...The Effect of HRM Practices on the Perceptions of Organizational and Market Performance of the Firm • 185 THE EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON THE PERCEPTIONS OF ORGANIZATIONAL AND MARKET PERFORMANCE OF THE FIRM Gedaliahu H. Harel and Shay S. Tzafrir The purpose of our study is to extend the emerging empirical literature on the firm-level impact of human resource management practices. Results based on a national sample of organizations from private and public sectors in Israel indicate that these practices have a significant impact on both the perceived organizational and market performance of the organization. The single independent variable found to be statistically significant in affecting perceived organizational performance was training practices. In the case of perceived market performance, we found that, in addition to training practices, employee selection practices also significantly affected the perceived market performance.1 © 1999 John Wiley & Sons, Inc. Introduction In today’s world, organizations are in a constant state of competition. The intensity of competition increases annually and the need to continuously improve organizational performance has never been greater. Managers must be on a constant lookout for ways to maximize their organizations’ strategic resources. The resource base approach contends that the organization can develop a sustained competitive advantage only if its activities create value in a unique way, one that...
Words: 7697 - Pages: 31
...Chittagong, Bangladesh e-mail: zahidsikder@aiub.edu *** Department of Commerce, University of Jaffna, Thirunelveli, Jaffna, Sri Lanka e-mail: bnimalathasan@yahoo.com **** Department of Statistics, University of Chittagong, Bangladesh e-mail: bhuiyan_mz@yahoo.com Abstract Compensation is one the most important functions of human resource management (HRM). The present study aimed at exploring differences between the public and private sector industrial enterprises of Bangladesh with respect to overall status of compensation practices. Data collected from twenty-six public and thirty-four private industrial enterprises shows that the overall status of compensation practices of the private sector industrial enterprises is significantly better than that of the public sector industrial enterprises in Bangladesh. Some implications are also offered for overall improvement of the compensation practices of the public and private sector industrial enterprises of Bangladesh. Key words: compensation, public sector, private sector, industrial enterprises JEL Classification: M12 Introduction Employee compensation is one of the major functions of HRM. Dessler (2007) defined employee compensation as “all forms of pay or rewards going to employees and arising from their employment”. Compensation is important for both employers and employees. It is important to the employees because it is...
Words: 5618 - Pages: 23
...Management (HRM) challenges to businesses especially those operating across national boundaries as multinational or global enterprises. Global business is characterized by the free flow of human and financial resources especially in the developed economies of European Union (EU), the North American Free Trade Agreement (NAFTA), other regional groupings such as the Association of South East Asian Nations (ASEAN), the Economic Community of West African States (ECOWAS), the Southern African Development Community, etc. (Schuler, R.S & Tarique, I. & Jackson, S.E, 2002). J.P. Morgan is a leader in wholesale financial services, offering intelligent solutions across one of the most comprehensive global product platforms available. JPM keep client objectives foremost important, fostering long-term relationships. This combination of product strength, intellectual capital and character sets the firm apart as an industry leader. I was working at JPM Israel last year and have a lot of knowledge from the inside. I was part of the Investment Banking at the Israeli JPM which is a representative branch that has been committed to serving clients and has key relationships with governments and top financial and corporate institutions. We offer the full spectrum of investment banking services to our clients, including M&A advisory, capital raising and risk management, as well as sales, trading and research. In this paper, I will evaluate aspects of the challenges of HRM as an international...
Words: 1775 - Pages: 8
...2 LEARNING OBJECTIVES After reading this chapter you should be able to •• describe the basic characteristics of culture and explain how cultural dimensions can be used in global HRM, •• describe how the institutions of society can shape HRM policies and procedures, •• discuss the possibility of the convergence of HRM across countries, •• explain how the heritage of state socialism continues to influence the context of HRM in transition economies, and •• discuss the effects of cultural and institutional context on the HRM role and on employee expectations. 23 24 ESSENTIALS OF INTERNATIONAL HUMAN RESOURCE MANAGEMENT Springtime in Paris As she savored the last bite of her croissant, Martha Pereaux, HR director for C3 Technologies, thought about how she would approach her latest “cross-cultural collision,” as she had come to think of them. In the year since she had moved to Paris from Houston, there had been many, but none quite as bizarre as this one. Martha had taken the big promotion to head up the HR division of the joint venture between Houston-based SuperChem and the French company. C3 developed technology for the oil industry, primarily new types of concrete that formed the barrier wall for offshore oil and gas wells. The joint venture was meant to take on the likes of the giant Schlumberger on its own turf and compete with them for valuable technical staff. Everyone said she was the perfect choice, having grown up in a bilingual family in Canada...
Words: 9323 - Pages: 38
...Literature Review on Human Resource Management in the Middle East. This paper seeks to investigate and review the literature of Human Resources Management (HRM) and its integration into the Middle East. According to Jordanian researchers, Aladwan, Bhunupgopan, & Fish, the few available 129 HRM Jordanian studies are not based on empirically-based but tend to be anecdotal in nature. Consequently, little concrete information exists to chart an effective awareness of either current or future HRM strategies or practices in the Middle East (2014). More fundamentally, structural barriers exists as well. Some of the local challenges that confronted the region included the very rapid demographic shift in the population, the varying oil prices, the glaring extremes of wealth, inadequate educational system and a very large semi illiterate population, and less than assertive governments that failed to bring long-term and short-term changes (Harry, 2007). To begin, there must be some recognition of the diversity of the Middle East. The three main areas are so-called because of the legacy of colonization and European statecraft. The Levant consists of the geographical region that includes Israel, Palestine, Syria, Jordan and Lebanon. This area has a very long history tied to Europe going back centuries to the Crusades and the Holy Roman Empire. The Gulf regions comprised of the Arabian Peninsula and has only been regionally important in the past century and the discovery of oil....
Words: 2387 - Pages: 10
...INTRODUCTION Human resource management (HRM) is universal in terms of strategies, policies and processes. The term has gradually replaced personnel management. Managing and developing human resources in the international (global) setting is increasingly recognized as a central challenge, particularly to multinational enterprises (MNEs). Human resource management is both academic theory and a business practice that addresses the theoretical and practice techniques of managing a workforce. While the theoretical aspects of the discipline may also be universal, the same cannot be said of its practice. The paper defines human resource management, the theoretical basis of the discipline, business practice and global or international human resource management. Thereafter, the paper concentrates on global perspective or issues in international human resource management practice. HUMAN RESOURCE MANAGEMENT Human resource management is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms “human resource management” (HRM) and “human resources” (HR) have largely replaced the term “personnel management” as a description of the processes involved in managing people in organizations. Human resource management can also be defined as the function within an organization that focuses on recruitment of, management...
Words: 2242 - Pages: 9
...HUMAN RESOURCE MANAGEMENT (HRM) IN THE GLOBAL PERSPECTIVE: THEORY AND PRACTICE. BY UKERTOR GABRIEL MOTI (P.hD.) Department of Public Administration UNIVERSITY OF ABUJA INTRODUCTION Human resource management (HRM) is universal in terms of strategies, policies and processes. The term has gradually replaced personnel management. Managing and developing human resources in the international (global) setting is increasingly recognized as a central challenge, particularly to multinational enterprises (MNEs). Human resource management is both academic theory and a business practice that addresses the theoretical and practice techniques of managing a workforce. While the theoretical aspects of the discipline may also be universal, the same cannot be said of its practice. The paper defines human resource management, the theoretical basis of the discipline, business practice and global or international human resource management. Thereafter, the paper concentrates on global perspective or issues in international human resource management practice. HUMAN RESOURCE MANAGEMENT Human resource management is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms “human resource management” (HRM) and “human resources” (HR) have largely replaced the term “personnel management”...
Words: 2266 - Pages: 10
...Culture and its Impact on International Business Introduction As businesses have grown and expanded to the international level; certain aspects of business have become abundantly clear. One thing that has become the norm when doing business on the international level is dealing with different cultures. Culture, as defined by Geert Hofstede is “the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is a system of collectively held values.” The concept of a culture has been around for a very long time; in-fact, when people exist in the same place together they end up following a set of rules. These rules can be called a “social norm” or culture and can be made up of simple things like how to act in certain situations all the way to a very devout set of beliefs or values. This paper will focus on the role that culture plays on multinational businesses around the globe and the differences that culture plays from one area of the globe to the next. An in-depth look will be taken on the obstacles that may arise due to culture, adjustments that need to be made, and any ethical conundrums that may arise due to different cultures. Literature Review D. Elenkov and d. Kirova, state that “MNCs should not underestimate the importance of the cultural specificity of the host countries because different staffing, selecting, training, motivating and compensating practices should be applied in accordance...
Words: 4997 - Pages: 20
...is very challenging as compared to managing technology or capital and for its effective management, organization requires effective HRM system. HRM system should be backed up by sound HRM practices. HRM practices refer to organizational activities directed at managing the pool of human resources and ensuring that the resources are employed towards the fulfillment of organizational goals. This paper has been designed to review the existing literature available on HRM Practices. The purpose of this paper is to develop an understanding of impact of human resource practices on hr outcomes. After reviewing the existing literature on HRM practices, the researchers have found that HR outcomes have great impact by human resource practices. HISTORY HRM in India is centuries old. The first reference of HRM was provided by Kautilya as early as 4th century B.C. in his book Arthashastra‘. The work environment had logical procedures and principles in respect of labour organization such as Shreni‘Wages were paid in terms of quantity and quality of work. Workers were punished for unnecessary delay or spoiling of work. Kautilyas contribution was based on Shamrastra Concepts like job description, qualifications for jobs, selection procedures, executive development, incentive system and performance appraisal were very effectively analyzed and explained. The HRM experienced full in mediaeval India due to foreign aggressions over the next 700...
Words: 5082 - Pages: 21
...Journal of Managerial Psychology 11,6 50 Self performance appraisal vs direct-manager appraisal: A case of congruence Yehuda Baruch University of East Anglia, Norwich, UK and Visiting Research Fellow at the London Business School, London, UK The process of performance appraisal (PA) is of most importance in human resource management (HRM). In a broad sense, PA systems are used for two main purposes: as a source for information for management; and as a feedback instrument for individuals employed by the organization. In the first case, the applications of the use of PA serve a variety of management functions. These could be decision-making about promotions, training needs, salaries, etc. Payrelated PA is a growing facility in many organizations where it provides information which can help in making relevant decisions[1,2]. However, PA can be used for enhancing developmental processes of employees or as an evaluation instrument per se[3,4]. In the second case, where feedback is the main goal, the fundamental purpose is to provide the employee with information that will improve personal performance and effectiveness. Recently the second approach has gained more attention. Providing the employee with feedback is widely recognized as a crucial activity. Such feedback may encourage and enable self-development, and thus will be instrumental for the organization as a whole. Organizational effectiveness is enhanced through improvement in all the constituencies...
Words: 7636 - Pages: 31
...The impact of information technology on the HR function transformation By Yu Long 0123404 Graduation Committee: First supervisor: Dr. T. Bondarouk Course coordinator: Pro. Dr. J. K. Looise Master Thesis, Business Administration HRM University of Twente March, 2009 Preface This master thesis concludes my life as a student, which is performed under the supervision of Twente University in the Netherlands. The research is the terminal of the program Human Resource Management. Doing this research not only improves my skill on literature searching, information analysis, but helps me to gain more profound knowledge about e-HR. During the research, I have got great support from several persons, and now, here is the opportunity to thank them. At first, I give special thanks to Jiajie Li, my boyfriend. He accompanies with me during the whole research period. Besides dealing with my impatient and anxious attitude, he also put great effort on improving my thesis. His optimistic and serious attitude influences me, and makes me continue the research with better and better results every time. His support is very meaningful for my research period. Secondly, I would like to thank Ms. Tanya Bondarouk, and Prof. Jan Kees Looise for their excellent support, feedback and guidance. Both of them give me fruitful advice on how to improve my work. And they always give me timely feedback on my work, which encourages and makes me belief that I can hand in a satisfactory report under the effort...
Words: 28042 - Pages: 113
...t u r e a r t I C Le 647 Interaction Effects of Globalization and Institutional Forces on International HRM Practice: Illuminating the ConvergenceDivergence Debate By Yongsun Paik Irene Hau-Siu Chow Charles M. Vance In the face of globalization, scholars continue to debate about whether a convergence in human resources practices will prevail, or a trend of divergence perspective will persist. Building on institution theory, this article helps to explicate this debate by examining how globalization may interact with different dimensions of local institutional forces to lead to convergence, divergence, or crossvergence Correspondence to: Yongsun Paik, PhD, Professor of International Business & Management, Department of Management, Hilton Center for Business, Loyola Marymount university, One LMu Dr., Los angeles, Ca 90045-2659, 310.338.7402 (phone), 310.338.3000 (fax), yspaik@lmu.edu. Published online in Wiley Online Library (wileyonlinelibrary.com) © 2011 Wiley Periodicals, Inc. • DOI: 10.1002/tie.20440 648 f e a t u r e a r tI C l e in international HRM practices for enhanced performance. We also present useful propositions for guiding future empirical research and theory development on the interaction between globalization and different forms of local institutional forces, which in turn influence the formation of successful international HRM practices. © 2011 Wiley Periodicals, Inc. Int r o d u c t i o n N otwithstanding the current worldwide...
Words: 9037 - Pages: 37
...Societal consciousness has shifted from national to international and global spheres, and the world is increasingly perceived as one place. Many sport organisations now find that they are under increasing pressure to engage in globally benchmarked sustainable management systems and processes, across all functional areas from finance to HRM. Some sport organisations have used aspects of the globalisation process to create new opportunities for expansion and growth, while others have been reluctant or resistant to externally instigated change. We assessed the adoption of ''best practice'' HRM practices in a range of amateur and professional sport organisations to see how they were reacting to these convergence pressures. This issue fits in the wider convergence-divergence debate that has been the concern of many cross-cultural researchers. Our empirical results indicate that while government policy has urged movement to a universally derived system of HRM processes, few sport organisations have adopted a formal HRM strategy and HR practices are widely variable across organisations http://www.inderscience.com/search/index.php?action=record&rec_id=7124 While at HRPA 2011, Canada’s conference and trade show focusing on HR issues and trends, I stopped in to check out Howard Wallack’s session, 10 Global HR Trends for 2011 and What You Need to Know to Manage Them. Wallack is the Director of Global Member Programs for Society for Human Resource Management, and in his discussion...
Words: 3527 - Pages: 15
...Disclosures About CSR Practices: A Literature Review Kavitha W * and Anita P ** Corporate Social Responsibility (CSR) is now prominent and evident more than ever due to the emphasis laid on businesses regarding environmental, social and ethical issues. The level of CSR activities of the firms is made known to public only through the disclosures. This paper reviews the literature on CSR disclosures and the effect of these disclosures. There are various factors which determine the extent of disclosures like the size of the firm, industry, high visibility, etc. Introduction Corporate Social Responsibility (CSR) is now prominent and evident more than ever due to the emphasis laid on businesses regarding environmental, social and ethical issues. This is because over the recent years, there have been social, political and economic pressures on corporate management to pay attention on social and environmental consequences of corporate activities. These pressures motivated the corporate management to actively participate in a wide range of social welfare activities. CSR now-a-days covers almost all issues like the use of child labor; inequality of employment; environmental impact; involvement in local community; products’ safety; company cultures; brand image and reputation. Apart from this, companies are now disclosing these activities in their annual reports, and one of the parameters to judge the performance of a company is CSR reporting. Corporate Social Responsibility ...
Words: 28706 - Pages: 115
...Utiliscan Case Analysis Israel Lancaster Webster University Abstract The value of a strong Human Resource division in an organization is pivotal when determining the success of an organization and satisfaction of employees. Consumers are even impacted either positively or negatively based on the performance and execution of a HR department within an organization. Establishing Human Resources as a core competence in an organization is the root to a productive, profitable, and sustainable organization. Introduction Organizations are faced with challenges daily internally and externally. Economic collapses in local, national, and international markets can affect how an organization operates and how managers strategically plan for the future. The importance of organizational agility is pivotal when it comes to making adjustments in a constant changing environment. Its also essential to understand what works for the organization, what pieces are required, and how those pieces fit into the bigger scheme of things. Organizations must be conscious of the most consistent ways to be responsive, quick, agile, and able to adapt to changing demands in order to survive in todays business world. Surviving in a competitive environment requires a strategic emphasis on not only the customer but equally so, the internal customer (employee). An organization must be able to blend various structures in order to accommodate the needs of their internal customers and external customers....
Words: 1516 - Pages: 7
