance from
employees as well as increase in their commitment or dedication levels
towards the organization.
Table 1: Guest Model of HRM
HRM
Strategy
HRM
Practices
Human
Resource
Managem
ent
Outcome
s
Behavioral
Outcomes
Performa
nce
Outcomes
Financia
l
Outcom
es
Differentiat
ion
(innovation
)
Selection
Training
Commitm
ent
Effort/motivat
ion
Increased
quality
orientation
with focus
Profits

on
developing
as well as
maintainin
g high
output as
well as
innovation
Focus
(quality)
Appraisals
Reward
Quality Collaboration
and
involvement
Reduction
in
absenteeis
m from
workplace,
Decline in
Labor
turnover
and
Employee
conflicts
Return on
investme
nt
Cost (cost
reduction)
Job Design
Job
Involveme
nt
Status
and
Security
Flexibility Organization
al Citizenship

LO 1.2 Differences in Storey’s definition of HRM, personnel
and Industrial Relation practices
Model developed by Storey states those operations of business
organizations such as that of Ford Motors, largely shapes their HRM, personnel
and Industrial Relations practices and policies (Bacon and et. al, 2008).
Storey’s HRM definition states abilities, talents and skills along with dedication
level of the employees can be considered as a basis which may help the
organization to attain growth and prosperity. It has been observed that in the
company, while executing managerial functions within workplace, long term
perspectives play a very crucial role. Ford follows both personnel as well as IR
practices so as to be able to function in a hassle free manner and do not have
to face any troubles and issues in daily operations and functions (Tung, 2007).
Its management plans to comply with sustainability in relation to
manufacturing products and/or services that may aid the organization to
become sustainable and be able to achieve organizational goals and
objectives. The policies and practices of personnel management helps
business firms to carry out such activities and tasks in a manner that may
prove to be helpful to fulfill the corporate goals and objectives. The definition
given by Storey can be rightfully applied to work carried out by Ford Motors in
production of cars. It can be supported through fact that this definition mainly
revolves around the decisions that are taken by top authorities and
administrators of the business organization. This way the firm can attain
competitive edge and be able to sustain or survive in the market for a longer
period of time, and also meet the needs and wants of target customers and
various stakeholders (Bowen, 2006). By following such strategies,
management of the company can develop effective corporate solutions that
may help in maintaining efficiency and effectiveness of operations and various
other tasks carried out at the workplace. In the following table, differences
between human resource management and personnel or industrial relations
have been explained and evaluated.

Table 2: Differences between HRM, Personnel and Industrial Relations
Basis HRM Personnel/Industrial
Relations
Control Systems Low emphasis Highly regulated
Conflict Self Control Externally influenced
Time and planning Long term, strategic and
integrated
Short-term
Roles Largely integrated in
management
Professional and
Specialist
Employee relations Unitarist, individual and
hightrust
Collective and low trust
LO 1.3 Implications for line managers and employees for
developing strategic approach to HRM
One of the most important and critical aspects of functions and business
operations that has to be carried out by management at Ford is to manage
their human resources in such a manner that they give their best for
functioning of the firm as well as to achieve its aims & objectives (Jackson,
Schuler and Werner, 2011). Numerous benefits and advantages are
associated with facet related to development of human resource management
policies and practices by the line managers. These managers have a very
crucial role to play in process of making the organization to work in an efficient
and effective manner. Furthermore, the line managers also manage and
control the costs that are incurred in different tasks and duties performed at
the workplace. In this sense, it can be said that developing and maintaining
efficiency and effectiveness of business functions. One of the major
responsibilities that line managers have to perform is related to keeping a
strict and stern eye on operations or tasks carried out by employees and to
assess and evaluate how they function, so that the assigned tasks are

completed in an efficient and effective manner (Badawy, 2007). This way a
thorough assessment or evaluation of skills and talents of workforce members
can also be conducted which eventually may prove to be of great use in
identifying and understanding their training and development needs as well.
One of the major duties that line managers have to perform and pay ample
attention to, is related to development and maintenance of quality standards
in operations, thus help the firm to achieve its goals and objectives. This way
the firm can develop effective strategies that may help the organization to
achieve its goals and objectives. Employees have a very crucial and dominant
role at the workplace; because they are the ones who have to perform
different tasks and duties. It is because of this very reason, management at
the car manufacturer pay attention to ensuring that they develop such policies
that may be helpful and effective in motivating the employees and extracting
the best performance out of them (Schweiger, Ivancevich and Power, 2005).

(2)
LO 2.1 Application of model of flexibility in Ford Motors
One of the important aspects of operations of modern business
organizations is to become flexible, i.e. effectively adjust to changes in the
environment and also ensure that different goals and objectives are fulfilled
with great ease and comfort. If companies such as Ford, which operates in a
highly competitive industry, it is important for the management that they are
able to adjust working according to changes and developments in human
resource aspects of business operations (Lengnick-Hall and Lengnick-Hall,
2011). But herein, it may not be wrong to say that since nature of operations of
company is very complex; applying a flexibility model may become a very
critical task. For management of the company it would be very important that
they develop and implement such policies at the workplace, that are in
accordance with different procedures and practices followed at workplace, as
this way they can maintain discipline in the organization. Further, attention
also has to be paid to ensuring that different resources are used in the most
efficient and effective of manner, i.e. they are not wasted. A situation of
wastage of resources can turn out to be very dangerous and catastrophic for
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the business organization (Snape and et. al, 2005). Thus it may not be wrong
to say that through use of these methods and techniques, the company can
attain as well as maintain labor market flexibility. There are three major
categories that employees can be divided into. Regular employees are the
ones who perform a specific set of tasks, duties and activities on a daily basis.
They possess such skills and talents that may help them to perform such tasks
at a daily routine. Contingent staff is those who possess high skill sets and
their remunerations or pay is also according to the talents and abilities they
have. Usually contingent employees are employed in company during
unexpected situations, the ones that management has not prepared for in
advance. On the other hand, Low Skill Workers do not own highly specified
skills and talents and usually perform only basic and mechanical activities, the
ones that require very few abilities and capabilities (Baum, 2009).
For management at Ford Motors, it would be imperative that they
develop and maintain flexibility at the workplace in relation to the tasks and
duties as well as the pay or remuneration they get in the company. This way,
employees can not only be motivated, but they can also be made more loyal
and committed to the organization. Acceptance of change by employees will
also become a very simple task.
LO 2.2 Different types of flexibilities
There are many kinds of flexibilities that the management at Ford can take
into consideration and inculcate in their operations. Numerical Approach of
flexibility states that reducing costs of giving jobs to an individual who does
not perform tasks and duties on a full time basis (Cunningham and Debrah,
2008). This tactic can be used by Ford Motors for bringing about a significant
reduction in their overall costs and also by outsourcing the administrative or
management control. The cost which is saved through these methods can
then be used by the business organization can be properly used in performing
different activities, thus help in process of attainment of organizational goals

and objectives. It can be very beneficial and helpful to the car manufacturer,
as it would aid management in fulfilling corporate goals and objectives with
great ease, efficiency and effectiveness (Snell and Bohlander, 2012). On the
other hand, through functional approach to flexibility, management can bring
about a radical change and improvement in operations of the company and
also enhance various aspects of its business operations such as that of quality
of vehicles manufactured in the company.
(3)
LO 2.3 How the employer and employee will be affected due
to flexible working
It is a well known fact that flexible working in the modern days has become
a very crucial and important aspect of business operations. But it also has
significant amount of impact on both employer as well as the employee
(Mendonca and Kanungo, 2009). In many research studies, it has been
observed that these days, majority of workforce is employed on basis of
flexible working systems. Mostly, there are positive effects that both employer
and employees at Ford Motors can obtain from this approach. One such
benefit is related to fact that they get ample time to rest and rejuvenate,
which is important in an employment related environment. It is also very
important that it not only motivates employees and employers, but also
enables them to give a very optimal and effective performance for the
company.
By developing and providing flexible working options, members of
workforce can be motivated and encouraged in such a manner that they
become dedicated to the company and also give maximum contribution to
organizational cause, goals and objectives (Cardon and Stevens, 2004). One of
the premier tasks for employers is to extract the best performance and
conduct out of their employees, which they cannot achieve in the modern
business environment, until flexible working options are provided to them. On

the other hand, employees need to take proper amount of rest and break from
work, which they can get through flexible working.
LO 2.4 Impact on flexible working practices of changes in
labor market
In current case, it has been observed that a lot of changes and
developments have happened in the labor market, due to which business
environment also has been modified in a significant manner. One of the
primary changes that have been experienced in this market is that of
development of uncertainty (Yahya and Goh, 2002). The labor market has
become extremely unstable and uncertain, because of which organizational
working practices also are affected in a significant manner. For ensuring that
employees are able to carry out tasks and duties assigned to them, the
management at Ford Motors has taken a lot many steps. One of them is
development and implementation of flexible working practices at workplace.
This is also in accordance with that of the developments happening in present
day labor market. Through this technique, authorities tend to make an
attempt to reduce and effectively manage stress level and pressure that
employees face in the firm. Modifications in the labor market, affect firm’s
working practices both directly and indirectly. These impacts can be termed as
both positive and negative as well. The concept of nuclear families in recent
some years has emerged and grown at a very rapid pace, women now are
preferring to do paid jobs and not just become house wives. But this then has
affected their personal and professional lives as well and that too in a
significant manner (Gupta and Singhal, 2008). It can be supported through
fact that in many cases, these women are losing skills and abilities with which
they can care for their home as well. It is because of this very reason,
management at Ford Motors needs to adopt and implement flexible working
practices, so that the company can extend support to working women and
help them to lead a better personal and professional life.

TASK 2
(4)
LO 3.1 Forms of discriminations that can take place in Ford
Motors
Over the years, workplaces have been the most prominent places, where
people undergo or experience different kinds of discriminations in their
lifetime (Cascio and McEvoy, 2006). There are many numbers of
discriminations that can happen at a workplace. One of them is related to work
experience that an individual may belong to. In Ford Motors, there are chances
that those employees, who have been working with the organization for years,
may not treat new workers in a very good, healthy and positive manner. Main
reason behind it being that they have been associated with the organization
since a very long time, may not pay any kind of attention to a newbie, as they
do not have a very good experience with the firm. Other than this, employees
can also be discriminated on basis of their age. It can happen that the
management at Ford may not hire a new employee for a position, because
they do not belong to a certain age group. Another very prominent form of
discrimination that can happen is when people following a particular traditions,
race or religion are treated equally in comparison to their counterparts
(Schneider and Bowen, 2006).
LO 3.2 Practical implications of equal opportunities
legislation
For ensuring that employees do not take too much sudden leaves from
the workplace, management at Ford has developed and provides a variety of
leaves to the employees, with a main view to facilitate and also be able to
motivate them to a great extent. There are many laws and legislations that
govern and monitor working practices used and followed by the company, so
as to ensure that they are in accordance with the law and help in increasing
firm’s sustainability by a great margin. One such piece of law is the Equal

Opportunity Act 1972 (Gomez-Mejia, Balkin and Cardy, 2008). Government
and other regulatory bodies keep a strict eye on operations of the company in
relation to human resource management, such as procurement of necessary
manpower, pay and compensation, their effective management, etc. In many
cases it was observed that people were given employment in companies
working across different sectors, on basis of their color, religion they belonged
to, etc; thus the Equal Opportunities Act was developed and introduced. Its
main purpose is to make sure that employment practices and policies used by
firms are such that they do not treat individuals differently, rather they are
given employment in the organization, solely on basis of skills and talents that
they possess.
Thus it can be said that it is the duty and a major responsibility of
managers at Ford Motors to ensure that employs are treated equally and they
get equal opportunities in the company (Skinner, 2008). This means that the
equal opportunities act helps in ensuring that employees are given
employment on a meritorious basis, meaning that they are judged only on
basis of their skills and talents. Further, for the managers in company, it is
imperative to ensure that employees are not discriminated against, as it may
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de-motivate and discourage them, thus reduce their overall level of loyalty
and commitment towards the company.
LO 3.3 Managing equal opportunities and managing
diversity
For companies, regardless of the industry they may be operating in,
respect to employees is one of the most critical aspects of organizational
workings and also the human resource management policies and practices
adopted by the enterprise. Authorities at Ford Motors have taken a variety of
steps and measures through which they provide equal chances to both
genders working in the company (Cowling and Mailer, 2008). For instance,
different programs have been initiated that help in promoting women rights at
workplace and also their equal involvement in different organizational
activities and functions. It can be supported through fact that over 40% of total
workforce is female employees. In addition to it, Chief Advisory Officer of the
company also attempts to build a diversified workplace, where not only both
the genders work in complete harmony, but also the workforce may include
people belonging to different cultures and orientations. This way overall
performance of the firm can be improved, but also an attempt cann be made
so as to enhance organization’s image in the market (Skinner, 2008).
(5)
LO 4.1 Comparing and contrasting different methods of
performance management
Performance management is a very crucial function yet a very difficult one
to be carried out, mainly because of reason that there are a wide variety of
factors and forces that have to be considered by authorities of an organization
in this regard (Lansberg, 2009).One of the most effective methods in this
regard is that of performance appraisals. It can prove to be very useful method
for the management at Ford Motors, primarily because of reason that it
enables them to motivate members of the workforce, because the better they

would perform, the better would be their performance appraisal, where they
would get benefits either financial or non financial. There are many methods of
performance appraisals well. One of them is that of 360 degree feedbacks.
Herein, the management will have to take feedbacks and reviews from
colleagues, co-workers, superiors, juniors, etc so as to assess performance of
an individual over a particular period of time (Baum, 2009). Behavioral
checklists can also help in this regard. To use this technique, authorities would
have to conduct an evaluation and assessment of behavior of employees at
the workplace in company.
LO 4.2 Approaches to managing employee welfare
Employee welfare is that aspect of business operations which states that
such steps should be taken by the business organization that helps in taking
care of the workforce and also aid in their personal and professional
development. Management of business firms need to pay a lot attention and
also precedence to this aspect, as it has a direct impact on organizational
working and thus attainment of different corporate goals and objectives. There
are many approaches and techniques that can help to ensure employee
welfare in an organization (Mendonca and Kanungo, 2009). One of them is that
of the policing theory of labor welfare. In this regard, it is important to note
that management must provide good enough number of opportunities to both
managers as well as employers and develop such theories that help to make
sure that members of the workforce are highly satisfied and also that they give
their maximum contribution to organizational goals and objectives. Further,
management at Ford would be required to manage stress levels among their
employees to a great extent and make sure that they give their best
performance for the company. For the same, it can be suggested that stress
management sessions and workshops be conducted, as it would enable
management to much effectively manage performance of the employees.
Additionally, accidents will also have to be managed in a manner to make sure

that workforce does not get physically harmed (Verburg and et. al, 2010).
Accidents will not only hamper confidence levels and commitment of
employees, but also de-motivate the existing ones. To reduce employee
absenteeism, steps will have to be taken, which includes likes of interacting
with them and understanding the reason behind their constant absence from
workplace. Incentives can be provided to those who are regular in the
company.
(6)
LO 4.3 Impact of health and safety legislation's on human
resource practices
Operations of Ford Motors are related to production and manufacturing
of cars, therefore they need to pay extra attention to managing health and
safety of their workforce. It can be a very effective method through which they
can be motivated and also made to work in a manner that they contribute
heavily to organizational goals and objectives. For ensuring this, the company
as well as national government has taken many number of steps.
Occupational Safety and Health Administration is one of the state owned
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bodies that help the company in caring for its employees; ensuring their health
and safety (About OSHA, 2014). The Health and Safety Commission has a very
crucial role to play in the process of managing employees. Following these
practices and concepts will help in ensuring that proper safety guidelines are
maintained at workplace, which would lead to effective health and safety of
the employees.
LO 4.4 Impact of work life balance
The modern day professional lives have become very hectic and
demanding, due to which it has become crucial for employees that they strike
a perfect balance in their personal and professional lives. Modern day firms
such as Ford Motors are now focusing on providing such kinds of opportunities
to members of the workforce, which eventually would help them to lead
healthy and positive professional as well as personal lives (Cascio and McEvoy,
2006). Impact of it can be seen in improvement in overall performance of
employees in organizational contexts and also enhancement of their
commitment towards the company. For both management of company, as
well as employees it is imperative that they maintain balance between their
personal and professional lives. The better the balance, optimum would be
their performance, which would help in gaining their commitment and loyalty
to the workplace. To do the same, it can be suggested that both of them
should give attention to aspects such as efficiency and effectiveness towards
their work (Jackson, Schuler and Werner, 2011).
CONCLUSION
One of the most important and vital assets that a business organization
can acquire through variety of sources is that of the human resources. During
the course of report, it was observed that for authorities at Ford Motor
Company, one of the crucial aspects of their business operations is related to
acquiring and managing their workforce. The report also stated that there are
a lot many techniques through which performance of employees can be

assessed and also improved. One of them is that of the performance
appraisals.

REFERENCES
Books
Baum, T., 2009. Managing human resources in the European tourism and
hospitality industry: a strategic approach. Chapman & Hall Ltd.
Bohlander, G. and Snell, S., 2006. Managing human resources. Cengage
Learning.
Cascio, W. F. and McEvoy, G., 2006. Managing human resources: Productivity,
quality of work life, profits. McGraw-Hill.
Cowling, A. and Mailer, C., 2008. Managing human resources. Routledge.
Gomez-Mejia, L. R., Balkin, D. B. and Cardy, R. L., 2008. Managing human
resources. Prentice Hall.
Jackson, S., Schuler, R. and Werner, S., 2011. Managing human resources.
Cengage Learning.
Snell, S. and Bohlander, G., 2012. Managing human resources. Cengage
Learning.
Tung, R. L., 2007. The new expatriates: Managing human resources abroad.
Ballinger Publishing Co/Harper & Row Publishers.
Journals
Bacon, N. and et. al., 2008. It's a small world: managing human resources in
small businesses. International journal of human resource management.
7(1).pp.82-100.
Badawy, M. K., 2007. Managing human resources. Research Technology
Management. 31(5).pp. 19-35.
Bowen, D. E., 2006. Managing customers as human resources in service
organizations. Human resource management. 25(3).pp. 371-383.
Cardon, M. S. and Stevens, C. E., 2004. Managing human resources in small
organizations: what do we know?. Human resource management review.
14(3).pp. 295-323.
Cunningham, J. B. and Debrah, Y. A., 2008. Skills for managing human
resources in a complex environment: the perceptions of human resource
managers in Singapore. International Journal of Human Resource
Management. 6(1).pp. 79-101.

Gupta, A. K. and Singhal, A., 2008. Managing human resources for innovation
and creativity. Research-Technology Management. 36(3).pp. 41.
Lansberg, I. S., 2009. Managing human resources in family firms: The problem
of institutional overlap. Organizational dynamics. 12(1).pp. 39-46.
Lengnick-Hall, C. A. and Lengnick-Hall, M. L., 2011. Strategic human resources
management: A review of the literature and a proposed typology. Academy
of management Review. 13(3).pp. 454-470.
Mendonca, M. and Kanungo, R. N., 2009. Managing Human Resources The
Issue of Cultural Fit. Journal of Management Inquiry. 3(2).pp. 189-205.
Schneider, B. and Bowen, D. E., 2006. The service organization: human
resources management is crucial. Organizational Dynamics. 21(4).pp.
39-52.
Schweiger, D. M., Ivancevich, J. M. and Power, F. R., 2005. Executive actions
for managing human resources before and after acquisition. The Academy
of Management Executive. 1(2).pp. 127-138.
Skinner, W., 2008. Big hat, no cattle: managing human resources. Harvard
Business Review. 59(5).pp. 106-114.
Snape, E. and et. al., 2005. Managing human resources for TQM: possibilities
and pitfalls. Employee Relations. 17(3).pp. 42-51.
Verburg, R. M. and et. al., 2010. Managing human resources across cultures: a
comparative analysis of practices in industrial enterprises in China and The
Netherlands. International journal of human resource management.
10(3).pp. 391-410.
Yahya, S. and Goh, W. K., 2002. Managing human resources toward achieving
knowledge management. Journal of knowledge management. 6(5).pp.
457-468.

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