2a INTRODUCTION
The main purpose of the article is to identify the impact of Human Resource Management (HRM) practices on organizational performance. To understand how, the following specific objectives are considered:
i. Review of strategic HRM and its benefits to the organization. ii. Provision of key insights with regard to the implementation of HRM practices on employee's performance, ability and behavior. iii. Identify package of HRM practices that contribute to better performance. iv. Relationship between HRM practices and organizational performance.
v. Measures that may lead to the improvement of performance.
The article’s domain is to explain how the way an organization manages its HR has a significant relationship with organizational
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One of the reasons for this popularity is the assumption that HRM is a source for competitive advantage and will influence the organisational results and performance in a positive direction. In an environment where HR is an important source of competitive advantage, it is also the one that contributes to sustained competitive advantage through facilitating the development of competencies that are firm specific. Strategic Human Resource Management (SHRM) concerns with the creation of a linkage between the overall strategic aims of business and the HR strategy and implementation. The article takes a closer look at the presumed relationship between HRM and business performance. The main idea behind HRM-performance presumption is that HR practices affect employees’ attitudes and behaviour, which further affects the operational performance, such as productivity, quality and innovation, which in turn have a positive effect on an organization’s overall market for its products and subsequently its financial results. The causal linkage between HR and organizational performance will enable HR managers to design programmes that will bring forth better operational outcomes to attain higher organizational performance. Through specific examples from academic research regarding the impact of SHRM practices on organizational performance, the conclusion is that the way an organization manages its HR has a significant relationship with the organization’s performance. This article reviews the theoretical foundations for a HRM-firm performance relationship and focuses particularly on the potential of a High-Performance Work Systems (HPWS) to serve as an inimitable resource supporting the effective implementation of corporate strategy and the attainment of operational
These specialists explain that companies (human resources of companies) need to “focus on the human element of their companies”. Including that with today’s generation, HR needs to utilize different communications and management with the newer
Its content is very complete and provides a good read into current HR issues making it, exceedingly relevant. The website it is posted on, Human Resource Executive Online, provides a large archive of additional resources and links to other reliable and credible pages. Independently and individually gathered statistics assure an unbiased nature and demonstrate the use of primary and secondary research efforts. The reading flows well and the content makes sense, even to those inexperienced with HR or business. References are provided in the text and can be further accessed through the website.
The means and resources referred to cannot be personal constituents of the organization on who the achievement of effectiveness is based through their increased performance and productivity. The existence of conducive and carefully designed human resources management policies and practices appear inevitable for the attainment of these goals. Human resource development models show that investment in HRD lead to higher individual and organizational performance, Qualified solving individual and organizational problems and organizational commitment (Arif, 2007). Wendel (1973) described human resources as consisting of all individuals engaged in any of the organizations’ activities regardless of their
As a result,the goals of a human resource department reflect and support the goals of the rest of the organization. Strategic Human Resource Management is defined as the link between Human Resources policies and practices with overall strategic business objectives of an organization. So,Strategic Human Resource Management has a significant influence on managing employees. Strategic Human Resource Management is based on 3 propositions. They are as follows; The human resources or human capital of an organization play a strategic role in its success and are a major source of competitive advantage.
Organization ought to take after and keep up the fundamental necessities of the representative to oversee and accomplish the authoritative objective. HRM method is to advance & execute strategy in the association to concentrate on the quality & diminish the expense of the association. HRM Practices is to choose & train individuals in a manner that the association accomplishes their objective, the workers to be compensated to propel the representative, in the meantime the status & security of the worker additionally to be remembered. HRM Outcomes prompts duty & quality towards their work in the association. Conduct Outcomes - the representative gets persuaded & invests the most extreme push to make the association in accomplishing its objective.
Ch 6- Performance Management This chapter explains the HR function of performance management, its policy integration and its impact on organizational performance. First, the performance management at the organization is introduced. Second, the major elements of performance management policy its integration, implementation and its relationship with organizational performance is mentioned. The research findings are described and at the end, with conclusions and suggestions are outlined at the end of the chapter.
Driven by market imperatives to develop more efficient organizational structures and practices, there is an increasing importance among both academics and practitioners on behavioral competitive strategies that rely on core competencies and abilitiesbetween employees, as they provide the most effective response to market demands, also they are not easily imitated by competitors. Within the context a broadly defined High Performance Work System can be viewed as a crucial strategic lever, both as a means to sustain and develop core competencies and as a necessary condition for strategy implementation. Such systems include rigorous recruiting and selection protocols, performance management and compensation systems, and employee Development and
HR management is adopted by various agencies since it is considered to be beneficial. In fact, the challenges and issues and agency encounters are usually dealt with by the human resource department all the while carrying out other responsibilities. The article Challenges and Issues in Human Resource Management by Palistha Maharjan mentions some key challenges that HR managers encounter regularly. Make that Grade: Human Resource Management by Linda Reidy (2015), along with some other articles, have helped to strengthen the impacts of these challenges as well as identifying some strategies that can be used for HR managers to overcome them. It is also important that HR managers identify the issue before addressing it in order to minimize
(2006). Strategic Human Resource Management: Determinants of Fit, Research and Practice in Human Resource Management, 14(2), 49-60. (‘Schuler & Jackson 1987’) [Accessed 10 October 2015].
Thus, it will be released enormous potential for improved performance. The introduction of HRM ideas into practice involves the strategic integration, the development of a coherent and consistent set of methods for achieving the employment service and commitment. This requires a high level of commitment and competence at all levels of government, a strong and effective HR service, staffed by people-oriented business. These criteria may be difficult to meet, especially when the proposed HRM culture is in conflict with the corporate culture and traditional attitudes and behavior of the
The Harvard Model of HRM: Back in 1984, Beer et al developed the Harvard model of the HRM. Beer et al believe that the human resource is passes many of pressures nowadays, therefore, eliminating the pressures is required. These pressures could be eliminating by having a long-term perspective in terms of controlling people and potential assets rather than just variable costs. As a result, Beer et al approach the Harvard Model of the HRM. The purpose of this model is to solve the pressures that may occur in the HR of any organizations; these pressures include all management decisions that will affect the relationship between the organizations and their workers, in addition to a clear plan for the HRM policies and procedures by the manager of
Section 4: The Role of HRM (i) Human Resource practitioners face several issues within a recessionary environment. These issues include staffing, pay and benefits, industrial relations, the role of the HR function, unions and a disruption in the patterns of work and employment. During a recessionary period staffing is normally affected. Organisations will try to reduce costs of the organisation. One way of achieving this is through staffing.
Special attention is devoted to the methodological challenges inherent in the prior empirical work that has adopted this systems perspective, and what we can learn from research at different levels of analysis. We next summarize the evolution of our own work on the subject and present new findings that bear on the magnitude of the HRM strategy-firm performance relationship. Brian E. Becker and Mark A. Huselid(2009) reviews the theoretical aspects and foundations for a relationship between HRM-firm performance and focuses on the potentiality of the high-performance work system to serve as an important resource supporting the effective implementation of corporate strategy and the attainment of the organisational and operational objectives. They summarised that the evolution of own work on the subject and present new findings that bear on the magnitude of the HRM strategy-firm performance
This result in more attention and developments on the human resource management strategies to engage in significantly improved factors in several international firms (Francesco and Gold, 2005). Several academic researchers such as Tietjen and Myers (1998) have indicated how influential human resource management strategies can be. Schwartz and Bilsky, (2008) required that human resources to business can bring important values, different from machinery, employees carry valuable knowledge which can guide firms to the road of successes. Therefore a powerful and effective human resource management strategy can make companies to survive in this modern competitive business
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).