Human Resource Management-Btechnd

Literature Review

In this chapter an overview of the field of Human Resource Management is presented. According to Armstrong and Taylor (2014), Human Resource Management (HRM) is concerned with all the aspects of how people are employed and managed in organizations.In this study, equal employment opportunities, diversity workforce and employee relations are explained. In this chapter a description will be given of emotional well-being. Also, cultural diversity in the Netherlands will be explained. Furthermore, educational attainment regarding immigrant people will be described.

Human Resource Management

Human Resource (HR) management deals with the design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals (Aziri, Veseli & Ibraimi, 2005). One way to use human talent effectively and efficiently is to divide the activities into Human Resource Management practices (Noe et al., 2006).

These practices are described below:

  • HR planning: forecasting labour supply and labour demand to ensure the balance between employees and jobs within an organization.
  • Equal employee opportunity: the process of treating employees fairly by providing equal opportunities for employment, promotion and operating an equitable payment system regardless of race, colour, sex or religion.
  • Diversity workforce:this process is concerned with creating an organizational culture that values diversity.
  • Employee recruitment: this process is concerned with recruiting the best-qualified candidates for vacancies within an organization. This can be done by either recruiting candidates internal or external.
  • Job analysis and design: this process is concerned about gathering detailed information about the content of jobs and how to design these jobs. This includes job specification and job description.
  • Selection: the selection method and the requested criteria of the job are relevant for finding the right candidate for the right job.
  • Employee training and development: the process of improving the skills of the employee to perform their jobs better.
  • Performance management: ensuring the goals of the employee are aligned with the goals of the organization by reviewing the contribution of the employee to the organization.
  • Compensation: the process concerned about salary, rewards and benefits provided to the employee. In order to determine what compensation fits best, a reward system needs to be developed.
  • Employee relations: this practice is concerned about the collaboration and relation between the employee and employer.

In this study the focus will be on the Employee Relations, Diversity Workforce and Equal Employee Opportunity. Human Resource practices tend to have a positive impact on employee well-being (Renee Baptiste, 2008). Employee well-being can reduce costs, which is relevant for organizations. It is essential for organizations to pay attention to HR practices as it plays a vital role for holding down costs and increasing revenues. It also is a source of competitive advantage (Barney & Wright, 1998).

Emotional Well-Being

Garvey (2008) refers emotional well-being to mental health, whereby mental health is referred to “a state of emotional and social well-being in which individuals can cope with the normal stresses of life and achieve their potential”. In the study of Lawson, Noblet and Rodwell (2009) well-being was measured by psychological health and job satisfaction.

Research shows there are more cases of employees with symptoms of burnouts concerning immigrants in the Netherlands.Maslach and Leiter (2008) uses a three dimensions of exhaustion, cynicism and inefficacy when describing burnout. Exhaustion relates to the feeling the employee has of being overextended and depleted of one’s emotional and physical resources. Cynicism or depersonalization is referred to the interpersonal context dimension of burnout and is related to negative or excessively detached response to various aspects of the job. The last dimension inefficacy can be described as the perception of lack of achievement, low self-evaluation and the feeling of being incompetent and unproductive.

 In the Netherlands, first generation immigrants experience more often symptoms of a burnout than second generation immigrants and the dominant Dutch. An explanation for the numbers is because first generation immigrant often have minimal education and therefore their position in the labour market is less favourable and the workload is heavier. Also cultural differences, language, traumas and discrimination can play a role (Appendix figure 1, Minister of Health, 2014). According to the Centraal Bureau voor de Statistiek (CBS, 2015) (Appendix table 2), statistics show the percentage of burnouts of second generation immigrants are lower compared to the first generation immigrants. An explanation for this can be that second generation immigrants have a higher educational level (table 3). For organizations, it is relevant to pay attention to the psychological contract, as violation of the psychological contract can influence the emotional well-being of the employee. Violation of the psychological contract increases cynicism, which is one of the dimensions of burnouts (Cartwright & Holmes, 2006).

In this study well-being is about the mental health of the employee. For organizations it is important to give attention to the well-being of the employee. When organizations ignore the well-being of the employee, this could have consequences such as employees being absent for an unknown period of time. Also, employee absence can cost the organization a large amount of money.

Cultural Diversity in the Netherlands

Cultural diversity is defined by Cox and Blake (1991) as “people from different gender, nationality, and racioethnic groups”. Cultural diversity has visible and observable elements such as accents and religious apparel, but also invisible elements such as norms and values (Shore et al., 2009). According to Shore et al. (2009), organizations should integrate cultural diversity for three reasons. The first reason is because cultural diversity gives the organization access to markets of the national group. The second reason is that organizations can adopt cultural diversity as a moral end to correct historic discrimination. The last reason is that organizations can use cultural diversity as a learning resource.

Diversification of the workplace is mainly due to two factors: the changing composition of national populations and secondly globalization. In the late 1950’s, the Netherlands started with immigrants. The latest statistics of Centraal Bureau voor de Statistiek show thatin 2015,  there are firstand second generationimmigrants in the Netherlands and together they make up almost 21,69% of the total population.Centraal Bureau voor de Statistiek defines first generation immigrants as: “a person who was born abroad with at least one parent who also was born abroad” and defines second generation immigrants as: “a person who was born in the Netherlands with at least one parent who was born abroad”(

Immigrant workers are not the only aspect of diversity. The composition of male and female workers has also changed in the last decade as emancipation of females has played a vital role within many organizations. This can be seen in the net-labour participation, which is defined by the total number of working population in the potential population (CBS Statline). Table 5 (Appendix) shows that on the one side there has been a decrease in the net-labour participation of males from 2003 (74.0%) to 2014 (71.8%), whereas on the other side there has been an increase in the net-labour participation of females in the same period (52.1% in 2003 and 58.1% in 2014), which can be explained by emancipation.

Another aspect of diversity is education. People are becoming more educated nowadays. Figure 6 (Appendix) confirms this motion. Here can be seen that males and females are becoming more educated. Next to the degree of education, figure 6 (Appendix) also shows the percentage of females who has a university degree has increased over the years. This can be related to the emancipation aspect of diversity.Order Now

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