System Approach to HRM – Human Resource Management

Approach to hrm: 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.

This methodology takes a holistic view of HRM, considering the interdependence of different HR functions and their impact on organizational performance. By adopting this management approach, organizations can optimize their HR practices and align them with their strategic goals. Join us as we delve into the intricacies 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.

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 interrelated 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 the 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.

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 of 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 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 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 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 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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