...Essay Title: ‘Assess the state of the evidence in favour of HRM’s impact on organisational performance. Do the supporters of HRM’s strategic contribution have enough of a case?’ Word Count: 3,105 Abstract The evidence in favor of HRM’s impact on organizational performance is growing, however some doubt has cast on these studies. Thus, this essay suggests that the evidence of HRM-performance linkage is weak because theoretical and methodological issues remain among most of these studies. So, this essay will mainly analyze theories concerning on HRM and firm performance relationships and methodological problems in empirical studies. As there are flaws in both theories and the process of studying the relationships, this essay concludes that the evidence in favor of HRM’s impact on organisatioanl performance is weak. It seems that it is better to pay more attention to the HRM’s theories and methodologies in order to further the understanding the correlation between HRM and firm performance. TABLE OF CONTENTS 1. Introduction 4 2. Evidence of previous studies 5 3. Theoretical evidence 8 3.1 Categorizing theories 9 3.1.1 Strategic theories 9 3.1.2 Descriptive theories 11 3.1.3 Normative theories 11 3.2 Conceptual theories 13 4. Methodological issue 15 4.1 Measurement of HRM 16 4.2 Measurement of performance 17 5. Conclusion 18 1. Introduction Human resource managers have been worrying about the inability to prove their contribution...
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...Table of Contents Introduction 2 LO1-1.1: Difference between Personnel Management and Human Resource Management: 3 LO1-1.2: The function of Human Resource Management in contribution to Organisational Purposes: 3 Introduction An organization is driven by human capital and the quality and effectiveness of the organisation is determined by the quality of the people that are employed. the resources of men money material and machine are collected and coordinated through people. Without people organisation cannot exist. Success for most organisations depends on finding the employees with the skills to successfully perform the tasks required to attain the company’s strategic goals. Management decisions and processes for dealing with employees are critical to ensure that the organisation gets and keeps the right staff. Personnel management refers to the managerial function of estimating and classifying of human resources requirements for meeting organisational goals. It involves strategies that ensure sufficient staff, a right combination of talent and performance in jobs. Human resource management (HRM) is the governance of an organization’s employees. HRM is sometimes referred to simply as human resources (HR). A company’s human resources department is responsible for creating, implementing and/or overseeing policies governing employee behaviour and the behaviour of the company toward its employees. Human resources are the people who work for the organization;...
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..."Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function." (Bernadin, H.J.2007). Furthermore Armstrong (2006, p.4) defined it as a strategic and coherent approach of an organisation's most valued assets. - the people working there, who individually and collectively contribute to the achievements of the objectives of the business. The term Human resource management is therefore also widely known as "Personnel Management" as a description of the process of managing people in organisations. In a constantly changing world, which requires flexible responses, with strong competition from nearly every continent, due to increased globalisation, it is important for organisations to have some kind of competitive edge. Especially in the service industry, but more generally spoken throughout every industry, the human leverage is the most contributing factor to being competitive and making a difference to customer satisfaction and general organisational performance. Other elements effecting HRM and increasing its importance are technological changes, increasing litigations due to changes in legislations worldwide (e.g. EU) and the changing characteristics of the workforce (e.g. diversity). That is why HRM is important for an organisation to improve the competitive advantage. Professor Pfeffer (cited by Bernadin...
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...Chapter 1 Human Resource Management HRM Activities HRM involves the acquisition, development, reward and motivation, maintenance and departure of anorganisation's human resources. To do this successfully HRM must do all of the following: •Job analysis •Human resource planning •Employee recruitment •Employee selection •Performance appraisal •Human resource development Career planning and development •Compensation • Benefits • Industrial relations •Health and safety programs •Manage diversity What is strategy? 'Strategy defines the direction in which an organisation intends to move and establishes the framework for action through which it intends to get there.' The purpose of strategy is to maintain a position of advantage bycapitalising on the strengths of an organisation and minimising its weaknesses. To do this, an organisationmust identify and analyse the threats and opportunities present in its external and internal environments. What is strategic management? Strategic management is the process whereby managers establish an organisation's long-term direction, setspecific performance objectives, develop strategies to achieve these objectives in the light of all the relevantinternal and external circumstances and undertake to execute the chosen action plans. The aims of strategicmanagement are to help the organisation to achieve a competitive advantage and to ensure long-term successfor the organisation. Components of strategic management Strategic management involve...
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...Critically evaluate the research evidence that suggests HRM can (and does) contribute to improvements in organisational performance The distinctive feature of HRM is its assumption that improved performance is achieved through the people in the organization.’ (Guest, 1997) important therefore for performance improvement is that the organisation makes policies that would facilitate Human Resources at work, it could be assumed that Human Resource would have a substantial impact on the business performance. When the Human Resource Management journal was launched in 1990, Guest (2007) claims “it was able to capture a rising wave of interest in human resource management and in particular the relationship between human resource management (HRM) and performance”. Throughout the decade many authors provided sound evidence about a positive link between HRM and performance, including Huselid (1995) and Arthur (1994). Almost a decade later two major reviews of the topic were carried out by Boselie et al (2005) and Combs et al (2006) who both confirmed many of the journals signified an association, but also concluded that evidence of the link between performance and HRM was of an “association rather than a causation” Guest (2007). Both reviews also claimed there was insufficient evidence to explain why there was an association. The major problem as Guest (1997) states we need “a theory about HRM, theory about performance and a theory about how they are linked”. The aim of this...
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...3. Performance Management System (PMS), its Design and Implementation for Achieving Strategic Advantage Introduction PMS are strategically vital to any given organisation to succeed in their strategic human resource management because they are the key makers that integrate organisational objectives, business plans, people and all other human resource systems in achieving its required goals. HRM is about deployment, engagement, development and training of employees to reach their full potentials. To measure their rate of improvement, we need the performance management systems to measure their performance. Without measuring these we cannot manage their progress. Philbeam and Corbridge (2002) believes that PMS helps organisations to develop performance culture where employers continuously observe different business processes in order to maximise their work superiority and often review their competencies to determine their personal development needs. Therefore any PMS must fully be integrated in the organisation’s objectives, its corporate strategies, culture and structure. On the other hand Bevan & Thompson (1992) defines PMS as a system that provides the departmental/business unit and individual performance targets that are drawn from the wider organisational objectives. PMS evolved from management by objective (MBO) which aims at improving profitability and growth by focusing on improving managerial effectiveness, moral and motivation. PMS is ‘a strategy which...
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...STRATEGIC HUMAN RESOURCE MANAGEMENT: THREE-STAGE PROCESS AND INFLUENCING ORGANISATIONAL FACTORS Sandeep Krishnan Personnel and Industrial Relations Area D-18, Indian Institute of Management, Vastrapur, Ahmedabad 380 015, Gujarat, India. Email: sandeepk@iimahd.ernet.in Tel: ++91-79-26327816 Fax: ++91-79-26306896 Manjari Singh Personnel and Industrial Relations Area Wing 12-D, Indian Institute of Management, Vastrapur, Ahmedabad 380 015, Gujarat, India. Email: manjari@iimahd.ernet.in Tel: ++91-79-26324914 Fax: ++91-79-26306896 1 Abstract: A three-stage model for the process of strategic human resource management is developed in this paper. The three stages cover strategy formulation, implementation and evaluation. The inter-linkages in this dynamic model have been explored. The organisational factors that have enabling or deterring influence on the success of each of these three stages have been discussed. The paper highlights the key role played by HR professionals in these three stages. 2 STRATEGIC HUMAN RESOURCE MANAGEMENT: THREE-STAGE PROCESS AND INFLUENCING ORGANISATIONAL FACTORS Organisations are increasingly looking at human resources as a unique asset that can provide sustained competitive advantage. The changes in the business environment with increasing globalisation, changing demographics of the workforce, increased focus on profitability through growth, technological changes, intellectual capital and the never-ending changes that organisations are...
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...STRATEGIC HUMAN RESOURCE MANAGEMENT: THREE-STAGE PROCESS AND INFLUENCING ORGANISATIONAL FACTORS Sandeep Krishnan Personnel and Industrial Relations Area D-18, Indian Institute of Management, Vastrapur, Ahmedabad 380 015, Gujarat, India. Email: sandeepk@iimahd.ernet.in Tel: ++91-79-26327816 Fax: ++91-79-26306896 Manjari Singh Personnel and Industrial Relations Area Wing 12-D, Indian Institute of Management, Vastrapur, Ahmedabad 380 015, Gujarat, India. Email: manjari@iimahd.ernet.in Tel: ++91-79-26324914 Fax: ++91-79-26306896 1 Abstract: A three-stage model for the process of strategic human resource management is developed in this paper. The three stages cover strategy formulation, implementation and evaluation. The inter-linkages in this dynamic model have been explored. The organisational factors that have enabling or deterring influence on the success of each of these three stages have been discussed. The paper highlights the key role played by HR professionals in these three stages. 2 STRATEGIC HUMAN RESOURCE MANAGEMENT: THREE-STAGE PROCESS AND INFLUENCING ORGANISATIONAL FACTORS Organisations are increasingly looking at human resources as a unique asset that can provide sustained competitive advantage. The changes in the business environment with increasing globalisation, changing demographics of the workforce, increased focus on profitability through growth, technological changes, intellectual capital and the never-ending changes that organisations are...
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...A RESEARCH PAPER On HUMAN RESOURCE PRACTICE IN DEPZ Prepared for: Ms. Rubina Easmin Research paper Supervisor Assistant lecturer Faculty of business administration Prepared by: Md Abu Yusuf chy ID-120204047 MBA (1) Human Resource Management Date of Submission: 30/08/2013 Faculty of Business Administration BGC Trust University Bangladesh EXECUTIVE SUMMARY To meet the requirement of the course outline as well as to comprehend the application of the theoretical knowledge in the practical fields, the research report on HUMAN RESOURCR PRACTICE in DEPZ has been conducted. The main focus of the study is Hrm Practices And Firm Performance Recruitment And Selection Performance Appraisal ,Unionisation ,Training And Development ,Compensation ,Hrm Practices to analyze the, to identify the strengths and weaknesses of existing Recruitment and selection Process and suggest some measures for bringing effectiveness in Recruitment and Selection Process. I prepared an overview of “Foreign Direct Investment in Bangladesh” based on secondary data and information. For this specific purpose I collected data and information from various sources like published materials such as the Bangladesh Economic Review, Different articles of Board of Investment (BOI) and Bangladesh Export Processing Zone (BEPZA), Daily Statement of Affairs of different Internet based publication and other books on Foreign Direct Investment in Bangladesh and articles related to...
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... Student Introduction Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM can be performed by line senior managers. A senior manager is responsible for overseeing and leading the work of a group of people. To the journal ‘Personnel Today’ who commissioning a series of articles introducing principles of Human Resource Management (HRM) I would like to contribute an article which related to senior managers and from other functional management areas trough success a business. The article entitled “To ensure the success of your business through effective human resource strategies”, and knowing how to help your staff to 'go green'. And the article is cover: 1. The definitions and comparison models of strategic HR management. 2. Second the importance of HRM. 3. The analysis of the framework. 4. How the strategies are developed. 5. The assessment of roles in HRM. A manager, who is generally the head of a department or functional area within an organization, has specific responsibilities depending on the needs of his or her organization. Human Resource Management Ensure the success of your business through effective Human Resource strategies To understand the role and importance of human resource management in achieving organisational effectiveness to define strategic human resource management...
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...Strategic Integration of Recruitment Practices and Its Impact on Performance in Indian Enterprises Ashok Chanda, Trapti Bansal & Rupal Chanda Abstract Recruitment and selection is a foundation of human resource management (HRM) practices and its integration to business is critical to achieve organisational strategic goals. However, little research has to date examined strategic integration in this specific human resource (HR) practice, and, therefore, little is known about the level and application of recruitment and selection strategic integration a situation that warrants greater investment due to the economic growth in India in a corresponding expansion of Indian enterprises. Consequently, this study investigates the level at which recruitment and selection practices integrate with business strategies and the relative effects of different levels of such strategic integration on organisational performance in 259 Indian enterprises. The results show the majority of Indian enterprises had a high level of recruitment and selection strategic integration in business strategy formulation and implementation. Moreover, the level of recruitment and selection strategic integration was positively related to growth in market share, profits and sales, employees’ satisfaction, employees’ productivity, and negatively related to employees’ turnover. The implications for HRM practitioners and further research are discussed. Introduction Recruitment and selection is the process of attracting...
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...Strategic Human Resource Management Student Name Student ID Table of Contents Introduction 3 LO: 02:1 Be able to develop human resource plans for an organization 3 2.2 Assess the human resources requirements in a given situation 5 2.3 Develop a human resources plan for an organisation 7 2.4 Critically evaluate how a human resources plan can contribute to meeting as organisation objectives 8 LO: 03: Understand human resources policy requirements in an organization 9 3.2 Analyses the impact of regulatory requirements on human resource policies in an organisation 10 4.1 Analyses the impact of an organisational structure on the management of human resources 11 4.2 Analyses the impact of an organisational culture on the management of human resources 12 4.3 Examine how the effectiveness of human resources management is monitored in an organisation 14 4.4 Make justified recommendation to improve the effectiveness of the human resources management in an organisation 15 Conclusion 15 References 16 Figure 1 HR Planning 4 Figure 2 HR Planning process 7 Figure 3 Balance score card in practical 15 Introduction Organisations within today’s labor markets cannot be pretermission on increasing position of managing human resources. It is appreciated that the ways in which human resources are accomplished in employing organisations is energetic for the employer. Human resource (HR) system encirclements all the policies and performs that will ensure that right personnel...
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...Executive summary The Main aim of this study is to show that the organisation culture actually influence the ability of a business in getting good outcomes by motivating the employees. INTRODUCTION TO ORGANISTION'S CULTURE It can be noticed that now organisation's culture have great importance in the management of human resources for having a growth in corporation or organisations performance and for the better achievements. In many developed countries organisation's culture has been recognised as main source of difference in performance practices. organisation's culture helps us to identify the organisation's beliefs, meanings, values, norms and rituals in which things are done in the organisation. The concept of culture is the environment and executions that organisation develop around their employees working, or to promoted values and statement of beliefs of an organisation (Schein, 2004). In short organisation's culture contains what it has been good at and what has worked in past. these executions and practices are easily accepted by the long term employees often called legends of organisation. these legends helps to new employees to learn things. apart from practices, norms have its own importance within organisation. A norm is a expected behaviour pattern that is part of culture. employees worked according these norms under a organisation. As personality and character shows a person's behaviour similarly, behaviour of a group through the shared norms of organisation...
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...link between human resources (HR) and firm growth has attracted the interest of researchers. This study aims to assess the extent, if any, to which, specific HR practices may contribute to firm growth. We review a rich literature on the links between firm performance and the following HR practices: (1) job security (2) selective hiring, (3) self-managed teams (4) compensation policy, (5) extensive training, and (6) information sharing. We surveyed HR managers and recorded their perceptions about the links between HR practices and firm growth. Results demonstrated that compensation policy was the strongest predictor of sales growth. Results provide overall support for all HR practices except of job security. Eventually, selecting, training, and rewarding employees as well as giving them the power to decide for the benefit of their firm, contribute significantly to firm growth. Keywords: human resource practices, firm growth, selective hiring, compensation policy Int. Journal of Business Science and Applied Management / Business-and-Management.org 1 INTRODUCTION The extent to which, if any, human resource management (HRM) impacts on organizational performance has emerged as the central research question in the personnel/HRM field (see Becker and Gerhart, 1996; Guest, 1997 for reviews). Although initial results indicate that some human resources practices may have a positive effect on organizational...
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...Table of Contents | | | | | | |HR |Page 4 | |The formal policies and processes used to satisfy intrinsic and extrinsic needs |Page 8 | |The impact of organisational performance management processes on motivation |Page 9 | |Management styles within the organisation and the impact of these on motivation |Page 12 | |The expectations on managers relating to management of motivation levels and how these are communicated and |Page 13 | |encouraged | | |The development of people management skills within the organisation and the effect effectiveness of this|Page 14 | |Current practices against relevant models |Page 14 | |Summary and recommendations ...
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