Critical Analysis of the People Management and Development Policies and Practices at Construct It

Topics: Management, Human resource management, Strategic management Pages: 8 (2424 words) Published: July 28, 2010

The purpose of this report is to give a critical analysis of the People Management and Development policies and practices at Construct It, with particular reference to how they integrate their “fit” strategy under the pressures of the impact of change, whilst managing their primary source of organisational competitive advantage – people. This report will have the reoccurring theme of the importance of the Line Managers whose role is directly involved with employees, given the trend of devolution of Human Resources practices and procedures. The extent of organisational performance is very well dependent on the quality of leadership behaviour and satisfaction with Human Resources Management practices. People Management and Development can be defined as the management of people to achieve individual behaviour and performance that will enhance an organisation’s effectiveness. This effectiveness of the workplace depends heavily on the level of engagement with, and influence on, employees in order to maximise their performance on the added value to customers. Its approaches aims to, amongst other things recognise people as a strategic resource for competitive advantage, give ‘people issues’ the right level of consideration as a form of strategy formulation and implementation of how they can add value to the business, and thus proving a connection between people management practices and organisational profitability. There are various schools of thought as to which approach is the best strategy, but various aspects of them are usually found in every organisation, whether by accident or deliberate strategy, and at Construct It they seem to be using a combination of these strategic situational contingencies. The Universalist or best practice approach suggests that there is a one best model approach, regardless of the competitive strategy of the organisation (Torrington 2008). This model is based on four Human Resources policy goals including Strategic goals, Commitment, Flexibility and Quality. Based on these premises Construct It has fairly assumed these approaches for instance in their development schemes. Unfortunately the schemes enacted to develop workers might not be working effectively if the lesser employees are not up to the standards of the job requirement. This will impact heavily on operational level of organisation, and it will be difficult to train such employees to grow in the organisation as human assets. On the other hand, there can be seen a strong binding system of processes in the method of hiring workers which initially gained the firm the advantage of competent workers to get most of the jobs done properly and in time. However this strategy has been useful up to the extent of the capacity of the managers to keep the increasing workforce working efficiently and effectively. This shows that the effect of best practice will be maximised when the right policies are used properly(Torrington 2008). The best fit or Contingency theory believes that what works best depends on the circumstance of each organisation. Construct It may not have properly adopted this approach as can be seen from the culture of a laissez-faire environment, where there are few rules and regulations. With a workforce that has multiplied to four times its initial size, even the incentives of a cheerful teamwork and a large bonus is eventually weighed down immensely by economies of scale. Also, the company is currently relying on a relatively inflexible method of recruiting skilled professional workers. Although this is a cost-effective method of getting their work done it is at a larger cost to the company of losing these workers to larger wages. This means that the company currently has no competitive edge over other recruiting companies as labour markets gets tighter in the economic conditions. Resource based view has it that

Section one.

Best practice...
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