Comparison of Human Resource Management Practices

Question: Discuss about the Comparison of Human Resource Management Practices. Answer: Introduction: The term Human Resource Management (HRM) is defined as formal systems which are used in an organization for the management of people. Human resource manager is responsible for managing the core areas of organization which directly affect the human resource of an organization such as recruitment selection, training and development, performance management, staffing, compensation, and industrial relation. The main aim of HRM is to increase the productivity of an organization by utilizing the effectiveness of its employees. Many scholars stated that managing human resource is difficult in comparison of managing capital (Swathi, 2014). In this essay, the main point of discussion is applicability of policy related to Human Resource management in three different countries that is Austria, Germany and Sweden. This paper states the comparison of three elements of HRM that are recruitment selection, training and development, and performance management between the abovementioned countries. The comparison between these three countries is summarized in a comparative table which is stated in the body of the essay. Subsequently essay is followed by brief conclusion. Human Resource management: Human Resource management is the function that deals with the management of people in the organization, and it covers all the issues related to employees of an organization. HRM is a strategic and comprehensive approach which is related to human resource of an organization and management of culture of the company.Some definitions of HRM are stated below: According to Michael Armstrong, HRM is an approach which is strategic in nature and deals with acquisition, motivation, development, and management of the human resources of an organization. The main aim of HRM is to create appropriate corporate culture, and also introduction of such programs which reflect and support the core values of an organization (Armstrong, 2014). Edward L. Gubman stated in the Journal of Business Strategy,that the main aim of HRM is to acquire, develop and retain the talent in an organization, make sure that workforce is aligned with the business, and contributes their best to the business. He further stated that these above mentioned challenges never change (WebQuest, n.d.) Irving Burstiner stated in The Small Business Handbook that hiring the right people in the organization and providing the well training can fulfill different objectives such as business growth and availability of sufficient resources for livelihood of employees. Personal problems are found in every size of business because problems do not discriminate between small and big businesses (Burstiner 1988; Galang Carman, 2016). Structure strategies of HRM: In Austria, employment status is unified by taking many new steps, and organizations also try to adopt new strategies for the promotion of mobility among their employees. Strategies in HR projects: Following strategies are adopted in human resource projects in the organization of Austria: Development of competency of employee. Reform of civil service period. Decentralization of topics. Promotions of employees are based on equality or diversity. In Germany, employees are divided into two groups that are public employees and civil servants. Employees are employed under the principle GEF and they are regulated by the Act on Federal Civil Servants. Strategies in HR projects:Following strategies are adopted in human resource projects in the organization of Germany: Training and development of employees. Projects related to recruitment of employees. Tools are used to motivate the employees. Issues in HR are analyzed on continues basis, and organizations take action to resolve them. In Sweden, legislations related to employment are very similar for both public and private sectors, and there are some additional provisions also which deals with the misuse of public power by officers. Only 1% public employment is on statutory basis. There are many contracts which are on fixed term basis, and these contracts are for few months or for several years. Strategies in HR projects: system in Sweden is decentralized and HRM is the responsibility of each agency of Swedish government. Local agency has power to develop their own HR strategy, but these strategies must comply with law (Luxembourg, 2005). Difference and similarities in HRM policies: Recruitment process is governed by the Act on the Advertisement of Vacancies 1989, and also stated the procedure of appointment depending on the post of employees. Procedures stated by Acts include examination, direct applications and direct interviews for taking entry in the specific groups delegated to the organization level. All the posts in the relevant organization are open for internal and external applicants. This Act also stated few policies which are specially designed for under presented groups. There is federal policy which mandates the preferential treatment in case of female applicants. Act also stated obligation on private and public sectors to employee at least one disabled person in their organization for every twenty five non disabled employees. In Austria, there is less use of performance assessment in making HR decisions as compared to other two countries. Performance assessment is necessary for all employees in organization under GEF, and it is discussed with superior in meeting which held every year. Criteria related to performance include activities conducted by employees, quality of outputs, timeliness of outputs, and improvement in competencies. These performance assessments are important for taking decisions like contract renewal with employee, and promotion or salary advancement. Training and development is the another important strategy of human resource management in Austria, and all employees receive training after their entry in organization. This training is different according to the position of employee in organization. Recruitment system in this country is depends on career- based system. In public sector entry in organization is based on the competitive examination for particular post with process of selection managed at particular level of organization. Posts are not open for external applicants. There are only 41 annual leaves per year. However, some measures are taken to increase the use of recruitments through external sources in case of professionals. There is provision to give preference to disabled person in job interviews and selection process. Female candidates also get preference in the selection process,and there is target of 12.2% to hire female candidates in top management, 14.41% in case of middle management, 26% of professionals, and 20.5% in department of technical support (OECD, n.d.). As compared to other countries Germany make most use of performance assessment in making HR decisions. Performance assessment is important for all employees, and it is discussed with superior in meeting which held in every 2 years. In these meetings superior also give written feedback on the performance of employees. In Germany, organization did not give much importance to performance assessment in case of remuneration. Strategy related to training and development is another core area of human resource management. After the entry in public sector it is necessary to provide training for the period of one week at initial stage. The procedure and pattern of training is different as per seniority level. As compared to other countries Sweden use the recruitment system which is most high position based, and it is also based on merit and skills. All the vacancies available in the organization are published externally, recruitment firms and centers are used, and HR department used list of shortlisted employees. External recruitment are preferred in case of top management and there are provisions which deals with the women and disabled persons. Performance assessment used by Sweden is high as compared to other countries, and assessment is compulsory for all the employees in the organization, and Performances of employees are discussed with their immediate superiors in annual meeting. Some agencies used feedbacks. Organizations used number of strategies such as activities undertaken, quality of outputs given by employees, and effectiveness of work and improvement of competencies. Performance assessment is important for the purpose of remuneration and career advancement. There is no routine training for central government employees, and organizations does not give much emphasis on the training and development programs of employees. Following table shows the difference of HRM in above three countries: Factors Austria Germany Sweden Recruitment Process Recruitment process is governed by the Act on the Advertisement of Vacancies 1989. Recruitment process is based on career based system, and entry in organization is based on competitive exams. In Sweden, employees are recruited on the basis of their merit and skills. Recruitment system is based on high position. Performance Assessment PRP is used in the form of one-off bonuses which can be represented as 15% of base salary. In comparison of other countries Germany use more performance-related pay. PRP is used in the form of one-off bonuses which can be represented as 6-10% of base salary. PRP mostly used by the Sweden, and this country lies in the upper region of the range. PRP is used for maximum employees, and it is accounted in the range of 3-5% per year. Training and Development Training received by employees in Austria is up to 3-5 days per year (OECD, 2012). On average basis employees in Germany receive training almost 1-3 days per year (OECD, 2012). No routine training for employees. Training received by employees is up to 7-10 days per year (OECD, 2012). Cultural Similarities in HR policies: There is no awareness related to classification of national culture at global or European level which set any difference between Austria and Germany. Micro perspectives related to differences in culture are working with the concept of cultural standards, and it shows the clear difference between the managerial behavior in Germany and Austria. However, when we consider the things at macro level there are many similarities in the culture of these two countries. Finding of Trompenaarss shows that culture of Sweden is more similar to the US culture as compared to Germany and Austria. Comparison between managerial practices of three countries that is Austria, Germany and Sweden shows that top and second level management of Swedish organization participate more and their behavior is more democratic as compared to other countries. Germany stands on average position. Consideration of Cultural difference between the three countries is less because most of the times all three countries are treated as part of North European group. Industrial relation is important factor of HRM, and comparison on the basis of this factor shows that there is no much difference between Austria and Germany, but in case of Sweden difference exists. For example: in Austria and Germany there is dominant form of worker representation in the organizations, and work councils are elected by complete workforce. Whereas in Sweden shop stewards has co-determination rights, and th ese shop stewards are appointed by their union. It must be noted that employee representatives and trade union directly affect the decision of organization in all three countries. There are lots of similarities in the development of function of human resource (Hyman, 2015). After considering the cultural similarities, institutional environments, and HRM trends we can state that very fewer differences are stated in HRM policies of Austria, Germany and Sweden. However, some differences are stated in the HRM policies of Sweden but there is no difference between Austria and Germany (Mayrhofer, 2017). Conclusion: In this paper all the explanations related to differences and similarities in HRM policies of Austria, Germany and Sweden are stated which are supported by relevant evidences. The differences are based on three factors of HRM that is Recruitment process, performance assessment, and training and development. Above factors shows clear evidence related to differences and similarities between Austria, Germany and Sweden. After considering the above evidences it is clear that difference between two Germanic countries that is Austria and Germany are less as compared to difference between two Germanic Countries and Sweden. The difference between all three countries is based on number of factors such as cultural, industrial relations and other factors. Therefore, we conclude that difference and similarities between three countries are mention above, and explanations are supported by valid evidences. References: Armstrong, M. Taylor, S. (2014). Armstrongshandbook ofhuman resource Managementpractice. London: Kogan page. Burstiner, I. (1988). The Small Business Handbook. Fireside Books. WebQuest. HRM in SMEs training needs. Available at: https://www.citethisforme.com/harvard-referencing. [Accessed on 8th January 2016]. OECD, (2012). Human Resources Management Country Profiles. Available at: https://www.oecd.org/gov/pem/OECD%20HRM%20Profile%20-%20Austria.pdf. [Accessed on 8th January 2016]. OECD, (2012). Human Resources Management Country Profiles. Available at:https://www.oecd.org/gov/pem/OECD%20HRM%20Profile%20-%20Germany.pdf. [Accessed on 8th January 2016]. OECD, (2012). Human Resources Management Country Profiles. Available at: https://www.oecd.org/gov/pem/OECD%20HRM%20Profile%20-%20Sweden.pdf. Luxembourg, (2005) Human Resources management strategies to support organizational changes. Available at: https://www.eupan.eu/files/repository/HRManagement1.pdf. [Accessed on 8th January 2016]. Swathi, B. (2014). A comprehensive review on human resource management practices, International Journal of Research in Business Management. 2 (9), 21-28. Mayrhofer, w. (2017). A Comparison of Human Resource Management Practices in Austria, Germany and Sweden. Available at: https://www.researchgate.net/publication/228465649_A_Comparison_of_Human_Resource_Management_Practices_in_Austria_Germany_and_Sweden. [Accessed on 8th January 2016]. Hyman, R. (2015). The European Journal of Industrial Relations, 2016 Release of Journal Citation Reports, 22(4). Galang Carmen, M. (2016) HR managers in five countries: what do they do and why does it matter. International Journal of Human Resource Management (2016), 27 (32) 1341-1372.