Human resource management (HRM) is undoubtedly being considered as an indivisible element of the organisations from the outset. From recruitment to employee retention, HRM has always committed to assist company to search and retain talents that have values toward the sustainable development. In view of the fact that, there are several studies with evidences presented to prove that there is a relationship between HRM and organizational performance, in which some HRM theorists also suggested that there is a causal link between them (Cooke, 2000). Though Gerhart (2005) stated that their relationship is regarded as a ‘black box’ that it lacked of clarity concerning what leads to what; it can be both performance leaded to HRM and vice versa. Regardless of the direction they have influenced on, it is proverbial that there is a positive linkage between HRM and performance, whereas HRM had an important role in organizational performance in terms of the increase in corporate financial outcomes, operational accomplishment, employee’s workforce performance and decrease in employee’s turnover (Combs et, al, 2006). Therefore, it is worthy to analyse the ways how HRM influences organizational outcomes as well as the explanations of the their relationship. In this essay, I will first come up with definitions of High performance work practices and organizational performance in order to set a limit for the writing. Three ways and perspectives on HRM-Organizational performance will be explored next. Ultimately, the conclusion will summarize the standpoint as well as implications on the evidences. High performance work practices (HPWPs) has been a important source for organizations to ensure their competitive advantages. For the moment, there is s... ... middle of paper ... ...cruitment and selection as well as training. Through business strategy such as compensation policy, it motivates employees to maximise their potential in order to gain appraisals. Employee involvement program is another option that employee can broader their responsibilities on job task. Besides, HPWPs alter organizational structure in order to establish a network with flowing information and flexible working conditions are encouraged. With combining all the mediating variables, the proper use of HRM can raise productivity, efficiency, and flexibility and also decrease employee turnover; these are the factors that have impacts upon either short or long term financial outcomes. Taken together, it is convinced that firms should aware of the relationship of HRM-performance with referring to current circumstances in order to gain secure foothold in the changing market.
Human Resource Management (HRM) is the administration and control of employees. Its purpose is to ensure that the workers and the employer cultivate a valuable relationship. As a result, the company will record an exceptional performance particularly with regard to employee productivity (Paauwe, 2004). Further, the workers will benefit in terms of job satisfaction and self-development (Paauwe, 2004). Some of the activities involved in managing workers include selection and recruitment, training, development, motivation, and appraisal (Sharma, 2009). This paper aims to analyse the role of human resource management in organisations and its linkage to the wider organizational strategy using Tesco and Harrods as illustrations.
Critically evaluate the organization’ HRM practices with particular reference to their impact on individual and organization performance.
Kraft Foods, Inc. approached their change initiative by researching and testing before implementing. The High Performance Work Systems (HPWS) was first implemented into three start-up plants. The HPWS method was successful and adopted by the new plants. HPWS helps determine factors such as total inventory, cost of production, and measurement of productivity.
Introducing a new concept of work practice to an organization means changes have to occur in order to accommodate it. This would lead to organizational changes and may disrupt work patterns. Often, a change is necessary if an organization means to be competitive, and unless new ways and methods are developed and introduced, an organization may find itself lagging and not competitive. Benchmarking is one of those concepts that aim to improve work practices and achieve optimum results. Because change can bring negative connotations, it is important to take careful steps to effect change without major disruption to employees who would, more likely, be resistant to a new concept that may threaten their work comfort zone. So, effective communication, team building, offering support and being patient by allowing time for adaptation are very important steps in implementing change.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
HPW systems are crucial to success, yet organizations often struggle to understand how to implement them. Although there is a widespread recognition in the academic literature that strategic alignment of bundles of HPW practices is key, what actually happens within organizations does not always reflect this.
HRM in any company is a weighty issue that needs much attention where business performance is linked to a HR strategy (Caldwell 2008; Ulrich et al. 2008). In the recent past, competition has become stiff, such that organizations need to come up with other means to compete in the extremely dynamic market world. Thus, companies have shifted their emphasis to Strategic Human Resource Management (SHRM) where they enhance and empower their personnel in order to increase the productivity and the services offered into the market (Mello 2006). This goes against the traditional ways of increasing the means of competition where organizations place emphasis on tangible resources. In the past, organizations competed in terms of machinery and acquisitions. This has changed greatly due to the changing customer tastes and the diversity of the market in the present (Delery & Doty 1996; Lengnick-Hall et al. 2009).
...selid, M.A. 1995. ‘The impact of human resource management practices on turnover, productivity and corporate financial performance’, Academy of Management Journal, Vol 38, pp635-670.
Human resource management (HRM) encompasses the activities of acquiring, maintaining, and developing the organization's employees (human resources). "The traditional view of these activities focuses on planning for staffing needs, recruiting and selecting of employees, orienting and training staff, appraising their performance, providing compensations and benefits, and making their career movement and development." HRM involves two aspects:...
It seems that HRM is so crucial to the organization, for what it does has nearly covered all aspects of the business – from strategic planning to the training and development, but unfortunately, its importance has not been accepted by everyone. As proposed by Morton, C, Newall, A. & Sparkes, J. (2001) there are three different views of HR function within the...
An organizational human resources department utilizes the hiring and firing process to meet the organization’s personnel needs. Organizational human resource departments are charged with the oversight of an organizations administration department. The practice of hiring and firing people is a process employer’s conducts on a daily basis. This process has to be done in a proper manner and not in haste. The implication that can occur from the improper hiring and firing process could and can have a positive or negative impact on an organization. Therefore, employers must carefully evaluate their decision to hire/fire individuals and its impact on the organizations’ workplace environment and others employees. Human Resource Management is important for an effective organization. In today’s organization, HRM is valuable to the organization because of increase legal complexities and its known for improvement in productivity. However, management should realize that poor human resource management could result in an outburst of hiring process followed by firing or layoffs. According to (Satterlee 2013, p. 194), “Hiring the best candidate who is also a good fit for the organization is crucial for the success of an organization, because a poor hiring decision will have repercussions across the entire organization”. Satterlee made a valid point because poor hiring could have an impact on the bottom line performance of the firm. In other words, HRM is the contributing factor to the success of the organization including motivating and maintain the staffs. The purpose to the motivation is to ensure that all employees grow to a full potential. According to (Sims 2006, p. 5), “HRM efforts are planned, systematic approaches to increasing organizati...
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,
Human Resource Management (HRM) is fundamentally another name for personnel management. It is the process of making sure the employees are as creative as they can be. HRM is a way of grouping the range of activities associated with managing people that are variously categorised under employee relations, industrial/labour relations, personnel management and organisational behaviour. Many academic departments where research and teaching in all these areas take place have adopted the title department of human resources management. HRM is a coordinated approach to managing people that seeks to integrate the various personnel activates so that they are compatible with each other. Therefore the key areas of employee resourcing, employee development, employee reward and employee involvement are considered to be interrelated. Policy-making and procedures in one of these areas will have an impact on other areas, therefore human resources management is an approach that takes a holistic view and considers how various areas can be integrated.
The main purpose of Human Resource Management is to increase the effectiveness and contribution of employee’s attainment of organizational goals and objective (Youssef, C.). Many areas of HRM have been discussed in this course. Those areas are EEO and Affirmative action, Human resource planning, recruitment, and selection, Human resource development, compensation and benefits, safety and health, and employee and labor relations. All these categories have an impact on how an organization is managed. Although there are many things that impact a business, the most important thing about managing a business is selecting the right people to help the company succeed.
The Importance of the Human Resource Function Human resources are the backbone of any business. It deals with the most important resource in the business – people. For any business to achieve its objectives they must plan their resources and one of their key resource is people. They need to get the right people and develop. them well in order to meet the organisation’s aims successfully.