Written Assignment Unit 1: Role of Human Resource Management 1

WRITTEN ASSIGNMENT UNIT 1

UNIVERSITY OF THE PEOPLE

BUS 5511: HUMAN RESOURCE MANAGEMENT

DR. YU

FEBRUARY 3RD, 2021

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Introduction

At the core of each great company is a Human Resources (HR) department that is aligned with

the strategic and long-term goals of the company. Human resource management (HRM) is

essential to the success of a team. The effects of successful (or unsuccessful) HRM of a company

is felt in each department be it due to strategic management implementation, wages and salary

compensation packages or training and development (Mayhew, 2019). It is important to

understand the different human resource management models that companies may implement

across their organization and what impacts can be expected as a result. As the world of business

and technology continue to grow and develop, new demands arise and they must be met

accordingly.

Different HR Models

There is a variety of developed human resource management models, which include: The

Standard Causal Model, The 8-box Model and The HR Value Chain Model. The Standard Causal

Model has been published throughout the 90’s and early 2000’s. The model shows the causal

relationship between the overarching business strategy and improved HR activities, thus leading

to improved financial performance. The HR strategy must be a derivative of the company’s

overall strategy, in order to be aligned and effective (Vulpen, n.d.).

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Figure 1

The Standard Causal Model

(Vulpen, n.d.)

The 8-box Model offers a different perspective on the role and place that HR activities have in a

company. The model was developed by Paul Boselie and he focused on analyzing the internal

and external factors that impact the HR activities of any given company. Internally, the HR

practices and strategy are influenced by the organizational history, culture, ownership and

technology. The external factors that impact the HR practices of the company include: the

general market context, institutions and legislation, market conditions and competition, as well

as the number of available skilled workers (Vulpen, n.d.)

Figure 2

The 8-box Model

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(Vulpen, n.d.)

The HR Value Chain Model is one of the best-known HR models due to the framework that it

establishes for the other newer HR models in use today. The Value Chain Model highlights the

fact that human resource activities can be categorized into two specific groups: HRM activities

and HRM outcomes. The HRM activities are the daily functions and responsibilities of the

department, such as compensation, training and recruitment. The HRM outcomes, on the other

hand, are the overarching goals that the company aims to achieve, including high motivation,

employee retention and satisfaction.

Figure 3

The HR Value Chain Model

(Vulpen, n.d.)
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Explain the role of Human Resource Management in organizations today. Which

competencies do you consider core for your organization and why?

Managers in the modern world must juggle multiple responsibilities and wear multiple hats

throughout their interactions with various stakeholders (Senyucel, p.15). Amongst the top

responsibilities are: hiring the right personnel for each project, completing the project on time,

saving on costs when possible, developing talent throughout the process, maintaining high team

morale and increasing productivity. When HRM is aligned with the company goals and strategy,

there is a strong sense of unity across the company and the employees have all the required tools

to succeed professionally and personally.

The core competencies of a firm are the advantages and strengths that comprise an organization’s

competitive advantage in their given business sector. Modern management theories state that

organizations and companies alike much define, cultivate and exploit their core competencies in

order to succeed against their competitors (Twin, 2021). Some characteristics of a core

competency include:

• Provision of superior value/benefit for consumers

• Difficulty of replication/imitation for competitors

• Scarcity

The core competencies of an organization differ from industry to industry. IT companies will

often value specialists of particular technological stacks and programming language expertise,

while a hospital will focus on the skill level of their doctors and their rate of successful

operations. It is vital for an organization to recognize their core competencies and capitalize on it

to the greatest extent.

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Which core competencies do you anticipate needing tomorrow?

Technology and organizations are closely related when it comes to success and progress. As the

worlds of technology and business continue to grow, the required competencies of HRM and

companies will have to evolve as well. With the advent of big data, data science, data modeling,

data analysis, Artificial Intelligence (AI) and Machine Learning (ML), departments and companies

are able to take pre-emptive action rather than reactive. The implementation of smart systems will

free up HR managers to focus on the core of their company – the people. The new systems will

require that the HR department examines the entire employee lifecycle at the company and

determine how to best recruit, train, coach and retain employees (Sayyed, 2019).

Could these competencies change? Why?

Since the core competencies of tomorrow are linked to emerging and developing technologies,

there is a great likelihood that the competencies will change in order to be aligned with the current

technological environment and requirements of the company. An organization must emphasize the

continuous improvement and training of their employees. HRM must identify prospective

technological tools which will enable greater productivity across the company. These facts hold

true across all industries because we are in the age of information technology and automation

(Sayyed, 2019). Due to the increased usage of data analysis systems, more and more decisions will

be made based on data processing and artificial intelligence. The reach of AI and data processing

will reach across all sectors of business.

How do Human Resources functions evolve to stay viable within organizations?

Due to the growth and development of information technology, the capabilities and functions of

Human Resources have grown and expanded as a direct correlation. The function of HRM has
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outgrown the idea of the simple administrative role, it must now take on the role of the strategic

department of the organization (Senyucel, p. 14). The company will be as good as the people that

work there and that is why recruiting and retaining the best talent possible is absolutely

imperative for the HR department. The organization must have an attractive Employee Value

Proposition (EVP) in order to attract the best talent. An EVP is the unique set of benefits that an

employee receives when they join an organization. Companies that present authentic and

differentiated employee value propositions have a greater chance to attract and retain quality

employees (Joyce, n.d.). Technology empowerment must be encouraged and supported by the

HRM of an organization, because it will better equip the employees to serve the growing demand

of the modern business environment.

Conclusion

It is blatantly evident that Human Resource Management has evolved over the last few decades

and it has come to include new challenges and opportunities. An HR department that has their

strategies and goals aligned with the broader company strategy is an essential component of

success. HRM must not only manage the day-to-day activities but also play an active role in the

identifying, recruiting, hiring, training and mentoring processes that involve the employees.

HRM that is able to envision an employee’s (or potential employee’s) journey at the company

from start to finish will be able to better serve upper management and the general populace. The

modern-day business environment rewards those who are able to adjust and adapt to new

circumstances the fastest.

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References

Joyce, L. (n.d.). Strengthen Your Employee Value Proposition. Gartner. Retrieved from

https://www.gartner.com/en/human-resources/insights/employee-engagement-

performance/employee-value-proposition

Mayhew, R. (2019). 10 Reasons HR Is Important to an Organization. Chron. Retrieved from

https://smallbusiness.chron.com/10-reasons-hr-important-organization-22424.html

Senyucel, Z. (2009). Managing Human Resources in the 21st Century. Bookboon. Retrieved

from

https://my.uopeople.edu/pluginfile.php/1093770/mod_page/content/25/BUS5511Textbook02.pdf

Twin, A. (2021). Core Competencies. Investopedia. Retrieved from

https://www.investopedia.com/terms/c/core_competencies.asp

Vulpen, E. (n.d.). 5 Human Resources Models Every HR Practitioner Should Know. AIHR.

Retrieved from https://www.digitalhrtech.com/human-resources-models/