Preview

Critically Discuss How Human Resource Management Can Contribute to Improved Organisational Performance. to What Extent Has a Link Has Been Established Between Human Resource Management and Improved Organisational Performance?

Best Essays
Open Document
Open Document
2306 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Critically Discuss How Human Resource Management Can Contribute to Improved Organisational Performance. to What Extent Has a Link Has Been Established Between Human Resource Management and Improved Organisational Performance?
Human resource management is the function within an organisation that deals with recruitment, management and communication. The size of an organisation’s HRM is dependent on the general size of the organisation a small businesses may for example only have one member of staff responsible for HRM where as a multinational company would have a huge HRM department in its head office. This assignment will look at how much HRM is responsible for improving organisational performance. Human resource management is clearly an integral part of any business and without it a business may not achieve a greater level of success as it would have by employing a successful human resource management operation. By employing staff to conduct human resource activities within the business it then allows the other areas of the business to focus on their individual job roles

Before looking at how HRM affects performance it’s important to note what organisational performance is. Organizational Performance" is a broad construct which captures what agencies do, produce, and accomplish for the various constituencies with which they interact. There are six dimensions in which for measuring organisational performance these are
Productivity
Employee satisfaction
Client satisfaction
Client impact
Service quality
Resource acquisition and domain maintenance

Organisations will always strive to achieve the best structure and performance possible. In order to maximise the effectiveness of this a good use of HRM will be required. The way HRM is best used to improve organisational performance is by implementing a good strategy.
The strategy in relation to HRM can be split into two terms strategy as a plan and strategy as a system of management.

Strategy as a plan is when an organisation uses there strategy as a way of interacting with the competitive environment. It’s derived from the term “military strategy” and what it means is that an organisation will use this as their corporate



References: Books Pfeffer (1994) Competitive Advantage through people: unleashing the power of the workforce, Boston havard business school press Guest D (1997) “Human resource management and performance: a review and research agenda” Ulrich, Dave. Delivering Results: A New Mandate for Human Resource Professionals. Harvard Business School Press, 1998. Websites http://www.jstor.org/pss/256741 accessed 14/8/2010 www.workandsociety.com accessed 14/8/2010

You May Also Find These Documents Helpful

  • Powerful Essays

    Bus 325 Week 1

    • 1223 Words
    • 5 Pages

    Human resource management refers to all activities undertaken by an organization to effectively utilize human resources. The activities included for HRM is planning, performance management, staffing, development, compensation, and employee relations. Over the past couple of years organizations have been identifying the link of HRM with organizational strategy in order to develop a strategic approach to HRM and to also offer an understanding of how single country or domestic human resource management practices can contribute to organizational…

    • 1223 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Flow of Theory

    • 356 Words
    • 2 Pages

    Strategic HRM is defined as the development and implementation of human resource processes to facilitate the achievement of the organization’s strategic objectives. Strategic HRM allows an organization to make informed and purposeful actions. Because of strategic HRM, the company now has a clear common vision of why an organization exists which enables better and more effective HRM decisions. HRM activities are now also able to expand awareness of possibilities, identify strength and weaknesses, reveals opportunities and points which are needed to evaluate the probable impact of internal and external forces. A strategic HRM plan which is well designed will allow the HR department to be prepared to cope with changes in external and internal environments.…

    • 356 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Human Resource Management (HRM) strategy is a set of elaborate and systematic plans of action. The company objectives and goals should be aligned with the objectives and goals of the individual sections, departments and/or divisions. In today’s perspective, functions that under HRM include staffing, creation of workplace policies, compensation and benefits, retention, training and development, and working with regulatory issues and worker protection.…

    • 752 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Martell, K. and Carroll, S. J. (1995) How strategic is HRM? Human Resource Management, 34 (2), 253-267.…

    • 2206 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    Reflective Paper

    • 2976 Words
    • 12 Pages

    Effective Human Resources Management (HRM) plays a major role in ensuring that an organization will survive and prosper. The HRM facilitates the most effective use of people or employees to achieve organizational and individual goals. The HRM consists of numerous activities which include, equal employment opportunity (EEO) compliance, job analysis, human resource planning, the recruitment, selection, motivation, and orientation of employees, performance evaluation and compensation, the training and development of employees, labor relations, and the safety, health, and wellness of the workforce. Effective human resources management plays a vital role in the success of an organization and is an active participant in charting the strategic course of competitiveness, productiveness, and efficiency.…

    • 2976 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Effective HRM will help maximize profits and productivity by minimizing employment related expenses and maximizing employee performance—retain and sustain. It is necessary to operate leaner and smarter, engage employees, and ensure the right people are put into the right jobs (Journal of Human Resources and Human Resources Management, 2004). The role of an HR professional should concentrate on a company’s most important resource—the employees. Without high-quality employees, organizational goals and objectives cannot be achieved.…

    • 1200 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Human Resources Management

    • 11414 Words
    • 46 Pages

    This is because the purpose of strategic HRM is to help an organization achieve its goals and objectives through people. Therefore, training and development should help improve organizational competencies and performance. This improvement can be realized by viewing training needs in association with strategic organizational plans and prioritizing them accordingly (Clarke, 2003; Reed & Vakola, 2006). HR planning, job analysis and design, recruitment, selection, and performance appraisal should inform and be informed by the organization’s goals and strategies.…

    • 11414 Words
    • 46 Pages
    Powerful Essays
  • Powerful Essays

    To prove whether HRM principles have positively affected or adversely contributed to the organisational performance, this study will review the theoretical frameworks and perspectives on HRM and organisational performance. Secondly, it also looks at how HRM strategies…

    • 3035 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Angelo S Pizza 3

    • 1959 Words
    • 6 Pages

    To implement strategic HRM, the organization must have a recruitment strategy, training strategy, and compensation planning and employee retention strategy in line with the requirements planned for the future. The company must have a stable recruitment policy which should be able to attract candidates with the kind of competencies required. The recruitment calendar…

    • 1959 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Ulrich, D. (1997). Human resources champions: The next agenda for adding value and delivering results. Boston: Harvard Business School Press.…

    • 3606 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Guest (1997) presented a conceptual model on “linking HRM and Performance”. There are six boxes and in each box supporting items. HRM Strategy is the first box; the factors are (i) Differentiation – strategy has to be innovative, (ii) Focus – on quality, (iii) Cost – on cost reduction. The second box, on HRM practices like selection, training, appraisal, rewards, job design, involvement, status and security. The third box is on HRM outcomes, and the 3 factors are (i) Commitment – it refers to the want to belong to the organisation and the desire to do things for the organisation, (ii) Quality – it refers to the proficiency, knowledge and skills of employees, (iii) flexibility – it refers to the operative flexibility of employees. The fourth box is on behaviour outcomes, factors are (i) Effort/ motivation, (ii) cooperation, (iii) involvement and (iv) oragainsational citizenship. Fifth box is on Performance outcome where there is high productivity, quality innovation, low absence, labour turnover, and conflict and customer complaints. The last box is on financial outcome consisting of profits and Return of Investments (ROI).…

    • 398 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    “Strategic HRM is the process of linking the HR function with the strategic objectives of the organization in order to improve performance.”(Bratton & Gold 2007)…

    • 2427 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    HRM plays an important role in assuring employee satisfaction, improving performance and productivity. This can further an organization 's competitive advantage, and directly contribute to the…

    • 2561 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Businesses rely on effective human resource management (HRM) to ensure that they hire and keep good employees and that they are able to respond to conflicts between workers and management.…

    • 792 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Roles of Hrm

    • 295 Words
    • 2 Pages

    Throughout this article I have found an understanding as to the importance in Human Resource Management as it is today. Without this key department in an organization, a company would have trouble maximizing employee efficiency. One of the responsibilities of the HRM is to recruit and hire the appropriate talent for any given open position within an organization; this is a very valuable service to a company that wants to be as efficient as well as profitable as possible.…

    • 295 Words
    • 2 Pages
    Satisfactory Essays