Analysis Of HRM And Organizational Performance

Prior to any discussions regarding HRM alignment with business strategy, it is necessary to distinguish the role of traditional HR from the role of strategic HRM. The Journal of Management published an excellent article written jointly by Brian E. Becker and Mark A. Huselid. The article was entitled Strategic Resource Management: Where Do We Go From Here? Becker and Huselid made a distinction between Human Resources and Strategic Human Resource Management. According to Becker and Huselid, the distinction between HR and HRM centers on two important facts. First, traditional HR focused on individual performance and in contrast, HRM focused on organizational performance. Second, HRM uses human resources systems to solve business problems conversely, traditional HR kept human resource functions separate from the business functions (Becker & Huselid, 2006).

Schuler and Jackson (1987) propose the model of Human Resource Management as the business strategic policies and practices of the organization. This framework is to achieving competitive advantage in different industry condition. They argue for fit in different industry condition and business strategic. It includes innovation, quality enhancement and cost reduction. This business strategic associated with particular employee role behaviors and HRM policies and practices.

Schuler and Jackson (1987) propose the model of Human Resource Management as the business strategic policies and practices of the organization. This framework is to achieving competitive advantage in different industry condition. They argue for fit in different industry condition and business strategic. It includes innovation, quality enhancement and cost reduction. This business strategic associated with particular employee role behaviors and HRM policies and practices.

Human resource (HR) department that is highly administrative and lacks strategic integration fails to provide the competitive advantage needed for survival, thus losing its relevance. Huselid and Becker (1997) found that there were noticeable financial returns for the organisations whose human resource management (HRM) systems have achieved operational excellence and are aligned with business strategic goals. According to Ulrich (1998), one of the four roles of HR personnel is to become strategic business partner. Youndt and Snell (1996) find that firms employing HR practices according to the stated strategy are regarded to have better performance.

Those days, HRM was considered as administration and nothing much. It centered around routine tasks such as record keeping and maintenance. And it was also known as personal administration (Managerial auditing journal, 2003) and the HR those days did not interfere in the strategic plans of the organization. Higher level managers considered HRM as something which was not necessary for the organization because it did not contribute to productivity and the profit levels of the organization. But today HRM has gained more importance in most organization. Most executives viewed human capital as a cost needing to be controlled or minimized. Now, they realize that employees contribute significantly to the financial performance of the organization. This fresh perspective on the value

Human resource is the main asset and the best element of an organization for achieving the ultimate goal. This valuable asset activates all other capital investments of the organization. Human resource is the main strength to achieve long term growth of any organization. That’s why every organization needs to use the best skilled human resource for attaining large market share and competitive position. The success of any organization largely depends on well-structured and highly skilled human resource team. Standard recruitment and selection process help to find out the skilled and qualified people for the job (Boxall, 2007). Human Resource (HR) manager of organization plays a great role to recruit and select the valuable human and appoint them in the work place. After the training and development, the performance of human resource of an organization is measured through performance and appraisal process.

Discuss the Resource Based Approach to strategic HRM as a better alternative and its managerial implications in terms of HR actions

While formulating human resource management policies and plans for managing human resources its necessary to keep external environment and competition in mind as they will have long term consequences. There are many Hr practices in human resource management like planning, recruiting, selection, job analysis etc.. the strategy underlying these practices should be carefully planned as they influence the company performance.( (De Cieri et al, 2003, pg 4)

Based on Bratton and Gold (2007:55), as applying the resource-based model, managers consider HR as ‘an asset’ which is emphasised when there is an access to ‘advanced technology and other inanimate resources’. Moreover, Barney (1991:99) claims that to sustain the competitive advantage, it is vital for an organisation to be equipped with four characteristics of resources and capabilities:

In today tumultuous times, the challenges that companies face to remain competitive have changed rapidly. With constant new breakthrough in technology, companies fought hard with its competitors to establish and maintain their competitive advantage. However, access to capital & technology has become less critical in today’s economy as compared to acquiring and keeping skilled workers. In a knowledge-based economy, it is important for companies to be more strategic in the way it operates. Human Resource Management today has to be strategic to meet the

There are a variety of reasons, which had a big role in highlighting the importance of HRM as an important source of competitive advantage for organizations, notably the emergence of resource-based view, the evolution of the concept of competencies, the emergence of the importance of knowledge, the emergence of the concepts of

Provide a brief description of the models of HRM discussed in the first chapter of the textbook, and explain how each one relates to strategic human resource management.

The importance of this assignment goes beyond the mere academic scope at hand. As future globalized managers, our role is not only to familiarize ourselves with a list of Human Resource Management (HRM) practices, but to develop a critical and rational mind-set to analyse how these practices and policies affect intrinsically the competitive advantage of firms (Huselid, 1995), and how they can foster performance, development and commitment of our most irreplaceable asset, human resources (Wright, et al, 2003).

Human Resource Management (HRM) can be described as the term that is used to define formal systems developed for the administration of people/ personnel within the organization. The major responsibilities of the Human Resource are normally divided into three major areas of management: employee compensation, staffing the employees, and defining/designing work. Fundamentally, the major purpose of Human Resource Management is to make the most of the productivity of an organization by improving the efficiency of its staffs. The Human Resource comes across numerous issues and challenges, and in order to solve those issues, the HR managers have to take specific steps. In this paper, I am describing a particular issue related to Human Resource Management, which I have witnessed and I am intended to solve through my strategic and organizational point of view (Simons, 2011).

employees and employer. Human resource management (HRM) is the managing of human skills and talents to make sure they are used efficiently and in alignment with an organization 's goals. Every company has its strategic plan; it includes the administration 's long- and short-term goals, and it also includes the procedures for deciding how to allocate organizational resources to achieve these objectives. According to our text, “Strategic HRM is the link between strategic planning and HRM. It incorporates HRM strategies and policies to achieve organizational goals while meeting employees ' and stakeholders ' needs” (Youssef, 2012). The primary functions of human