The Role Of Hrm And Organisational Performance

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.

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

This essay discusses the role and function of Human Resource Management (HRM) within an organisation. The Harvard and Michigan models have been explained within the essay as they support the analysis of “soft” and “hard” HR approach that managers adapt when applying the HR policies to achieve different organisational strategies like diversification, acquisition and cost reductions. Subsequent section of the essay will examine the link between HRM and its strategies with examples taken from organisations like Harrods’ and Disney and institutes like NHS on how they use HR policies and strategies to achieve their organisational goals.

Schuler and Jackson (1987) propose the model of Human Resource Management as the business strategic policies and practices of the organization. This framework is to achieving competitive advantage in different industry condition. They argue for fit in different industry condition and business strategic. It includes innovation, quality enhancement and cost reduction. This business strategic associated with particular employee role behaviors and HRM policies and practices.

HRM is an approach to employment management, which aims to achieve a competitive advantage through the strategic deployment of a committed and capable workforce using an array of cultural, structural and personnel techniques (Storey 2001). Ultimately, it focuses on the sharpening the ‘Labour’ and ‘Entrepreneurship’ factors of production. This means that the business can produce a high quality product to consumers with hopes of outshining competitors and achieving its strategic aims.

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.

Human resource management has gained atmost importance in the past few years. Studies have found that there is a relationship between human resources of an organization and performance. From an era of slaves to an era of knowledge resources, People have been regarded differently throughout the years. People are now considered to be energy resources which are directly responsible for the effective working of the organization. An organization with good human resources and its effective management forms an effective organization.

Human resources management (HRM) is concerned with the ‘people’ management. HRM is a term increasingly used to refer to the philosophy, policies procedures and practices relating to the management of people within organization. Since every organization is made up of people, acquiring their services developing their skills, motivating them to higher levels of performance, and ensuring that they continue to maintain their commitments to the organization are essentials in achieving organizational objectives. Organization is able to acquire, develop, stimulate and keep out standing workers we both effective and efficient. Organization that are inefficient risk the hazard of standing or going out of business.

In contemporary society, every company is meeting resources shortage, and then a new conception “human resource” proposed by economists. They suggest that if a corporation wants to be outstanding in the future, he must pay more attention to Human Resource Management (HRM). Recently, a large number of researches have indicated that using HR practices, such as training and development, performance appraisal, information sharing or participation, in HRM will in a certain term improve HRM outcomes (Connie Zheng, Mark Morrison & Grant O’Neill, 2006: 50). However, with the development of Human Resource Management, HR practices are no longer just be used by HR managers, increasing line managers are required to execute HR practices at the same

Over the years, human resource management has attracted a vast amount of interest over different disciplines due to the effect and contribution it had on the fundamental issues within the organisation (Singh, Darwish, Coster & Anderson 2012). Arthur states, HRM practices essentially contribute to the organisations competitive advantage and the achievement of organisational performance (Arthur 1997, cited in Singh, Darwish, Coster & Anderson 2012). This not only emphasizes on the significance of human capital in achieving organisational performance and attaining competitive advantage but also recognizes the importance of developing the best human resource competencies in order to compete in the global economy (Slavic, Berber & Lekovic, 2014)

Social networks are popular infrastructures for communication, relations, and information sharing on the internet, popularly known as social network such as My Space Twitter and Facebook supply communication, storage and social applications for hundreds of millions users. Users set up social links to friends and influence their social links to distribute content, organise measures for particular users or share resources, therefore, these social networks provide proposal for organising event users to users communication, and also between the internet’s most accepted destinations. Currently work has been seen as a form of group of socially improved applications that influence the correlation from social networks to improve security and performance of online social network applications as well as spam email improvement Garriss, (2006) On one hand, significant interactive with friends relationship are essential to developed confidence and trustworthiness in the system.

A broad body of literature in the management field is cantered around the idea of people as assets and emphasizes the importance of Human Resource Management (HRM) to improve firm’s performance and underpin its strategy.

At present then, the contribution of HRM in improving a firm’s performance and in the overall success of any organisation (alongside other factors) is being highlighted in the literature (see e.g. Guest, 1997; Schuler and Jackson, 2005; 2007).

Human resource management consists of planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are accomplished. Human resources are a critical, if not the source of, competitive advantage for the business, rather than, say access to capital or use of technology. Thus attention needs to be paid, at a strategic level, to the nature of this resource and its management, as this has impact on the performance of the organisation, however defined. Batt and Banerjee (2012) found that, in an analysis of strategic HR research articles in British and American journals, the link between

Human resource management (HRM) is undoubtedly being considered as an indivisible element of the organisations from the outset. From recruitment to employee retention, HRM has always committed to assist company to search and retain talents that have values toward the sustainable development. In view of the fact that, there are several studies with evidences presented to prove that there is a relationship between HRM and organizational performance, in which some HRM theorists also suggested that there is a causal link between them (Cooke, 2000). Though Gerhart (2005) stated that their relationship is regarded as a ‘black box’ that it lacked of clarity concerning what leads to what; it can be both performance leaded to HRM and vice versa.