System approach of hrm: Learn about the System Approach to Human Resource Management HRM and why it’s becoming the best-practice approach in the HR field. …

The human resource management approach is the strategic approach to the efficient and effective management of people in an organization.

The system approach of Human Resource Management – HRM can be explained as follows:

System Approach to hrm

It is truly suitable to think of human resource management as a system. A system is an inter-related set of variables functioning together as a whole. A human resource management system (HRMS) is an integrated and interrelated approach to managing human resources that fully recognizes the interdependence among the various tasks and functions that must be performed. 

This viewpoint is shown in the figure. The basic premise of this approach is that every variable of the human resource management system must be designed and implemented with full knowledge, understanding, and integration with the various other elements. 

For example, poor recruiting practices may affect the morale and teamwork of the existing good employees, resulting in frequent employee turnover.

Even if the organization has sophisticated selection techniques available, it will not make much difference without a pool of truly qualified applicants from which to choose. As a result, to supply necessary skills to a new employee before he starts his work, training is required. Subsequent performance appraisals will also be more difficult because it may take a longer time before these employees are truly skilled in their jobs, and this condition will affect how much they are paid.

Systems Approach to HRM

Figure: Systems Approach to HRM system

The figure also illustrates another useful systems-based perspective on human resource management – hrm approaches. Many systems are themselves comprised of sub-systems, systems within a broader and more general system. By looking at the entire organization as a system, its members can be conceptualized as a subsystem within that common organizational system.

As the figure shows, the system approach in the hrm & human resource management sub-system both affects and is affected by the other functional sub-systems throughout the organization. This perspective can help reinforce the idea that human resource management must be approached from the same strategic vantage point afforded the other areas within the organization. Failure to do so can result in unanticipated consequences, poor coordination, and less effective performance.

For example, if the organization makes a strategic decision to compete based on high-quality service, it will almost certainly need to use several mechanisms to do so. 

For example, the organization will need to recruit and subsequently hire more qualified new workers and provide more training to both new and current workers. Likewise, if the financial function of an organization dictates that major cost-cutting be undertaken, some part of those costs may come from the human resource area. Thus, human resource managers may need to reduce the size of the workforce, attempt to re-negotiate labour contracts for a lower pay rate, defer payment of some benefits, and so forth.

The increasing globalization of business leads to an increase in competition and also reinforces the need to view the human resource management function from a point of system approach. That is, human resource managers must take a global perspective in managing people. Within the borders of their own country, human resource managers must consider the social norms, individual expectations, and so forth that shape worker behaviours. 

Cross-national assignments for managers are also an important idea for many business and business organizations nowadays. Thus, the global perspective on human resource management includes the need to understand domestic similarities and differences in managing human resources in different countries and the role of international assignments and experiences in the development of human resource skills and abilities.

The system model of HRM is a system that is composed of interacting and interrelated parts to achieve desired goals. The system approach to HRM combines itself with business strategy.

The system approach to management provides a conceptual basis as well as guidelines for establishing a more efficient system for planning, organisation, directing and controlling the organisation. 

These approaches explain the system approach to hrm from different perspectives.
1. Human resource approach.
2. Management approach.
3. Commodity approach.
4. Strategic approach.
5. System approach.
6. Proactive approach.
7. Reactive approach.

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