Introduction
The importance of human resources over the last decade or so has received immense attention. From a macro-level, endogenous theories of growth have recommended that the accumulation of what is also referred to as human capital constitutes the core engine of the growth of macro-economics. On the micro-economic side, resource-based theory looks at the human capital that employees provide as a primary cradle for competitive advantage for companies. Nonetheless, as a result of the growing importance of human capital and which is largely related to information and communication technologies’ growth, modern western economic are today describes as being knowledge-based economies (Proefschrift, 2003, p.1).
Human resources has also had its share of criticism. With resources being at the core of organizations, weaknesses emerge in that the possibility to adapt human resources strategies is largely limited. There becomes the risk of competition between programs or departments for human resources, making human resources as a role become diluted (Talwar, 2006, p. 137).
The Value of Human Resources Departments as a Strategic Partner
Many senior leaders do not understand the potential value that HR departments can contribute to their organizations. It is vital for these senior leaders to view the human resource departments in their organizations as a strategic partner. In as much as many human resources functions have in the recent past started to play a strategic part in the
The HR department officials in most organizations perform as they should. In most cases, they also focus on achieving the right things. Human Resource departments focus organizing, controlling, and hiring employees in organizations. When organizations apply HR practices, the results are great client satisfaction, a good net margin, and reduced sickness absence (Richard and Johnson, 2001). Vermeeren et al. (2014) posit that there is a great relationship between performance and HRM. Most organizations use the human resource department to ensure that operations run smoothly.
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.
In an era of organizational flux due to competition and globalization, companies and employees are faced with constant change. Leaders must be able to adapt to change as the environment shifts. HR has been known as the organizational change agent, administrative expert, and employee advocate. More recently they have been regarded as business strategic partners for many organizations. In order to be successful and remain competitive in today’s market, Human Resources (HR) must be considered a strategic partner if an organization wants to flourish. Top executives today commit significant resources to ensure that their company’s functions are capable of rapid change and achieving their
The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an organization by providing functions such as recruitment,
The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an
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
In any organization it is important for HR to touch all levels of the organization and to understand the organization’s environment. An organization who values their employees cannot afford having a human resources department that does not function in a strategic partner role. Human resources professionals, in organizations are equipped with the knowledge, skills and abilities to work with talented senior leaders in an organization. They have the ability to successfully partner with each department within an organization to understand the overall business. HR professional can assist in designing strategic plans to balance the needs of the organization, the employees and the stakeholders. HR can help align efforts of the various functions within the organization with the established goals. They can support the organization’s functions by recruiting, developing and retaining company team members who are crucial. HR should be the driver of the organization’s values. They must not only focus on internal tasks but must step outside the box and fully understand the organization as a whole, how it operates, the competition and what could influence the organization's progress. They must be able to handle change, perform environmental scanning, understand outsourcing and processes
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 ().
Most organizations view human resources departments as less valuable than other departments because it’s not a revenue- generating department. However, it is quite the opposite because HR brings the organization its most valuable assets, which are its people.
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.
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.
In an era of increasing competitiveness, globalization, economic rationalization, deregulation, technological revolution and changing workforce there is an ever-increasing need for human resource management to be able to capitalize on the special challenges that this changing environment brings. For a company to be able to successfully keep ahead of the competition, human resource management is seen to be a significant contributor.
The role of the human resources (HR) department can play a significant role in the success and achievements of an organization. The department, which has evolved from the
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)
To begin, human resources play an integral role in any organization. The allocation of human capital is critical to the overall success of the organization. Depending on the particular industry, talent and its subsequent retention is directly correlated to the overall profitability of the firm. In many instances, as is the case in our current economic cycle, improper human resource activity can have a