Human Resource Management (HRM) has effectively been an integral part of organizations’ since the end of the 19th century. There has been continuous shift in name change, focus and responsibilities of HRM, with the role progressively evolving since the days of the industrial revolution, reflected in the change of terms from Welfare Officers, Personnel Management, Human Resource Management (HRM) and most recently Strategic Human Resource Management (SHRM).
The term Human Resource Management was a subject of a debate over years concerning its philosophy and characters. There is no widely accepted definition, however below are some definitions of HRM that can be useful in identifying its philosophy and use.
The focus on integration of HRM with strategy provides a wider range of solutions to difficult organisational problems and results in achieving a competitive advantage (Lengnick-Hall and Lengnick-Hall, 1998).
A. Introduction Why is human resource management important? What is Strategy? Are strategies deliberate and planned? What is Strategic HRM? What are the outcomes of an HR strategy? What different models are there of HR strategy? How is Strategic HRM Different from Other Aspects of HRM? So what determines an organisation 's HRM strategy? Is legal compliance strategic? So is responding to ethical issues strategic? So is corporate social responsibility strategic?
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.’
There is a controversy whether the Strategic Human Resources Management (SHRM) leads to ‘high performance’. A general idea of SHRM is that “the linkage of management and deployment of the individual within the firm to the business overall and its environment whereas HRM is the activities that take place under this area.” Truss and Gratton (1994). It spotlights on long-term strategy.
Human resource management (HRM) has evolved into a huge industry in the business arena. The evolution and advancement of technology has created a global platform for HRM. The effect of globalization in many organizations has opened the door for HRM, and it is a crucial component for a successful business strategy and plan. This paper will define HRM, and discuss HRM’s primary function and role in an organization’s strategic plan.
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
CRITICALLY COMPARE AND CONTRAST THE 'BEST FIT', 'BEST PRACTICE' AND 'RESOURCE-BASED VIEW', MODELS OF HRM STRATEGY AND EXPLAIN HOW EACH APPROACH IS ARGUED TO CONTRIBUTE TO IMPROVED ORGANISATIONAL PERFORMANCE.
Strategic HRM: can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that brings up innovation, flexibility and competitive advantage. Strategic HRM involves setting employment standards and policies. Moreover it is not any particular human resource strategy but it is a framework for shaping and developing many people management strategy. (Sarah Glimore and Steve Williams, 2009) It is the pattern of planned HR operations and activities intended to help an organisation to achieve its
Generally, when one thinks of the role of Human Resources, many people will think first of the role that HR plays in important functions such as staffing, training, retention, and the development of workplace policies. While these are all important functions for Human Resource Management, the evolution of HRM is such that it is important to think of these functions in terms of the impact they have on the overall strategic vision for the company. Key HRM functions can be split up into two different categories. These include those functions that relate directly to the employee such as staffing, retention, training and development, but also those functions that relate more to company policies and government regulations. Examples include compensation and benefits strategies, the development of basic workplace policies, and adherence to regulations that are enforced by government. Each of these functions play important roles in the implementation of an overall strategic vision for the company, and ensuring that HRM understands the role that it plays is important for making sure that HRM policies are in line with the company 's long-term strategy. One excellent example of the way in which the role of Human Resources plays out in the context of a long-term strategy is that of Walmart 's HR practices and the way they fit into the overall business strategy of the organization. With that said, in order to understand the HRM of
The term Human Resource Strategy is well defined as - “Human Resource management (HRM) is a strategic approach to managing employment relations which emphasises that leverage people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.” [ Bratton and Gold,4e,p3]
Human Resource Management (HRM) is no longer a personnel office that is simply a record-keeping and maintenance function. Huselid (1995) points out that there is a positive correlation that has developed between HRM as a strategic ally and company performance. HRM research has grown from an atheoretical origin to view organizational activities from an interdisciplinary perspective (Jennings, 1994) that is concerned with a movement toward methodological and theoretical development (Ferris & Judge, 1991). This review will look at the different ways HRM plays into the overall scheme of providing
The importance of HRM’s role is not debated and some key characteristics of its influence have been identified. The degree of ‘fit’ between HRM policies and the wider organisational strategy for knowledge sharing, integration and creation must be analysed. Placing emphasis on individual experience or on collective knowledge bases has dramatic implications for the kinds of selection, career development and reward policies that will be effective for the organisation. There are also longer-term effects from HRM policy which have an impact on the quality of trust and relationships through which knowledge is shared. Newell et al (2002) note that there is something that emerges in an organisation ‘bottom-up’ out of informal interaction, which
Business strategies touch every entity of the business including HR which is where many of the business necessities begin. The HR function needs to be involved in the strategic management process as “each component of the process involves people related business issues” (Noe et al., 2002, 59) which is the primary function of HR. “Once the strategy has been determined, HRM has a profound impact on the implementation of the plan by developing and aligning HRM practices that ensure that the company has motivated employees with the necessary skills” (Noe et al., 2002, 83).