Chapter 4 Case - Integrating Strategy and Human Resource Management
1. Based on these descriptions of the experience of People’s Bank, Ingersoll-Rand, and Maid Bess, what is the unifying theme of the role played by human resource management?
To begin with, human resource management is the process of hiring and training employees so that employees become more knowledgeable of their job tasks, and more valuable to the company. Hiring and training employees, managing payroll, performing job analyses, assessing performance, and communicating with employers and employees are all part of human resource management (Heathfield, 2013). Human resource management is important because it provides competitive advantages and helps to create
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157).
Regarding Ingersoll-Rand rock drilling division, this company needed to train employees to become familiar with new technology, control the cost of labor, and resolve the labor shortage. Therefore, they had to incorporate human resource management and strategic planning which resulted in allowing employees to take part in choosing new technology for the company and implementing new programs (Greer, 2001). Maid Bess, a uniform manufacturer assimilated strategic planning and human resource management because labor cost became critical (Greer, 2001). As a result, the company increased productivity and employees’ salaries, and reduced the turnover rate. In final, both strategic planning and human resources management work together to improve workplace conditions.
2. How does the strategic role of human resource management in the U.S. Navy case differ from others?
The strategic role of human resource management in the U.S. Navy case is different from other cases because the human resource managers closely evaluated the labor cost savings of a strategy concerning civilian workers that replaced local wage policies for national wage policies. The human resource managers developed “forecasts” to find out the labor market results due to these changes, which would determine if enough labor resources would be accessible with the cost-saving strategy. The end results include the Navy was
Human resource departments today have a more distinct, calculated position within organizations, and human resource strategy influences the bottom line. “One of the challenges for HR leaders is convincing executive leadership teams that human capital is one of the most important resources in which the company can invest” (Mayhew, 2014, p.). Subsequently, “this return on investment is an essential part of the argument for including HR as part of an overall business strategy” (Mayhew, 2014, p.). Human resource departments utilize the information given to them from company executives and leaders, coupled with their respective expertise on all things personnel, and they plan and implement staffing concerns for the betterment of the organization. From preparing job analysis, to comparing inventory and forecasting, it is the responsibility of human resources to consider the objectives of an organization and fulfill those goals while operating the specific planning relative to HR.
3. Why is it important for HR management to transform from being primarily administrative and operational to becoming a more strategic contributor?
* Human resource management= the management function focused on maximizing the effectiveness of the workforce by recruiting world-class talent, promoting career development and determining workforce strategies to boost organizational effectiveness
Through this case study I will be discussing strategic management. Strategic management can be defined as a process where an organization attempts to determine what actions need to be taken to achieve the overall objectives and more importantly how to meet them (Mello, 2015, p. 114). For a company to strive and meet their goals, deadlines, and missions they must stay conscious of the strategic plan put in place for the success of the company. If the company does not have a good strategic plan the company could fail. With correct planning a company could succeed without fail. Something that needs to be taken into consideration in the strategic plan should be investing into the company’s human assets. At first it may look like it is causing the company more issues however in the long run it will strengthen the company and moral making a more successful company. This could help with customer relations, and the organization status which will help produce additional revenue for the company.
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
Boxall, P and Purcell, J (2011), The Goals of Human Resource Management, Strategy and Human Resource Management, 3rd Edition, Palgrave Macmillan, New York, pp. 1-36.
Martell and Carroll (1995) stated that there are two types of human resources: strategic and operative. They went on to describe four characteristics of human resource initiatives: (1) They are long-term oriented; (2) They are connected with the corporate strategies; (3) They are connected with the organizational performance; and (4) The line managers are involved in the details of decisions regarding human resource management. Too often, both operations managers and human resource mangers forget that they are working toward the same goal. Often, human resources will adopt policies and procedures that are hard for line managers to implement, and line managers expect human resources to have an inherent understanding of the processes taking place on the plant floor. The relationship between the best human resource practices and organizational performance must always
Human Resources often begins as very tactical policies, records, compliance, discipline, compensation, benefits, job descriptions, hiring, performance management (). Taken to the next level, HR becomes strategic, connecting employees to the business mission, values, and vision, in order to drive business results (). Employee goals and metrics align to the business strategy and rewards tie into results. Additionally, careful consideration is given to developing talent pipelines, employee succession plans, and career planning in order to respond flexibly to the inevitable work flow and staffing changes that all businesses experience ().
Schuler, R. S., & Jackson, S. E. (2007). Strategic human resource management. Malden, MA: Blackwell.
The practise of Human Resources is moving from the traditional forms of managing people to a more strategic form whereby the Human Resources function is closely linked with organisational performance and success. This strategic form of human resources has increased the need for the Human Resource professional to understand the linkages between Corporate Strategy, Human Resource Strategy and Employee Integration.
An effective human resources (HR) strategy is the complete design, or strategic plan, that directs the engagement of specific HR functional areas. Subsequently, HR strategies will guide decisions about company personnel to make sure they are best suited for the company. For this to be successful, all of the functional areas of HR strategies must be directly compatible with the entire business strategy of the company (Wright, Snell, & Jacobsen, 2003). One such company that has been very successful in developing an HR strategy to support the overall business strategy, is the United Services Automobile Association, or more commonly known as USAA.
Strategic Human Resource Management has been developed to give companies a competitive edge over other companies. Since widespread access to and the use of technology have resulted in tighter margins for maintaining a competitive edge,
Strategic human resource management as described by Nel et al. (2011:562) is “long-term, top-level management decisions and actions regarding employment relationships that are usually made and performed with the overall general strategic
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.
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