Hrm and Business Performance.

The purpose of this reflective paper is to show my understanding along with what I have learned about HRM (human resources management) and the different way HRM impacts the success behind every business, along with the rules and regulations that go with it. Over the last five weeks I have learned quite a bit about HRM and will reflect on that throughout this paper. “Human resource management is the managing of human skills and talents to make sure they are used effectively and in alignment with an organizations goals.” (Youssef, 2012). I will be including the things I learned throughout the last five weeks in this

“Human resource management is defined as a strategic and coherent approach to the management of an organisation’s most valued assets-the people working there who individually and collectively contribute to the achievement of its objectives.” (Armstrong, 2009, p.4). Human resource is the employees within the business, Human Resource Management is the management of the employees and to emphasis what they can bring to the business and monitor how the business can improve. “The overall purpose of human resource management is to ensure that the organisation is able to achieve success through people” (Armstrong, 2009, p.8), if the workforce feel valued, the work performance will be of a higher standard, this in tale can then boost the businesses production.

Furthermore, it is stated that HRM practices can also be categorized on the basis of their emphasis into three sets viz., quality focus, cost reduction, and differential innovation (Guest, 1997). The importance of effective HR practices can be judged by the fact that with the effective execution of HR practices, the employees tend to be more committed to their work and they go the extra mile to add to organization’s benefit.

The role of HR in the present scenario has undergone a sea change and its focus is on evolving such functional strategies which enable successful implementation of the major corporate strategies. In a way, HR and corporate strategies function in alignment. Today, HR works towards facilitating and improving the performance of the employees by building a conductive work environment and providing maximum opportunities to

HRM and performance is part of a wide-ranging area of study in this field. The advancement of theory and research on links between HRM and performance started in the 1980s.There has been a lack of consensus in developing a theory of HRM and performance, (Guest et al, 2012). Boselie et al, (2005) determined that up until his review RBV

The economic environment in nowadays dynamic, it is fairly important for organisations and managers to recognise the curtail of Human Resource Management. It is clear that Human Resource Management (HRM) has become one of the most recommend management strategy in the modern business (Leopold and Harris, 2009). Human Resource Management is a technique process of managing people in the workplace to enable and enhance organization performance (Leopold and Harris, 2009). This theory involved the responsible to attracting, selecting, training and managing people which make employees become more valuable to the organisations. It invests effect in learning and development at work. Also to communicate with all employees at each level to reward successful employee relations (Wilton, 2011). Human Resource Management plays a very important role in the operation strategy and management concerns in work organisations of all kinds (Leopold and Harris, 2009). In aim to justify this statement by evaluate the benefit and importance of Human Resource Management in contemporary work organisations. This essay will focus on analysis the advantages of use Human Resource Management in business also underline by explain more detail about the different HRM strategy brings benefits and give competitive advantages impact to the organisation success. Then summarise by a general conclusion on the importance of HRM in contemporary work organisations.

High performance work practices are to improve individual, group and organisational effectiveness so that all can accomplish their goals. According to Sung, J. and Ashton, D. (2005), some of the broadly established HPWPs definition speaks about a set of balancing work practices covering three broad areas. First one is, high employee involvement work practices. For example, quality circles, self-managed teams and access to company information and data. Second one is, human resource practices like work redesign and mentoring, sophisticated recruitment process, performance appraisal etc. and the third one is reward and commitment practices like family friendly policies, financial rewards, job rotation etc.

Human Resource hasn’t always been the hot topic like it is in today’s discussions on better performance management systems. Human resource has always been limitedly considered as the mere workforce that strictly follows the company’s mission and readily falls in compliance with the management’s decisions. That has always been the idea until recently, with gradual advancement in business studies, when effective HR management is considered probably the foremost contributing element towards increased overall productivity of an organization. A well-formed, well thought out and thoroughly connected HR policy that is structured as a self-empowered mechanism that digs deep getting to know about the issues and concerns of the common employee, addresses those concerns with the utmost hospitality and sets up checks and balancing systems to foresee any mishaps, communication gaps and other problems that might erode the relationship between the management and human resource in the future.

High –Performance work practices (HPWP) is a perspective which can hold that effective organizations incorporate several workplace practices that leverage the potential of human capital. According to John Tomer, the essential characteristics of HPWP are employee security, selective hiring of new personnel, self-managed teams and decentralization of decision making as basic principle of organization design, extensive training, reduced status distinctions and barriers across levels, and extensive sharing of financial and performance information throughout the organization.

The current widespread interest change in workplace and emergence of high-performance work systems all rooted in the arising pressure from unprecedented changes in external environment as well as international competitiveness across the globe (Pradip Kumar, 2000). Over time, as the market of Human Resource management system becomes better developed, its strategic value will diminish, and similar to product and services quality in the market, High Performance Work System (HPWS) will become new valuable competitive advantage as well as creating cost of entry within the organization. According to Nadler (1989), High Performance Work System (HPWS) is define as a configuration of human resource practices and organizational structure processes that bring together employee’s knowledge, skill, commitment, information and flexibility to produce maximum working performance in terms of meeting environmental demands and opportunities. This process usually revolves around few main principles which involve more job complexity, multi-tasking, decision-making power, egalitarianism (figure 1.0) as well as greater level of communication and incentives rewards.

HRM is an organization that undergoes the process of managing people in a structure and manner. It is also a process of making the efficient and effective use of human resource so that the goals are achieve. Superior human resources are an important source of competitive advantage. And any factors that allow an organization to characterize its product or service from competitors to increase the market share are called competitive advantage. Competitive advantages can best be achieved by seeking improvement in the managing people, through better utilization of HRM. And also by translating strategy into HR policy and practice to produce the employee competencies and behavior that the company requires.

Gerhart (2005) suggested that labour efficiency and the organizational performance are based on the various HR practices that takes place within the organization like recruitment and selection, training programs, innovative practices and compensation and benefits based on performance evaluation to name a few. The above said practices have found to be highly successful if implemented even in small to mid scale businesses as compared to inflexible HR strategies within the same sector (Way, 2002; Barton, 2004; Black & Lynch, 2001).

SohelAhmad et al. (2003) in his article titled “The impact of human resource management practices on operational performance: recognizing country and industry differences” made an attempt to generalize the efficacy of seven HRM practices proposed by Pfeiffer in the context of country and industry, focusing primarily on the effects of these practices on operations.

According to Decenzo and Robbins (1994), “Human Resource Management is a process of procuring, developing and maintaining the performance level of the employees to achieve the organizational goals in an efficient and effective manner”. The HRM practices of recruiting and selecting employees, training them for their job, evaluating their

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