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.
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
1. INTRODUCTION The Theoretical and changing HRM landscape The change in HR fundamentals over the past few decades can be seen in the way employees are treated and referred to by their employers. Over time, the focus on performance has become sharper, with the introduction of new concepts in the treatment and compensation of employees (Cheng and Cheng, 2012). According to Rowan (2009) in today's dynamic, global business environment, HR can no longer focus exclusively on administrative tasks. To add true strategic value to the organization rather than simply see to routine tasks, HR needs to develop processes and implement systems that provide consistency, integration, and insight — capabilities that in turn can enable responsiveness and agility.
A challenge that has emerged with respect to the development of these systems for the management of the HRM function internationally is that nations have different standards for the various functions – recruitment, selection, training, performance appraisal, and compensation – in a firm’s HRM systems. These different standards can be reflected in local employees’ expectations for the job conditions under which they might work and in the adaptations a firm must make in compensation and performance appraisal, for example, when assigning a manager to an international position. The different standards emerge in perceptions of equity and fairness in a multinational firm as its HRM systems will inevitably involve a comparison with other organizations
1.4.1 Literature Review HRM practices are a process of engaging, motivating, and maintaining employees to ensure the organizational survival (Schuler and Jackson, 1987). According to (Delery and Doty, 1996) HRM practices are prepared and implemented in a way that human capital plays important role in achieving the goals and objectives of the organization. The appropriate use of HRM practices strongly influence the standard of employer and the degree of employee commitment (Purcell, 2003). HRM practices like, training and development, performance appraisal allow the employees to do better in order to enhance the organizational performance (Snell and Dean, 1992; Pfeffer, 1998). Researchers have shaped compelling evidence for the fundamental relation between employee performance and how management acts with them (Boheene & Asuinura, 2011).
It also encourages people to work with diligence and commitment. HRM plays a key role in an organization from recruitment to retirement functions. Good HR efforts lead to productivity gains (ratio of output to input) to the society, since it enables the managers to reduce costs, save scarce resources, enhance profits and offer better pay, benefits and working conditions to 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.
Essay Topic: Having a best practice performance management strategy is key to an organization’s ability to gain a competitive advantage. An effective human resource strategy is a fundamental aspect on which organization builds its success. Organizations which have adopted performance management as their pivotal strategy work by defining appropriate goals, assessing employees’ performance on established benchmarks and critically evaluating any gaps between the actual and expected performances. Hence, there is always a room for an improvement and they gradually achieve the success which they had envisioned. Performance management not only entails continuous assessment and feedback of employees from their supervisors and managers on their
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