Human resource management is a critical aspect of the functioning of any company as it determines the effectiveness of the organization’s operations and quality of results. In support, certain models may provide guidance that improves decision-making and strategic planning. The CHRM framework is one such model that focuses on assessing existing alternatives for the evolution of companies and possible opportunities for implementing needed change (Hartel & Fujimoto, 2014). This approach presupposes six important stages in the process: an analysis of environmental factors, detection of problems and opportunities, verification, the introduction of a plan and success criteria, implementation of a specific approach, and evaluation (Hartel & Fujimoto, 2014). Applying this model to real-life cases can facilitate performing critical analysis of an organization’s current state and initiating a change process that will help the company to evolve.
For example, in the case of Airbnb, the advantages the model provides for analysis are clear. After evaluating environmental factors, the founders of the company created a website that would be effective for the distribution of their model (Aeona Team, 2015). At the same time, the CHRM framework reveals the potential problem of limited finances that preconditioned the emergence of a solution to shift company priorities to the production of cereal boxes, which resulted in an effective means to raise needed funding for the company (Aeona Team, 2015). Thus, the application of the framework helps in tracing the decision-making process.
The SHRM competency model is another framework that can be used to improve outcomes for a certain organization. This approach helps to determine the elements needed to become a successful manager and avoid critical deterioration in a situation. First, the model outlines all competencies that are necessary to carry out effective practices and to implement change (Chang, Cholakova, & Jansen, 2018). Second, it provides better opportunities for the identification of problems through the cultivation of improved, high-quality leadership that can be employed in complex situations (Adresi & Darun, 2017b). In this way, the SHRM competency model proves itself a potent tool that managers can use in diverse situations requiring a persuasive approach.
Applying this model to the same Airbnb case, it is possible to see that the founders of the company possessed competencies that helped them to become successful. First, they were able to analyze the market and implement immediately effective strategies (Su, Wright, & Ulrich, 2018). Second, the selection of different products for development also evidences the ability to make strategic decisions and manage the evolution of the company. Finally, the application of the SHRM competency framework helps in understanding that the methods used resulted from a high level of knowledge and ability to create needed change.
Therefore, both theories under discussion can be considered applicable to most issues arising in the course of the development of a company. Although their focus may fall on different aspects of organizational functioning, these approaches provide an opportunity to acquire an improved understanding of a problem and contribute to its resolution by driving change as a possible way to move forward and evolve (Adresi & Darun, 2017a). The basic elements of the models help to ensure that all essential factors will be assessed to achieve the best possible result.
Finally, in terms of ethical applications, these theories do not violate the existing code. In fact, they contribute to the cultivation of diversity and improved relations between employees fundamental to modern companies (Chang, 2017). Moreover, making use of these theories contributes to the promotion of a climate within a collective because of the ability to reveal hidden problems and solve them using new competencies or approaches outlined through the application of these models.
References
Adresi, A. A., & Darun, M. R. (2017a). Investigating mediating effect of perceived organizational support between SHRM practices and employee trust. International Journal of Engineering Business Management.
Adresi, A. A., & Darun, M. R. (2017b). Determining relationship between strategic human resource management practices and organizational commitment. International Journal of Engineering Business Management.
Aeona Team. (2015). Unicorn case study: Airbnb.
Chang, W. (2017). Approaches for developing intercultural competence: An extended learning model with implications from cultural neuroscience. Human Resource Development Review, 16(2), 158–175. Web.
Hartel, C., & Fujimoto, Y. (2014). Human resource management. Melbourne, Australia: P. Ed Australia.
Chang, Y., Cholakova, M., & Jansen, J. (2018). A Multilevel integrated framework of firm HR practices, individual ambidexterity, and organizational ambidexterity. Journal of Management.
Su, Z., Wright, P. M., & Ulrich, M. D. (2018). Going beyond the SHRM paradigm: Examining four approaches to governing employees. Journal of Management, 44(4), 1598–1619. Web.