Analysis Of HRM And Organizational Performance

Today 's fast-paced, competitive business environment has resulted in "rediscovery" of the human resource management function as a group that may be able to enhance firm competitiveness and performance by being "strategic" (Dyer & Kochan, 1995; Ulrich, 1997). Strategic Human Resource Management is a term describing an integrated approach to the development of Human Resource Strategy that will enable the organization to achieve its goals (Armstrong, 2005). Whiles strategy is an action that managers take to attain one or more of the organization’s goals. Strategy presents a general direction set for the company and its various components to achieve a desired state in the future. This results from the detailed

Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’

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.

The economic environment in nowadays dynamic, it is fairly important for organisations and managers to recognise the curtail of Human Resource Management. It is clear that Human Resource Management (HRM) has become one of the most recommend management strategy in the modern business (Leopold and Harris, 2009). Human Resource Management is a technique process of managing people in the workplace to enable and enhance organization performance (Leopold and Harris, 2009). This theory involved the responsible to attracting, selecting, training and managing people which make employees become more valuable to the organisations. It invests effect in learning and development at work. Also to communicate with all employees at each level to reward successful employee relations (Wilton, 2011). Human Resource Management plays a very important role in the operation strategy and management concerns in work organisations of all kinds (Leopold and Harris, 2009). In aim to justify this statement by evaluate the benefit and importance of Human Resource Management in contemporary work organisations. This essay will focus on analysis the advantages of use Human Resource Management in business also underline by explain more detail about the different HRM strategy brings benefits and give competitive advantages impact to the organisation success. Then summarise by a general conclusion on the importance of HRM in contemporary work organisations.

The Strategic Human Resource Management (SHRM) is an approach that defines how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices. Thus human resource is considered as important asset to organizations to achieve sustained competitive advantage (SCA) and optimize organizational performance. The Resource Based View (RBV) or approach, best explains the human resource as a source of competitive advantage that culminates to superior performance. Therefore, the RBV approach to SHRM in this essay is argued and established as a better alternative from other approaches such as Best practice approach and Contingency approach. Down the line, 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)

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

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

Human Resource Management’s (HRM) organizational systems are considered to be the source of sustaining the competitive advantage; this means employees start to represent and to be considered as an important source of competitive advantage (Barney, 1991; Pfeffer, 1994). According to Fey et al. (2008), the choice of HRM’s practices is very significant since firm’s HR have the ability to create high benefits but also it represent the highest cost for the organization which can be controlled.

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).

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:

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.

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.

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

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).