This essay will discuss and analyse Strategic Human Resource strategies and how these strategies impact on an organization 's performance and how literature supports or dispels these claims. This essay will focus specifically on High Performance Work Systems and how they impact the organisation and also the individual employee as “The proponents of Strategic human resource management make bold claims about its relevance to and its positive impact on organisational performance.” This essay will discuss those bold claims and determine how positive it is for the organisation’s performance.
High performance work structures (HPWS) are comprised of traditional human resource practices, workplace structures and involves the maximisation of skills and knowledge of the employee in order to enhance the productivity and effectiveness of the employee. HPWS is directed towards building a competitive advantage against other organisations by creating the most skilled, efficient, and talented workforce "Strategic Human Resource Management – High Performance Work Systems | Management Consulting Club," 2013, Bae and Lawler 2000.Huselid 1995; ) .The main goals of the HPWS is to create the most out of their employees and to build a performance based culture within their organisation. Through this the HPWS is assumed to encourage the employee and motivate them to achieve highly, which would result in high job satisfaction and lower staff turnover level, which impacts the overall organization
In today’s competitive and ever changing economy, the challenges of Human Resource Management (HRM) is becoming more demanding of strategic responses to its functions as the new era unfolds. The primary function of human resources is to use strategic goals and objectives in order to improve performance outcomes and develop organisational culture that foster innovation and flexibility. Staffing, training and performance management are important functions of human resources, if carried out effectively the success of a setting becomes imminent.
To begin evaluating strategic human resource management approaches, one must first understand the concept of human resource management and how it came to be. Human resource management stemmed from what use to be called personnel management in the early 1940’s. The term human resource management (HRM) was first used in the United States and it suggests to some that “employees were an asset or resource-like machines, but at the same time HR also appeared to emphasize employee commitment and motivation” (CPID, 2016).
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
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 ().
The relationship between employees and their managers is changing. This essay critically assesses high performance work systems (HPWS) and how it effects an organization. Before proceeding to critically assess high performance work systems it is necessary to clarify exactly what these systems consist of. After investigating the foundations of high performance work systems the essay will be extended to contrast the gains and the shortcomings, which arise as a result of these highly contemporary managerial systems. High performance work systems can be familiarly explained as an
“The concept of the High Performance workplace is about managing in a way that enables and encourages people to maximise their potential in their own interest and in the interest of Business performance”
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.
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,
The primary goal of most businesses is to maximize profits for the owners. High performance work practices (HPWPs) are a methodology used by various organizations to maximize workforce potential. HPWP is a combination of various theoretical models working alongside a receptive organizational climate and culture. This analysis will state the merits of HPWPs on employers and scrutinize its shortcoming on employees. The essay has been structured by introducing the concept of HPWPs as defined in available literature along with key findings. Thereafter the relevant theories pertaining to HPWP will be presented. Here the relevancy of the social
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.
In the recent years, there has been a growing focus among researchers on the importance of human resource management, and on how it influences organisational performance (Boxall, 2012). The emphasis has especially been on the different HR practices that attempts to increase performance, productivity and profitability (Imran, Majeed & Ayub, 2015). It is from these practices that the term high performance work systems have emerged (Jensen, Patel & Messersmith, 2013). With regard to this term’s growing importance in the HRM literature, it would be of great interest to take a closer look at high performance work systems. This essay will therefore attempt to shed light on what a high performance work system actually is, and why organisations implement them. Using the extensive research available, we will examine both the positive and the negative outcomes a high performance work system might have. This will should present readers with a thorough view of both high performance work systems and their possible organisational implications.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
This paper examines the positive and some negative aspects of Strategic Human Resource Management (SHRM) and explores the varying possibilities used to successfully facilitate SHRM within organisations. The significance and advantages of SHRM for organisations is vast and historically evident, consequently the vast literature pertaining to SHRM benefits, restricts a comprehensive report covering all aspects and therefore is beyond the limitations of this paper.
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