Organizational success or failure is dependent on a myriad of variables that can be challenging to measure and interpret. Success or failure can simply be luck and timing or an orchestrated and deliberate effort. As new technologies allow organizations the ability to rapidly measure and assess its internal and external environmental factors, more efficient strategies can be quickly implemented. The focus of this literature review is specifically on one of these mentioned variables. The paper will detail the relationship that Human Resources (HR) practices have with an organization’s strategic goals and vision.
HR is defined by the Society for Human Resource Management as, “The function dealing with the management of people employed within the organization.” (SHRM, 2011). The primary functions of administrative, development and management. Administrative functions include those tasks that are often considered “overhead,” such as benefits and payroll management. Development, or HRD, is defined by Swanson (2001) as, “Human resource development is a process of developing and/or unleashing expertise through organization development (OD) and personnel training and development for the purpose of improving performance (as cited by Hassan, 2007, pg. 2). Lastly, management is those strategic functions that align HR tasks within its own department and with the overarching organizational strategies.
This paper will attempt to give a broad overview from the available literature within three areas. First, the paper will explore the historical relationships of HR and organizational strategy. Second, the paper will give an overview of current practices and trends. Lastly,...
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...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).
In conclusion, it is recommended that further literature reviews be completed to explore study results that supplement or add to information already reviewed.
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