INTRODUCTION
In the last two decades both the public and private sector organisations have experienced incredible changes in their management processes (Hassard et al 2013). Some of these changes in the world of work have been influenced by technology, demography, globalisation to name but a few. These changes are occurring at different areas and levels thus posing a challenge for the management of organisations (Burke and Cooper 2006), hence the importance of using theoretical approaches in organisational development. Organisational theories therefore can be seen as radical changes in organizational thinking based on the changes occurring in human resource management (HRM) (Hassard, et al 2013). Supporting the thinking of Suddaby et
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An organisation must put in place a set of practice and organisational mechanism if they are to perform better. They should also put in place an organisational strategic that clearly states objectives, thorough understanding of the socio-political context, their identity, mission, vision and probably the change they want to see as an organisation. The contingency theory clearly provides the direction of the organisation within a set period of time. This theory purely deals with the internal processes that moulds the organisation, this can be in a form of HR policies and strategies etc. Beh & Loo (2013) also applauded this theory by arguing that performance are maximised when HR policies and strategies are consistent with the organisational strategy. this theory also probes further into the relativity of HR systems, as different organisational strategies requires different structure and the use of technology (Lepak, Marrone, and Takeuchi (2004) The contextual paradigm examines both the organisation internal and external settings and ensures that the organisation is well situated to carry out its day to day operation (Som, 2012). This may include for example the role of the state, community ownership, labour market and trade unions. This is also backed up with lobby and adjusting to the requirement of government and dealing with legislations on equal opportunities which is a strategic role of the HR function (Jackson et al 1989). However, Baxall (1995) argues that the contingency theory is not universal as it varies from country to country. Budhwar, and Boyne (2004) also states that in some countries HR policies and strategies are determined by age, size, culture and nature of the organisation. Nonetheless, de Pablos (2005)
Ulrich, D., Younger, J., and Brockbank, W. 2008. “The twenty-first century HR organization.” Human Resource Management, 47, pp.829-850.
Human Resource Management (HRM) is the administration and control of employees. Its purpose is to ensure that the workers and the employer cultivate a valuable relationship. As a result, the company will record an exceptional performance particularly with regard to employee productivity (Paauwe, 2004). Further, the workers will benefit in terms of job satisfaction and self-development (Paauwe, 2004). Some of the activities involved in managing workers include selection and recruitment, training, development, motivation, and appraisal (Sharma, 2009). This paper aims to analyse the role of human resource management in organisations and its linkage to the wider organizational strategy using Tesco and Harrods as illustrations.
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.
. Fiedler’s Contingency Theory Fiedler’s contingency theory is one of the contingency theories that states that effective leadership depends not only on the style of leading but on the control over a situation. There needs to be good leader-member relations, tasks with clear goals and procedures, and the ability for the leader to meet rewards and punishments. Lacking these three in the right combination and context will result in leadership failure. Fiedler created the least preferred co-worker (LPC) scale, where a leader is asked what traits can be ascribed to the co-worker that the leader likes the least.
Miles, R. (1975) Theories of Management: Implications for Organisational Behaviour and Development. McGraw-Hill, New York.
The twentieth century has brought in a number of management theories which have helped shaped our view of management in the present business environment. These emerging theories have enabled managers to appreciate new patterns of thinking, new ways of organising and new ways of managing organisations and people. Over the years these different theories have enabled the study of trends that have taken place in the management field. The major management viewpoints- which include the classical, behavioural and contingency approaches- have assisted in the formation of the contemporary twenty-first century management theory and techniques (S. C. Certo & S. T. Certo, 2006). Although, there are significant differences among all these approaches they seem to be unified by the efforts of improving an organisation’s efficiency in terms of proper human resources management. Furthermore, the dissimilarities seen in these approaches are due to the always changing organisations and environments which demand new management practices and techniques be applied to maintain the efficiency of an organisation.
This paper will attempt to give a broad overview from the available literature within three areas. First, the paper will explore the historical relationships of HR and organizational strategy. Second, the paper will give an overview of current practices and trends. Lastly,...
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.
It seems that HRM is so crucial to the organization, for what it does has nearly covered all aspects of the business – from strategic planning to the training and development, but unfortunately, its importance has not been accepted by everyone. As proposed by Morton, C, Newall, A. & Sparkes, J. (2001) there are three different views of HR function within the...
Willy McCourt & Derek Elridge (2003), Global Human Resource Management, pp 311 - 315. Edward Elgar publishing.
In this study, working from the Universalist, contingent and configurationally perspectives, we sought to identify possible existence of human resources management models and their links with the strategy of the company. The empirical analysis was conducted with 130 industrial company’s reveals three distinct models of human resource management but with behaviors independent of the strategies followed by the companies. At the same time we found within each model, orientations of particular processes that are common among them and are thus characteristic of a universal list
Understanding the strategic potential of HRM is a relatively recent phenomenon. Strategic HRM attempts to bring HRM to the boardroom. It requires personnel policies and practices to be integrated so that they make a coherent whole, and also that this whole is integrated with the business or organisational strategy.
4) Tokesky, George C; Kornides, Joanne : ‘Strategic HR Management is vital’( Personal journal, December 1994 v 73 n 12 p 115.
Human Resource Management (HRM) is fundamentally another name for personnel management. It is the process of making sure the employees are as creative as they can be. HRM is a way of grouping the range of activities associated with managing people that are variously categorised under employee relations, industrial/labour relations, personnel management and organisational behaviour. Many academic departments where research and teaching in all these areas take place have adopted the title department of human resources management. HRM is a coordinated approach to managing people that seeks to integrate the various personnel activates so that they are compatible with each other. Therefore the key areas of employee resourcing, employee development, employee reward and employee involvement are considered to be interrelated. Policy-making and procedures in one of these areas will have an impact on other areas, therefore human resources management is an approach that takes a holistic view and considers how various areas can be integrated.
Leadership has been delineate because the “process of social influence within which one person will enlist the help and support of others within the accomplishment of a typical task”. A definition additional inclusive of followers comes from Alan Keith of Genentech WHO aforesaid "Leadership is ultimately concerning making the way for individuals to contribute to creating one thing extraordinary happen. Leadership is one among the foremost salient aspects of the structure context. However, process leadership has been difficult.