Human Resourse Management

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Human Resourse Management This essay will review the role of human resource management (HRM) in the strategy process. This will include the function of recruitment and training programs in HRM, the concept of strategic fit and how human resource management can lead to a competitive advantage. The manner in which an organisation’s personnel are managed has a tangible influence on the productivity of the employees, which ultimately acts upon the firm’s bottom line. Corporate success is dependent upon the integration of the human resource plan and the corporate strategic plan.It has become a widely held premise that people provide organisations with an important source of sustainable competitive advantage and that the effective management of human capital, not physical capital, may be the ultimate determinant of organisational performance (Youndt, Snell, Dean, Jr, & Lepak, 1996). The relationship between the strategic planning of an organisation’s people and the overall strategy is being increasingly recognised as one of immense importance. A growing recognition of human resources as being a company’s most important asset has, and will continue to, change the focus of strategic planning. It is no longer acceptable to exclusively plan for those assets that will appear on the balance sheet. A cohesive plan integrating human resource management and the overall strategic plan is necessary, such that the management of people is not a distinct function, but acts as a medium through which all other business strategies are implemented (Armstrong and Long, 1994: p. 42). In essence, the competitive, human resource, and structural strategies should all be linked in a systemic and dynamic fashion (Boxall, 1996: p. 61). Unfortunatel... ... middle of paper ... ...y, T.E. (1993), Strategic Human Resource Management, Thomas Nelson Australia: Melbourne. Schuler, R.S., and Jackson, S.E. (1987), ‘Linking Competitive Strategies with Human Resource Management Practices’, The Academy of Management Executive, Vol. 1, No. 3, pp. 207 - 219. Schuler, R.S., and MacMillan, I.C. (1984), ‘Gaining competitive advantage through human resource practices’, Human Resource Management, 23 (3), pp. 241 - 255. Skelton, B (1996), Flexible workforce is a business strength, Human Resource Week ‘96, The Age, pp. C10. Torraco, R.J., and Swanson, R.A. (1995), ‘The Strategic Roles of Human Resource Development’, Human Resource Planning, 18 (4), pp. 10 - 21. Youndt, M. A., Snell, S. A., Dean, Jr., J.W., & Lepak, D. P. (1996). Human resource management, manufacturing strategy, and firm performance. Academy of Management Journal, 39 (4), 836-866.

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