These five raciest are not only briefed but justified their pros and cons as well. In the second section, the assignment cares for explaining the concept of HARM at Toyota. Firstly, I give a diagram about Harvard model and base on this diagram to brief its content. Secondly, 2 HARM definitions, 2 Goals and 3 HARM theories are described. Finally, two HARM strategies and activities are given with short explanation. In the last part, references and bibliography is given. Table of Contents Question 1 – Part A: Human resource management often divided into two approach methods: “Hard” and “Soft” HARM.
According to available empirical experiences, neither of them accurately represents what is happening in the organization (Storey, 1992 and Wood, 1995). Hence, it leads us to research and find out their essence and assess pros and cons of each of them. 1. Definition of Hard and Soft HARM a) Hard HARM Hard HARM is the method applied in some countries such as: United State, United Kingdom… Hard HARM considers human resource as a “utilitarian – instrumentalist”, so they focus on RESOURCE side which likes the other resources such as: land, capital, equipment and so on, not on HUMAN one as Soft FIRM.
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Hence, human resource strategies have to fit tightly with business strategies. Labor force is used in effective and efficient, sparing, cheapest ways because they are considered as a production factor and expense. The company reality appearing with “hard” often cares for the quantity, calculation and “head count” managing (Storey, 1992). Hard HARM is used to gain an important goal – growing profit. The main focus of Hard HARM is depend on operation situation, make the assessment, forecast the need of labor and then recruit and select person who suitable with requirements of the task.
It means HARM department only cares for short-term target which ensures recruitment for company’s demand and doesn’t pay attention to turnover rate. Human resource manager only finds and chooses person who is suitable as much as possible with what the company need to decrease maximally training time and cost. He doesn’t need people who active or own creative energy source. Like scientific management, people are reduced to passive person and only need to show their skills to attribute for company’s operation.
In hard HARM, the most important criterion to assess is how employees perform and what the employees contribute to company’s aims. Therefore, it creates a very competitive environment among employees. They try their best to show their ability to employer to get more reward, sometimes despite of ruses and are not willing to help others. In the company choose Hard HARM approach, not only employees but also employers have to abide by strict discipline. For example: go to the office on time and check finger-print, otherwise you will be fined. It is not also allowed any exception.
Tough communicating ways, tough treatments are always used between employee and employer. For example: daily reports, internal email and team briefing… Moreover, staffs are easily replaced if they make the mistake or work ineffectively. There are no emotion and nepotism. Everyone is treated fairly, no matter where they are from and who they are. Because managers think they don’t need to construct tight link with people and care for their employees’ life, thought and needs, they firmly believe that they are only people who can decide and all employees just need act following.
It can be called downwards communication. Lealer organization structure” is also applied in Hard HARM. In this structure the leadership style is quite autocratic with top down immunization and cares for employees’ life and though not much. Employees only give a little chance of empowerment and delegation. The reason is human is not the company’s goals. It only one of tools to help the company achieve its goals b). Soft HARM Soft HARM is popularly applied in Japan, France, Germany. Soft HARM approaches human resource as “development-humanism”, so it focus on HUMAN side.
Therefore, they utilize the individual talents and build high commitment work system and high level of trust. Company activities controlled depends on employees’ behavior with primarily self-regulated rather than sanction or enmeshment and putting pressure to the individual (like Hard HARM). Soft HARM highly believes that productivity have direct relationship with labor satisfaction. Soft HARM considers human resource as valuable assets and the decisive factor to help company archive their goals, not as unexpected and variable cost. From the founding of Toyota Loom Works in the asses to the creation of Toyota Motor Co. N the asses, its leaders believed that the key to success was investment in its people (Liker, 2004). This approach also interested in quality rather than quantity of human resource because the aim of Soft HARM is flexibility and adaptability ND finally gains competitive advantage. Competitive advantage is advantage which is difficult and rare to imitate by other competitors. These are expressed in company working policies (such as time and place: employees can choose work at home or office and whenever most suitable for them, according to company’s policies), culture and communication ways.
In Toyota, the fundamental relation is the mutual trust and respect between labor and management. The method to build the basic trust is improving employees’ life standard through prosperity of company. It means that all the staffs and managers share together the same AOL. Moreover, the core management strategy – respect for people is applied, developed and not changed since Toyota found. Toyota respects all stakeholders, not depend on how much he/she contributed for company. Toyota believes that every small piece of contribution makes unbelievable successes.
In soft HARM, 2-ways communication is used widely to discover what employees think and want because “the way people think and behave is deeply rooted in the company philosophy and its principles” (Liker, 2004). The managers’ decisions base not only on their own thought but also on employees’ demand. For example, in Toyota, employees can talk their idea and opinion with all the other employees as well as employers in “speak-out” programmers, Labor Management Councils, Joint Labor-Management Round Table Conferences; or if employees are not enough confident, they can implement surveys, feedbacks…
All employees’ opinion will be recorded and appraise. Then, changes are made according to these majority opinions. Because company cares for employees’ thought and builds good relationship-inside all workers and managers like a big family, it’s not difficult to explain why with Soft HARM, there are much more long- ERM labor contracts than with Hard HARM. For example, in Toyota, from 2002, president has sent greeting cards to employees and their families at the end of the year.
In 2010, Shamanism Plant tours were held at 11 workplaces with the participation of 225 families and 588 people. In this opening-day, the other family’s member, especially the children, can see how daily work takes place. By organize company likes a big family, Toyota gained the high percentage of employee satisfaction (71% in Japan and 74% in oversea in 2010). Dislike Hard HARM, Soft HARM emphases on human resource development. Hence, manager finds people who are active and have retreat energy, and then provides free training courses in both their skills and interest and ability.
This strategy focus on long time workforce planning which trains and develop employees not only the skills to become highly capable people at work but also what they are interested in. Also, employees are trained about policies, guidelines and plans to make the most advantage of each human resource strategy. In Toyota, Toyota Institute, founded in 2002, is strengthen the organic integration for all employees in affiliates over the world by sharing the Toyota way. They also focus on training high quality of next generation leader, ether than recruit from external resource.
Soft HARM approach is built flatter organization structure which style of leader is democratic, every staff is treated in fair way and given opportunities, delegation and motivation. Employees are supported not only in work but also in other aspect of life such as family, their children, house and so on. For example, in Toyota, childcare centre was established in 2002 and expanded scale in 2003 and it got 100% return-to-work rate. 2. Advantage and disadvantage of Soft and Hard HARM: According to below definitions about Soft and Hard HARM, we can see that both f them, like a coin, have 2 sides.
Some my private opinions following illustrate this point. First of all, in terms of cost, it can be seen that the company approach to soft HARM have to pay higher cost than the one with Hard HARM. By selecting and recruiting people who have skills fitting with job requirement, Hard HARM can be save quite a lot of money for training. If training is compulsory, Hard HARM only trains what really need for job, while Soft HARM always train and develop according to not only job demands but also employees interest.
In addition, Soft HARM also is burden with other cost for salary enhancement, infinite package and supporting personal. However, with the “soft” approaching in HARM, the organization can gain high level of employee’s participation. This contribute to increase commitment and motivation, then increase productivity and to help organization get final targets. Secondly, Soft HARM pays more attention to employees’ life thought its policies. In the company applying Soft HARM, there is always union which is founded to care and protect the employee’s rights.
The union also gives employees supports in difficult situations such as helping employees overcome natural disasters: earthquake, load or drought. Employees in these companies are given more flexible way to work about working place and time. They can choose working at home or office, the time of starting work, which is the most suitable with each staff. The human resource policies assist employee to minimize other life factors which can disturb their working.
Therefore, they can concentrate completely for their task and try their best to devote as much as possible for the company. Thirdly, regarding controlling, Hard HARM helps manager create good and scientific organization in which have monitored staffs and more standardization f process. Therefore, the company will operate in the right way and always under the misrepresentation. However, the leader style is quite autocratic with tough communication, little development and opportunities can’t build the strong relationship between manager and staff.
Most of employees will think to change their work place if they find the other better. While, Soft HARM makes organization-structure become more stable by going up turnover and absenteeism rate. For instance, in Toyota, they are offer the long contract from one to three years for contemporary employees to give them stableness o devote for company. Simultaneously, Toyota commits to improve working condition for ensuring both its human resource and temporary employees ‘prospect after finishing the contract.
Finally, in communication aspect, two- way method of Soft HARM communication in fact can bring some potential drawbacks. For example, if the organization can’t carry on thoroughly two- way communication, it leads to ineffective because of employee’s resentment. Moreover, two-way communication method is built in ideal environment, however, in the fact, good communication is not able to guarantee for good relationship. Therefore, in some cases, tough communication of Hard HARM is more effective. In conclusion, neither Hard nor Soft is perfect.
Hence, nowadays, most of the companies choose the method which mix Soft and Hard attributes and apply in flexible way according to specific cases to take the most advantage of each approach. The reason is human resource includes a large number of employees with different characteristics, so to deal with them, sometimes needs Soft and sometimes Hard is better – according to specific situation and circumstance. Clearly, there is not a common formula for every company because t is required the flexible of human resource manager. 3.
Justify why I am agree that “Soft” HARM approach is the best approach explain by The Toyota way Guidelines in article. I agree with the “Soft” approach of Toyota in human resource management because, in my opinion, it helps Toyota gain the competitive advantage, which is difficult to imitate by Toast’s competitors. Toyota way is expresses in two main pillars: “Continuous Improvement” and “Respect for people”. The first pillar – “Continuous Improvement” reflects that the Toast’s managers always want to develop ceaselessly the quality of human source.
They never satisfy about what they have and desire what is better. Toast’s managers have a long term view about the value of the company’s human resource. The higher skill the employees have, the higher quality products they make. In the nowadays competitive market, the quality of products is the most important factor to help Toyota maintain its position. Although the cost of training at the first period is quite much, this cost will completely return back through high productivity and high commitment.
In addition, most of Toyota managers are recruited from internal source, after training process. The second pillar is “Respect for people”. “People” means stakeholder who includes: employees, shareholder, managers and their families. Toyota cares not only its employees but also their families. Toyota hold Plan tour day for staff s’ children to discovery their parents workplace or built website called “Toyota Fame-net” to give useful orientations. These activities contribute to strengthen the good relationship between employees and company and then create the high of stable employment rate.
This rate is vital and can ensure that Toyota can operate normally according to its plan. If this rate is too low, it is able to force company to dangerous situation. Companies which apply Hard HARM often deal with this low rate because they think it is unnecessary to built close relationship with employees. Therefore, employees are not loyal and they always look for the other better jobs. Furthermore, Toyota chooses the way of increasing productivity on voluntary basic. By assisting employees decrease their life problem, the employees can put more concentration to your task given.
For example, childcare centre help female workers not worry about their children or high fee of childcare in private school. Flexibility in working hour which employees can choose their timetable and working place (at home or office). Their performance is not assessed the total hour in office. Effect or result of their work is the means of assessing. Therefore, employees feel the respect and trust for their manager, they will exert themselves for company’s final goals. Finally, although having several existed drawbacks, the two-way communication method also has strong points. Speak-out” programmer, employees’ feedback, consultative management meeting are some of method is used in Toyota. These methods increase the communication between employees ND employers and company. Through listening to and appraise employees’ opinion, manager board can understand and value employees’ though and demand. Besides, Toyota also gets the new and creative ideas which improve present processes or products. The number of employees is much more than that of employers, so if the company can take the most advantage of this resource, the company will improve strongly. It is call the power of collective.
In conclusion, although Soft HARM has some drawbacks, I firmly believe these weak points can be solved out in the long term and this way of approach will continue o help Toyota consolidate the number one position in car market. 4. Use a diagram to illustrate the differences between Hard and Soft HER Question 1 – Part B 1. 360 appraisals: Identify: 360 appraisals is also called as 360 degree feedback or multistoried assessment, which put employees in the centre of the circle and then they will receive feedback from people around them such as their colleagues, superiors, customers and subordinates.
This method is getting more and more popular because it identifies the skills, knowledge and competencies needed then improve organizational and individual performance, to achieve organization’s tragic business objectives facilitate change The feedback is given in a form showing job skills, abilities, attitudes and behavioral criteria and scoring system. This method can encourage motivation for employees because it provides a truly honest assessment of how the employee and his performance are viewed by a variety of constituents.
It’s quite different with traditional assessment which manager is the main person who gives directly feedback to employee. There are three steps to implement 360 appraisals. The first step in designing 360 degree evaluations is to identify observable managerial and leadership behaviors that re critical to the organizations’ business success and culture enforcement. Secondly, multi-raters rate the employee using a comprehensive questionnaire. The employee also rates their own performance. Finally, results are compiled by the HER department or an independent consultant and fed back to the employee.
Benefit and cost: 360 appraisals have quite a lot of strong points. Firstly, it increases the accurate appraisal level because employees are assessed from many directions: upward (subordinates), downward (managers), and the same level (co-workers). 360 degree appraisals also avoid discrimination and bias when dieback comes from a large number of individuals who come from various job functions and departments. The “horns and halo” effect, in which a supervisor assesses according to her most recent interactions with the employee is decrease to minimum.
Therefore, this method gives comprehensive view about employee’s performance, decreases one-sided appraise as the traditional method and provides a supervisor with the most unbiased and accurate information from which to draw performance conclusions for administration target. Secondly, multi feedback improves the team initiative. It makes team members have titivation to learn by themselves and from each other to complete well their task given because the other members is who understand more about how individual performing than supervisor.
Also, a well-planned appraisals process can makes employee be more accountable for career development and improve communication and team development. Thirdly, because the feedback comes not only internal but also external such as customer and supplier, so it forces employees try their best to enhance the quality, reliability, promptness especially important in service field. Finally, the assessment will identify which training s needed for the development and thus human resource departure makes plans for classes, cross-functional responsibilities and cross-training.
However, 360 appraisals also exists several drawbacks. It is only able to eliminate the bias from manager but not eliminate completely the bias in assessment. The feedback might not perceive as reliable and accurate in the employees view as it can be untruthful feedback from haters. The control of emotion may strongly impact on the ratings, inflate or deflate the rank of employee look good or bad. Moreover, it’s not easy to make a fully work-out 360 appraisals process. A 360 degree feedback process is often comes from HER department or an executive who gets the model process from book as the recommendation.
The implementation of 360 degree feedback should follow the guideline of effective change management and is made suitable for conditions and circumstance of each company. However, having a suitable process doesn’t mean it will operate in the right way. In fact, in some cases, people who carry on feedback don’t have enough understanding or misunderstanding about the question ideas and the measure of assess. In addition, the standard of everyone is quite different. Then, t leads to the difference in the result between two employees having the same performance.
Hence, it requires effective training to make sure that all appraisers comprehend about process. Another weak point of 360 degree appraisal is costly and time consuming as it’s taking feedback from more than all the people that the employee in contact with. Also, it can cause the data entry overload in the paperwork as well as computer. 2. Heath and safety: Identify: Health and safety programs is the organization’s strategic concerning for quality of work life which has influence on employee productivity.
Responsibility or employee wellbeing is shared by line managers, HER managers, union, employee and employer, in these employer play the most important role because employer has greatest control over work environment. Organization should have a good occupational health and safety (OCHS) which is concerned with the provision of a safe and healthy work environment in two areas: medicine (concerning with the diagnosis and prevention of heath hard and solving every problem related heath at work) and hygiene (relating to control and measure of environmental hard).
Also, heath and safety programmer should be linked with he organization’s strategic business objectives to seek competitive advantage by promoting employee commitment. Justification of benefit and costs: Heath and safety policy might cost a lot at first in investing new machine and facilities but minimize the long term cost. This policy helps to decrease ill-heath and injury of employee and create the strong health labor force. The company with good heath and safety policy, then, can increase employee commitment, motivation, productivity.
Well-being worker force reduces operating cost, enhances public image and gains competitive advantage. In addition, thanks to heath and feet policy, the company has stable environment free from illness, injury and accident which leads to fluctuate in the number of employees and indirectly affects working result. This policy also contributes to decline turnover rate, so decline the cost of training and developing. Finally, the company with heath and safe environment has lower insurance, claim and benefit cost. It reduced downtime and the company will experience less damage to plant and equipment.
The health and safety policy might cost a lot at first but minimize the long term cost. For instance, the machinery will work more efficient and less cost of maintenance. The worker will less likely to get sick or accident at a dirty or unsafe work place. It’s important for the organization to put on sign or instruction to prevent the hidden risk. Furthermore, the company public imaged as a social responsibility while it compliance with OCHS Act requirements. That might lower the future cost of advertising for recruitment. 3.
Work life balance: Identify: ‘Work-life balance should be a balance between an individual’s work and their life outside work, and that this balance should be healthy” (Kodak et al, 2002). Nowadays, the traditional way of working hour (9 to 5) has a remarkable cline trend. The model organization, the human resource manager tries to build more flexible structure with flexible working time and place which is suitable with not only the company policies but the employees as well. The work life balance practice focus on 3 main issues of flexibility: How many time employees work per day?
How is the exactly timetable? (When do they start of finish? ) and Where do they work?. In addition, work life balance also provide to employees, especially female workers, the child care. They can make sure that their child is looked after carefully and in standard environment. The work life lance is the integration of benefits of both employees and the organization to achieve the final goal. In another word, the work life balance gives the employees perfect tools to help them control the life better and then, invest more time to work.
The demand is very different from person to person, so it requires the different approach in work life practice in each staff. Justification of benefit and costs: The most clearly benefit of work life balance practice is contributing to decrease the rate of absence (especially unplanned absences), increase the employees’ satisfaction, and then increase commitment. Employees ND the organization are integrated and cohered because work life balance can satisfy both benefit of them. By decrease life problems can affect and disturb to employees, the organization gain high productivity and lower level of wrong and low quality products or services.
This practice is very important with the companies providing services which employees’ behavior plays vital role to create the high quality service. Like “give and take” theories, because the organization care for and support their life problem, they will try their best to give something back. It, one more time, impacts and enhances the relationship between employees and the organization. In the Institute for Employment Research which is carried on by University of Warwick and IF Research Ltd, 91 % employers and 96% employees said that people work better when they can balance between work and life (Hogwash et al. 001). However, it is not easy to complete work life balance policy because deploying the work life balance policy might cost a lot of money. Moreover, nowadays, most companies only can apply this policy with limited labor section. Also, to take the most advantage of this practice is required high ability management, otherwise, it can lead to over control situations. . Team work: Identify: Team work is one of the most important skill required for applications when they apply for job. Team work is where the staff attributing into a same project under the control of team leader.
Team leader plays an important role in orienting the way of team operating. However, we can’t deny the role of other members. The main goal of team is find out the consensus of member’s ideas and opinions. Team depends on “collective wisdom” to deal with problems and find out how to solve. Justification of benefit and costs: Team work has its own advantage and disadvantage. The most advantage of team work is hen manager puts different employees with different characteristics, ideas and backgrounds in to a group, together with experienced leader, the team will gain great achievements which never gain with individual person.
The reason is working in group brings a lot of ideas and chances to recognize and correct mistake each other. Team work can improve the communication among members in work place because it require member interact with each other to discuss, solve problems and attribute for project’s goals. Moreover, member can learn new skills, improve old skills and update the work knowledge through the there. Working in team inspires for every member the motivation of learning and perfect his or herself. However, it also creates the competition among member groups because all of them want to show to team leader that they are the most effective member.
This put much pressure on employee and sometimes leads to employees’ wrong actions. Also, it might create conflict among the teams in the organization. In order to prevent the stress for the team members, the manger can observe and then give added skills for who need. Also, to stop jealousy and conflict between teams, manager should treat them equally and ay assign them different project. 5. Selection: Justify: The selection procedure using relevant information about applicants which is collected after recruitment process.
The main goal of selection process is determine how many percentage that potential applicants fit with the specific job’s qualification and choose applicants who are most suitable and will perform best in future job. There are 7 steps in the selection process which including screening of applicant forms, selection tests, interview, checking of references, physical examination, approval by appropriate authority and placement. First tepee is screening of applicant forms which contains variety of information about the applicants like personal information, education, skills, experience, habits and references.
Second step is selection tests. Normally, supplement the information provided in the application forms but the selection tests give information about candidates’ attitude, interest and personality which cannot be known by application forms. Third step is interview. In this step, interviewer may assess comprehensively about applicants through face to face communication and make questions more questions to help interviewee expose himself as well as is ability. Also, interview provides opportunity to give relevant information about the organization to candidates.
Fourth step is checking of references. The interviewer will check the reliance of information provided in application form such as character, working experience, achievement and etc from the referees, whose may be previous teachers or employers. Fifth step is physical examination to ensure that applicants can meet the requirement about physical standard and fitness. Sixth step is approval by appropriate authority, where the HER department recommended the suitable candidates for approval by the top level managers like board of directors or the lower level managers like department managers.
Final step is placement, where the prospective employee placed on their jobs initially on a probation basis. This probation period may range from 3 months to 2 years and they will become permanent employees after completing this period successfully. Question 2: 1. A diagram and brief explanation of the Harvard Model of HARM: Harvard model is considered as one of the most seminal HARM model and creates many debates in this subject. According to Beer and his colleagues, employees are a resource which the company can’t treat as the other resource.
Labor force is the factor which has mutual influence with businesses and the stakeholder like customers and shareholder. Hence, why is Harvard model important like that? There are several reasons. Firstly, it looks to long term outcome with the C. Secondly, it pays attention to the happiness of all the stakeholders from employees to government. Harvard model is also a strategic map which guides HER manager to control the relations with employees. It is a soft approach to human resource management. In this map, we can see, choosing HARM polices depends on the relationship of stakeholder interests, situational factors and HER expected outcomes.
Harvard model care for the interest of all stake holders not only internal organization such as shareholders, managers and employee groups but also external organization namely: government, community and unions. Environment plays an important role ensuring the success of HER strategy. Although the strategy is excel with other companies, it’s completely able to fail when is applied in this company because of the differences in environment. These factors include: workforce characteristics, labor market, task technology, law and so on. For example, the fluctuation in labor market has a lot of influences on recruitment and selection treated.