QUESTION 1
1.1) THE IMPORTANCE OF RE-INVETING TRADITIONAL HR AND ITS PROCESSES IN ORDER TO DRIVE CONTINUED INNOVATION
In his book, A Handbook of Human Resource Management Practice, Armstrong (2006:3) states that “human resource management is defined as a strategic and coherent approach to the management of an organisation’s most valued asset- the people who work there who individually and collectively contribute to the achievement of its objectives.” This definition of Human resource management (HRM) highlights how policies, and systems, together with employee’s behavior (attitude patterns) determine the performance and ultimately the success of an organization. All of these components in-turn makes the HRM function one that is essential in
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They have described these decision making process as a ‘science’ and emphasise that, “ the goal of a talent decision science would be to increase the success of an organisation by improving decisions that impact or depend on talent resources. This need brought about the birth of Strategic Human Resource Management (Boudreau, Ramstad, 2004:7).
Strategic Human Resource Management is a premeditated and tactical method of People Management. Its practices are aligned with that of the organisations strategic goals (Armstrong, 2006:3).
This is a different approach to Traditional HRM in that with strategic human resource management, HR plays a role in the overall formulation of company strategy and aligns its functions to this strategy. HR managers are also involved in decision making at this level and there is full integration between human capital and all the other functions of the organisation, e.g. marketing and finance (Grobler et al,
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Good management keeps a company alive…. The success of almost any initiative depends on its leaders and talent analytics is no exception”
Davenport, Harris and Shapiro (2010),
Any contemporary organization aspiring to keep afloat in today’s competitive market should consider shifting towards strategic management of their employers and following an analytical approach to assess overall efficiency and assist in decision making
There may however be a few gags along the way which managers would need to consider before making such a huge change. New strategy usually results in new structure formation with in an organization. The two cannot be divorced from one another
• The idea of trying to improve that which you cannot measure
• HR officials and their aversion to change. Appetite for quantitative analysis what the current workforce lacks
• Top management support needed. Training. Score cards
• The culture of an organization and its business
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).
Human resource management (HRM), historically known as personnel management, deals with formal system for managing people at work and is one of the fundamental aspects of organizational and managerial life. According to Nankervis, Compton, Baird, & Coffey (2011), HRM is simply defined as convergence of three factors that consist of human beings, resources and management where human being have actual and potential resources (knowledge, skills and capabilities) that can be harnessed through effective management techniques to achieve short and long organizational goals as well as personal needs. The purpose of HRM is to improve productive contribution of people to organization in ways that are strategically, ethically, and socially
In an era of organizational flux due to competition and globalization, companies and employees are faced with constant change. Leaders must be able to adapt to change as the environment shifts. HR has been known as the organizational change agent, administrative expert, and employee advocate. More recently they have been regarded as business strategic partners for many organizations. In order to be successful and remain competitive in today’s market, Human Resources (HR) must be considered a strategic partner if an organization wants to flourish. Top executives today commit significant resources to ensure that their company’s functions are capable of rapid change and achieving their goals. Far too often, the Human Resources (HR) function is nominal thus they are not as quick to respond to the rapid rate of change. When “this occurs, companies may be perpetuating or even creating barriers to fully leveraging their human capital. Organizations can begin the process of removing these barriers by assessing the Human Resources function and its alignment with business objectives” (Wert & Liwanag , 2002). This paper will make a case for having HR report to the CEO. In order to do so the author will describe the relationship between HR strategies and business strategies. Examples of HR strategies that can be effective will be discussed. In addition, the author will examine the benefits and consequence of having HR as a strategic partner and well as the key business competencies that they must retain. Furthermore, she will discuss an optimal career path for a senior HR executive.
" 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
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.
Many reasons exist for why businesses feel there is a need to change, ranging from mergers and acquisitions, technological advances, and economic and financial considerations (Business HR, 2011). This last point is particularly relevant in today’s environment due to the ongoing worldwide financial crisis. The fast paced and unstable environment that ensued led to a reduction in business profits and cash flows, leading some to believe their future growth plans were in danger. As a result, organisations felt the need to constantly adapt their workforce skills to the markets changing demands, and therefore adopt the view that change and renewal is an essential and natural response in order for growth and survival (Robbins & Muerji, 1994). However, the need to review an organisati...
According to our textbook Human Resource Management (HRM) is the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. “The human resources management process involves planning for, attracting, developing, and retaining employees as the HRM planning provides the rights kinds of people, in the right quantity, with the right skills, at the right time (Lussier, 2012, p. 240).” According to our textbook the typical responsibilities of the Human Resources department fall into three categories, and they are administrative services and transaction, which handle hiring employees. The second involves business partner services that focus on attracting, evolving, retaining employees by having a clear understanding
Strategic HRM can be regarded as an approach to the management of human resource in accordance with the intentions of the organization on the future direction it wants to take. It is concerned with the longer term people issues as part of the strategic process of the business. The fundamental aim of SHRM is to generate strategic capabilities by ensuring that the organization has the skilled, committed and well-motivated employees it needs to achieve sustained competitive advantage.
1. Mello Jeffrey A. (2002) Strategic Human Resource Management. South Western Press, Canada. 2. William P. Anthony et al (1999) Human Resource Management: A Strategic Approach. Harcort, Inc., USA
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.
However, the true impetus driving these attributes of success results from employees. The act as the success catalysts in raising the competitiveness of the firms and their failure or absence is likely to cause a vacuum through which any organization would fail and disappear into obscurity (Kaliannan & Adjovu, 2015). Consequently, human resources (HR) policies have to be compatible with business strategic planning. It would be inappropriate to consider employees as variable expenses. Rather, they ought to be categorized as assets bearing in mind that they are precious and a critical source of competitive advantage as their skill, capabilities and experiences are for the benefit to the company. Thus, the human resources management practice adopted to the by the company need to contribute in improving performance to grow and gain sustainable competitive advantage (Paşaoğlu,
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.
Strategic human resource management (SHRM) is a tactical method for the management of an organisation’s human resource function in line with organisational goals and objectives. SHRM enhances these functions by linking the traditional human resource practices to business strategy and the realization of organisational goals in order to enable the organisation to achieve a competitive advantage.
Meshoulam and Baird (1988) mentioned that the ultimate aim of the trade can be fulfilled only while the tools of Human Resource (HR) mechanism, actions and structure are all associated with the vision and goal of the business. As a result strategic HRM can be describe as a move towards to get done the objectives of the industry all the way through the assistance of HR strategies protocol and mechanism (Armstrong, 2008).
A comprehensive Human Resource Management Strategy plays a vital role in the achievement of an organisation 's overall strategic objectives and visibly illustrates that the human resources function fully understands and supports the direction in which the organisation is moving. A comprehensive HRM Strategy will also support other specific strategic objectives undertaken by the marketing, financial, operational and technology departments.