Human resources are passive, to be deployed as numbers and skills at right price under this approach (Legge, 1995). The soft version HRM had long term impacts for organization associated with highly skilled and committed employees (Beer et al. 1985). It stressed on human aspect of HRM with leadership style, performance management, quality of work life and motivational techniques. The two approaches provide management with two alternatives to achieve goals of
Introduction Human Resource Management (HRM) refers to the management of people in an organization. It involves the integration of Human Resource policies, activities and systems that focus on managing employees in an effective and efficient manner to achieve organization’s goal and success (Byars and Rue, 2006). The purpose of this report is to analyze the importance of HRM in sustaining competitiveness and contributing to the success of the organization. Subsequently, discuss on the main challenge of HRM in today’s rapid changing business environment. Last but not least, suggest and evaluate recommendations to overcome the challenge faced by HRM.
The organizations that align their HRM practices with their business strategy will achieve superior outcomes (BAE & Lawler, 1999). It is obvious that HR management practices should be an integral part of the strategy of any organization: HRM practices could contribute to competitive advantage while reinforcing the skills, attitudes and behaviors that result in lowering costs and enhancing productivity. Delivering Value through HRM SHRM is defined as the linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility (Truss & Gratton, 1994). Ulrich (1998) argues that the debate about the added value of the HR function has to focus on what HRM contributes to the business instead of on the activities it does. The value of HRM is not defined by what happens inside
Human Resource Management (HRM) is the basis of all management activity. (Torrington, Hall, & Taylor, 2008) The basis of management is always the same; meaning that people are needed in an organization in order to make things happen in a productive way and thus for the business to prosper and for people to thrive. Additionally, it is important for an organization to keep a balance between people’s aspirations and simultaneously business financial outcomes. (Torrington, Hall, & Taylor, 2008) Thus, in order to understand how this balance can remain stable, in this paper the focus will be on the HRM practices, two theoretical models that contribute to the effectiveness of HRM practices, the implementations of HRM practices by leaders and how employees
Importance to SHRM It needs to discuss the importance of Strategic Human Resource Management (SHRM) for every organization. SHRM is focusing to increase the emphasis to be smooth employee communication, actively involves their tasks, highly professional skills and strong ability for an employee, enjoy their working environment in organizations. The strategic use of human resources will help managers and effective controlling for their subordinates. By using SHRM approach, the organization can obtain talents employees who are matched with the organization goals (Mullins, 2007). Today organization is changing different due to influence external environments such as diverse culture, creation ideas, and technology innovations and so on.
The last two issues are of particular concern when framing international HR strategies. A successful IHRM requires a careful understanding of the cultural, legal, political, ethical and economic differences among nations and its people. Even within national boundaries, the challenge of effectively managing a multicultural workforce is exercising many organizations.The HR Managers must be aware of the factors that motivate people from different countries and their influence on global assignments. Thus, IHRM is more challenging than HR management within the boundaries of one country. The issues IHRM have to deal with are as follows: Management of Cultural
The common problem and questions surfaced are what the best practices of HRM with an organization are. How can HRM improve or help in business operations. In order to improve business and employee performances we have set the main objective of the study is to examine and analyse the impact of HRM practices on business and employee performance eventually. Based on this study we will conclude the finding and provide recommendations that could resolve the mentioned
Human resource management includes conducting job analyses, planning, personnel needs, recruiting the right people for the right job, orienting and training, managing wages and salaries, providing incentives and benefits, evaluating the performance, resolving disputes, and communicating with all employees at all levels. Examples of core qualities of HR management are extensive knowledge of the industry, leadership, and effective negotiation skills formally called personnel management. The purpose of HRM is to ensure that the employees of an organization are used in such a way that the employer obtains the greatest possible benefit from their abilities and the employees obtain both material and psychological rewards from their work (Graham, 1978). HRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques. (Storey, 1995).
Basically it contains four strategies, including developing, rewarding, retaining and attracting employees. It facilitates both individuals in the organizations in the path of achieving their goals. Applying SHRM tools to the organization cannot be completed only by HR department. It is necessary to response and work together with other departments. If not, HRM align with strategies the human resource management practices may not reach the objectives of the company.
In Order to present the underlying theoretical and methodological rationale for this study, this chapter highlights the role of recruitment and selection practices. For this purpose, Theories associated with HRM and impact of recruitment and selection practices has been explored through extensive review of books, articles and web pages. 2.1 The concept of Human Resource Management According to Heathfield (2000) defines human resource management (HRM) as the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. HRM is the function within an organization that