Human Resources Management (HRM) Interventions relates to the idea of improving an organizations overall performance and efficiency by improving the members (individuals and groups) performances, commitment, and flexibility. According to Beer et al. (1984), this is often a relevant intervention technique when organizations are facing increased international competition. They see the value of HR investments as a way to improve organizations competitive advantages. Further, they establish that HRM policies have long-term consequences and immediate organizational outcomes. These policies should include the overall competence of employees, the commitment of employees, the cost effectiveness of HRM practices, and “the degree of congruence between employees’ own goals and those of the organization” (Price, 2007).
If the organization needs to make a major transition, it is necessary to have the employees onboard, and that they understand why things are changing. Developing these resources to adapt to the changes could mean the difference between success and failure. Such as the Houston case, where the employees did not see the goal with implementing open innovation and working with different people outside the company. They did not trust the new system, and did not feel that the new reward system was a good one. Because of bad HR management, the employees feared for their jobs, and did not approve the changes that the leaders tried to implement (Beer, Spector, Lawrence, Mills, & Walton, 1984). However, changes should only happen when there is a readiness for change, capability to change and of its agents, and cultural context.
Organization faces problems like this all the time, and many are stru...
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...er solutions, they continued with the bad ones and blamed each other for the bad results from it. With the change, the employees are now highly motivated and open to innovation, as they see that it gives results. They also created a platform where employees could share concerns and suggestions without being victimized. These changes have all played a role in improving the employee wellness and satisfaction.
To prove how a good HRM system could result in increased efficiency, we can look at the organizations entropy level. Entropy is a measure of the energy proportion that is consumed by unhealthy and non-productive activities. Since the year of implementation, Nedbank have gone from an unhealthy high level at 25 per cent, to a highly healthy level at 10 per cent (Scheepers, Maphalala, & van der Westhuizen, 2014). This means an increase of employee value generation.
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