FACULTY OF COMMERCE

GRADUATE SCHOOL OF BUSINESS

GENERAL MASTER OF BUSINESS ADMINISTRATION

COURSE HUMAN RESOURCE MANAGEMENT

COURSE CODE 5266

STUDENT NAME ACSILIA M KUTAMAHUFA

STUDENT NUMBER N01910356J

LECTURER Dr. T. NYONI

YEAR 2020
Introduction

Human Resources Management (HRM) is defined as the policies, practices and systems
established by an organization that shape employees’ behaviour, attitudes as well as performance
towards their job[CITATION DeC05 \l 1033 ] . [CITATION Sin16 \l 1033 ] define “HRM as the policies,
procedures and systems that influence employees‟ behaviour, attitudes, and performance”. It
involves all the activities required to recruit, employ, develop, reward and manage the people in
the organisation.

Background of Paikim International

Paikim International is an Agro based business whose specialty is on contract farming and
poultry production. Its workforce is made up of 50 permanent employees, 15 students and 10
postgraduate trainees,100 contract workers giving a total of 175 employees. It has 5 departments
among them is Human Resource(HR) department with an HR executive, HROs, Attachees and
PGTS. The HR executive seats in the company’s recruitment and remuneration committee which
is a subcommittee of the board. The department is well represented in board meetings as well as
strategic meetings

1.Assumptions and beliefs underpinning HRM at Paikim International

Paikim International as an organisation perceive the following as assumptions and beliefs
underpinning HRM.

1.1 HRM as a source of competitive advantage

In 2017 Paikim investments adopted the resource based view of management which argues that
organizations should look inside the company to find the sources of competitive advantage
instead of looking at competitive environment for it. As a result, the assumption at Paikim is that
people are the organisation’s key resource and organisational performance largely depends on
them. It therefore follows that the company has developed and implemented an appropriate
range of HR policies and processes to ensure that HR will make a substantial impact on the
company’s performance. In recent years Management schools have begun to appreciate the
importance of human resources as a source of competitive advantage [CITATION Box16 \l 1033 ].
Paikim recruits critical human resources and then establishes HR systems that improve their
potential. This is based on the Storey Model’s notion that people and developed systems are
difficult to be copied by competitors hence they provide a source of sustainable competitive
advantage. According to [CITATION Arm06 \l 1033 ] , the overall purpose of HRM is to ensure that
the organisation is able to achieve its success through people. In this regard, Paikim has
integrated HRM with strategic management to achieve its organisational goals.

In line with the resource based view, Paikim has adopted the soft model of HRM that stresses the
importance of integrating HR policies with business objectives while emphasizing on treating
employees as valued assets and a source of competitive advantage through their commitment,
adaptability and high quality skill and performance. At Paikim, employees are active inputs into
the productive processes, capable of development, worthy of trust and collaboration which is
achieved through participation. In this regard, employees are consulted and participate fully in
decisions that affect them through the worker’s council comprising of members of the worker’s
committee.

1.2 Paikim’s success is based on the commitment and capabilities of employees not on mere
compliance
Paikim adopted the assumption by Storey’s model which says that the employer's goal should
not merely be to seek employees' compliance with rules, but to strive for commitment and
engagement that goes beyond the contract. According to McIntre 2014,[ CITATION Mah98 \l
1033 ], compliant employees only do what they are told. Managers who believe in a compliant
philosophy would have to enjoy giving orders and hope that employees enjoy taking orders.
Committed employees, on the other hand, seem to see what needs to be done, and they do it no
matter what it takes. However, Paikim has employees who are committed to their work with
creativity and innovative ability for better, cheaper and faster results. This is seen by employees
who go out of their way to ensure that company goals are met including taking extra time to
ensure that company targets are met[ CITATION Aja15 \l 1033 ].

1.3 Careful selection and development are central to HRM.

According to [CITATION Sch00 \l 1033 ] “more and more companies are recognizing the
importance of managing their human resources as effectively as possible”. [CITATION Sch00 \l
1033 ] highlight that “SHRM is largely about integration and adaptation”. [ CITATION San10 \l
1033 ]identifies that recruitment and selection lie at the heart of how the business perceives the
human resources required to sustain a competitive advantage over their competitors. Paikim’s
HRM recruitment process involves the sourcing, advertising and interviewing of future
employees, however the selection process entails the staffing and training of new employees in
their new job role[ CITATION San10 \l 1033 ]. In order for the organisation to sustain
competitive advantage, Paikim takes each step in the recruitment and selection process with
careful time and consideration. This considers the fact that decisions made in the recruitment
and selection stage will impact the company in the future. Bad decisions made in the selection
process can create serious costs for an organisation.

2. Policies that drive HRM practice at Paikim Investments

According to Armstrong (2010) “human resource policies are continuing guidelines on the
approach the organization intends to adopt in managing its people. A policy is a guiding
principle used to set direction in an organization. It should be used as a guide to decision making
under a given set of circumstances within the framework of objectives, goals and management
philosophies as determined by senior management (Reddy 2018). Paikim’s HR policies have
provided the organization with a mechanism to manage risk by staying up to date with current
trends in employment standards and legislation. The policies are grouped as follows;
2.1 Health and safety policy

Paikim policies are concerned with protecting employees and other stakeholders against the
hazards arising from their employment or their links with the company. Safety programmes deal
with the prevention and minimization of accidents at workplace that results in loss and damage
of people and property (Armstrong 2009). They relate more to systems of work than the working
environment, but both health and safety programmes are concerned with protection against
hazards, and their aims and methods are clearly interlinked. The achievement of a healthy and
safe place of work is the responsibility of everyone employed in the organization. In this regard
the organisation adopted a zero accidents policy that will see a reduction in workplace accidents.

2.2 Workplace Diversity Policy

This policy at Paikim, is an umbrella title for strategies that recognise and accommodate the
differences in ethnic, cultural and socio-economic backgrounds, different religious beliefs,
sexual orientation, disabilities, family responsibilities, life and work experience of our
workforce. Diversity is an important value of the organization, where each employee is respected
and valued for their differences. Paikim International is committed in identifying and removing
these barriers in recruitment, advancement and retention. This policy maintains the basic
principles of equity, merit and non-discrimination which formed the basis of equal employment
opportunity policy, and puts a new emphasis on valuing workplace differences as good
management practice.

2.3 Training and Development Policy

Organizations need to invest in the training and development of their human capital to enhance
their capabilities and abilities [CITATION Jim13 \l 1033 ].Training and development as an HRM
practice deals with reskilling, upskilling knowledge, competencies and experiences of an
employee (Obeidat et al., 2014). Paikim’s training and development policy recognizes that in a
modern competitive environment, employees need to replenish their knowledge and acquire new
skills to do their jobs better. The organisation would want employees to feel confident about
improving efficiency and productivity, as well as finding new ways towards personal
development and success. The policy emphasizes equality of opportunity for all staff to develop
their knowledge, skills and abilities through a blend of learning methods including mentoring,
coaching, on the job learning, courses, conferences and seminars. The training needs of staff are
identified through Performance Management and Operational Planning in line with best practice
and legislative guidelines.

2.4 Compensation policy

Paikim views compensation practices in a positive way as these practices heavily influence
employee recruitment, turnover and productivity. It ensures that there is consistency in the
determination of employees’ salaries and conditions of service. The company has salary scales
which are premised on the grade of the position. They use the Paterson system of job evaluation.
The salary structure is developed by senior management and is communicated to the relevant
individuals. The salary information is regarded to be confidential between the company and the
employee. It is in this policy where issues such as salary advancement, payment of leave days,
salary increments, etc. are discussed. Compensation policy may include basic pay, overtime,
bonuses, travel or accommodation allowance, stock options, medical allowance, commission,
and profit sharing.

2.6 Performance Appraisals Policies

Conducting performance appraisals at Paikim serves three important purposes according to
[CITATION DeC13 \l 1033 ]
1) providing two-way feedback between employees and supervisors
2) Developing employees and improving their performance
3) Documenting employees’ performance for legal reasons.
In addition, this serves as basis for certain organisational decisions such as determining pay
packages and promotions[CITATION Sri09 \l 1033 ]. Promotion recognises an employee’s
performance and commitment, thereby boosting morale and developing a competitive spirit.
Promotion which is based on fairness plays an important role in assisting employees in achieving
their own career goals as well as organisations in achieving their objectives (Misuko, 2012:68).
3. Key HRM systems and practices that sustain the organisations in the competitive
business environment

3.1 Expert professional recruitment

The HR department in its upgrading system had included the recruitment of specialists who
understand the company’s strategic roles and plays an integral part in shaping its business
success. The executive-level human resource professionals helps in designing job descriptions
and training programs, advising the organisation on where to find the best candidates, and
participate in defining salary levels and rewarding systems that are competitive.

3.2 HR with strategic and leadership positions

To tap into the HR professional’s insights, Paikim International had brought the HRM into the
hiring process more completely. The HRM had been allowed to play a leading role in
determining appropriate recruitment pay and tactics, advising on how much it takes to recruit top
talent, and how company policies can be amended to recruit the best, both now and in the long
term. Thereby taking a leadership role in company strategic decision making. This attraction of
best employees through the core staffing activity of recruitment prompt the sustenance of the
organisation in competitive environment. [CITATION Dar10 \l 1033 ].

Placing the human resources professional in close contact with executive leadership makes HR a
part of the organizational strategy. The HR professional however, is capable of analysing
organizational strengths and weaknesses and diagnosing the issues facing the enterprise and their
human resource implications. They have knowledge about the critical success factors that will
create competitive advantage and hence adopt a ‘value added’ approach when making a
convincing business case for innovations[ CITATION Arm06 \l 1033 ]

3.3 Determination of training programs by HR

In addition to defining employee jobs and required qualifications, Paikim’s HR department
monitors employee activity levels, morale and customer service success to design and implement
appropriate training programs with line supervisors and executive management teams. In current
recession period, organisations need to train their employee to survive, Paikim is playing a vital
role by providing training skills to its employees. Paikim is one of the best Agro industry who
gain competitive advantage in the market by spending a lot on learning and training skills on its
employees and then integrate these skills into its goals and objectives.

3.4 Provision of HR tools in monitoring employee performance

The human resource department had built programs to track those employees who stand out. The
HR professionals are involved in designing and providing employee reviews, hence are helping
in spotting talent and giving advise on how best to groom employees for promotions. They are
providing designated employees with specific training and motivation that help in devising
opportunities for growth, hence serving as our eyes and ears for seeking out the best candidates
that will push our company into a competitive advantage.

3.5 Working environment

HR is a vital asset for our organisation, it is therefore, the duty of Paikim to manage this asset’s
working conditions effectively. Paikim’s human resources are the back bone of the organisation,
because they facilitate productivity, efficiency and effectiveness of the organisation; hence they
deserve to be treated as the most valuable assert and not liabilities. Our company is focusing
more on productivity and increased sales while the HR department plays an integral role in
workforce development. [CITATION Dza16 \l 1033 ] adds that HRM is the strategic and proactive
management of employees in a fashion that guarantees optimal fit between employees, their jobs
and the organisation hence leading employees to reach their desired levels of satisfaction and the
organisation to meet its desired goals

3.6 Reward Systems

In his study, [ CITATION Owo16 \l 1033 ] finds that employees who experienced a high degree of
compensation fairness in their jobs are more likely to be loyal and engaged, mainly because their
perceived fairness will force them to seek to pay back their employer by engagement. In
addition, competency-based rewards and pay enriches the quality of goods/services, and
advances subordinate behavior. Paikim’s compensation incorporates all forms of monetary, and
non-monetary returns for competitive advantage.
4. The key roles the HR practitioner performs in the organisation

Realising the effects of macro environmental factors that include Technology to Legislation and
Globalization including the changes in the modern world of business, Paikim has had to re-
evaluate itself internally and externally in a bid to gain a competitive edge. Structures are
becoming flatter and decentralization is taking place as the organisation attempts to remain
competitive, survive and grow. The HR Executive plays an increasingly vital role in maximising
the efficiency of the organisation’s human resources especially in the wake of all these factors.
As a result HR at Paikim occupies a prominent role with practitioners in the organisation
becoming strategists, business partners, change agents and internal consultants

4.1. Business Partner Role

As business partners, HR Executive at Paikim share responsibility with their line management
colleagues for the success of the enterprise and they get involved with them in implementing
business strategy and running the business (Armstrong 2010). In this case the role of the HR
specialist is to make sure human resource policy and procedure throughout the organization fit
the needs, goals, and aims of the organization and its top leadership.

As the business partner, the HR Executive is capable of analysing organizational strengths and
weaknesses and diagnosing the issues facing the enterprise and their human resource
implications. They know about the critical success factors that will create competitive advantage
and they adopt a ‘value added’ approach when making a convincing business case for
innovations (Armstrong 2010).
4.2. Strategic Role
At Paikim investments, HR practitioners play a strategic role as they help to develop, plan and
implement a wide range of organisational activities which are directly linked to organisational
performance[CITATION Mur03 \l 1033 ]. In keeping with the fact that HR practices and policies
have strategic implications on organisational performance, in making decisions about any
employment related structures HR at practitioners Paikim are able to make strategic choices
[CITATION Box16 \l 1033 ]

As a result, human resource practitioners, contribute to the development of business strategies. In

doing so they adopt an ‘outside-in’ approach as described by Wright et al (2004) in which the
starting point is the business, including the customer, competitor and business issues it faces. The
HR strategy then derives directly from these challenges to create real solutions and add real
value.

4.3. Change Agent

[ CITATION Nel11 \l 1033 ] says organisations that effectively manage change by continuously
adapting their bureaucracies, strategies, systems, products and cultures in response to the impact
of the complex, dynamic, uncertain and turbulent environment of the twenty-first century, are
identified as masters of renewal. Consequently the HR function has become more multifaceted
over the years as the pace of change quickens, requiring a transition towards more value-added
roles, such as the role of a change agent[ CITATION Hol06 \l 1033 ]. Change itself causes high
turmoil at Paikim, thus HR practitioners have to ensure that the change process runs smoothly
[ CITATION Nel11 \l 1033 ] . HR practitioners, as organisational facilitators to change, have to have
the capacity and discipline to make change happen. In this regard, HR practitioners, in change
agent roles, need to develop competencies that enable them to identify and anticipate possible
problems that may arise.

4.4. Internal consultancy role

As internal consultants, HR practitioners at Paikim function like external management
consultants, working alongside their colleagues in analysing problems, diagnosing issues and
proposing solutions. They will be involved in the development of HR processes or systems and
in ‘process consulting’. They deal with process areas such as organization, team building and
objective setting. The HR function mirrors the strategic mindset of the organization’s Board and
CEO to attract, develop, and retain the talent that is needed to ensure the greatest organizational
performance. As a result, a variety of consulting roles has been employed to hone the HR
professional’s competency set while assisting its internal customers or business partners at
Paikim.

5. The HR executives’ perception on what the future holds for HRM practice
In recent years, HR has undergone dynamic shifts in its roles, functions and overall impact in
shaping organizations. According to the HR Executive, need for a digital transformation from
operating in a traditional shell is no longer an option. The sooner the shift happens, the higher the
chances of survival. The challenges is that, most of the HR leaders remain confused and
overwhelmed by so many new additions, thus facing a risk of extinction. They are either
struggling to adapt to this digital era or ignoring change altogether. Without a doubt, a large
cloud of uncertainty does prevail in the minds of HR leaders across the globe in the backdrop of
an inevitable and relentless change. These changes are also bringing about a huge transformation
in the role of HR.

HR has been evolving a lot as a function in the last couple of years. The war for talent has been
increasing, and as a consequence organizations are looking at HR more prominently than before.
A lot of the future of HR will be decided by the investment of top leaders in some of the most
serious challenges HR is facing today. The changes happen slowly so most challenges will not be
addressed and solved in the short run. Modern businesses face constant change, companies are
facing a constantly evolving landscape that is increasingly complicated and unpredictable.
Therefore, HR practitioners need to facilitate organisational change and implement the necessary
HR practices to ensure success [ CITATION Joe06 \l 1033 ].

Companies today are operating in a volatile, uncertain, complex and ambiguous (VUCA)
environment. With the rising prominence of talent, HR has a tremendous opportunity to have a
significant impact on business. With the changing nature of work increased globarisation, the
growing need for specialised skills, mobile social and other technologies are now enabling
greater collaboration and new processes. As the world of business and work evolves HR is
facing new demands thus it will need to rethink and adapt its mission and operations.

Globarisation has impacted on the flow of products, services talent and knowledge across the
developed and developing world. This has opened up markets and companies will need to
intensify their efforts to explore opportunities and business capabilities that take advantage of the
markets. In this regard companies will increasingly depend on building agility rather than relying
on periodic initiatives. As a result, HR practitioners find it necessary to develop their capacity to
attract develop and retain high level talent in the emerging markets. This requires them to
develop change management skills which include the capability to think strategically, engage
employees, facilitate change and exceed expectations[ CITATION Hay06 \l 1033 ].

Developments in information and technology has enabled employees at all levels to work
virtually while easily collaborating and sharing ideas both internally and externally. In the world
of increasingly advanced technologies the nature of work changes thus impacting on the
traditional approaches to human resources management. At the same time technology is creating
new possibilities for supporting the workforce. HR can take advantage of technology to reach
employees in a more comprehensive way.

In conclusion it can be seen that the ever changing nature of work presents both challenges and
opportunities for the human resources practice. In as much as technology and globalization are
pushing change, they at the same time enable HR to keep up with the volatile environment. The
future is therefore crucial for HR to evolve and become a key role in any organization.
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