Many say Human Resource Management (HRM) refers to manage people, but in fact HRM is much more comprehensive. It is “a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personal techniques.” (Storey, 1995). Human Resource (HR) is one of the critical factor affecting and supporting organization from financial, services and processes. Almost every aspects of business are driven by HR, hence management has to be conscientious and prudent on which HR strategies, plans and policies to implement so as to improve overall performance.
The Human Resource Management
For all organizations, HR contributes to most of the performance and goals set by the management. Which is why, HR department has to ensure that all employees
To simplify it, there are two approaches; ‘best fit’ and ‘best practice’ models.
Best fit approach is “HR policy should be minted by the appropriate context of individual employees and therefore support the overall competitive strategy. Aligning HRM practices to strategies can enable companies to create potential competitive advantages.” (Schuler and Jackson 1987 in Redman and Wilkinson 2009). This approach is customized to every businesses’ life cycle and culture; different stages having different fit. As a result, management and employees’ flexibility and adaptability have to be at high level for this to work.
Best practice approach is “HR activities exist which universally support companies in reaching a competitive advantage regardless of the organizational setting or industry.” (Redman and Wilkinson 2009). This approach has standardized sets of ‘one size fits all’ HR strategy, concentrating more on
“Hr is shifting from focusing on the organisation of the business to focusing on the business of the organisation” (Zulmohd 2011). David Ulrich points out four distinctive roles of HR which makes the organisation most effective and produce competitive advantage. He planned to change the structure of HR function and build HR around roles. The four key HR roles identified by Ulrich, one HR business partner/strategic partner – aligning HR and business strategy which plays an important role in setting strategic direction. It builds strategic relationship with clients and strategically manages the development of the workforce. The second key role is administrative expert which creates and must deliver effective HR processes made to tailor business needs. It also involves managing people and HR related costs. To continue to the third key role, change agent which understands the organisations culture, and takes the responsibility to communicate those changes internally and gain its employees trust. The final key role identified by Ulrich is employee advocate which is a core in HR role represents employees and helps to improve their experience, protect employees’ interests and confirm strategic initiatives are well balanced. Employee advocates must also “ensure fair, ethical and equitable people processes and practices.” “David Ulrich’s HR Model is about defining the HR roles and
Summary Statement: This paper examines in detail HR function and its implications in an organization. The paper discusses how the HR function is handled in an organization. The paper explains what are the efficient ways to use it in an organization, its division and supervision strategies. Human resource function is the process by which the HR manager can ensure that the organization has correct number of employees with correct skills in present or in the future to meet the organization’s strategic business objectives. For example, if an organization plans to expand into new markets or to provide new services in the near future, the HR manager should develop a HR plan to measure how many new employees should be hired? What skills should the employees have? When should the recruitment start? How will this plan affect the existing employees? Does any Government regulation that should be consider? These are only a few of the many considerations in formulating an effective HR function The advent of knowledge economy requires companies to form a new concept of HR, that is, the human- oriented concept. Globalization refers to the development of an economy and any forms of governance that span much of the world. It means the integration of markets across the entire world and the increasing tendency for people, corporations and states to operate in or across national boundaries. By these exercises, the performance theory concludes that there may be some linkages within a broad view of performance which could explore causal links between HR and performance. In addition to Guest’s review on HR and performance, there is a growing body of literatures that support the correlation between high performance as a result of HR practice and vari...
A wide-ranging Human Resource Management Strategy plays a fundamental role in the attainment of an organisation 's overall strategic objective and perceptibly illustrates that the human resources function fully understand and support the route along which an organisation is moving. A comprehensive HRM Strategy will also sustain other specific strategic objectives undertaken by the marketing, financial, operational and technology departments.
The field of human resources (HR) plays a critical role in the performance and success of organizations. As organizations have become increasingly more complex, the effective management of HR has become even more important. The traditional perception of HR as only an administrative office is no longer valid. Instead, contemporary HR is directly involved with the internal organizational structure, business operations, and variety of functions carried out by employees on a daily basis (Reed & Bogardus, 2012). HR functions impact the organization’s strategic planning, improvement processes, and goal achievement. Six core bodies of knowledge provide the foundation for all of these HR functions. These areas are: strategic management; workforce planning and employment; human resource development; total rewards; employee and labor relations; and risk management (Reed & Bogardus, 2012).
Presently, businesses need to face the changing circumstances in the world like the advancement of technological innovation and manufacturing technology, globalization, intensification of customer expectations, and competitive business environments. Hence, it needs a business strategy to sustain changes by incorporating them into business processes (Panwar et al., 2016). Basically, the strategy itself is plans of how your business achieves its objectives and maintains its position in the industry. As stated by Durai, P. (2010), effective alignment of human resource (HR) strategies with business strategies is an essential for an organisation’s success. It is believed that HR strategy improves organisational performance, but there is little or no convincing evidence for this proposition (Huselid, 1995).
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).
First off different businesses in both size and specialty require different types of human resource practises to excel at what they do. The first theory is the universalistic perspective which argues that “best practice” approach should affect the organization throughout. The “best practices” are as follows “participation, empowerment, incentive pay, employment security promotion from within, training and skill development”(Delery ) arise in higher productivity and profit across organizations. Also high performance practices such as total quality management, job rotation and quality circles are considered to be best practices as they theoretically bring productivity gain to all organizations. Universality is the relation between best practices and hi...
For an effective implementation of HR strategies, it is necessary to engage top level management, also commitment, cooperation and involvement of line managers and staff is important. The problem with strategic HRM is that too often there is a gap between the rhetoric of the strategy and the reality of what happens to it. Factors contributing to gaps are:
Proper use of human resource can improve an organization’s performance. As the human resource department gains attention to frontline managers they can become more familiar with the organizations goals and development. Other ways to focus on the effectiveness of the HR departments is by utilizing employee contributions, because employee opinions brings forth a change that can better the organization. Wan-Jing & Tung (2010) without employee contributions, it is impractical to establish whether an organizations HR department is beneficial to employees, or that it only contributes to negative quality of working life. HR departments contribute to equal performance appraisal of employees and management, which helps develop understanding and a fair work environment that produces important benefits. Such benefit outcomes of HR have demonstrated as; employee motivation, commitment, training levels, reduced turnover and absenteeism rates (Wan-Jing et al, 2010). By sustaining a proper HR department in an organization, HR will bring in a strategic objective which will help
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...
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.
Contrary to traditional beliefs, recognition and integration of the link between human resource (HR) strategy and business strategy, or rather, strategic human resource management (SHRM) can contribute to the success and establishment of a business. The first half of this report will draw attention to and examine the importance of having a close relationship between the two named strategies. Bratton and Gold (2007), suggest that SHRM can improve performance by connecting the strategic goals of the business to the HR functions. Be it in a management or academic literature, the proactive nature of SHRM allows the business to have a significant edge given the volatility of the market due to advancement in information systems, globalisation and many other factors. Having said these optimistic accounts, this report will also examine the reasons as to why it can be tedious to determine the influence of human resource strategy on business performance.
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.
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.
With the 21st century in motion human resource management will face some of the old struggles and HR will be forced to face many new challenges. The main objective of HR is to recruit, retain, train, retrain and keep workers satisfied. Indeed, these responsibilities can be challenging in the 21st century, especially with changing roles, a multi-generational workforce, and globalization.