Human Resource Management And Organizational Performance: A Case Study

Human resource management is designed to maximize employee performance in response to strategic objections made by the employer.

The association between Strategic Human resource management and organizational performance is the topic of discussion throughout the last two decades. It is an ongoing area of study which is often intense and inconclusive, however one that has caught the interest of many. There is a ‘black box’ (HRM 2017/1748-8583) as such between both the dependent (Performance) and independent (HR practices) variable. In order to fully scope the topic in discussion we must measure the contribution of the human resource manager, identify and describe variables to measure the value added to HRM, have a general idea of techniques

Strategy process involving the process of coming up with a strategy, involving scoping the environment for threats and opportunities and also watching close competitors. Strategy content, focuses on the actual policies put in place by the organisation and the way in which they were implemented.

It was difficult for traditional HR managers to comprehend that they now had a massive effect on the overall strategy of the firm. Reflecting this concept were efforts to measure the influence of HR on the organisational performance. Methodologies and practices were examined. These methods did extend the influence HR managers had on performance, however they did little to advance the role as a source of competitive advantage.

There are 3 types of theoretical perspectives on management;

1 Universal approach (bundled approaches) – this assumes there is one best way to manage people across all situations. Applying the same techniques to every organization.

2. Contingency approach – known as the “best fit” approach. The approach is that the optimal HR strategy is one which will fit the organisations overall strategy. The HR should complement the strategies

In order to be successful, a HRM must understand that measuring work and cost is not enough. Both performance and outcome also need to be considered.

• Q: What should we measure and how do we measure it?

• A: Metrics “When performance of HR system is measured and evaluated it may act as a positive reinforcing dimension in strategic value addition that again can be financially visible and have maximum impact.” – (Journal of Management Research (09725814). Jul-Sep2016, Vol. 16 Issue 3, p177-184)

Provide evidence of strategic impact: Within most companies, people costs are the highest variable budget expense. With such high people costs, HR managers must prove the economic value. They do this by using metrics. Most things within HR can be measured, however it is most efficient to measure those with the highest cost and the most impact. If you can increase their value most Chief Financial Officer will assume that the rest of your HR is operating efficiently. Most strategic HR metrics focus on multiple things, performance is the most important. If it can be proven to top management that you’ve decreased the cost of labour, through efficient hiring, training and motivation, you will be highly