Introduction
According to the universalist approach to human resource strategy, the best practices that are associated with many HR issues must be executed by all organizations regardless of how different and unique various firms. Some of the best practices in HR that apply globally include recruitment and development, the training of workers, and employee motivation, among others (Armstrong & Taylor, 2020). The universalist approach is also commonly referred to as the best practice approach. According to the best-fit method, several human resource policies are more superior than others, and they are applied to diversified circumstances and situations.
One of the strengths of the universalist approach to HR is that it leads to better performance in organizations. The global policies are transformed and revised and are applied to all organizations, leading to more success (Arnold, Cooper, & Robertson, 2010). For instance, there are comprehensive policies regarding the process of recruiting and developing new employees in the workplace. The hiring design is consistent in all organizations. Similar rules are followed. For instance, it is required that resume and phone screening must be done when hiring and candidates must be tested and interviewed before selection to ensure that they are competent and fit for the various positions (Beardwell & Claydon, 2010). All organizations across the globe are required to conduct a fair and transparent recruitment procedure to select the right and best candidate on the basis of their merit and relevance to the position they applied. Effective selection and recruitment procedures often lead to better organizational results (Arnold et al., 2010). For instance, hiring the best employees and candidates leads to better service and product delivery, therefore, leading to better general performance.
The other strength of the universalist approach to human resource is that successful combinations of practices can be successfully done. The method allows several practices to be incorporated in all organizations regardless of their activity areas (Bingham, 2016). Therefore, firms can provide employment security, coordinate teamwork, and train employees exclusively, among other practices. Moreover, there is a coherent appraisal system in all organizations, and the inductions programs are also sophisticated but with a similar goal of achieving organizational success.
The universalist approach also leads to high motivation in employees. The various policies protect the interests of workers from the time of recruitment to when they start working. Activities like employee training and retention procedures lead to high motivation, thus leading to increased organizational performance (Armstrong & Taylor, 2020). Highly motivated employees also lead to a highly competitive advantage in the market.
One of the weaknesses of the universalist approach to human resource is that it is not clear who benefits from the scheme. The plan does not explain if employees should have a say during decision-making. Managers and shareholders are granted all the power to make their decisions solely, a practice that may affect employee motivation and performance (Bingham, 2016). Secondly, the universalist approach aims at organizations sustaining their competitive advantage (Beardwell & Claydon, 2010). Most of these firms try to be competitive by offering high salaries and remunerations to their employees. Although the wages seem attractive, employees may experience work intensification, which could, in turn, reduce their output and decrease organizational performance.
The other significant limitation of the universalist approach is that learning can be hindered, and the strategy can impact a business negatively. Issues may arise when those who are responsible for certain activities fail to be keen on the associated dynamics.
The Contingency Approach
According to the contingency approach in human resource, there is no specific way of management. The activities that organizations perform are entirely dependent on the environment and present circumstances, and there is of particular way of doing things. Such activities include planning, control, and leadership, among others. Managers who use the contingency approach look at the current situations at their organizations an make the solutions they consider best to solve the problem at hand (Armstrong & Taylor, 2020). The decisions managers make are based on knowledge and experience and not any principle or law. Organizations that use the contingency approach learn from the mistakes made in the past and derive policies to deal with similar issues that may occur in the future. One of the characteristics of the contingency approach is that it depends on both the internal and external factors of an organization (Arnold et al., 2010). For instance, the decisions made can be determined by the employees or competition. The approach also depends on the complexity of the issue and the circumstances at the moment.
Due to the nature of the contingency approach, managers find the strategy to be advantageous and useful. One of the strengths of the method is that it is adaptive (Beardwell & Claydon, 2010). Therefore, organizations become flexible in their decision and policy-making processes. Accordingly, policies are adjusted according to how the environment changes. The second strength is that the approach makes it possible for managers to critically assess a situation, evaluate all the factors, and make the best decision in a present case (Arnold et al., 2010). Therefore, the approach allows the scope of variables to be used that may affect the organization in the future.
The third strength of the approach is that it widens the scope of leadership. Managers get to learn better leadership styles, more knowledge, and get a better understanding of various situations that enable them to make the best decisions in different and diverse situations.
The other strength of the contingency approach in human resource is that companies are granted the power to choose their leaders that are best for the leadership styles practiced. However, the theory does not expect that all leaders should efficient in decision-making or in their leadership styles in the organizations (Bingham, 2016). Instead, the theory gives managers an opportunity to learn as they solve problems.
The leading advantage of the contingency approach is that it offers a dynamic strategy of leadership. Managements of different organizations discuss the best and most pleasant way of leading. Several factors are considered. For instance, there must be a strategy to approach workers, and also it is dependent on the nature of work performed in the organization.
Finally, employees are granted various options (Arnold et al., 2010). For instance, some managers find it necessary to involve employees in decision-making processes, thus enabling them to have ideas and make the business grow (Armstrong & Taylor, 2020). In the universalist approach, managers and other leaders follow policies and make decisions based on international standards, and employees may not be involved in decision-making.
One of the weaknesses of the contingency approach is that there are no single and unique solutions to particular problems that face organizations. Therefore, managers have the power and freedom to look for solutions that seem to be the best (Beardwell & Claydon, 2010). The process of searching for solutions every time an issue rises leads to wastage of time and resources. This point contrasts with the universalist approach since there are already defined solutions that are taken and implement upon the occurrence of a problem.
The second weakness of the contingency approach is that not all management issues can be solved similarly. The plan requires managers to analyse several complex situations and consider the factors involved to make a credible decision every time a unique problem arises (Armstrong & Taylor, 2020). Due to factors like limited time, it becomes challenging for managers to dig deep and think critically. The situation may lead to the making of hasty decisions that may adversely affect the organization.
The other weakness of the contingency approach is that it is not always feasible for managers and other leaders to consider all the factors in a given situation and evaluate the variables involved. Various constraints often affect the decision-making and problem-solving processes. For instance, time, recourses, and funds may be limited (Arnold et al., 2010). Therefore, it may be challenging for managers to gather and obtain all the information they require to solve a particular problem. All the necessary information required to analyse variables may also be limited.
The third weakness of the contingency approach in human resource management is that it is fixed and thus complicated. There are no pre-defined solutions to problems. Hence the method is situational (Armstrong & Taylor, 2020). Therefore, the strategy is fully dependent on how leaders adjust themselves upon being faced with an issue. The decision to be made must be from the perspective of the betterment of the firm. Decision-making processes become easy when managers and their subordinates work in unison to achieve organizational goals and objectives.
The other issue of the contingency approach is that there is insufficient literature explaining what should be done in specific circumstances. Therefore, a managerial decision primary depends on the given situation.
The Conditions Under Which HR Strategy May Help A Firm Secure Competitive Advantage
Human resource strategy is created by organizations to help them achieve specific objectives in the HR field and in the general development of a company. Most organizations use the 4P's of marketing to gain a competitive advantage. One of the conditions that may HR strategy assists a firm in securing a competitive advantage is if an organization offers the lowest prices for goods and products in the market (Armstrong & Taylor, 2020). For a firm to minimize the cost of its goods and products, it must ensure that profit must be maximized by drastically reducing the operation expenses. One of the strategies that firms can use to reduce operation expenses is through obtaining human capital from independent contractors (Bingham, 2016). Other methods of reducing costs in the business should also be incorporated into the plan to assist in achieving significant profits (Arnold et al., 2010). The use of offshore vendors is also a viable method of reducing expenses in an organization.
The second condition that HR in an organization can use to achieve a competitive advantage is that products and services must be differentiated. Organizations must be creative and look at their ideas from different perspectives to different products and services and create new ones if possible (Beardwell & Claydon, 2010). Ideas can be derived from anywhere, and other resources could be used too. For instance, equity partners and an organization's board members could assist by giving ideas on how to conduct product and service differentiation (Arnold et al., 2010). However, it is also crucial to include employees in such discussions since they are the most significant sources of innovation and ideas. For instance, organizations must allow employees to work on their projects by giving them free time during some sections of the week. The projects that employees work on do not need to be ready for application, but they contribute significantly to the development of popular products.
The third condition that HR strategy may assist an organization in achieving a competitive advantage is by ensuring that employees are...
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