Not all organisations have sole objective of achieving competitive advantage and RBV approach can be introspective without much consideration of socio-political and economical environment (McKenna and Beech, 2008). As this suggests that each corporate environment and requisite strategy are “unique, complex and dynamic” therefore, HRM practices and their implementation in organisation will also be “unique, complex and dynamic” (Buller and McEvoy, 2012, p.53). Individual HRM practices that are not aligned, horizontal integration fit do not outperform the other approaches (Paauwe and Boselie, 2006). Gerhart’s (2004) displays a critical analysis of “those who claim that form of internal fit – alignment of practices with each other – out performs the lack of this type of fit” (Paauwe and Boselie, 2006, p.69). However, Boxall and Purcell (2003) clarify that both elements have similar intention but with different implementation approach towards it. Beer et al (1984) Harvard model of HRM addresses balance between HRM best fit and …show more content…
Whereas, SME family businesses investing on HRM practices such as training and development depends on the level of performance of the organisation, even though they recognise the value of its importance (Reid and Adams, 2001). This indicates that level of performance and affordability of the organisation can also be integral factors to determine the implementation of HRM practices within a business. There is a vast amount of literature that revolves around the positive effects of high commitment HRM practices on organisational performance, but far little evidence to evaluate and substantiate the effects on individual workers (Williams, 2004). Boselie, Dietz and Boon (2005, p.81) argues that due to “sheer variety of methods used for measuring” the linkage between HRM and performance, various different studies makes it difficult to compare
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.
Ramlall, S., Welch, T., Walter, J., & Tomlinson, D. (2009). Strategic HRM at the Mayo Clinic: A case study. Journal of Human Resources Education, 3(3), 13-35. Retrieved from http://business.troy.edu/jhre/Articles/PDF/3-3/31.pdf
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)
Boudreau, J. W. and Ramstad, P. M. (2003). Strategic HRM Measurement in the 21st Century:
Changing Roles. Traditionally, HR has been an administrative position-processing paperwork, benefits, hiring and firing, and compensation. However, recently HRM has moved from a traditional to a strategic role, the emphasis is on catering to the needs of consumers and workers. Before, HR was seen as the enemy and employees believed that HR’s main purpose was to protect management. Now, the position requires HRM to be more people oriented and protect their human capitol, the staff. In addition, human resource management has to be business savvy and think of themselves as strategic partners in the 21st century.
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.
The third stage in HRM development which began in the late 1970?s and early 1980?s was the realisation that effective HRM could give an organisation competitive advantage. Within this stage HRM is viewed as important for both strategy formulation and implementation. For example 3M?s noted scientists enable the company to pursue a differentiation strategy based on innovative products. At the competitive stage, then, human resources are considered explicitly in conjunction with
Human resource is the most valuable and unique asset of an organization. The successful management of an organization’s human resource is an exciting, dynamic and challenging task , especially at a time when the world has become a global village and economies are in a state of flux. The lack of talented resource and the growing expectation of the modern day employee has further increased the difficulty of the human resource function.
Best fit is a cross link between the Hard HR model. Besides, both of the models attempts to link HR practices and organizational External environment. With the “Best fit” theory businesses shadows a cost leadership structure to narrow down the jobs and sophisticate with very less job security to employees, while most of the companies follow different theories to highlight training and development. However, this argues that SHRM activities must be involved with each other to get linked to the strategic objectives and aims of the business. To a certain degree there isn’t a specific way or strategy to cultivate a best fit for an organization “It is clear that combining techniques greatly increases accuracy , the combination of intelligence tests with structured interview, integrity test or work sampling leads to a substantial improvement in validity" (Schmidt and Hunter,
To sum up, although the universal applicability of a single bundle of HRM enjoys some evidence support the linkage between best practices with better establishment-level outcomes in many cases and can provide for basic architecture and sources of HRM, it is still problematic with certain critiques and limitations. A larger range of contextual factors needs to be taken into consideration when enacting HR practices.
" This global London-based mining and mineral company was severely impacted by the global recession in 2008. Such an impact forced unprecedented workforce reductions worldwide and decentralized HR management had to be brought in under a single umbrella to ensure an orderly and efficient system that would support the organization’s future productivity."( Case Study OneRedesigning HR HRMG 5000 - Student Simple). Human resources have a strategic significance if managed efficiently and productively. The company revamped and managed its HR functions in a manner so as to achieve the strategic goals of the
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.
HRM comprises a set of policies designed to maximize organizational integration, Employee commitment, flexibility and quality of work. (Guest, 1987) as cited by (Armstrong, 2009) this statement entails that HRM function has policies to guide its activities, if these policies are well integrated with the strategy of the organization, it can enhance employee commitment and result in quality of work, as cited by (Armstrong, 2009) that the overall purpose of human resource management is to ensure that the organization is able to achieve success through people, however the function of HRM is affected by several other factors, this essay will look at three Internal and external environmental factors affecting HR Specialist.