This website uses cookies to ensure you have the best experience. Learn more

Hrm And Organizational Performance Essay

1926 words - 8 pages

Introduction
Human resource management, commonly abbreviated as HRM, has emerged as an increasingly important field in contemporary business organizations. Companies today recognize the HRM function as being highly integral to their success, since HRM has evolved from simply being a function that is responsible for hiring and firing employees, to a function that manages people and knowledge within an organization. This means that no company in today’s competitive market is able to succeed without looking at HRM as a core component of their business structure. This report analyzes the theories of HRM, delving into the core responsibilities and functions of the HRM department within ...view middle of the document...

Narrower theories of HRM define this function as the “decision-maker of employment” (Marchington and Wilkinson, 2008; Boxall and Purcell, 2008). Others define HRM as a distinct approach that makes use of an array of techniques in order to obtain a competitive advantage through employing highly skilled and committed workforce (Storey, 1995). Koch and McGrath (1996) state that HRM has the ability to facilitate companies in improving organizational behaviors like competency, staff commitment, and flexibility, all of which lead to the improvement in employees’ performance.
HRM is also defined as being with two completely opposite words: “generic” and “distinctive” (Torrington, Hall and Taylor, 2008). In being generic, HRM pertains to all personnel management activities including staffing, administration, change, and performance management. In being distinctive, HRM is able to enhance the business objectives of an organization through the introduction of strategic and flexible structures for managing relationships within organizations and maximizing the productivity of the workforce. In contrast, HRM is also defined as being solely about the management of employees for achieving competitive advantage (Legge, 1995; Keenoy, 1990). The shift of terminology from “personnel management” to “human resource management” is also of great importance here since it is regarded as showing the move of organizations from management of jobs into the management of people within organizations (Lepak and Snell, 2007).
Relationship between HRM and Organizational Performance

The relationship between HRM and performance has gained much popularity in recent years. Delery and Shaw (2001) explain that for an organization, HRM practices have the most direct influence on human capital, and human capital can be a source of competitive advantage for the organization. They also state that “the complex nature of HRM systems of practice can enhance the inimitability of the system”. The resource-based view is the most dominant theory explaining the link between HRM and organizational performance, since it focuses on the ability of an organization to gain sustainable competitive advantage through the effective and efficient utilization of its resources, including human capital.
According to the resource-based view as applied to the field of HRM by Wright, McMahan and McWilliams (1994), human capital – people within an organization – are embedded with the properties of value, rareness, inimitability, and non-substitution. These properties are explained to be a necessary prerequisite for organizational success (Barney, 1991). The linkage between HRM and enhanced organizational performance has been extensively researched. Becker, Huselid, Pickus and Spratt (1997) provide one such contextual framework, which starts with business and strategic initiatives in place at an organization and builds in HRM systems to finally end at market value. According to such a framework, the HRM...

Other Papers Like Hrm And Organizational Performance

General Role Of Operations At Mercedes-Benz Buses And Coaches Division, The Contribution To The Overall Organizational Strategy And The Impact Of Operations Upon The Competitive Performance

2849 words - 12 pages functional coordination through "sub-functions" and "sub-sub-functions". In the final analysis it can be stated that the sub-functions decide with no overall organizational perspectives. Some decisions such as "minimum order quantity" are for instance taken by the "Procurement Sub-Function KSW" affecting stocks for which logistics are responsible. The result is a counterproductive performance in Operations Management which leads to poor

A Comparison of the Articles "The Performance Implications of Dynamic Capabilities: the Case of Product Innovation" and "Absorptive Capacity, Environmental Turbulence, and the Complementarity of...

3084 words - 13 pages WHU – Otto Beisheim School of Management A Comparison of the Articles "The Performance Implications of Dynamic Capabilities: The Case of Product Innovation" and "Absorptive Capacity, Environmental Turbulence, and the Complementarity of Organizational Learning Processes" Ulrich Lichtenthaler Seminar on Research and Academic Writing Institute for Management Accounting and Control Submission Date: October 15th, 2012 Submitted to: Jun.-Prof

Human Resource Management

2252 words - 10 pages the intersection between strategic management ans HRM. Chapter 6 – Organization Theory and HRM Chapter 17-Remuneration-Pay effects at Work While evidence suggests that ‘money matters’, in the sense that it affects many aspects of individual and organizational behavior and performance, it is often unclear as to ‘how’ or ‘why’ this occurs. In one example, while paying an above-market wage can

Human Resource Mgt

2526 words - 11 pages DEVELOPMENT. The second major HRM function, human resource development, refers to performance appraisal and training activities. The basic goal of appraisal is to provide feedback to employees concerning their performance. This feedback allows them to evaluate the appropriateness of their behavior in the eyes of their coworkers and managers, correct weaknesses, and improve their contribution. HRM professionals must devise uniform appraisal

Human Resource Management

1567 words - 7 pages Chapter 1 Human Resource Management   HRM Activities HRM involves the acquisition, development, reward and motivation, maintenance and departure of anorganisation's human resources. To do this successfully HRM must do all of the following: •Job analysis •Human resource planning  •Employee recruitment  •Employee selection •Performance appraisal  •Human resource development  Career planning and development  •Compensation • Benefits • Industrial

Quantifying The Contributions Of Human Resources Management To Overall Organizational Effectiveness. (How Human Resources Can Contribute In Creating A Competitive Advantage For The Company.)

1051 words - 5 pages , and the changing nature of work make it ever more imperative that companies employ effective human resource managers and maintain effective programs of HRM. (Dessler, 2008)Human resource managers must be prepared to quantify their overall contribution to the company. A balance must be struck between managerial and organizational requirements, while ensuring that staffing goals are met in a way that contributes to organizational objectives. The

Concepts of Human Resource Management

1263 words - 6 pages , integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished" Human resource management can be concluded as a business oriented philosophy concerned with the management of people in order to obtain added value from them and achieve competitive advantage. Human Resource Management (HRM) - Definition and Concept inShare15 e-mail Print We often hear the term Human

Compe and Ben

2116 words - 9 pages Tuesday, 29 July 2014 Pre-read for this lecture  Essentials of HRM and IR by P. Subba Rao • Chapter 1 – HRM : Organizational Context • Chapter 7 - HRD Tuesday, 29 July 2014 What is HR ?  William R. Tracey, in The Human Resources Glossary, defines Human Resources as: "The people that staff and operate an organization"; as contrasted with the financial and material resources of an organization. It is one of the 6 Ms needed by every

Hrm Process

595 words - 3 pages behavior. 5. Training and development both aim to increase employees’ abilities to contribute to organizational effectiveness. Training is designed to improve skills in the present job; development programs are designed to prepare employees for promotion. 6. Performance appraisal compares an individual’s job performance to standards or objectives developed for the individual’s position. Low performance may prompt corrective action, such as

What Is Human Resources Management? In What Respects Does It Differ From Personnel Management? How Have HRM Techniques Been Designed To Facilitate The Management Of Workplace Change?

3231 words - 13 pages representatives, and state interventions and a more collective view of organizational life predominates.There are three ways in which HRM can be used to gain a competitive advantage. Employees are a source of added value and employees are "rare" or unique in some way compared to other employees found in other companies. Moreover competitors are not able to copy or imitate easily a company's approach to human resource management. This is because

Benefits of Hrm

749 words - 3 pages which is basically a management process that is carried out by the existing workforce in an organization. It includes functions such as attracting, selecting, and training, assessing and rewarding the employees and at the same time managing organizational leadership and making sure there are fulfillment labor and employment laws. Strategic HRM a key to enhanced business performance as it aims to plan the implementation of all the above mentioned

Related Essays

Human Resources Management (Hrm) And Organisational Performance

1935 words - 8 pages resources management and organisational performances. Katou (2008) believes that the positive relationship between HRM and organisational performances might overstated by present HR models because there are some other factors should be considered and measured when organisational performance improved, for example, economy and market situations, organisational strategies, managers’ personalities and values. Sels (2006) research on small firm’s

Business Strategy And Organizational Performance Nike Corporation

1149 words - 5 pages Business Strategy and Organizational Performance - Nike Corporation Team A HRM/531 Business Strategy and Organizational Performance - Nike Corporation Nike has proven to be a titan in the sports industry, however has their approaches and methods towards human capital paid off? Has their approach to create a culture of performance and goal-setting approaches made them successful in the human capital arena, just as displayed with

Organizational Performance And Organizational Development Are Two Sides Of The Same Coin

3084 words - 13 pages -fulfilling, and spirit-growing for employees and still be financially rewarding at the same time. Organizational performance and Organizational development, although “Are very closely related but seems different”. OP and OD are two inter related elements of every successful organization, that builds on the synergy between planning, assessment and results in the acumen of impact and value. It promotes a set of practices that enable the Organizations to

A Close Alignment Of Organization Strategy With Human Resource Development (Hrd), As A Way To Improve Individual And Organizational Performance

3072 words - 13 pages business environment. The literature has provided enough evidence that has supported the hypothesis that alignment of business strategy with HRD function enhances individual and organizational performance. REFERNECE Armstrong, M., & Baron, A. 2002. Strategic HRM: the key to improved business performance. Developing practice. London: chartered institute of personnel and development. Balls, A. 2006. Keeping your best