What is human resource management and should it be an important part of organisational strategy?

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Human Resources managers are the most important features of any business especially in an economy where there is an increasing shift towards service based industry. Price (1997) for example argues that HRM account for a great proportion of many business costs and it is the people that drive business. Through the key components of HRM such as recruitment and selection, training and developments, the essay will argue on the importance of HRM in organizations and how it contribute to organizational strategy. According to Beardwell (2007), in the previous years, there have been increasingly rapid advances in the field of HRM. The management of people within organizations has moved from the sideline to central stage. This has enabled…show more content…
HRM therefore involves finding out about the needs and aspirations of individuals. According to storey (1995:5) HRM is a “distinctive approach to employment management which seeks to achieve completive advantage thought the strategic deployment of a highly and capable workforce using an integrated array of culture, structural and personal techniques.” Consequently, strategic management has become important in the current years. Snell, Youndt and Wright (1996) classified that the strategic role of HRM is to achieve competitive advantage through people. In other words, strategic leadership is about the achievement of sustained comparative advantage over the competition. Tyson (1995) on the other hand outlines that typically, strategic HRM focus on the integration of HR with the business and its environment. Observing critically of the importance of strategic HRM, It is very important for any organization to have strategic management in order to achieve their strategic objectives. Holbeche (2001) state that strategic HRM involves linking HRM strategy with strategic goals in order to improve business performance and developing organizational cultures that foster innovation flexibility. In his major study of strategic management, he concluded that HR activities such as recruitment, selection, training and rewarding personnel are done by keeping in view the company's goals and objectives. Moving on to HRM
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