HR Effectiveness

1757 Words8 Pages
This study will compare Line and HR Executives’ evaluations of the effectiveness of the HR function in terms of its service delivery, roles, and contributions to the firm in SMEs Australia.

Small and medium-sized enterprises (SMEs) have been identified as one of the growth engines for many countries around the world. Studies found that SMEs make up over 90 per cent of economy of these countries, for instance, United States, 99.7 per cent (Heneman, Tansky, & Camp, 2000), China, 99 per cent (Cunningham & Rowley, 2008), Europe, 99 per cent (Rauch & Frese, 2000), Philippines, 95 per cent and Taiwan, 96.5 per cent (Lin, 1998) as well as Australia, 99.2 per cent (Australia Small Business, 2012). In Australia, SMEs account for 70% of employment opportunity as of June 2011 and this number is growing (Australia Small Business, 2012). The figures above show that SMEs play a vital role in contributing to the economy as well as employment opportunity.

In order to maintain its competitive advantage, Australia SMEs have increasingly recognized and emphasized HRM’s importance in meeting their business objectives. Studies found that the HR effectiveness in its roles, services and contribution in business lead to the increased effectiveness of the organisation (Huselid, 1995, Becker, Huselid, Pickus, & Spratt 1997, Teo, 2002). With the change of the expectation of HR's roles in an organisation, there is obvious evolution of HR's roles in Australia can be witnessed from previously administrative focused to more business strategic oriented (Teo, 1998). Moreover, HR is shifting from employee advocacy focused to more strategic business management (Brown et al., 2000). Cascio (1998) identified various phases in the recent transformation of the HR fu...

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...e performed.
2. This department is very responsive to meeting customer (front line managers and employees) needs.
3. This department provides me with useful and timely information regarding HR issues.
4. This department has helped to enhance the firm’s competitive position.
5. This department provides value-added contributions to the firm’s bottom line.
6. This department contributes to building and/or maintaining the firm’s core competence.
7. This department contributes to building the firm’s human capital (employees/managers) as a source of competitive advantage.
8. The policies, practices, and procedures coming from the HR department help front-line business partners in their jobs.
9. The HR department has developed a well-coordinated set of policies, practices, and procedures.
10. The HR policies, practices, and procedures help support the firm’s business plan.
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