CRITICAL EVALUATION OF CONTEMPORARY HUMAN RESOURCES MANAGEMENT: THEORY & APPLICATION

Recently, I was invited to participate in a project interview. The task was to critically evaluate contemporary Human Resources Management theory and application. Since the project is now behind us I consider it worthwhile to upload the content to this platform for some of us that have flair for HRM projects.

I intend to answer this question using a qualitative research method. To this?end, I want to start with the typical definitions expounded by authors and Human Resources Management (HRM) experts.

At this juncture, a brief account of the organization and structures as a dynamic entity. Then evaluate contemporary HRM theory and apply it to its practice at Dangote Pasta Limited.(ijser.org 2020)

The next issue in my effort to critically evaluate HRM theory and organization's practice will be to consider the recent policy of retirement age in Nigeria, from 'resource', 'social exchange' and 'high performance' definitions of HRM.? 35

INTRODUCTION?

It's been a long while since management theorists and experts like Peter Drucker, established the the critical importance of employees recruitment, training and motivation to create value and enhance the productivity?of the company. Then, large organizations created separate personnel management departments, a mediator between the organization and it's employees; symbolizing also the significant role motivation for employees is expected to bring in.?

Of course, in a fast-developing and automated world the limitations of personnel management was becoming apparent and soon gave way to a more elevated platform of Human Resources Management.

This humble recognition of employees' contribution by the creation of a special department has since metamorphosized into Human Resources Management, courtesy of authors like Michael Armstrong. This milestone is also a recognition of its role as a broader and strategic approach to employee affairs.?

Human Resources Management is defined differently by authors. A common broad definition that experts use is that which comes in three parts:?

a) resources-based is HRM which sees employees as part of the organization's assets; that's slavish!

b) social exchange-based theory is another that considers staff like partners in mutual relationship with the company, - Schular and Jackson 2014; that's better, but certainly not the best.

c) high performance work system theory requires deeper collaborative, innovative and tech-backed relationship with employees. This sounds more like it but always room for improvement.?

However, I chose this broad definition to save time in distinguishing HRM from Human Resources Development (HRD). Although both of them are mutually beneficial to the organization's growth their emphasis and objectives differ.?

While HRM strives to setup, maintain and develop relationships between organizations and employees, HRD which actually cultivates employees provide training, development schemes, skills acquisition, career paths, train-the-trainer programs etc to help employees grow in health, diversity, value and productivity.?

The main purpose of establishing business organization in a capitalist economy is essentially for profits. Whether we discuss about Dangote groups, Nestle plc that manufacture products, or Cash Registrars Ltd that offer services, they were set up by their owners as businesses to make profits.

In other words these business men and women conceptualized profit-making ventures, formalised the ideas and got approval from the Corporate Affairs Commission to offer such businesses with ancillary duties and compliances. Incidentally, their first set of employees are actually themselves - promoters or pioneers.

It is normal for every organization to define its owners,uu objectives, how the company would be run. All these have been laid out in the Memorandum and Articles of Association. That's where you look for the company's Plans and Control. Needles to say the strategic words: plan an control already implied that the pioneers have created opportunities for more hands to come and collectively participate in the profit-making ventures. 69

It's now clear that if the businesses started as? enterprises, they're no longer in this category. These people who started the businesses till this time when more hands are recruited into the businesses are the management. Sooner or later, a qualified personnel would be recruited to 'manage' issues relating to employees and human beings in the organization.57

At the point where the organization recruits 'personnel staff' the coordinating role of HRM can be said to have commenced. Numerous studies exist which showed that most personnel department and HRM started this way.34

Although companies dictate their HRM policies but large organizations like Nestle plc, Cadbury plc, Dangote group etc. tend to follow global standards set by McKinsey, Price Waterhouse. For some shareholders and stakeholders that may waste of resources unnecessarily, because they're not bound by those global, instead HRM should not cost the organization an arm and a leg. 57

I now appraise a research work titled: "An Analysis of HRM Practices and Quality of Work life in Dangote Pasta Limited."

This work was done in 2020 by International Journal of Scientific & Engineering Research vol.11, Issue 12.? ? ? ? ?37

"The objective of the studies, which is to determine the effect of performance appraisal on quality of work life to identify the effect of compensation on quality of work life and assess the effect of training and development on quality of life in Dangote Pasta Limited.". 46

The findings were positive showing that the scientific approach evident in modern HRM practices definitely and significantly reflect on employees compensation and quality of work life.? 26

Since fingers are not equal in length my critique in this regard is that the general applications of modern HRM practices are bound to display these positive tendencies, but the size and strength of the organization's should be taken into account when applying the call conclusions and recommendations. 39

For instance Dangote Pasta Limited employees were relatively small and manageable 345 with 107 participating in the survey. If we undertook such research work at Nestle Nigeria plc whose employees strength was 2,300 then, about N244 billions revenue and more than 60 years history and practice of HRM in Nigeria, there certainly would have been slight variations of the outcome.? 60?

One of the policies of HRM? that takes centre-stage of organization's administration is that which encourages recruitment of employees within their productive years. Some of the benefits factored into the policies includes, training, promotion, growth, compensation, allowances and ancillary rewards.41

This may sound favorable to the employees in some instances, especially when you consider the fact that some of may not leave the employment to pursue any other vocation or education or even recreational activities except when permitted or on vacation.41

Hence from resource based HRM theory employers are taking advantage of employees in the sense that the latter are considered as assets of the company. For instance a policy that adopts fixed retirement age is bound to clash with other compensation policies. 42

When employees are considered as assets of the company is it morally right for them to be suspended, being investigated or removed without their emoluments? 25

Recently this issue became a challenge to various hierarchies of Nigerian governments. Before then the fixed retirement ages differ.? There were adjustments in the retirement ages of members of the judiciary, especially judges of Apex court to 70.? 38

Meanwhile the policy for public sector employees have been two options for exit; 35 years of active service or 60 years attainment, whichever comes first. Recently this has also been adjusted to 65 years. If an employee must leave simply based on the fixed parameters, then the training development efforts of the company, skills and his/her experiences may be wasted. The talents and personal ingenuities would be going with them and may be deployed by competitors.76

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Let me turn to the definition of employees as social exchange which for me is a little shift from the 'slavish' asset one just considered. At least recognition of employees not traditionally as master and servants is an advancement over the the former. That definition embodies element of mutually beneficial engagement with both sides having a sense of commitment over results.?

Having stated earlier the purpose of every business venture as profits which comes as a result of the total activities of all the stakeholders; it becomes apparent that only the spirit of mutuality embodied in this definition would ginger stakeholders to succeed as a business venture.

This type of relationship is supported by certain works authored by Schular and Jackson in 2014. ijser.org?especially when they described modern HRM is a system of employees management that attracts, develops and retains.

The third arm HRM theory is one which defines it as high performance system. Although no definition can be said to be final, it expanded and incorporated all the positive elements of the first and second one. However, it didn't stop there. That definition, for many modern HRM proponents is the foundation of innovations and HRM development in the 21st century.

The aim of this definition is tantamount to how China transformed her 'green' to 'bullet' train. Green train has been in operation for decades. The main feature of green is symbolized by one engine that drags as many wagons as the train was built with. This feature affects its speed. Several years after, innovations and tech engineers thought and wisely so, that the new train in their minds should have built-in engine for each wagon. That's how 'bullet' train was introduced. So rather than one engine pulling 15 etc. wagons, each of the 15 wagons runs the highest speed each engine could enable, and that's tremendous speed for 'bullet' train.

Extrapolation of this scenario to modern HRM theory the high performance work system is now the most up-to-date version of HRM from personnel management era till the introduction of Human Resources Development (HRD) and the commanding height of HRM.

The reasons are quite clear.? High performance work system incorporates deeper collaborative and mutual relationship by stakeholders. Not only because the end is expected to justify this process, but because almost all the new researches and works are pointing to this direction. It would be palpably anomalous to opt for something else.

This is a definition that aims at innovations. During the years of companies operating with personnel management, office automation were rare. Employees were largely drawn from non-educated population for manual and blue collar jobs.

The intervening years proved that there was need for change. There was need for blue collar employees train and retrain. There was need to rejig existing employees, replacing a lot of them with much more educated ones.

This definition is backed by technology. We already know that technology is a huge change in itself talking about productivity; it came to enhance productivity. These changes produced further startling innovations as by-products.This is the working and modern definition for HRM today?

I remain Ikechukwu Odoemelam I IPlawyer I Copywriter I Digital Marketer I Blogger