Unit 2 Ideas In Management Assignment Help
After analyzing the management styles we can infer that either organization treat their employees as a commodity or as a resources for the development. This determines the behavior of the employment contract. Rousseau (1996) terms it as a psychological contract. According to him psychological contract is a set of expectations held by the individual employee that specifies what the individual and the organization expect to give and receive in the working relationship. If the expectations are set in the beginning then there is less discord in employment relationship in future. Rousseau (1996) and Sparrow & Cooper (2003) mentions that Employment relationships are based on a mutual understanding of obligations by employers and employees. This obligation can be transactional contracts or the relational contracts. Transactional contracts are time bound, are very specific to a task or a project, and require only certain involvement from either party with monetary obligations are agreed in the start. These types of contracts help organization achieve their short term goal without investing much in resources. While relational contracts involve broad, long term and mutual understanding to commit oneself to the organization for the monetary element as well for loyalty and support. These types of contract help organizations as well as the individual achieve their long term goal and in the process create value for the society.
As Friedman (2005) mentions the world is becoming globalized and flat, fields are becoming leveled and hence it has its own set of contemporary challenges. Taylor (1911) talks about the organization that managed significantly different from one another. Now we have organization that is present in various countries, and have their operations managed with the team sitting in different parts of the world. It has its cultural as well as ethical challenges. Employees need to communicate as well as accept work ethics of other employees in the different country. Organizations have to show maturity and differentiation in its management style while dealing with employee issues in different countries. Arrival of social networking sites such as facebook, linked in and twitters, where employee puts his or her achievement on public forum. Since every employee has social expectation, it requires contemporary skills of human resource management to manage such expectations. Also, we recently witnessed the biggest financial crisis in the recent times that brought the global economy to stand still. It was the worst since the time of global depression in 1932. Organizations started firing their employees to cut their cost down and to survive in the industry. Since it was the choice that management took due to macro-economic environment, since then there have practice of putting a clear ethical standards in work to ensure the sustainability of the organization. We are witnessing an era where technology innovations are happening at a breakneck speed that the puts doubt in the organization as well as employees mind whether we will be able to adopt ourselves quickly. Hence the clear communication and competence of individual as well organization will play crucial role in determining the future strategies of growth. As Schuler & Jackson (1987) mentions, companies will need to choose from either differentiation or cost leadership as a business strategy and accordingly hire people for the job and develop their HR policies.
Ethical and Moral Implication
Human resource management theory that has been implemented in the organization with the aim to benefit organization achieves stability as well as its long term goals. We are looking at resources as a tool for the development we also need to consider the factor that employee’s age and the technology and skills become obsolete. In this scenario there are only two options for the organizations. Either it encourages and provides the training for the employee to develop one’s self so that it can contribute to the organization or employee is terminated from the service to save the cost. Training and skill development requires cost and investment to be done by the company, now let us consider a scenario where a resource is available in the market at much cheaper price then should company invest in current resource or hire it from the market. Also, if company chooses to terminate a resource then it puts a dent in the company’s image as it increases insecurity in the existing employees and doubts the loyalty program. There are organizations that believe in hire and fire policy, such policies have long repercussion in future as the employee stability is not guaranteed, companies fire its employees to save cost and increase profits, also its competent employees leave the organization for the better remunerations. As Walton (1985) mentions about moving from control to commitment, It is the moral responsibility of the human resource department that policies, training schedules and compensations structures are in place that ensures stability, transparency and loyalty between employer and employees.
Sustainability of HRM Practice
Sustainability of any practice can be ensured by its ability to change and evolve itself with its surrounding, market, people, technology and innovations. We have seen that in the earlier times it was personal management as practice to manage people then gradually it evolved to human relationship for the better management. As the scale of the organization grew and its geographical reach became wider, it evolved itself into strategic human relationship where it primarily tries to balance the individual goals to the organizational goals. Now the strategic human relationship practice has become integral part of the management style since in the information age people are the assets. It is their knowledge and skills that is responsible for the effective execution of the project rather than capacity of the machines. Hence it is all the more important that this practice is implemented in each organization with utmost sincerity to achieve sustainability and growth of the organization. As market will change and process will become more and more automated, challenge of HRM will be to ensure individual relation to employee at the same time meeting the overall expectation of the mass. Its ability to manage the expectations of workers will be instrumental in ensuring the sustainability of practice.
- Boxall, P and Purcell, J 2011, Strategy and Human Resource Management, 3rd ed., Palgrave Macmillan, Basingstoke.
- Beer, M, Spector, B, Mills, DQ & Walton, RE 1985, Human Resource Management: A General Manager’s Perspective, Glencoe, Free Press.
- Purcell, J 1987, Mapping management styles in employee relations, Journal of Management Studies, vol. 24, no. 5, pp. 533-48 Order Now