Contribution of SHRM towards Organizational Effectiveness- A Study with Reference to NGOs in Kerala
ANU P. MATHEW
Assistant Professor, Department of Commerce, Deva Matha College
Kuravilangad, Kerala, India
ABSTRACT
As the business environment has become more and more complex and uncertain over the years, it becomes imperative for organizations to adopt strategies and effectively putting them into practice so that they can attain solid competitive advantage in the fiercely competitive market. Human resources very well play a significant part in realization of organizational goals in the most effective manner. Effective alignment of firm’s strategies with the individual ones is the end result of successful Strategic Human Resource Management. This is even more relevant with NGOs as their vital resource is not material or infrastructure oriented but rather human oriented. The more is the linkage between HRM and organizational performance through strategic means the greater will be the organizational outcome. Through this research paper, a study is being made to understand how significantly related is SHRM and organizational effectiveness. Data collected through primary and secondary sources validate a highly positive relationship between the both.
Key Words: Employee/ Organizational Performance, HR Outcomes, Operational Outcomes, Organizational Climate, Reward System, SHRM
Introduction
NGOs nationally and internationally indeed have a crucial role in helping and encouraging
HR must enact its own strategies which can aid the organization in meeting its goals and mission. They are referred to as strategic human resource management (SHRM). SHRM is “a pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals” (Noe et al., 2002, 55). The following are examples in which HR strategies can positively impact an organization in meeting its desired outcomes.
To organize and prioritize the current and future projects in the pipeline in a way that fits into the PMB budget of $5B, and ensures projects that increase sales, growth, and stockholder value are of top priority, whereas projects that are not beneficial are either put on hold or discarded.
As the global business environment becomes increasingly competitive, more and more organisations are targeting human resources as a means of strategically gaining competitive advantage. Strategic human resource management (SHRM) is a constantly evolving process which is concerned with providing a strategic framework that supports an organisation’s long term business goals. The logic behind this is that organisations are using new innovative technologies to provide qualitative low- cost solutions, and are trying to manage their human assets more effectively (Wright,
In simple term, strategic human resource management is concern with the ways in people is crucial to company effectiveness. According to Miller (1987) strategic
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
I am currently a member of the Society for Human Resource Management (SHRM). I also plan to join the Twin Cities Human Resource Association (TCHRA), which is a local chapter of SHRM. SHRM is a truly valuable organization. However, I also need a connection to the local HR community, which membership in THCRA will provide. TCHRA will enable me to attend their events and conferences, which will provide me with networking opportunities. TCHRA also has a job board with available local HR jobs, which will be a useful resource to me as I begin my job search.
This artifact was a seminar paper written as a literature review to address topics, theories, issues, and trends in HRD in the course Seminar in Human Resource Development. This artifact considers strategic human resource management (SHRM) practices in terms of what human resource (HR) practitioners are doing and how it affects the organizations they are doing it in and the field of human resource development (HRD). Definitions of SHRM are represented as; a human resource system designed for the mandates of business strategy and a planned model of human resources activities to allow the organization to achieve its goals. It reports SHRM information found in literature and relates it to the study of HRD. I selected this artifact because it compares and contrasts SHRM approaches of HRD and analyzes each of their strengths and weaknesses. Additionally, the artifact evaluates and clarifies the importance of SHRM to HRD and its purpose and goal within an organization.
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.’
Organizational theory studies the various variables that influence the behavior of an individual(s) working within an organization, but also, “prescribes how work and workers ought to be organized and attempts to explain the actual consequences of organizational behavior (including individual actions) on work being performed and on the organization itself.” (Milakovich & Gordon, 2013, p.145). Of the many approaches to organizational analysis, Classical Organizational theory has been, even to this day, extremely influential by focusing on more formal concepts such as bureaucracy, rationalization and scientific management. Although, over the decades organizational management has taken on a more human relations approach to getting more productivity out of employees, it is contributors like Max Webber, Fredrick Taylor, and Luther Gulick that laid down the basic foundation organizational theories by recognizing the need for control and procedures.
One of the current trends in strategic human resources management (strategic HRM), is research regarding whether a company’s human resources department should put more effort in the strategic or organizational aspect of the company. Should a company focus more towards one aspect than on the other? In order to find answers to this question, researchers are using different theories, methodologies, evidences, gabs in research, and conclusions. The purpose of this literature review is to collect knowledge about the current thinking and research of the function of strategic HRM to improve the overall performance of a company.
To ensure a high probability of success in the implementation of strategic human resource management, the HRM function needs to be truly strategic in its orientation.
Aim: This research will help us understand the role played by Strategic Human Resources Management in Organizational success, what role a HR manager plays in improving organizational efficiency and how it differs from traditional Human Resources Management.
Through Strategic Management Process we could find the inter-relations between HR functions and rest of the Organisation function . There are mainly three kinds of company exist in today’s economy , viz. Public , Private and Non Government Organisation . While the significant amount of public’s need is being catered by the Public Organisation , but the Private Organisation aims to maintain the substantial amount of Profit which usually takes the Government contracts to execute the project, so that they could later incorporate the revenue generated in the later stage of their respective business expansion through various means , for eg. hiring skilled labour force, joint ventures . On the other hand , NGOs mainly focuses on fulfilling the public needs by keeping an eye on the Government/Public companies whether the required amount of Corporate Social Responsibilities are being adhered upto the desired level of commitment.
Within this essay an in depth analysis will be conducted on the difference between Human Resource Management and Strategic Human Resource Management using contemporary perspectives. Human Resource Management (HRM) is the process of managing human resources in a systematic way. It is a practice devised to maximise the performance of employees and is concerned with the application of management principles to manage organisational personnel while paying attention to the policies and systems of the entity (Delaney & Huselid, 1996). Strategic Human Resource Management (SHRM) is a function of management which entails development of policies, programmes and practices related to human resources, which are aligned with business strategy so as to achieve the strategic objectives of the organisation (Patrick M. Wright, 1992). Its primary purpose is to improve the performance of the business and maintain a culture that encourages innovation and works continuously to gain competitive advantage. In this essay the Resource-Based View, High Performance Management and High Commitment Management perspectives of Strategic Human Resource Management and Traditional and Collaborative