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Concepts of strategic HR
Concepts of strategic HR
Concepts of strategic HR
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Human resource management (HRM) means the management of anything related to employment relationship of a firm. Although, from many perspectives, there is not much of differences between HRM and SHRM, strategic human resource management (SHRM) takes organizational goals and operation into the consideration of HRM (Boxall and Purcell 2000). For example, for a High-tech company Amazon or Facebook, HR department is responsible for selecting employees with high level of expertise and team spirit due to lots of team based projects. The incentive plan should not encourage individual behavior. Not only high selective recruitment, companies’ SHRM also includes incentive scheme, training, development and so on. The system of SHRM should be effective …show more content…
Stakeholders are shareholders, management, employees, government and trade unions. Workforce, business, management style, market, union and laws build up situational factors (Beer et al. 1984). HRM should formulate its policies under the influences of both factors in order to get the commitment, capability, consistency and cost reduction. In long run, these HR outcomes leads to prosperity of individual, company and society. In turn, society well-being affects stakeholders and situational factors. The management methods of Harvard model align with the best fit perspective, but the outcomes fit the best …show more content…
Contrary to best fit perspective, resource based view (RBV) pays less attention on HR practices and policies, but values human capital as a vital resources of a company. Internal resources play a key role in productivity and performance of the company. To compete a leadership in industry, company has to manage valuable and rare resources that company owns well. In order to create and sustain competitive advantages, RBV prime action are resources improvement and competencies development. Because theses organization competencies come from internal, they are exclusive and immobile which opponents can hardly copy. The differentiation can compose a strong comparative advantage. The example is the case study UK road haulage industry conducted by Marchington, Carroll and Boxall in 2003. The major obstacle of family business growth in this industry was lacking of good drivers. Other companies offered higher wages and working hours to attract qualified drivers. Final solution was RBV HR practices, because good drivers were rare and valuable resources to the companies. In order to hire, retain and develop the most important resource, companies provided consistent HR policies and management model including better working condition, effective incentive plan, team building and promising career path. This HRM system made companies distinct from
In closing it is important to note that making HR a strategic partner, having the ability to attain a competitive advantage through HR, creating an effective performance management policy and having the ability to effectively measure HR’s impact will be a key driver to success
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.
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)
In the fields of management and business, Strategic Human Resource Management (SHRM) has been a powerful and influential tool in order to motivate employees to perform productively. (Ejim, Esther, 2013). According to Armstrong (2011), SHRM refers to the way that the company use to approach their strategic goals through people with a combination of human resource policy and practices. The purpose of SHRM is to produce strategic capability that the organisation must ensure such that employees are skilled, committed, and well-motivated in order to achieve a sustainable competitive advantage, (Armstrong, 2011). Particularly, the organisation must be able to carefully plan strategic human resource ideas, aimed to increase the productivity.
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).
It is also perhaps not feasible to evaluate the attractiveness of an industry independent of the resources a firm brings to that industry. It is thus argued that this theory be coupled with the Resource-Based View (RBV) in order for the firm to develop a much more sound strategy. It provides a simple perspective for accessing and analysing the competitive strength and position of a corporation, business or organisation.
According to this definition, we can see that human resource management should not merely handle recruitment, pay, and discharging, but also should maximize the use of an organization's human resources in a more strategic level. To describe what the HRM does in the organization, Ulrich, D. & Brocklebank, W. (2005) have outlined some of the HRM roles such as employee advocate, human capital developer, functional expert, strategic partner and HR leader etc.
This strategy emphasizes the use of an organization’s resources and capabilities to achieve a core competence that cannot be imitated by competitors. Furthermore, the resource based school argues that if an organization distinctively improves its internal capability; that is being able to have effective inside machinery to deliver products and services to customers, the organization will enjoy a massive advantage in the market. This school also argues that in order to have a competitive advantage, an organization must have resource and capabilities that are sophisticated to those of competitors (QuickMBA, 2010).
Jules and Holzer (2001) noted that Strategic Human Resource Management enhances employee productivity and the ability of government agencies to achieve their mission. One can conclude that it is the same for learning institutions as SHRM focuses on the issues and goals of the organisation and strive to implement plans collectively to achieve those goals. In contrast to traditional Human resource management, SHRM focuses on improving the effectiveness of the entire learning community and helps to improve the organisations by creating and implementing plans that will continuously raise the competencies and capabilities of the members of an organization for the overall achievement of the organization (Ulrich 1997).
It represents the Strategic human resource management (SHRM) core function like “work analysis, Job design and job analysis” defines its importance in strategies implementation in any organization. This assignment will also discuss the aspect of Human Resource department that why they are giving more edge to other functions like Recruitment and selection, Performance appraisal and Occupational health and safety. This report will also presents the today’s critical business challenges and the with coming new responsibilities for HR and why they have started to give more weightage to Job analysis and design in order to get the better output and efficiency of the organization. Moreover, Human capital is a vital factor for any department in any organization. “Hiring smart” is becoming a fashion trend for companies for their effectiveness, productivity and employee motivation as the more investment will be done in employees by the firms. It continues with the recommendations on the need of analysis and design of work and how to make employees motivated in the company.
...an approach of partnership is critical for organizations that want to gain competitive advantages. Butler, Ferris & Napier (1991) state this as, “the more management believes that HRM contributes to corporate success, the more its role will be integrated into the firm’s strategic planning process.” (as cited by Rose & Kumar, 2006, pg. 3). Additionally, organizations that apply energy and resources to HRD benefit from an increase in human capital. López-Cabrales, Real & Valle (2011) state the benefits of building human capital as, “If the company adopts appropriate procedures of personnel management, human capital can be orientated to the achievement of sustainable competitive advantages” (pg. 5).
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.
Introduction 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. In essence, an HRM strategy’s aim should be to capture the ‘people’ part of an organisation and its medium to long-term projection of what it wants to achieve, ensuring that. It employs the right people, those have the right mix of skills, employees show the correct behaviours and attitudes, and employees have the opportunity to be developed the right way.