In today's world, the quality of human capital and the use of this capital in the labour market is a very important factor of any business development. These result in a number of challenges associated with various processes such as demographics, globalization and the development of new and innovative economic sectors. As a result, human capital is the main and most important asset of every company and often decides whether the enterprise is competitive, and furthermore whether an organisation has a chance to survive in the market place. Every company should constantly take care of quality and continuous development of its human capital. The role of human resource management has expanded to a more strategic function in today’s competitive organisations. Old-fashioned personnel management and human resources management activities are no longer sufficient to participate in a constantly changing and challenging world. HR sectors must become strategic partners of a company’s top management and be a part of the strategic planning process. All functions of HR should be designed in accordance with the policies and objectives of the organization, and here should be horizontal and vertical coherence between all HR functions and policies of the company. To develop the abilities of workforces and support their improvement, functionality and management practices should be applied in accordance with the employees’ requirements. Firms can achieve competitive advantage by systematic planning of their HRM tasks and supporting their workers for being innovative. One of the main tasks of the organisation is to fulfil the objectives and effective applications of its mission and policy. In order to obtain this, an organisation needs to attract the ri... ... middle of paper ... ...k security and in-house labour markets; Selective recruiting and sophisticated selection methods; Broad training and development; Staff participation and information sharing Self-managed teams/team working; High compensation depending on performance; Harmonisation. There is some criticism of best practice approach: Unpredictability in describing what essentially sets up best HR practice Hard to confirm if it is HR practices that guide to greater organisational performance, or if it is solid organisational performance allows companies to participate in Best-practice HRM Difficult to influence business functioning within tight financial limits to invest in costly HR practices Hard to rationalise the cost of best HR practices, as benefits are not always easy to measure Tend to accept a unitarist viewpoint and discount pluralist beliefs.
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).
Hailey, V. H., Farndale, E. & Truss, C. (2005) ‘The HR department’s role in organizational performance’, Human Resource Management Journal, 15(3), 49-66.
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
...’ of best (or better) practice of HR would be those practices that concern: (Deloitte & Touche, 2001) 1) selection of suitable staff from market, not allocated by the state as the planned system exercised previously; 2) provision of incentive reward systems by at least linking performance with payment, and practicing effective welfare scheme that will promote retention of best staff, instead of having standardized rigid wage system and ‘cradle to grave’ social welfare system.
Beginning with the assumption that decision makers (Human Resources Management) in the BP company must design an intended system of HR practices they believe will lead to positive organizational outcomes after the acquisition of Akbar & Sons oil company, they may face a challenge to implement those practices in the company they took over. In various situations, this involves a huge revamp of systems already in place, while in others it simply requires small changes. In both scenarios, the implementation challenge is not easily addressed because obstacles exist at both the institutional and individual levels.
Sels, L., De Winne, S., Maes, J., Delmotte, J., Faems, D., & Forrier, A. (2006). Unravelling the HRM–Performance Link: Value‐Creating and Cost‐Increasing Effects of Small Business HRM*. Journal of Management Studies, 43(2), 319-342.
The field of human resources (HR) plays a critical role in the performance and success of organizations. As organizations have become increasingly more complex, the effective management of HR has become even more important. The traditional perception of HR as only an administrative office is no longer valid. Instead, contemporary HR is directly involved with the internal organizational structure, business operations, and variety of functions carried out by employees on a daily basis (Reed & Bogardus, 2012). HR functions impact the organization’s strategic planning, improvement processes, and goal achievement. Six core bodies of knowledge provide the foundation for all of these HR functions. These areas are: strategic management; workforce planning and employment; human resource development; total rewards; employee and labor relations; and risk management (Reed & Bogardus, 2012).
In this report will cover the importance of having a close relationship between an organisation’s HR strategy and business strategy along with the difficulty to determine the impact of an organisation’s human resource strategy on organisational performance.
Whereas, SME family businesses investing on HRM practices such as training and development depends on the level of performance of the organisation, even though they recognise the value of its importance (Reid and Adams, 2001). This indicates that level of performance and affordability of the organisation can also be integral factors to determine the implementation of HRM practices within a business.
For an effective implementation of HR strategies, it is necessary to engage top level management, also commitment, cooperation and involvement of line managers and staff is important. The problem with strategic HRM is that too often there is a gap between the rhetoric of the strategy and the reality of what happens to it. Factors contributing to gaps are:
Proper use of human resource can improve an organization’s performance. As the human resource department gains attention to frontline managers they can become more familiar with the organizations goals and development. Other ways to focus on the effectiveness of the HR departments is by utilizing employee contributions, because employee opinions brings forth a change that can better the organization. Wan-Jing & Tung (2010) without employee contributions, it is impractical to establish whether an organizations HR department is beneficial to employees, or that it only contributes to negative quality of working life. HR departments contribute to equal performance appraisal of employees and management, which helps develop understanding and a fair work environment that produces important benefits. Such benefit outcomes of HR have demonstrated as; employee motivation, commitment, training levels, reduced turnover and absenteeism rates (Wan-Jing et al, 2010). By sustaining a proper HR department in an organization, HR will bring in a strategic objective which will help
It seems that HRM is so crucial to the organization, for what it does has nearly covered all aspects of the business – from strategic planning to the training and development, but unfortunately, its importance has not been accepted by everyone. As proposed by Morton, C, Newall, A. & Sparkes, J. (2001) there are three different views of HR function within the...
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,
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.