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Human Resources Management (HRM) is the managing of human skills & talents to make sure they are used effectively in alignment with an organization's ...
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1.1 Background to Research One of the first explicit statements made on Human resource management was given by Michigan School (Fomburn et al, 1984) where they said that human resource systems and the organization structure should be managed in a way that is congruent with organizational strategy. Human resource management is a strategic approach of managing people in an organization. It is also sometimes considered synonymous to personnel management. Miller (1987) suggests that HRM is all about those decisions and actions concerning the employees at all levels and are related to the strategies that aim to gain competitive advantage. HRM is a wide discipline which deals with recruitment, induction, payroll, employee management, time management, performance appraisals, training, retirement, termination and other. A very important aspect of HRM is performance management, which involves informing company‘s goals and mission to the personnel, setting standards of performance, evaluating and measuring them, helping employees to improve and grow further. The goal of HRM is to help an organization to meet strategic goals by attracting and maintaining employees, and also to manage them effectively. Dave Ulrich (1997) defines four fields of HRM function which are strategic business partner, change management, employee champion and administration. “Performance measurement is the process of assessing progress toward achieving predetermined goals, while performance management is building on that process adding the relevant communication and action on the progress achieved against these goals” (Bourne, et al 2003). Dave Ulrich and Norm Smallwood (2000) suggest that human resource builds intangible assets for the organization. These organizat... ... middle of paper ... ... • Benefits of employee satisfaction, retention and high morale and how it has effect on company’s success? • How a motivated and well managed manpower leads to better customer service and high profits. 1.7 Research Questions 1. What is the relationship between performance management function and employee commitment? 2. What is the performance management system at Primark stores Oxford Street? 3. How does performance appraisal influence employee morale, and how does it impact the company’s profits? 4. What is the impact of performance management function upon employee retention? 5. How can a motivated team of employees termed as an “asset” of the company? 6. How does Primark’s management system encourage employee productivity? 7. How could Primark improve its performance management function to further build employee commitment and productivity?
HRM in any company is a weighty issue that needs much attention where business performance is linked to a HR strategy (Caldwell 2008; Ulrich et al. 2008). In the recent past, competition has become stiff, such that organizations need to come up with other means to compete in the extremely dynamic market world. Thus, companies have shifted their emphasis to Strategic Human Resource Management (SHRM) where they enhance and empower their personnel in order to increase the productivity and the services offered into the market (Mello 2006). This goes against the traditional ways of increasing the means of competition where organizations place emphasis on tangible resources. In the past, organizations competed in terms of machinery and acquisitions. This has changed greatly due to the changing customer tastes and the diversity of the market in the present (Delery & Doty 1996; Lengnick-Hall et al. 2009).
In order to attract new employees; sales profits and production will play a major part in recruiting top managers to execute a plan in the next 3 years that will need to involve a quality management performance base pay. The first performance metric that should be tracked is the customer satisfaction score, this will help improve the sales profits. Customer satisfaction score should be measured internally and externally by doing so it will help the organization identify where changes are needed. The next metric is productivity; Weave Tech wants to offer some new quality products that attract more than just military customers. In order to launch a new product, the organization should determine the cost per unit and determine the output cost as well.
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.
Organizational success or failure is dependent on a myriad of variables that can be challenging to measure and interpret. Success or failure can simply be luck and timing or an orchestrated and deliberate effort. As new technologies allow organizations the ability to rapidly measure and assess its internal and external environmental factors, more efficient strategies can be quickly implemented. The focus of this literature review is specifically on one of these mentioned variables. The paper will detail the relationship that Human Resources (HR) practices have with an organization’s strategic goals and vision.
Section 1: The focus of many managers is most often on the wrong things. They focus on appraisal rather than planning. Performance appraisal is not performance management. Managers often focus on a one-way flow of words (manager to employee) rather than dialogue. Performance management and the end of the year appraisal are often seen as a necessary evil. They don’t realize that if carried out properly, performance management has the potential to fix many of the problems they’re facing.
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.
The lack of success at Omega, Inc. rested in the hands of an incompetent sales staff who were not informed of the company’s mission statement and goals. The staff received limited training on the jobs they were to perform. Omega was faced with the challenge of getting the employees to achieve their sales quotas. According to (Aguinis, 2007), “There are two important prerequisites required before a performance management system is implemented: knowledge of the organization’s mission and strategic goals and knowledge of the job in question.” The benefit of superior knowledge of the organization combined with clear and agreed upon mission and strategic goals of their unit would afford employees the opportunity to make contributions that will have a positive impact on the organization as a whole. In addition, one must possess the knowledge of the job in question to execute the tasks necessary to be done and how they should be done. This knowledge is obtained through a job analysis. Omega failed to implement strategic planning throughout all the franchises. According to Aguinis (2007), “Strategic planning allows an organizati...
Human resource management (HRM) encompasses the activities of acquiring, maintaining, and developing the organization's employees (human resources). "The traditional view of these activities focuses on planning for staffing needs, recruiting and selecting of employees, orienting and training staff, appraising their performance, providing compensations and benefits, and making their career movement and development." HRM involves two aspects:...
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
The purpose of this report is to brief the management on the importance of employee satisfaction in achieving the competitive goals of the organization through increasing the retention of the employees.
Human Resource Management (HRM) can be defined as “the set of programs, functions, and activities designed and performed in order to capitalize on both employee as well as organizational effectiveness. It is a management function that helps organization in recruiting, selecting, and training, developing and managing
Changing Roles. Traditionally, HR has been an administrative position-processing paperwork, benefits, hiring and firing, and compensation. However, recently HRM has moved from a traditional to a strategic role, the emphasis is on catering to the needs of consumers and workers. Before, HR was seen as the enemy and employees believed that HR’s main purpose was to protect management. Now, the position requires HRM to be more people oriented and protect their human capitol, the staff. In addition, human resource management has to be business savvy and think of themselves as strategic partners in the 21st century.
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.
...s in the corporate world by setting new standards to promote and better satisfy their employees. We chose four leading companies in four different industries. The above analysis definitely reveals that perhaps one of the reasons why these companies are the leaders in their industry is because they are well aware of the importance of the work force. They mention in their mission statements as well that yes in deed customers are important but in order to make the customer happy they first need to motivate and satisfy the employee as well. According to Citibank, the general belief is that a happy worker is a motivated and loyal one. So keeping employees' spirits high is a sure-fire way of maintaining a productive workforce. A productive work force would ultimately lead to a healthy organization which would not only promote the society its working for but also itself.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)