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Deriving Challenges through Clarification of Areas to Strengthen the HR System

This study aims to derive challenges by reviewing the papers which refer to the relation among HRM Policy Choices, HR Outcomes, and Feedback Process to HRM Policy Choices from HR Outcomes for revealing areas that have been studied and those that have not. As a result, there was only one piece of research into the construction and operation of a HR System which combined the Harvard Model with Systems Engineering. Many papers verify HR Outcome, however, they used not HR Outcomes defined in Harvard Model but items set by themselves. In addition, most papers refer to only the verification of outcomes. There was a little paper suggesting such a process to give feedback to the HR system and to improve it. Therefore, we created a new matrix using the three axes of target employee, life cycle stage, and HRM Policy Choices. The novelty of this paper is to adopt the axis of Human Resource Choices instead of Human Resource Flow. The matrix reveals areas of research that have been studied and ones that have not. we discovered the methodological novelty that this paper has potential to identify issues and change HR system based on feedback process. In addition to helping existing organizations improve their HR systems, new companies may be able to shorten the lead time to build an appropriate HR system as they build new organizations. This paper will contribute to the management system because it finds areas to strengthen the HR System utilizing the result of deriving challenges by reviewing the above papers.


Introduction
In the era of information technology, the motivation and retention of knowledgable workers in order to gain a winning edge in the market is one of the most important challenges for human resource professionals. Human Resource Management will be the key area of focus in the 21st century as companies and government organizations put in place strategies to cope up with the economic crisis and recovery. [1] In addition, organizations need to constantly monitor the changes around their internal and external environment to compete and maintain the business interests due to the pressure and brutal competitive conditions of the technetronic age posed by globalization and the Digital Revolution. The most important factor that can manage this change in the most efficient way is Strategic Human Resources Management, which is one of the human resources and key strategic management processes of an organization. [2] Abdullah describes that there is a positive correlation relationship between effective HRM practices and financial performance. [3] Therefore, it is important to construct an appropriate HRM Systems to attract knowledgable workers and improve corporate performance in the future. Improving the process of HRM Systems is a factor that increases the competitive advantage of companies. Boxall divides competitive advantage into "Human Capital Advantage" and "Human Process Advantage". He also explains that "Human Process Advantage" is more difficult for other companies to imitate. [4] Therefore, we need to improve Human Resource Flow in the Harvard Model which was proposed by Beer. [5] However, no paper referring to human resource flow shows how to construct and operate HRM Policy [7] Many past papers verified HR Outcomes, however, they used not HR Outcomes defined in Harvard Model but items set by themselves. In addition, most of the previous papers refer to only the verification of outcomes. There was also only one paper that Figen made suggesting such a process to give feedback to the HR System and to improve it. [7] Therefore, we created a new matrix using the three axes of target employee, Life Cycle Stage, and HRM Policy Choices. Sato has already used three axes. [6] We separated target employee into permanent employee and temporary employee as it is known that companies may change the flow pattern according to the external environment and the type of employees. [5] The novelty of this paper is to adopt the axis of HRM Policy Choices instead of Human Resource Flow when thinking about HRM Policy Choices as a whole. The matrix reveals areas of research that have been studied and those that have not. As a result of deriving challenges by reviewing the papers which refer to the relation among HRM Policy Choices, HR Outcomes, and Feedback Process to HRM Policy Choices from HR Outcomes, we describe the methodological novelty and academic contributions and as follows. In the past, most of papers in HRM mainly referred to permanent employees. However, we can design HR system that will enhance our organization by involving such as talented freelancers who are not permanent employees when we consider temporary employees as well.
In addition, we find out that many studies did not consider retirement stage of HR system in its life cycle and focused not on abolishing and improving HR system but on only creating HR system. Therefore, we discovered the methodological novelty that this paper has potential to identify issues and change HR system based on feedback process. For instance, we will not transform HR system by considering retirement stage of HR system for the talented freelancers. When the score of HR outcomes does not rise as expected, HR system will be improved by testing and abolishing it, which changes the design process of HR system. From the above, we consider this transition is academic and theoretical contribution. In addition to helping existing organizations improve their HR systems, new companies may be able to shorten the lead time to build an appropriate HR system as they build new organizations. Therefore, this paper will contribute to the management system because it finds out areas to strengthen HR System utilizing the result of deriving challenges by reviewing the papers.
In the following, first, in Chapter 2, we outline the Human Resource Management studies, especially Harvard Model. Then, in Chapter 3, we structure and show areas that previous papers referred and clarify domains that have not been studied. Finally, in Chapter 4, we summarize what we indicated and explain the direction of future research as a conclusion.

Previous Studies
Beer defines HRM as "all management decisions and actions that affect the nature of the relationship between the organization and employees-its human resources." [5] In this paper, we use Beer's definition because we created the matrix based on the Harvard Model proposed by him.
Beer offers "Map of the HRM Theory" for diagnosing not only the impact of management decisions on the human resources of the firm, but also whether the policies that guide those decisions continue to make sense and what changes might be considered in them. [5] Beer shows the analytical approach in Figure 1 which is a broad causal mapping of the determinants and consequences of HRM Policies.

Map of the Harvard Model with Three points of view
Paul called the HR Outcomes as short-term outcomes. Therefore, we should add a feedback process to Human Resource Policy Choices from HR Outcomes. [8] In this paper, we focus on "1. HRM Policy Choices", "2. Verification of HR Outcomes" and "3. Feedback to HRM Policy Choices from HR Outcomes" as shown in Figure 2. We review the papers described for these three areas and show the paper list as shown in Table 1-3. We categorize the papers by describing the three areas. "1. HRM Policy Choices" and "2. Verification of HR Outcomes" have been studied well. However, a few papers mention "3. Feedback to HRM Policy Choices from HR Outcomes".
First, regarding the box of "1. HRM Policy Choices", most of the previous papers that we read referred only to the concept of HRM Policy Choices. Second, in the box of "2. Verification of HR Outcomes", 14 papers verified HR Outcomes. However, they used not HR Outcomes defined in Harvard Model but items set by themselves. In addition, there are no papers which describe temporary employees. Finally, in the box of "3.
Feedback to HRM Policy Choices from HR Outcomes", there was only one paper which applied the concept of Systems Engineering. Only No.6 paper [7] refers to the concept of Systems Engineering by using IDEF0. However it was also not based on the definition of HR Outcomes in the Harvard Model.

Explanation of The New Matrix
Sato suggested a matrix using the three axes of target employee, Human Resource Flow, and Life Cycle Stage. [6] As mentioned in previous sections, no paper referring to Human Resource Flow shows how to construct and operate HRM Policy Choices in the Harvard Model which includes Human Resource Flow, Work System, Reward System, and Employment Influence by using the concept of Life Cycle Stage. [6] Therefore, this paper uses HRM Policy Choices instead of Human Resource Flow in Figure 3.

Classification of Boxes
In a previous section, we divided studies into six boxes. We named the boxes as below to deploy them to the new matrix that we mentioned. Figure 4 shows the positioning of six boxes. As we mentioned, the papers in Box A and Box B only refer the concept of HRM Policy Choices. We mapped Box C to Utilization/Support Stage of Permanent Employee because studies in the box verified HR Outcomes while operating HR Systems. The paper in Box E is classified to Development, Production, and Retirement stage of Permanent Employee as it designs a HR System and process by using Systems Engineering such as IDEF0. When we do not get the HR Outcomes we expect, the HR System and process is improved by System Engineering. We also mapped Box D and Box F for the same reason as Box C and Box E. However, there are no papers that mention these areas.

Discussion
This section describes discussing the results of this study with Table 4 and Figure 4. Because of comparison of the number of papers in Box A and B and lack of reference in Box D and F, most of papers in HRM mainly referred to permanent employees. However, we can design HR system that will enhance our organization by involving such as talented freelancers who are not permanent employees when we consider temporary employees as well. As we mentioned, it is important to attract knowledgable workers such as talented freelancers and improve corporate performance in the future. Improving the process of HRM Systems which targets not only permanent employees but also temporary employees is a factor that increases the competitive advantage of companies. Therefore, companies that do not use talented freelancers may not enhance their competitive advantage in the future, resulting in a difference in financial performance compared to companies that use talented freelancers. We also find out that many studies did not consider retirement stage of HR system in its life cycle and focused not on abolishing and improving HR system but on only creating HR system. Therefore, we discovered the methodological novelty that this paper has potential to identify issues and change HR system based on feedback process. For instance, we will not transform HR system by considering retirement stage of HR system for the talented freelancers. When the score of HR outcomes does not rise as expected, HR system will be improved by testing and abolishing it, which changes the design process of HR system. From the above, we consider this transition is academic and theoretical contribution. In addition to helping existing organizations improve their HR systems, new companies may be able to shorten the lead time to build an appropriate HR system as they build new organizations. Therefore, this paper will contribute to the management system because it finds out areas to strengthen HR System. We discovered some challenges in the future through this study. 8. Paul states that the focus of work on HRM is oriented towards HRM Policy Choices and short-term HR outcomes. We need to go back and consider other areas, a multiple stakeholder perspective, an attention to contextual factors and a focus on long-term consequences, which the Harvard Model provides. [8]

Conclusion
This study aims to derive challenges by reviewing the papers which refer the relation among HRM Policy Choices, HR Outcomes, and Feedback Process to HRM Policy Choices from HR Outcomes for revealing areas that have been studied and those that have not. The challenges derived from this study are as follows.
We need to make a clear framework to design and operate a HR System. It is ambiguous about who decides the HR Strategy, HR Management Process, and HR System. It is necessary to design a HR System based on HR Management such as controlled or autonomous types. Most companies should plan not only to construct and operate a HR System but also to retire it. We need to make a detailed process to imagine the retirement stage. We should combine the Harvard Model, HRMS (Human Resource Management System) and HRIS (Human Resource Information System) to operate HR System efficiently. HR researchers are often confused as to what area they discuss because they do not view Life Cycle Stage. We need to show how an organization designs HRM Policy Choices and how mature it is. We need to go back and consider other areas, a multiple stakeholder perspectives, an attention to contextual factors and a focus on long-term consequences, which the Harvard Model provides.