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HRM practices and benefits
Strengths and weakness of HR practice
Strengths and weakness of HR practice
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The human resource management stands for the management of an entity’s workforce and all that relates to the workforce. The significance of human resource management includes recruitment, orientation, and the ability to retain employees. The human resource management with other managers utilizes these practices in order to produce a solution that relates to challenges. A competitive advantage refers to the business ability to gain the advantages of its economic activities that, it recognizes the organization’s ability to survive and overcome competition in the marketplace. This paper will discuss the concept of competitive advantage in human resource.
The human resource management job is to make a strategic impact to competitive advantage
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One of the causes that influences an organization’s human resource is its strategy. A strategy refers to a plan that in place to guide business operations and activities. The business strategy then provides schedules and activities for the employee, and as a result affects the human resource. The scope is to build on qualifications and capabilities, therefore influences human resource to higher capacity while the unsuitable distribution of tasks may dampen human resource to poor results. Managers in the organization play a significant role in influencing human resource. The type of leadership structure and leadership style implemented by the organization establishes the level of encouragement that a leader and their leadership have on human resource. An ineffective leadership will fail to mobilize human resource into performing required tasks due to poor control of employees. Effective leadership influences human resource management responses to the management’s needs towards competitiveness. Ammi, F. T., & Mushatt, S. …show more content…
Human resource competencies are for example important in facilitating efficiency in performance of organizations’ operations towards competitive advantage. Business knowledge, change management, and human resource distributions are examples of human resource competencies that contribute to organizations’ competitive advantage. Such initiatives are however, undermined by institutional factors such as business ‘short termism’, cost centered strategies, as well as professional factors such as lack of business skills, inefficiency in measuring and evaluating success, attitude, and organizational
Lengnick-Hall M.L.; Lengnick-Hall, C.A.; Andrade, L.S.; Drake, B. 2009. “Strategic human resource management: The evolution of the field.” Human Resource Management Review, 19, pp. 64-85.
In closing it is important to note that making HR a strategic partner, having the ability to attain a competitive advantage through HR, creating an effective performance management policy and having the ability to effectively measure HR’s impact will be a key driver to success
Organizations’ other resources can be hired, retained and discarded at any time but human resources needs special treatment. It needs to be carefully hired, deserve an extra effort to retain it and requires training & development to upgrade and improve its capabilities. Other resources depreciate with the passage of time but when the human resource gains more and more experience, it becomes more beneficial for the organizations. These characteristics have brought human resources to be the central element for the success of an organization. (Mohammed, Bhatti, Jariko, and Zehri, 2013, pg. 129, para. 2)
Wright, P., McMahan, G., & McWilliams, A. (1993). Human Resources and Sustained Competitive Advantage: A Resource-Based Perspective. Center for Effective Organizations, 1-34.
In the 1980’s, the birth of a new concept called ‘Human Resource Management’ was born. This trend comes after an intense period of Taylorisation, Fordism and now, McDonaldisation. HRM came to counter balance these trends and to consider the concept of the Man as a Man and not as a machine. For the last several decades, the interests of companies in "strategic management" have increased in a noteworthy way. This interest in strategic management has resulted in various organizational functions becoming more concerned with their role in the strategic management process. The Human Resource Management (HRM) field has sought to become integrated into the strategic management process through the development of a new discipline referred to as Strategic Resource Management (SHRM). In current literature, the difference between SHRM and HRM is often unclear because of the interconnections linking SHRM to HRM. However, the concepts are slightly different. Thus, we can ask, what is strategic human resource management? What are the main theories and how do they work? What do they take into account and how are they integrated? What are the links between SHRM and organization strategy? In order to answer to these questions, we will precisely define strategic human resource management, followed by a look at the different approaches built by theorists, and finally, we will see the limits between the models and their applications depending on the company’s environment. Discussion Strategic Human Resource Management: definition Strategic human resource management involves the military word ‘strategy’ which is defined by Child in 1972 as "a set of fundamental or critical choices about the ends and means of a business". To be simpler, a strategy is "a statement of what the organization wants to become, where it wants to go and, broadly, how it means to get there." Strategy involves three major key factors: competitive advantages (Porter, 1985; Barney, 1991), distinctive capabilities (Kay, 1999) and the strategic fit (Hofer & Schendel 1986). Strategies must be developed with a relevant purpose to sustain the organizational goals and aims. SHRM is one of the components of the organizational strategies used to sustain the business long-term. SHRM defined as: “all those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of the business. (Schuler, 1992)” or as “the pattern of planned human resource deployments and activities intended to enable the firm to achieve its goals.
...an approach of partnership is critical for organizations that want to gain competitive advantages. Butler, Ferris & Napier (1991) state this as, “the more management believes that HRM contributes to corporate success, the more its role will be integrated into the firm’s strategic planning process.” (as cited by Rose & Kumar, 2006, pg. 3). Additionally, organizations that apply energy and resources to HRD benefit from an increase in human capital. López-Cabrales, Real & Valle (2011) state the benefits of building human capital as, “If the company adopts appropriate procedures of personnel management, human capital can be orientated to the achievement of sustainable competitive advantages” (pg. 5).
Introduction A comprehensive Human Resource Management Strategy plays a vital role in the achievement of an organisation’s overall strategic objectives and visibly illustrates that the human resources function fully understands and supports the direction in which the organisation is moving. A comprehensive HRM Strategy will also support other specific strategic objectives undertaken by the marketing, financial, operational and technology departments. In essence, an HRM strategy’s aim should be to capture the ‘people’ part of an organisation and its medium to long-term projection of what it wants to achieve, ensuring that. It employs the right people, those have the right mix of skills, employees show the correct behaviours and attitudes, and employees have the opportunity to be developed the right way.
Fordism and Taylorism, although still existent, have been largely replaced by softer managerial styles. The idea behind those softer managerial styles is that if the workers are more involved in the work process, if they actually like their work, they will perform better. The strategic human resources management goes on to incorporate human resources with the company's strategy. By selecting the right employees, giving them chances to learn and grow within the company, as well as giving appraisals to successful employees, strategic human resource management extracts more and better quality of work from the employees and ensures that they are committed to the company. The highlight here is that people are the most valuable resource of a company and “....people are the key to achieving competitive advantage and therefore needed to be integrated more fully to foster commitment or an 'identity of interest' with their organization” (Sawchuk et all. 2004)
· Training may also need to send people on courses if the skill mix of
Moreover strategies and methods used by Human resource management in order to obtain employee engagement and therefore achieve high performance working are also used, each organisation uses a number of different methods to keep employees working to their full potential. However there are several other factors other than human resource management that can contribute to high performance working. Leadership can have a significant impact, for example a strong leadership within an organisation can suppress high performance working as in essence high performance working requires innovation which with too strong a leader can be inhibited. Furthermore the company and the image that is recognised for the organisation can have an impact on how motivated and attitude of workers, as they may agree or disagree with the views, ethics and goals of the business. Finally the need for worthy workers within human resource management can have a substantial effect positively and negatively.
Human Resources Management when mixed with strategic planning can really add value to an organization by laying down the foundation for success to ensure that a company has a prosperous future. Throughout this paper, I will show you how Human Resources Management can strengthen the strategic planning of an organization. When creating a strategic plan an organization, the Human Resources Department should always be utilized to take into account the internal and external factors. This means that the value added to the organization must happen inside the business and outside the business as well. Motivational tactics, when directed from Human Resources Management, have the ability to create a successful organizational culture that can become
Iveta, G. (Mar. 2012). Human Resources Key Performance Indicators. Journal of Competitiveness. Vol. 4, Issue 1. Retrieved from http://www.cjournal.cz/files/89.pdf
Wright, P., Mcmahan, G. and Mcwilliams, A. 1993. Human Resources and Sustained Competitive Advantage: A Resource-Based Perspective. Center for Effective Organizations, p. 11.
Competency mapping the buzz word in any industry is not complicated as it may appear. At the heart of any successful activity lies a competence or skill. In recent years various thought leaders in business strategy have emphasized the need to identify what competencies a business needs, in order to compete in a specific environment. Competency mapping is a strategic (Mily Velayudhan T.K, 2011) HR framework for monitoring the performance and development of human resource in organizations.
The human resource professionals are continuously adjusting to this role and re-aligning their roles; instead of being merely support function it has now has to embrace the role as strategic partner to the CEO.