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Human Resource Management in a Business Context

Human Resource Management in a Business Context, 3rd edition
by Alan Price
 Human Resource Management in a Business Context provides an international focus on the theory and practice of people management. A thorough and comprehensive overview of all the key aspects of HRM, including articles from HRM Guide and other sources, key concepts, review questions and case studies for discussion and analysis.
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Review Questions

This website should be useful to anyone interested in HRM but it is also an electronic companion to the book: Human Resource Management in a Business Context. The book is used as a basic textbook for part-time and distance-learning courses in a number of countries throughout the world. Pages 142-143 (page 63 in the 1st edition) of the book include 6 review questions focusing on the issues discussed in this section. The questions are not shown here (you need the book) The following hints and signposts are provided to help readers without regular tutor contact answer the questions for themselves.

General notes One of the best ways of starting any answer is to define the key terms in the question. This is helpful to you and to anyone who reads your answer. It is worth remembering also that - legislative aspects excepted - HRM is very much a matter of opinion. It is often useful to deal with questions by forming an argument which presents two or more contrasting viewpoints. You could do this by investigating the views of different theorists, comparing alternative models, or contrasting practice in one organization (or country) with another.

Try to avoid a one-sided answer, even if it draws on your own experience and you are totally convinced that you are right. Finish off your answer by summarizing the keypoints of each point of view and give your balanced opinion. This should be based clearly on the weight of evidence. Be sure to ground your answer in research evidence or views expressed in the literature (books, journals, etc.).

Dealing with individual questions on pages 142-143 (63 in the 1st edition)   1   2   3   4   5   6  

1. Review the earlier parts of this chapter. This is a good opportunity to test your ability to argue one side of the case and then the other. Finish with your reasoned conclusions. It allows you to review some of the answers you provided for the discussion about hard and soft HRM in the light of the material you have just read on the business environment. Remember that even if you have strong views one way or the other, you need to provide a balanced treatment.

Firstly, you can debate the degree of control (or ability to predict) which organizations can have regarding environmental factors. They are not totally at the mercy of the economy or market forces and the biggest have considerable influence within their market sectors. Secondly, growth and recession tend to be cyclical so there is merit in sitting out the bad times and continuing with plans for the future. On the other hand, organizations need to be alert because market conditions, consumer demand and technology change quickly. So long-term strategies (and employees) need to be flexible and constantly reviewed. These issues are further debated in the section on strategic human resource management.

2Human capital is defined on page 122 (page 56 in the 1st edition) . The question asks you to give a short definition in your own words. Read the section and pick out the main points as you see them. Then try to present these in a paragraph of just a few sentences.

The second part of the question partly requires speculation and partly research. Try to find information on relevant components of human capital such as training figures. You can find several government sources on the HR links pages which provide this kind of information.

3. The background material for this question is found on pages 94 (page 37, 1st edition) onwards. There is a specific reference on page 96 (page 41, 1st edition) under trading blocks. The question is a 'scene-setter' for the remainder of the course. In other words you can approach this question in a variety of ways which anticipate many issues which are tackled in later parts of the book. You might start by brainstorming possible consequences and problems of setting up branches of an organization in 3 different cultura, geographic or economic areas of the world.

So, for example, you might think of recruitment and selection problems, such as availability of skills and other employability aspects. Organizational issues include: communicating and controlling at a distance, power relations - where and how is control located and applied - the organization of the HR function. Cultural aspects include: relationships between managers and subordinates, 'in-groups' that may expect an unfair degree of representation and authority, national industrial traditions. There are legal aspects which may vary dramatically between different countries - this may govern the choice of the countries within each group which are most compatible. Very much an open-ended question which helps you think about the complex inter-relationships within which HRM operates.

4. These terms are discussed on page 133 (48-51 in the first edition) and also under market forces. Read these pages carefully and make notes of the key points. They include a discussion on the paradoxical situation in which we find that HRM has emerged from free market countries which have been heavily criticised for short-term thinking. Yet the philosophy of HRM is based on notions of developing and valuing employees in the long term. (Remember that we are using the term HRM to signify a distinct set of ideas - rather than an alternative label for personnel management). Yet, at face value we might have expected HRM to come from the social market concept with which it shares so many values. Why is this so? Perhaps HRM has emerged as a counter to the deficiencies of the free market approach? You might have observed that HRM arrived on the scene when management writers were trying to understand why Japanese firms had become so competitive (1970s/1980s). The traditional Japanese approach to people management also has a long-term orientation.

In terms of 'hard' and 'soft' HRM, you may have concluded that hard HRM is closer in its philosophy to free market thinking - more hiring and firing, cost-cutting, etc; soft HRM can be related to social market attitudes - long-term thinking, consultation, development within organizations in preference to importing talent from outside.

5. You could treat this question in a number of ways. One approach would be to compare what we can learn by studying different countries' people management methods with what that which can be achieved by focusing on just our own country. It is obvious that studying different countries is more difficult, because of language and cultural differences, lack of familiarity with them, access to information and so on. International HRM is a specific topic of study with an increasing range of research and literature available but it remains easier to concentrate on one's own country. So, comparative HRM is likely to be unbalanced in coverage and may perpetuate inherent misunderstandings whereas one-country studies can be more systematic and detailed.

However, on the other side of the equation, International HRM can bring more surprises, offer a wider framework of understanding, and give insights into the management systems of overseas competitors. We are in a global market and the outside world can not be ignored.

6. Question number 6 is different in the two editions. The basic material for the question can be found in pages 133 and onwards in the 2nd edition. See pages 51-54 and 60-62 for the question in the 1st edition. Also see the state and intervention for both.

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