Blog 3- Bundling in HRM

 Bundling in HRM

 

Figure 01: HRM

Bundling is the process of connecting and executing a variety of HR practices so that they complement and support one another. This is the horizontal integration process, also known as the “complementary application” (MacDuffi, 1995), which describes bundling as follows:

The concept of a bundle implies that practices inside bundles are interrelated and internally consistent, and that “more is better” in terms of the influence on performance due to the overlapping and mutually reinforcing effects of multiple practices. Dyer & Reeves (1995) state, “the reason in favor of bundling is evident.” Because employee performance is influenced by both ability and motivation, it makes sense to have systems in place to boost both.

Why is bundling important in strategic HRM?

To achieve organizational goals, strategic bundling of human resource management practices works together as a whole HRM system rather than individual HRM strategies. HR practice bundles support one another’s efficacy, assuming that the effectiveness of any practice is dependent on the effectiveness of other practices in existence. It is believed that the greater the total degree of bundling among the various components of HRM policies and practices, the better the organizational outcome.

 

Bundling of Human Resource Management Practices

According to MacDuffi (1995), maximum corporate performance can be achieved if mechanisms are in place that allow for regular evaluations of individual employees. Similar ideas were presented by Gooderham et al., (2008). The impact of bundling human resource strategies on assembly plant productivity and quality was investigated by Macduffie.

His argument focused on the importance of human resource bundles in achieving industrial success. From his investigation, he discovered that human resource bundles helped plant output and quality. However, he stressed that these bundles could only be used to boost performance if they were linked to industrial rules. To achieve this, strategic bundling of Human Resource Management (HRM) techniques operates as a comprehensive HRM system rather than individual HRM practices. The objectives of the organization’s HR practice bundles support one another’s efficiency, assuming that the effectiveness of any practice is dependent on the effectiveness of any practice is dependent on the effectiveness of other practices in existence.

Conclusion

Human resource practices are intended to improve an organization’s performance. Human resource techniques being bundled is a concept that has been used in almost every form of organization and business. As a result, the approaches have contributed to improving employees’ capacity to perform and their incentive to work to improve performance.

References

EssayBizLab, 2020. Bundling of Human Resource Practices. [Online]
Available at: http://www.essaybizlab.com
[Accessed 24 03 2022].

MacDuffi e, J. P., 1995. Human Resource Bundles and Manufacturing Performance. Industrial Relations Review, 48(2), pp. 199-221.

 

Comments

  1. MANOJMarch 25, 2022 at 8:12 AM

    It’s well presented constructively and able to macro view of the subject briefly with this article. Well done.

    ReplyDelete
  2. Chamila Thilakaratne (LMU, ESOFT MBA Batch #24)March 25, 2022 at 10:04 AM

    Good new topic to know about.well explained about bundling. Well done

    ReplyDelete
  3. Uditha ArawpolaMarch 27, 2022 at 10:03 PM

    This is an excellent essay for anyone who is just beginning to learn about Human Resource Management. For that, a general concept has been provided. Best wishes!

    ReplyDelete
  4. Venushka BandaranayakeApril 4, 2022 at 8:44 AM

    HR bundling is very important to develop efficient and effective work force of an organization. You have clearly explained the importance and how the HR bundling affect the organization. Good Luck.

    ReplyDelete
  5. Lakshitha MBA 2022 FEBApril 6, 2022 at 3:29 AM

    Why is bundling important in strategic HRM? In your blog you clearly explained the topic.To achieve organizational goals, strategic bundling of human resource management practices works together as a whole HRM system rather than individual HRM strategies.👍

    ReplyDelete

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