The Importance of Human Resource Management in Achieving Competitive Advantage

This report is about human resource management. Betcherman et al. (1994) defined human resource into three aspects: organizational and job design, organizational culture, and personnel policies and techniques as to ensure that the workers full prospective or potential can be achieved. According to Storey (2001:5) Human Resource management is defined as ‘a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques. Marchington and Wilkinson, (2002) identified through research that people really do make the difference in human resource management. The truth behind this is that it’s supported on ‘high-commitment’ model which ensures that investing in people/human resource makes good business. This lay a foundation for the human resource professionals to make point that people really are their most important resources to the organization which now leads to work out how principals can be then turned into practice.

This report will show how human resource works in sports industry and there will be critical examine on hard and soft model followed in the Bolton Wanderers case study and which model is more prevalent and successful in day to day operations and management activities. Human resource management is the most important department in any organisation to improve their knowledge and increase a good strategy towards employees. Mainbody According to Storey (1992) there are two ideal and essential models of Human resource management one is ‘hard’ also known as Michigan model and other one is ‘soft’, i. . , Harvard model. The hard model of human resource management highlights the term ‘resource’ which adopts a logical approach in the management of employees in which people are taken as financial factor where cost must be controlled.

Whereas, the soft model accentuate ‘human’ and hence training and development is given more emphasis in this model on a closer look to ensure the employee development and that the employees are adopting the strategies and policies so that a high level of staff can be achieved who can deliver their skills and give a better turnover in the competitive environment. Bratton and Gold, 1999) Michigan Model Legge (1995) states that in hard model there is a trend to see employees as to be supervised and mastered following quantitative, intellectual and calculative approach to get ensured that the work force is expeditiously positioned to get the maximum advantage. It is concerned with the no of employees and whether every single person is meeting the goals of the organisation. (Fombrun et al. , 1984).

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While planning the policies one part of hard model; administration need to know what is the turnover rate and is based more on statistics rather than behavioural science of human being (employees) and is more appropriate in sports sector where pressure of work is much more. Furthermore Michigan model is the human resource cycle, which starts from development, move forward to selection, performance, and appraisal and than back to development or to Reward. Related to Bolton Wanderers football club case study

The development of the football club is the important part, but at Bolton Wanderers, it was not a good situation, because those were posted financially and have a high debt burden. The reason was a newly formed football stadium, when in 1999 Sam Allardyce was appointed as manager with the premises to promote the club from First Division to Premier League and to establish there with given opportunity. Moreover Bolton Wanderers ensure that every member was feeling to be a part of Bolton ‘family’.

Furthermore the heavy debt burden effected on selection highly, because they could not attract the best players with huge salary. Thereby they decided to expand their scouting network and academic facilities to afford their own youth to be selected for the first team and prepared to play in a high level. So that many players, who was playing in first team came from their own team. So the club was trying to gain the commitment and goals of the players. The purpose of managing the system of rewards within the organisation is to attract and retain the human resources the organisation needs to achieve its objectives.

To retain the services of players and maintain a high level of performance it is necessary to increase their motivation, commitment and flexibility by a variety of means, including appropriate management style, competitive compensation package and supportive culture (Armstrong and Murlis, 1994). This way clubs align their player and organisational objectives while the reward management is highlighted. Rewards not only comprise of just wages or salaries, bonus, commission, profit sharing but also non-financial rewards like for e. g. opportunities for career development. McKenna and Beech, 2002) Bolton Wanderers offered pay and a reward package to players and coaching staff, which was one of the some lowest costs within the Premier League. In addition the high investment in sport science was made that the player should be fit and can play and also the performance should be good. This technique was attracting some outstanding players because through the operation of these technique was for them possible to expand their playing careers. In addition players could advertise themselves for best club due to good performance.

According to Cowling and mailer (1998) appraisals are essential to get a brief idea about the course of information which constantly elucidates the purpose and aims in pursuit of mutually agreed target between managers and subordinates. There are contradiction like people who support limiting its use, argues that linking it to pay can demoralize attempts to provide genuine criticism and an emotion-free review of strengths and weakness while the others who do think that the pay should be linked to appraisals debate that it helps in motivation and the employee involvement.

In the sports context, employees in those cases receive appraisal from the news-channel, radio, newspaper and public. The satisfaction of the public is very important so they try to receive a good appraisal, which sometimes are not possible. A 360-degree performance based feedback can be done to obtain a collective review of the individual’s performance. A 360 degree, also known as multi-ratter feedback, is an appraisal technique in which ratings from numerous people like peers, boss, customers, team members, staff and self is taken and then from that feedback appraisals are done for the individual. Stone, 1998) Harvard Model In soft model alternative approaches through which problems can be solved are followed. (Beer et al. , 1984). The organisation attempts to balance the needs of the employees with the organisational requirements. The feelings of the employees are kept in mind rather than just thinking them as a mode of earning profit. The employees consent is seen notably. Staff dedication towards work is increased when they are involved in decision making and job design process. Furthermore Harvard model is the human resource system, where employees influence on human resource flow, reward and work system.

Related to Bolton Wanderers Football Club case study As we can find out in the Bolton Wanderers case study training and development has been focused; to understand and learn about the organisation, their policies and implement them in the right way. Training comes under the soft model of human resource management. Training basically means learning the skills that are required in the organisation which is generally structured by the policy makers in such a way that it will develop the individual for the required work.

There are two types of learning- learning as acquisition in which qualifications and skills attained are from formal structured courses; and learning as participation in which learning takes place while participating within the set of fellow workers. (Bach, 2005) Moreover the players and coaching staff influence the work system, through the decision if the player or the coach will work with each other. In Bolton Wanderers was the operation that the player from the youth has not any chance to choose the coach, because the still need a chance to play in first team and think afterwards to move to another club if there is any offer.

Furthermore the reward is influenced by players to deliver a good performance, e. g. Bolton Wanderers was playing in season 2004-5 since 4 Years in Premier League and they also was attend in UEFA cup. Human resource flow conduced to motivated players from other players or coach. It is a high impact of employee staff such as coaching staff and players. Due to it increase the team work and every one is for each other there. Talking about hard model and soft model in the report, when we apply hard model which just focuses on placing skilled people required for the organisations objectives.

Application of this model to the Bolton Wanderers which aims at reducing the costs ultimately leading to control and decrease the debt by following feedback method tells us that even when its important, applying Hard model does help in this case, as skills are required, rather than production. Finding right applicant for the right job is necessary rather than getting them in the job. Right recognition of an applicant is also very important as it saves the time for another recruitment it turns fail and thus, adds up to another cost in the accounts of an organization. Millmore et al. 2007) Conclusion To conclude the report it is better understood and observed that the applications of different models, practices and strategies have different implications depending on which industry we analyse the working and performance of the employees. Industries like banking or financial sectors have different set of rules to handle their employees inclining more on hard models of human resource management. Where the sport industry also being success oriented centring the employees through their performance is inclined towards hard models.

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