Human Resource Management: Business Proposal on HR Operating Model

Question

Task:

Write a report of 3,000 words to the following brief:

You are required to develop a Human Resource Management business proposal with specific focus on HR operating model (structure), Resourcing and Development. Your recommendations and overall HRM business proposal need to demonstrate considerations on business alignment, a proposal that can assist any start-up or SME type company.

(Your core textbook, Hook and Jenkins, 2019, Ch.1, Ch.6 and Ch. 8, is your initial point of reference).

1. Outline an HR operating model which can support any start-up or SME. An operating model that will reinforce business objectives and alignment including efficient approach to the delivery of the HR services to the business. Underline the theories and analysis of the operating model, including advantages and disadvantages of the model selected.

2. Outline the resourcing proposition that can assist towards attracting highly skilled talent through innovative approaches. In addition, outline the onboarding methodology (approaches, theories, and best practices) in your proposal enabling new employees to be successful.

3. Outline the development considerations in your proposal to enhance all employees’ skills and ability to execute the business strategy. Define what these development proposals are quoting relevant theories and best practices.

4. Use correct academic writing technique, including effective structure, grammar, spelling, use of in-text citations, and a full reference list, all of which should use the Harvard referencing convention.

Organizations (for Benchmarking)

When designing a HRM business proposal it is important that you benchmark your plan and proposed methods. You can use any international organisation of your choice as an example of success and best practice. You must apply critical thinking in your analysis in relation to your selected organisation against the three main areas outlined above.

Before selecting the organisation, you are strongly advised to discuss this with your lecturer and ensure that there is sufficient online material available.

Answer

Executive summary

The current business proposal summarizes all the four important operating models in Human Resource management. The importance of the ‘Harvard’ operating model will be described with its effective advantages and disadvantages. It briefly summarizes the findings of the present business proposal within the discussion. It describes the approaches and two theories namely the ‘general system’ theory and ‘Peter Drucker’ theory in aligning them with the chosen operating model. The proposal also has provided considerations in order to improve the organizational scope of the start-up along with recommendations.

1. Introduction

The business proposal is going to shed light on the various operating models of hr management and the best one among them. The best operating model among all the four models is going to describe with its advantages and disadvantages that will help the business start-up to grow rapidly and earn the highest revenue. The proposal will also have theories and approaches based on the operating model that will give an overall concrete idea for developing a business. 

2. Findings

Hr Operating Models

Human resource management can be described as the constructive and strategic approach for the effective and efficient functioning of employees or people associated with a company. It is preferably done to enhance the scope of the organization and get the highest satisfaction. It can be generally implemented to maximize employee performance also. However, it can be generally used to gain the highest competitive advantage. In aligning it with the topic, the human resource operating model can be said to be the abrupt representation of the HR organized function to deliver expected outcomes to different stakeholders within and outside the organization. The four HR operating models are 

• The Fombrun
• The Harvard
• The Guest
• The Warwick

All the four above-mentioned models operating models can be useful in showing the HR activities that can be aligned with the organizational strategy of the organization to hold a business lead (Máchová et al. (2019). 

Elaborations

The ‘Fombrun’ operating model can be considered as a not-so-efficient operating model as it has been seen to have primarily focused on majorly four functions of Human Resource Management. As per the view of Cooke, Schuler, and Varma (2020), It basically has dealt with the inter-relatedness of rewards appraisal and development. 

The ‘Harvard’ operating model can be considered as one of the most efficient operating models as it has been seen to have covered almost all the aspects that can be needed to enhance the organizational growth of any organization. As per the view of Boon, Den Hartog, and Lepak (2019), it can successfully help in reducing the cost of the organizational expenditure along with maintaining its commitment. 

The ‘Guest’ operating model can be considered as a less effective operating model in order to enhance the organizational growth as it has been observed to have only focus on individual needs rather than combined workplace organizational needs to develop power and flexibility. As per the view of Ahammad, Glaister, and Gomes, (2020), the ‘guest’ operating model can put more focus on behavior outcomes and less on performance and financial outcomes. 

The ‘Warwick’ operating model can be considered as an incomplete operating model in terms of enhancing the organizational growth of any organization as it only focuses on the analytical approach including employee relations and workforce relations. As per the view of Carnevale and Hatak (2020), the ‘Warwick’ hr operating model has only been into maintaining the activities taking place within the workplace of the organization. 

In the present business proposal, the Harvard operating model of HR will be selected because of its unique characteristics that can help a business start-up to grow rapidly. CANVA, an Australian start-up has been successful in using the operating model and making a total funding of about $301.6M.

Advantages of ‘Harvard’ operating model of hr

• Cost-effectiveness

It will be very important for a start-up business to implement an operating model that will focus mainly on the cost-efficient and financial aspects of the organization. The ‘Harvard’ operating system will maintain the cost-effective factor. As per the view of Collins (2021), every business will need huge financial support to grow its competitive advantage. The chosen operating model will be helpful in maintaining the organizational expenses by maximizing its income and minimizing its output. It will also help the business authorities and managers to meet the goals that have been set at the initial stages at lower possible costs.

• Employee influence

For a start-up business, it will be very important to implement an operating model that will influence the employees. The ‘Harvard’ operating model will be very useful in influencing the employees to work better and give their utmost ability to meet the required goal. Employee influence will be very important to gain a competitive advantage. As per the view of Cooke (2018), it will in turn increase the business income. It will drive the revenue by reducing the costs and boosting the demand and sales. Employee influence will be helpful in increasing a good relationship between the customers and the business authorities. 

•  Commitment

It will be very important for a business start-up to implement an operating model that will be helpful in maintaining organizational commitment including employee productivity, customer expectation, and job satisfaction. As per the view of Anwar, and Abdullah (2021), commitment regarding the customer expectation will be very important to maintain in order to hold the customer trust towards the organization that will be in turn helpful in maximizing the demand. However, commitment regarding employee productivity will also be important to maintain higher job satisfaction and a peaceful workplace environment. Higher job satisfaction will ultimately result in good work outcomes. 

• Sustainable and flexible

For a business start-up, it will also be important to hold a sustainable and flexible operating model that will meet all the needs of the business by maximizing its profit and reducing expenditure. As per the view of Ulrich (2018), the ‘Harvard’ operating model will be considered as the most sustainable and flexible model to enhance the organizational growth of any business.

Disadvantages

• Non-figurative

The ‘Harvard’ operating model will only be helpful in giving the analytical view. It will only be helpful in focusing on the high commitment in the workforce. As per the view of Kelly and Rapp (2017), it will also not differentiate the human resource consequences of implementing various strategies and situational factors.

• Structural challenge

The structural challenge can be considered as one where there will be no expectation and workings will be done at the employee’s will. As per the view of Jenkins and Barton (2020), a business will need a proper structural aspect that will meet the expectations of both the employees and the customers which in turn will increase the revenue.

Theory

In order to align the chosen operating model, ‘the Harvard’ of HR management in the present business proposal for a start-up business the general system theory will be selected. The ‘general system theory’ will have both the open and closed systems like in ‘the Harvard’ operating model that will help the business authorities to release the stress of the employees and attain the highest job satisfaction by implementing their utmost ability to work. As per the view of Jenkins et al. (2021), ‘general system theory’ will also help in organizing the principles mathematically that will influence the organizational scope of the business sphere and gain competitive advantage. 

Resource Proposition

The ‘Harvard’ operation will influence the employee in being successful. It will record the organizational performances and outcomes. It will also be helpful in identifying and gaining commitment and reward practice. An organization that will likely wish to meet the needs of the customers will prefer the ‘Harvard’ operating model as it will accomplish the goals of the representatives by arranging the best human resources that might be helpful in meeting targets and objectives. As per the view of Jenkins, Peters-Lazaro, and Shresthova (2019), the model will primarily focus on the interests of the stakeholders within and outside the business. It will also include shareholders, employee groups, and governments that will define the human resource management program. 

It will influence the employee in being successful by providing a long-term and sustainable aspect by improving the workforce environment and employee relations. It will also improve the job satisfaction of the employees by motivating them to put their utmost ability to work for meeting the objectives that have been previously set by the organization. As per the view of Hooks (2019), the model will be effective in defining the organizational policies and strategies of the organization by breaking down several roles of the sections of human resource management. It will further help in maintaining a good external environment and develop an organization that will solely cater to all unwanted activities.

Theory

‘The general system theory’

The previously mentioned theory, ‘general system theory’ will mainly be applicable in relating and connecting all the aspects that will be needed to form a successful business start-up. However, as per the view of Fowler (2020), the ‘general system’ theory’ will be successful in maintaining the guidelines of the organization by maintaining its competitive advantage. It will further help in developing the unification and integration of social and natural sciences that will be maintained in the ‘Harvard’ operating model. However, as per the view of AM et al. (2020), it will be very important for any business start-up to maintain good interaction with the customers and the higher authorities in the medium of employees to get an overview of the customer expectation and fulfill their needs which will increase its organizational acceptance in the market globally. 

‘Peter Drucker theory’

Peter Drucker has been considered the father of management. The use of ‘Peter Drucker’ theory will ensure that the organization will demonstrate the power to maintain control among the tasks performed within the organization. It will be very important for any business start-up to put the employees of the organization first in order to grow the business. As per the view of Folarin (2021), the ‘Peter Drucker’ theory in aligning it with the ‘Harvard operating’ model, will focus more on developing opportunities rather than on the problems. Concentrating on the opportunities will make sure to provide a uniquely positive atmosphere in the workplace that will motivate the employees to give their utmost ability at work. However, as per the view of Mazur and Walczyna (2020), this model will treat the employees as assets and not as liabilities. The proper treatment of the employees will make sure that the employees will maintain all the rules and regulations of the organization and perform good work. As per the view of Bautista et al. (2019), the good working of the employees will improve the organizational scope of the organization and improve its market demand. The concept of empowering the employees where they work freely without any stress related to losing the job will help the organization to increase sales and revenue. 

Development Consideration 

In the situation of pandemic, the organizations have experienced heartfelt disturbance because of the sudden outbreak of the corona-virus. To restrict the spread of the virus, a government-imposed complete shutdown has caused severe financial crises all over the globe. As per the view of Mahmood et al. (2020), every organization has experienced a shift to remote work in the current scenario. The relocation of resources and the acceleration of the need for immediate digitalization have been needed to meet the change in the organizational sector of society. As per the view of Giannakis, Chalikias, and Tsirigoti (2020), the ‘Harvard’ operating model will be very suitable in the post-pandemic era where many strategies are being adopted in order to improve the competitive advantage of different organizations. The selected operating model will be useful because of its previously mentioned advantages. 

The development proposals can be successful in quoting highest satisfaction of the employees. It will make sure that the job will be done with utmost care and knowledge providing the best outcome. In order to align the best practices with the above-mentioned theories, it can be said that satisfaction of the employees is directly proportional to the job satisfaction. More motivated employees with best compensation will generally tend to put their utmost ability to work resulting in highest job satisfaction (Giannakis et al. 2020). The best quality of work will however improve the competitive advantage of the organization by inspiring the employees and the business authorities.

Considerations:

• Security to employees

It will be very important for the authorities of the business start-up to provide enough privacy and security to its employees. It will be the main responsibility of the organization that will provide a relaxed atmosphere in the workplace. The relaxed atmosphere where employees will freely work without thinking of the security of privacy will result in a better outcome of the job. As per the view of Verweire (2019), the privacy and security of employees will make sure that their personal details will be secured safely and will come in need in terms of any emergency or need. 

• Avoid wrong hiring

The main responsibility of any business start-up will be to prevent any avoid hiring. Wrong hiring of employees may sometimes lead to poor quality of work. Organizations will consider various stages of the interview including the online and offline mode to test and choose people and recruit them in suitable positions. Organizations will be required to hire exceptional people to add value to their business and increase their competitive advantage. As per the view of Jiang and Li (2019), wrong hiring will lead to hampering the organizational structure along with meeting the goals of the organization. However, employees will also be hired in order to increase their business and gain respect towards the organization. 

• Performance-based incentives

Incentives will be provided to the employees according to their performances. As per the view of Tiwari, Srivastava, and Kumar (2019), performance-based incentives will refer to the additional pay or compensations that will be paid to employees in view of the performance of the job requirements. However, performance-based incentives may vary from employee to employee. The additional incentives will be given to the employees by any start-up organization to motivate and influence the employees to produce good work. As per the view of Armstrong and Brown (2019), the pay for performance idea will be applicable to the employees who are not giving their utmost ability to enhance the organizational scope. Not paying incentives will make sure that they give more effort to their job and earn the next incentive. 

• Proper training

Every business start-up must include proper training to the newly hired employees in order to attain good organizational performance. Proper training will improve employee performance by providing positive job satisfaction. Job satisfaction will increase the good quality of work ultimately the overall competitive advantage of the organization will increase. As per the view of Uysal (2019), the increase in overall market demand will make sure that the employees are paid good incentives for good work. It will make the employees get proficient in jobs and achieve good results. 

• Equality in workplace 

The basic understanding of equality in the workplace will be the lack of discrimination among employees. There should be no discrimination in any organizational environment regarding race, culture, gender, religion, skin color, income, and many more. As per the view of Anbu (2019), equality in workplaces will promote a positive environment among the employees where they will be free to work without any mental stress of harassment, this will in turn result in good quality of work. However, equality in the workplace will also include equal pay to all employees without any partiality to anyone.  

3. Conclusion

Based on the above discussion, it can be stated that the business proposal has been successful in demonstrating all the important approaches that will be useful to implement during the time of developing a business start-up. The proposal has been successful in shedding light on all the four operating models of hr management and focusing on the ‘Harvard’ operating model as the best one to use because of several factors, the most important one to be its feature of cost effectiveness. Theories like ‘general system’ and ‘peter drucker’ have been effectively evaluated by aligning them to the topic and the selected operating model. This proposal has determined that for a new start-up or SME, a Harvard model of operating is beneficial. However, the proposal also had a clear illustration of the considerations that will be required by any business start-up to follow to maintain a good organizational scope and enhance its market value in a short time

4. Recommendation 

The selected section of the business proposal will have recommendations that can be recommended to provide solutions to the problems that might occur during the time of implementation of the ‘Harvard’ operating model. The following can be recommended to startups that have included the Harvard operation model:

• Improving HR operations

It can be recommended that any business start-up must have improved HR operations that will help in carrying out the organizational functions smoothly without any kind of unwanted harassment. However, as per the view of Kalwar et al. (2020), good HR relations as viewed in the ‘Harvard’ operating model will be the core support in order to bring effective talent analytics. HR operations can also be improved by implementing new technologies and digitalization to support customer queries. As per the view of Sotnikova et al. (2020), HR operations can also be improved by dividing the HR department into sections with segregation of the jobs among the members. This will make the job much easier. 

• Develop strategic opportunities

Developing strategic opportunities can be recommended for any organizational start-up to enhance its organizational growth in the global market and increase its sales and revenue. As per the view of Gul et al. (2021), it can be recommended that strategic plans like creating employee development plans for the support of the employees. Moreover, in order to give them utmost security and privacy along with good pay for performances can be recommended to enhance the organizational growth of the business. As per the view of Biloshapka and Osiyevskyy (2021), the “Harvard” operating model it can be recommended that the implementation of strategies like creating a succession plan will be helpful to get a pre idea of the organizational functioning along with the expenditures for future.

• Set-up problem solving team

In every business organization, it can be recommended to develop a team that will precisely solve all the problems occurring in the organization. This will ensure that the other employees will work freely without any thought of dealing with many of the problems. As per the view of Comella-Dorda et al. (2020), a problem-solving team will release the pressure of the higher authorities and result in the smooth functioning of the organization. It will help in increasing communication and understanding of the problem and finding out a systematic solution without much bothering.

• Improving the workforce

It can be recommended that improving the workforce will increase the ability of the employees to work it will provide a positive environment for the employees to work and attain the highest job satisfaction. However, as per the view of Thomas and Booth-McCoy (2020), improving the workforce will result in higher productivity and prosperous results that benefit both the employee and the higher authority. 

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