System Approach to HRM – Human Resource Management
Learn about the System approach to HRM – Human Resource Management and understand why it has emerged as the leading best-practice approach in the HR industry.
A system approach to HRM involves the use of structured, systematic, and integrated approaches for managing the functions of human resources as an interconnected and interdependent system within an organization.
This methodology takes a holistic view of HRM, considering the interdependence of different HR functions and their impact on organizational performance. Consequently, by adopting this management approach, organizations can optimize their HR practices and align them with their strategic goals. Therefore, join us as we delve into the concept of the system approach to HRM and explore its benefits for modern businesses.
The human resource management approach is the strategic approach to the efficient and effective management of people in an organization.
Understanding the System Approach to Human Resource Management (HRM)
Human Resource Management (HRM) is a crucial part of a company that deals with managing its employees. To make sure HRM works well, we need a methodical approach. This means bringing together different HR activities to reach the organization’s goals.
The systematic approach to HRM means that managing employees is not something separate; it’s all connected. It shows that different HR activities affect how well the whole organization performs. When organizations use this approach, they make sure their HR plans match their business plans. This can make the company more efficient, make employees happier, and lead to the organization doing well in the end.
In the systematic approach to HRM, a big part is making sure that different HR tasks, like staffing, training, and paying employees, all work together smoothly. It’s like making all these pieces of a puzzle fit perfectly. When these HR tasks are integrated, they support and improve each other, so the organization runs more smoothly and everyone is working toward the same goal.
In simpler terms, the system approach to HRM focuses on planning smartly. This means that HR strategies, like hiring and training, need to match the organization’s big goals. To do this, organizations look at what’s happening inside and outside their company to figure out what HR things they need to work on. This way, HR strategies can help the organization reach its goals.
The system approach of Human Resource Management – HRM can be explained as follows:
HRM as a system
It is truly suitable to think of human resource management as a system. For instance, variables function together as a whole in a system, forming an interrelated set. Furthermore, a Human Resource Management System (HRMS) is a comprehensive and interconnected approach to managing human resources. Moreover, it fully acknowledges the interdependence of various tasks and functions within HR.
You can observe this perspective in the figure. Additionally, this approach emphasizes that we must design and implement every variable in the human resource management system with complete knowledge, understanding, and integration of various other elements.
For example, poor recruitment 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 genuinely qualified applicants from which to choose. As a result, training is required to supply the necessary skills to a new employee before he starts his work. Subsequent performance appraisal 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.
The above image 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.
Understanding the system approach to HRM
As the above figure shows, the 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 HRM – human resource management should be approached from the same strategic vantage point that it affords other areas within the organization. Failure to do so can result in low coordination, unexpected results, and less effective performance.
For example, if the organization makes a strategic decision to compete based on high-quality services, 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 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.
Globalization’s Influence on System Approach To HRM: A Global Perspective
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 behaviour.
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 developing 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.
System Approach to Management
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.