Assignment Topic:-

The Role of Human Resource-

Related Quality Management
Submitted To:-
Prof. Dr: Muhammad Sajjid
Submitted By:-
Muhammad Fakhar
Roll#: BC15-696
Semester 8Th B.com(Hons)
Section C (Afternoon)

Hailey College of Commerce,

University of The Punjab,
Lahore.
Contents
SCOPE: ..................................................................................................................................................... 3
INTRODUCTION ....................................................................................................................................... 4
EXECUTIVE SUMMERY: .................................................................................................................... 5
TOPIC....................................................................................................................................................... 6
RESEARCH QUESTIONS AND HYPOTHESIS: ............................................................................................. 7
RESEARCH METHODOLOGY .................................................................................................................... 8
Findings ................................................................................................................................................... 8
Discussion................................................................................................................................................ 8
Conclusion ............................................................................................................................................... 8
Future line of Action ............................................................................................................................... 8
References ............................................................................................................................................. 9
SCOPE:
Human resources are undoubtedly the key resources in an organization, the easiest and the
most difficult to manage! The objectives of the HRM span right from the manpower needs
assessment to management and retention of the same. To this effect Human resource
management is responsible for effective designing and implementation of various policies,
procedures and programs. It is all about developing and managing knowledge, skills,
creativity, aptitude and talent and using them optimally.

Human Resource Management is not just limited to manage and optimally exploit human
intellect. It also focuses on managing physical and emotional capital of employees.
Considering the intricacies involved, the scope of HRM is widening with every passing day.
It covers but is not limited to HR planning, hiring (recruitment and selection), training and
development, payroll management, rewards and recognitions, Industrial relations, grievance
handling, legal procedures etc. In other words, we can say that it’s about developing and
managing harmonious relationships at workplace and striking a balance between
organizational goals and individual goals.

The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it
concisely. However, we may classify the same under following heads:

 HRM in Personnel Management: This is typically direct manpower management

that involves manpower planning, hiring (recruitment and selection), training and
development, induction and orientation, transfer, promotion, compensation, layoff and
retrenchment, employee productivity. The overall objective here is to ascertain
individual growth, development and effectiveness which indirectly contribute to
organizational development.

It also includes performance appraisal, developing new skills, disbursement of wages,

incentives, allowances, traveling policies and procedures and other related courses of
actions.

 HRM in Employee Welfare: This particular aspect of HRM deals with working
conditions and amenities at workplace. This includes a wide array of responsibilities
and services such as safety services, health services, welfare funds, social security and
medical services. It also covers appointment of safety officers, making the
environment worth working, eliminating workplace hazards, support by top
management, job safety, safeguarding machinery, cleanliness, proper ventilation and
lighting, sanitation, medical care, sickness benefits, employment injury benefits,
personal injury benefits, maternity benefits, unemployment benefits and family
benefits.

It also relates to supervision, employee counseling, establishing harmonious

relationships with employees, education and training. Employee welfare is about
determining employees’ real needs and fulfilling them with active participation of
both management and employees. In addition to this, it also takes care of canteen
facilities, crèches, rest and lunch rooms, housing, transport, medical assistance,
education, health and safety, recreation facilities, etc.
  HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful
interactions with labor or employee unions, addressing their grievances and settling
the disputes effectively in order to maintain peace and harmony in the organization. It
is the art and science of understanding the employment (union-management)
relations, joint consultation, disciplinary procedures, solving problems with mutual
efforts, understanding human behavior and maintaining work relations, collective
bargaining and settlement of disputes.

The main aim is to safeguarding the interest of employees by securing the highest
level of understanding to the extent that does not leave a negative impact on
organization. It is about establishing, growing and promoting industrial democracy to
safeguard the interests of both employees and management.

INTRODUCTION
In recent decades, the importance of Quality Management (QM) as a key
competitive variable has been widely recognized by scholars and practitioners who generally
agree that QM practices have a positive effect on firms’ performance (e.g., Powell, 1995;
Nair, 2006; Kaynak and Hartley, 2008). However, current business environments are
characterized by high levels of dynamism and complexity (Teece, 2007), but even companies
with excellent quality levels in a particular period cannot be certain that they will sustain their
position. Toyota, Sony, and Mercedes-Benz are examples of companies that have challenges
sustaining such long-term performance (Su et al., 2014; Su and Linderman, 2016).
If organizations want to sustain their positions by continuously adapting to environmental
changes (Eisenhardt and Martin, 2000; Teece, 2007), it is important to study not only how
QM implementation is positively related to the firm performance on which a significant
portion of QM literature has focused, but also to study whether QM implementation is related
to strategic variables and can make a contribution to the development of strategic abilities.
The dynamic capabilities (DCs) perspective serves as an appropriate theoretical framework
for investigating the possible relationships between QM and the strategic variables linked to
environmental adaption. DCs are organizational abilities that help firms sustain their
positions as they formulate an organizational response to environmental changes (Teece et
al., 1997; Eisenhardt and Martin, 2000; Zollo and Winter, 2002; Teece, 2007). As discussed
in the literature on organizational change, highly capable managers with multi-skilled
workforces, effective use of teamwork, and the creation of a unique culture that fosters
organizational learning and innovation are essential for encouraging employees to adapt to
change (Cf. Beughelsdijk, 2008; Wei and Lau, 2010). Human resource (HR) practices allow
employees to discover and employ knowledge and experience in organizations to develop
creative ideas and discover new opportunities (Scarbrough, 2003; Lopez-Cabrales et al.,
2009; Chen and Huang, 2010; Prajogo and Oke, 2016). Thus, they provide an infrastructure
that facilitates the development of DCs—NPD in this paper—(Nielsen, 2006; Chiang and
Shih,
2011). In this endeavor, HR-related QM practices with their different focus—e.g. explorative
or exploitative—(Herzallah et al., 2017) can make organizations more sensitive to variations
in the environment, become more strategically flexible and thus better able to adapt to
changes
(Gomez-Gras and Verdu-Jover, 2005; Hackman and Wageman, 1995).
HR-related QM practices (Kaynak, 2003) with their specific focus on quality have never been
empirically analyzed from a DC perspective. The literature on QM and DCs does not offer
an integrated framework with empirical support that identifies the role of HR-related QM
practices in the development of a DC such as NPD and the development of strategic abilities.
Thus, following the new line of research suggesting that QM should be integrated with a DC
framework (Su et al., 2014; Su and Linderman, 2016), this paper fills the gap in the literature
by empirically analyzing the relationship between HR-related QM practices, strategic
flexibility, and NPD. More specifically, this study addresses the following research question:
how are HRrelated QM practices related to strategic flexibility as the developed ability and
NPD? Our study contributes to the body of research by enabling identification of HR-related
QM practices that can promote the development of adaptation abilities such as strategic
flexibility, which finally enables firms to stand out in NPD. So far, issues related to HR
practices from a DC perspective have been ignored in the managerial research agenda (Vogel
and Guttel, 2013). Thus this study also offers valuable contributions for managers because it
recommends ways to foster and identify key points in QM implementation that enable firms
to be more strategically flexible and better able to develop regularly new products. To
analyze the development of a DC in this study, we conceptualize NPD as a DC.
Frequently, empirical studies have attempted to describe the nature of DCs through the
analysis of NPD as a best practice that illustrates how organizations reconfigure their
resources and capabilities to respond to the environment (e.g. Barrales-Molina et al., 2015;
Pavlou and El Sawy, 2011; Schilke, 2014). Companies such as Apple, Intel, and Gillette
responded to environmental changes and even imposed a specific rhythm on their
environments by developing new products (e.g., Danneels, 2011; Helfat and Winter, 2011;
Teece, 2012). At the same time, NPD is closely connected to QM. Firms that have
implemented QM initiatives are likely to have a better foundation for implementing new
NPD approaches (Sun and Zhao, 2010). HR-related QM practices in particular increase
communication and information exchange, assign responsibilities to employees, and facilitate
autonomy to experiment, all of which enhance innovative processes (Prajogo and Sohal,
2001; Perdomo-Ortiz et al., 2006).

EXECUTIVE SUMMERY:
Purpose: we adopt the dynamic capabilities view as a theoretical framework
to empirically investigate the relationships among human resource (HR)-related quality
management (QM) practices, new product development (NPD) as a specific dynamic
capability, learning orientation, knowledge integration, and strategic flexibility. Learning
orientation and knowledge integration represent two antecedents of strategic flexibility, and
strategic flexibility is the developed ability that facilitates NPD.
Design/methodology/approach: To empirically test the relationships, we used data from 236
European firms and performed Structural Equation Modeling. Findings: Results indicate that
HR-related QM practices contribute to
(1) creating a learningoriented company,
(2) integrating knowledge,
(3) supporting successful new product
development (NPD). Furthermore, knowledge integration is positively related to NPD
through strategic flexibility. Practical implications: This study is relevant for practitioners
because it identifies key points in QM implementation that enable firms to be more
strategically flexible and thus better able to regularly develop new products.
Originality/value: When organizations must sustain their competitive positions by
continuously adapting to environmental changes, it is important to study not only how QM
implementation is positively related to the firm performance on which a significant portion of
QM literature has focused but also to study whether QM implementation is related to
strategic variables and can make a contribution to strategic processes. To fill the void in the
HR and QM literature, this study offers an integrated framework with empirical support that
identifies the role of HR-related QM practices in learning orientation, knowledge integration,
strategic flexibility.

TOPIC
We often hear the term Human Resource Management, Employee Relations and Personnel
Management used in the popular press as well as by Industry experts. Whenever we hear
these terms, we conjure images of efficient managers busily going about their work in glitzy
offices. we look at the question “what is HRM ?” by giving a broad overview of the topic and
introducing the readers to the practice of HRM in contemporary organizations. Though as
with all popular perceptions, the above imagery has some validity, the fact remains that there
is much more to the field of HRM and despite popular depictions of the same, the “art and
science” of HRM is indeed complex. We have chosen the term “art and science” as HRM is
both the art of managing people by recourse to creative and innovative approaches; it is a
science as well because of the precision and rigorous application of theory that is required.
As outlined above, the process of defining HRM leads us to two different definitions.

The first definition of HRM is that it is the process of managing people in organizations in a
structured and thorough manner. This covers the fields of staffing (hiring people), retention
of people, pay and perks setting and management, performance management, change
management and taking care of exits from the company to round off the activities. This is the
traditional definition of HRM which leads some experts to define it as a modern version of
the Personnel Management function that was used earlier.

The second definition of HRM encompasses the management of people in organizations from
a macro perspective i.e. managing people in the form of a collective relationship between
management and employees. This approach focuses on the objectives and outcomes of the
HRM function. What this means is that the HR function in contemporary organizations is
concerned with the notions of people enabling, people development and a focus on making
the “employment relationship” fulfilling for both the management and employees.

These definitions emphasize the difference between Personnel Management as defined in the
second paragraph and human resource management as described in the third paragraph. To
put it in one sentence, personnel management is essentially “workforce” centered whereas
human resource management is “resource” centered. The key difference is HRM in recent
times is about fulfilling management objectives of providing and deploying people and a
greater emphasis on planning, monitoring and control.

Whatever the definition we use the answer to the question as to “what is HRM?” is that it is
all about people in organizations. No wonder that some MNC’s (Multinationals) call the HR
managers as People Managers, People Enablers and the practice as people management. In
the 21st century organizations, the HR manager or the people manager is no longer seen as
someone who takes care of the activities described in the traditional way. In fact, most
organizations have different departments dealing with Staffing, Payroll, and Retention etc.
Instead, the HR manager is responsible for managing employee expectations vis-à-vis the
management objectives and reconciling both to ensure employee fulfillment and realization
of management objectives.
Quality management ensures that an organization, product or service is consistent. It has
four main components: quality planning, quality assurance, quality control and quality
improvement. Quality management is focused not only on product and service quality, but
also on the means to achieve it. Quality management, therefore, uses quality assurance and
control of processes as well as products to achieve more consistent quality. What a customer
wants and is willing to pay for it determines quality. It is written or unwritten commitment to
a known or unknown consumer in the market . Thus, quality can be defined as fitness for
intended use or, in other words, how well the product performs its intended function.

RESEARCH QUESTIONS AND HYPOTHESIS:

The dynamic capabilities view is an extension of the well-established resource-based
view (RBV). RBV proposes that firm resources and its heterogeneity determine the
possibility of obtaining sustainable competitive advantages (Barney, 1991). But RBV is being
challenged by today’s dynamic and turbulent environments, and these challenges have
prompted scholars to extend RBV to the dynamic capabilities view (Teece et al., 1997;
Eisenhardt and Martin, 2000; Helfat and Peteraf, 2003; Hitt et al., 2016). DCs are “(t)he firm’
s ability to integrate, build and reconfigure internal competencies and thus to address rapidly
changing environments” (Teece et al., 1997, p. 516). Based on this definition, we can affirm
that DCs allow continuous modification of the configuration of organizational resources,
thereby achieving better adaptation to the environment.

With the aim of illustrating the nature of DCs, scholars have pointed to identifiable
processes1 that can be recognized as best practices when responding to environmental
dynamism (Ambrosini and Bowman, 2009; Eisenhardt and Martin, 2000; Schilke, 2014;
Pavlou and El Sawy, 2011). Initially, Eisenhardt and Martin (2000) proposed a wide set of
best practices that can be considered specific to DCs (e. g., alliancing, mergers and
acquisitions, product development, decision-making processes, and knowledge management).
However, further research has established alliance management capability and NPD as the
most widely recognized DCs for understanding how firms adapt to the environment (Schilke,
2014). These specific processes also help us understand the role of DCs as higher order
processes that impact ordinary capabilities (Winter, 2003). In this way, manufacturing,
marketing, and logistic capabilities are key to maintaining the status quo in a company.
However, DCs such as alliance management or NPD serve to trigger the reconfiguration of
routines embedded in ordinary capabilities (Drnevich and Kriaucinas, 2011; Helfat and
Winter, 2011; Hine et al., 2014; Wilden and Gudergan, 2015). In particular, the literature
provides empirical support for the suggestion that managers invest in NPD as a strategic
solution for survival in some dynamic environments (e.g., Pavlou and El Sawy, 2011;
Schilke, 2014). Regular introduction of products involves a great variety of activities that act
as driving forces to renew organizational routines or even customers’ habits and competitors’
strategies, thus ensuring environmental adaptation in different industries (Helfat and Winter,
2011).
RESEARCH METHODOLOGY
The data for this research were drawn from a study that focused on QM implementation,
its structural components, and its relationships to DCs in several European countries. Data
obtained through cross-sectional email surveys, which is useful for reaching a large number
of subjects, are appropriate for this study because our research questions require studying the
relationships between multiple variables (Kaynak, 2003). Construction of the instrument and
content validity To identify the different items and scales included in this research, we
performed an indepth literature review. All scales of HR-related QM practices and strategic
flexibility were composed of original items in the literature. Individual relationships between
QM practices have already been tested in various studies, which suggest their interdependent
nature (e.g., Kaynak, 2003; Kim et al., 2012). For this reason, considering the similarity and
interrelationships between HR-related QM practices and following previous research (e.g.,
Ho et al., 2001; Lau and Ngo, 2004; Rahman and Bullok, 2005; Naor et al., 2008; Lopez-
Cabrales et al., 2009), we group all
HR-related QM practices into a second order factor. Scales for learning orientation,
knowledge integration, and NPD were created after reviewing the related literature. NPD
capability is reflected by organizational routines supporting innovation processes aimed at
introducing new product innovations (Lawson and Samson, 2001; Schilke, 2014). Following
recommendations from previous research on NPD (e.g., Kandemir and Acur, 2012;
Laaksonen and Peltoniemi, 2016; Schilke, 2014), we used performance scores on NPD to
avoid slant derived from managerial responses. In other words, we used four items of NPD
performance as a proxy for NPD measurement. These items measure how an organization
introduces new processes, services or products, and enters new markets. The list of scales,
items, and their sources are presented in Appendix A. For all the scales, we used a Likert-
type scale of seven points.
Once designed, the questionnaire was pre-tested by five quality managers from firms in
different sectors. We tested the study using these responses because the test sample was
similar to our actual sample. This pilot test enabled the clarification of possible ambiguities,
correction of errors, and the solution of formatting problems. After a thorough analysis of the
questionnaire, the quality managers recommended some modifications that would facilitate
comprehension of the questions and a few minor changes in wording. These changes were
incorporated into the questionnaire.

Findings
Write here

Discussion
Write here

Conclusion
Write here

Future line of Action

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