To achieve cost efficiency, a business must look at its resources and determine the correct strategy to deployment, which will help the business attain its business goals. One of the strategic moves to keeping a business cost effective is to implement a strategic approach to human resource management (Sondhi and Nirmal, 2013, p.4). While it is still important for businesses to develop external competitiveness through introduction of new services, products or innovations, the business must prioritize its development of internal human assets as it is through the employe... ... middle of paper ... ...pact of Investments in Human Resources Activities on the Effectiveness of Investment in Human Capital: The Case of Commercial Banks in Jordan. International Journal of Business and Social Science, 3 (18), p. 154. Barney, J.
Case for Human Resources as a Strategic Partner 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.
Various theories and models apply in expounding how leaders develop and how the learning process should take place. Learning is fundamental in ensuring effective successful performance. However, the steps recommended by various theories or models have not been subject to keen following in practice, particularly in the ELT. As stated by ELC (2009, p. 1), organizations need to invest more on the leadership development if the business is to secure competitive advantages. Increased performance will improve the competitiveness of the company, facilitating the ability to survive in today’s very competitive market.
It is important for HR personnel to have knowledge of the business, customers, leadership traits, the right HR systems and appropriate delivery systems. Understanding the business is a key element for HR to become effective. Every business is unique and therefore, the HR has to understand the unique elements of the business which determines how the human capital behave. Understanding the business enables the HR function to analyze the strategic objectives for each activity. In other words, the HRM is in a better position to add value if they understand the business.
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. 2.0 IMPORTANCE OF ALIGNING BUSINESS STRATEGY AND HUMAN RESOURCE STRATEGY A well-thought and coordinated SHRM is undoubtedly considered the blueprint for how a business should run in order to acquire competitive
The idea of change is the most constant factor in business today and organisational change therefore plays a crucial role in this highly dynamic environment. It is defined as a company that is going through a transformation and is in a progressive step towards improving their existing capabilities. Organisational change is important as managers need to continue to commit and deliver today but must also think of changes that lie ahead tomorrow. This is a difficult task because management systems are design, and people are rewarded for stability. These two main factors will be discussed with reasons as to why organisational change is necessary for survival, but on the other hand why it is difficult to accomplish.
Introduction As organisation strive to become competitively advantaged and achieve their organisation’s strategic goals, they are putting more emphasis and focus on their internal knowledge strategies to fulfil their goals. Organisations are not only focusing on getting an advantage over their market competitors but also getting an advantage through execution of their internal core processes which gives them strategic edge over their competitors which leads us to the topic of discussion “knowledge audits”. A knowledge audit is an assessment and evaluation of an organisation’s knowledge capabilities in terms of how and where knowledge is used in business processes (Perez-Soltero, et al., 2006; Anon., 2016; Anon., 2015). Knowledge is defined
Leadership and management, both necessary components of a successful business are fundamentally different in their approaches to dealing with the company’s future, networking employees with purpose, and the methodology with which each approaches seeing that the task at hand be accomplished. All three of these differences are resultant from focus on change by leaders and focus on order and consistency by management. With regard to the future of the company, a competent manager will make detailed plans to ensure that the company maintains a specific standard of performance by adhering to policy, and budgeting accordingly so that these plans can come to fruition. On the other hand, leaders tend to play a more visionary role. They seek to make changes in the company so that it may gain a competitive advantage amongst other companies of similar purpose.
Business firms may seem to be similar, relying on guide of organizational models. However, in practice, all business is unique, functioning as a distinct arrangement of organizational models, designs and practices. Adoptation of any plan is all to support ‘’inimitable’’ business strategy. Performance measurement is critical in assessing organization overall performance and results are used for strategic planning to develop range of strategies (Tapinos & Dyson, 2005) for achievement of sustainable business success. Without this information and understanding, organizational strategies will not be in configuration with or effective in the business environment.
Planning is the effect of outlining organisational objectives or aims, as well as a system of how to achieve them; therefore failing is to be unsuccessful in achieving those goals and objectives. The importance of planning in businesses is great as a formal plan incorporates the organisations aims and objectives, determines strategies for accomplishing those goals, and develops a system to coordinate behaviours of workers efficiently so as to increase overall chance of success. Without a formal plan in place, organisations may not be entirely certain of what their goals may be and how to achieve them, therefore causing detriment to the company. Organisations definitely need a plan if they wish to proficiently succeed in the business world. To plan is to create an outline of a businesses organisational objectives or aims, as well as how to achieve those aims and should be a framework of what needs to be completed when and how to achieve it, (Robbins, S, Decenzo, D, Coulter, M&Woods, M, 2014).