Premium Essay

Strategic Human Resource Management Effectiveness and Ž Rm Performance

In: Business and Management

Submitted By arunalydia
Words 5573
Pages 23
Int. J. of Human Resource Management 12:2 March 2001 299–310

Strategic human resource management effectiveness and rm performance

Orlando C. Richard and Nancy Brown Johnson
Abstract This study tests whether strategic human resource management (SHRM) effectiveness signi cantly affects organizational level outcomes. Using the resource-based view of the rm, this study examines the effective use of human capital on organizational performance. Further, the role that a contextual factor – capital intensity – plays in modelling is explored. Results show that SHRM effectiveness signi cantly reduces employee turnover and increases overall market performance assessment. However, SHRM effectiveness affected both rm productivity and return on equity only when moderated by capital intensity. Keywords Human resources; strategy; effectiveness; outcomes.

The interest of strategic management in examining the role of human resources as value-added has evolved (Baird and Meshoulam, 1988) to broaden the focus of human resource management research from a micro (i.e. individual effectiveness focus) approach to a macro (i.e. organizational effectiveness focus) or strategic approach (Butler et al., 1991). The strategic human resource management perspective (SHRM) makes evident the importance of human resource practices for organizational performance, such as employee turnover, productivity and nancial performance. The current focus on HRM as integral to rm’s strategic processes involves viewing HRM activities as a resource contributing to rm pro tability as opposed to a cost of production (Butler et al., 1991; Delery and Doty, 1996; Huselid, 1995; Lado and Wilson, 1994). However, previous work has concentrated on linking the existence of individual or sets of HR practices to rm performance. Huselid et al. (1997) note that future research needs to go beyond the mere presence of HR

Similar Documents

Premium Essay

Subcultures and Employment Modes Translating Hr Strategy Into Practice

...com/researchregister The current issue and full text archive of this journal is available at http://www.emeraldinsight.com/0953-4814.htm Subcultures and employment modes: translating HR strategy into practice Jennifer Palthe Western Michigan University, Kalamazoo, Michigan, USA Subcultures and employment modes 287 Received 15 March 2002 Revised 15 September 2002 Accepted 9 December 2002 Ellen Ernst Kossek Michigan State University, East Lansing, Michigan, USA Keywords Human resource development, Employment, Human resource management, Culture Abstract Past research suggests that most culture change efforts proceed with limited attention to the pluralistic nature of contemporary organizations. We argue that the relationship between organization subcultures and the implementation of new HR strategies into HR practice has not been adequately explored because of the lack of a comprehensive framework for de®ning and integrating culture change and the strategic HR literature. We review the organization culture and strategic HR literature and present a heuristic that serves as a step toward exemplifying the role of changing employment modes and organizational subcultures in enabling or constraining the implementation of HR strategy. Adjusting to changing environmental demands has been an ongoing pursuit of organizations for centuries, but the task has become even more perplexing over the last decade. In response to the accelerated pace of change worldwide, organizations are becoming ¯atter...

Words: 8877 - Pages: 36

Premium Essay

Human Resource Strategy

...CERTIFIED HR PRACTITIONER Module 1 – Day 1 © KPL/2012 LEARNING OUTCOMES 1. Explain what human resource management is and how it relates to the management process. 2. Show with examples why human resource management is important to all managers. 3. Illustrate the human resources responsibilities of line and staff (HR) managers. 4. Briefly discuss and illustrate each of the important trends influencing human resource management. © KPL/2012 LEARNING OUTCOMES 5. List and briefly describe important trends in human resource management. 6. Define and give an example of evidencebased human resource management. © KPL/2012 HRM - Definition Human Resource Management (HRM) is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns. © KPL/2012 THE MANAGEMENT PROCESS Planning Controlling Leading Organizing Staffing © KPL/2012 HRM PROCESS Acquisition Training Fairness Health and Safety Labor Relations Human Resource Management (HRM) Appraisal Compensation © KPL/2012 PERSONNEL ASPECTS OF A MANAGER’S JOB • Conducting job analyses • Planning labor needs and recruiting job candidates • Selecting job candidates • Orienting and training new employees • Managing wages and salaries • Providing incentives and benefits • Appraising performance • Communicating • Training and developing managers • Building employee commitment © KPL/2012 PERSONNEL MISTAKES • • • • • Hire...

Words: 3120 - Pages: 13

Premium Essay

Riordan Mnfg Outsourcing Paper

...Riordan Manufacturing Outsourcing Plan Introduction Riordan Manufacturing (RM) is an established global plastics producer, which employees 550 individuals and their projected annual earnings are $46 million. RM has production divided among three plants. RM’s mission is to focus on achieving and maintaining profit that ensures that the financial and human capital is available to sustain growth. In week three, team C established four potential outsourcing options. Of those four potentials, RM stands to gain the most potential from outsourcing customer relationship management (CRM). This could cover service, sales, and marketing. Services that will be provided include the call center support, field support management, e-Service, campaign management, sales forecasting, account management, and pipeline management. Outsourcing will assist with new government required reporting requirements. CRM will assist RM for future outsourcing projects such as switching over to compatible systems for finance and accounting. Situation Analysis RM is recognized for their innovation and providing customers with new products. An outsourcing plan pertaining to CRM has been established below. The success of the project will be measured by the performance measures; customer satisfaction, marketing, and employee retention. Outsourcing Plan Based on research by RM they have created a cost-effective recognition program that is aimed at motivating employees, increasing retention, and increase...

Words: 2424 - Pages: 10

Premium Essay

Riodran Manf Outsourcing

...Riordan Manufacturing Outsourcing Plan Introduction Riordan Manufacturing (RM) is an established global plastics producer, which employees 550 individuals and their projected annual earnings are $46 million. RM has production divided among three plants. RM’s mission is to focus on achieving and maintaining profit that ensures that the financial and human capital is available to sustain growth. In week three, team C established four potential outsourcing options. Of those four potentials, RM stands to gain the most potential from outsourcing customer relationship management (CRM). This could cover service, sales, and marketing. Services that will be provided include the call center support, field support management, e-Service, campaign management, sales forecasting, account management, and pipeline management. Outsourcing will assist with new government required reporting requirements. CRM will assist RM for future outsourcing projects such as switching over to compatible systems for finance and accounting. Situation Analysis RM is recognized for their innovation and providing customers with new products. An outsourcing plan pertaining to CRM has been established below. The success of the project will be measured by the performance measures; customer satisfaction, marketing, and employee retention. Outsourcing Plan Based on research by RM they have created a cost-effective recognition program that is aimed at motivating employees, increasing retention, and increase...

Words: 2424 - Pages: 10

Premium Essay

Riordan

...Riordan Manufacturing Outsourcing Plan Introduction Riordan Manufacturing (RM) is an established global plastics producer, which employees 550 individuals and their projected annual earnings are $46 million. RM has production divided among three plants. RM’s mission is to focus on achieving and maintaining profit that ensures that the financial and human capital is available to sustain growth. In week three, team C established four potential outsourcing options. Of those four potentials, RM stands to gain the most potential from outsourcing customer relationship management (CRM). This could cover service, sales, and marketing. Services that will be provided include the call center support, field support management, e-Service, campaign management, sales forecasting, account management, and pipeline management. Outsourcing will assist with new government required reporting requirements. CRM will assist RM for future outsourcing projects such as switching over to compatible systems for finance and accounting. Situation Analysis RM is recognized for their innovation and providing customers with new products. An outsourcing plan pertaining to CRM has been established below. The success of the project will be measured by the performance measures; customer satisfaction, marketing, and employee retention. Outsourcing Plan Based on research by RM they have created a cost-effective recognition program that is aimed at motivating employees, increasing retention, and increase...

Words: 2424 - Pages: 10

Premium Essay

Hris Analysis

...Manufacturing, HRIS Analysis BSA375 January 24, 2010 SR-RM-004 – Analyze Human Resources System The key success factor to any organization is the quality and contribution of its people. Only with effective human capital management can an organization attract and retain top notch talent. Riordan Manufacturing, Inc. is a successful plastic injection molding company with offices in China and the United States. Employing 550 employees, the ability to keep up with increasing regulatory and compliance requirements is significantly challenged. Disparate systems and an inability to obtain employee information quickly and efficiently resulted in a strategic plan to analyze HR functions and implement a centralized Human Resource Information System (HRIS). According to Hendrickson, Information Technology in the HR sector has introduced significant challenges for HR professionals “who must quickly get up to speed in the latest information technologies and simultaneously transform traditional processes into on-line processes” (Hendrickson, 2003, p383). This report covers the systems analysis of Service Request SR-RM-004. Submitted by Riordan’s Chief Operating Officer, it is his desire that all Human Resource functions are centralized onto a single platform. Pressured by increasing challenges to the existing processes, it is the desire of Riordan Management that the HRIS system is implemented in six months. Given the limited time available, it is imperative...

Words: 1015 - Pages: 5

Premium Essay

Factors Affecting Housing Affordability

...Efficiency and Effectiveness of Waqf Institutions in Malaysia: Toward Financial Sustainability Maliah Sulaiman Email: maliah@iium.edu.my Department of Accounting, Kulliyyah of Economics and Management Sciences International Islamic University Malaysia Jalan Gombak, 53100 Kuala Lumpur, Malaysia and Muntaka Alhaji Zakari* Email: alhajizak@gmail.com Department of Accounting, Kulliyyah of Economics and Management Sciences International Islamic University Malaysia Jalan Gombak, 53100 Kuala Lumpur, Malaysia *Corresponding author Abstract Efficiency and Effectiveness of Waqf Institutions in Malaysia: Toward Financial Sustainability Financial health is crucial to the continuous existence and operation of any organisation. It is even more essential in the case of waqf. Accordingly, determining the financial strength and vulnerability of waqf institutions is particularly very significant and congruent to waqf’s perpetual existence. Using content and ratio analysis, the 2008 annual reports of state waqf institutions were examined to determine their transparency and performance accountability. Four essential financial health ratios were computed: the equity balance...

Words: 5266 - Pages: 22

Premium Essay

Airasia

...report examines the organization’s key business structure and operation, products and provides summary analysis of its key revenue lines and strategy. The analysis looks at the impact of external and internal factors on the organization, and evaluate it responses. Essentially SWOT and PESTLE analysis provide a simple framework through which strategic options can be identified in which Air Asia operate. The SWOT process will start by examining the strengths of the Air Asia of today. One of the most dominant strengths possessed by Air Asia is the adding of new Airbus A320 aircraft to its fleet. Airbus A320 gives Air Asia the largest, youngest and most modern fleet in the region. Another strength of Air Asia is the upgrading of the online booking system, in which will offer the ability to passenger to check in online and printing out boarding passes. An opportunity available to Air Asia is fastest growing market in China and India. Both countries give a huge opportunity for Air Asia to expand its business in the region. In the threat part of the analysis is concerned with identifying parts of the Air Asia that might affect its business performance. In recent years a whole class of low cost carriers such as Singapore’s Tiger Airways and other airline carrier coming into the market. PESTLE analysis is to conduct an environment analysis in the context of Air Asia international business operations, describing the major variables involved and the impact of the specific threats and opportunities...

Words: 4791 - Pages: 20

Premium Essay

My Paper

...MBA & MBA (IB) THIRD SEMESTER -- CHOICE BASED CREDIT SYSTEM (NEW SYLLABUS) COMPULSORY PAPERS Title: Total Quality Management Subject Code: 3001 Contact Hours: 45 hrs Work load: 3 hrs per week Credit Points: 3 Evaluation: Continuous Internal Assessment – 25 marks Semester End Examination -- 50 marks Objectives: This cour se is designed to help students to develop basic appreciation of quality concepts and learn the tools and techniques to achieve quality. It also gives the totally integrated effort for gaining competitive advantage by continuously improving every facet of an organization’s activities. Pedagogy : Lectures, Assignments, case studies, seminar, MODULE 1 Introduction to TQM: Various definitions of quality and TQM, Core concepts of quality, The masters of quality(W Edwards Deming, Joseph M Juran, Philiph B Crosby, Kaoru Ishikawa, Ginichi Taguchi, Shigeo shingo) Evolution of quality, The Total Quality Management Excellence Model, Strategic Quality Management, Lecture, Numerical Exercises on cost of quality, TPM 1. Basterfield H Dale and others, Total Quality Management, Pearson Education/PHI, Inc. 2006. 2. K.Shridhar Bhat Total Quality Management (Himalaya publishing house 2005). 3. Poornima M Charantimath, Total Quality Management, Pearson Education, 2003. MODULE 2 Continuous process improvement: Concepts of Kaizen, Kaizen vs. Innovation, Kaizen Strategy...

Words: 5392 - Pages: 22

Premium Essay

Reward Programs

...necessary at all levels of management. Deci, E., Koestner, R. & Ryan, R.M. (1999) had said that motivation is generally linked to reward, and it is widely recognized that reward management is central to the regulation of the employment relationship. The reward system varies from organization to organization, and comes in various and concrete forms, including monetary or non-monetary, tangible or intangible, and physical or psychological, and these are offered to the employees as compensation for the productive work they execute. According to Jean Christofferson and Bob King (WorldatWork-2006), an effective reward system can serve the strategic purposes of attracting, motivating, and retaining employees to achieve organizational goals. A formalized corporate reward system is necessary because it appeals to capable and skilled employees to fill the available positions in a specific organization. Additionally, such method helps retain employees in the organization, hence maintaining a stable workforce with an acceptable turnover rate. Lastly, an efficient reward system also motivates employees to perform their responsibilities to the fullest degree of their personal capacities, hence increase the organization’s performance. Every company has its own form of reward system and it often used as a management tool for achieving desired objectives.Therefore, this study intends to examine the relationship between reward system and organization’s performance. It first looks at...

Words: 8067 - Pages: 33

Premium Essay

Auditing in Malaysia

...has been planned. The auditing process will be held by the Auditor General which is being appointed by Yang di-Pertuan Agong with the advice of Prime Minister after consultation with the Conference of Rulers. In Malaysia, public sector auditing extends to all levels of government such as Federal government, State government and Local government. Besides they have to keep a proper record in order to provide a source to report to the Parliament. By having an audit it also to show a management of public funds with a trust and term ‘true and fair view’ used to a role of Auditor General in carrying their duties. Without public auditing there might be so many projects that cannot be achieved their target and obviously there are tons of waste and misuse of the money. Besides that there are two types of audit which is internal and external audit. Both types of audit are different from each other and plus under the external audit there are three types such as Financial Audit, Compliance Audit, and Performance Audit. Public Accounts Committee (PAC) is one of the committee that serves the Parliament which comprises Chairman and Vice Chairman and the member should not less than 6 or more than 12. The function of Public Accounts Committee is very important in term of financial statement of the country which needs to be supervising and to make sure there is fair and just in the administration of Malaysia financial...

Words: 4206 - Pages: 17

Premium Essay

Business Plan

...1.0 EXECUTIVE SUMMARY Name of business: Salmon Sport Centre Nature of business: Services Industry profile: Sport and Cafe Location of business: Roof Top, Parking Lot, Giant Hypermarket Jalan Plumbum, Section 7, 40100 Shah Alam, Selangor Date of business commencement: January 2014 Factor in selecting the proposed business: 1. Nowadays sport centre is beginning to gain popularity in the society. It is getting attention by many people now especially teenagers. Therefore, business that is based on sport can be profitable. 2. The cafe business involving type of food that chosen for it is getting place in society. It is one of the best choices among the society especially to the teenagers, whom are our target customers for our business, since the area we planning to create the business is an area where teenagers such as student prefer to hang out. 3. Nearby to UNISEL and UiTM Shah Alam 4. The population in Shah Alam are high 5. Majority of the people in Shah Alam comes from a good social class 6. Demand and potential for sport are increasing 7. The good facilities around the area can be the attraction for people to visit the centre. Besides, it is near to the highway. 2.0 INTRODUCTION Salmon Sport Centre is established as a result of the survey and research made by the Salmon Sport Enterprise to add another facility for people in Shah Alam. The plan made for this business is because of the increasing potential and demand...

Words: 9066 - Pages: 37

Premium Essay

Consultant

...Governance Practices in SOEs Ankara Turkey 10 June 2014 Presenter: Aziz Bakar CEO, Malaysian Directors Academy (MINDA) 1 AGENDA 1. Background & Intro 2. Enhancing Directors Effectiveness 3. Enhancing Board Effectiveness 4. Malaysian Directors Academy (MINDA) 2 INVEST MALAYSIA FORUM • The Government is committed to ensure Government Linked Companies Transformation (GLCT) Programme continues to be implemented, if anything with greater urgency and focus • Government Linked Investment / Companies (GLIC/GLCs) must aspire to greater heights, whether best in class or emerging as future regional, if not global champions Source: Prime Minister’s Keynote Address at Invest Malaysia Forum 2012 3 HISTORY AND EVOLUTION OF GLCs 1969 Maybank becomes government owned 1972 LTAT established 1979 Sime Darby is Malaysianised 1957 1987 Jabatan Telekom Corporatised 1992 Malaysian Airport and Postal Department provatised 1997 Industrialisation and moving up the value chain 1951 EPF established 1983 Rapid economic growth and privatisation 1962 LTH established 1978 PNB established 1970 Launch of New Economic Policy (NEP) Malaysianised GLCs Value adding to Malaysia’s Natural resources 1985 Proton launch first model 1981 Launch of Heavy Industrialisation Programme 2005 CURRENT 2000 Financial Crisis 1994 KNB began operations 1994 1990 Lembaga Letrik...

Words: 2101 - Pages: 9

Premium Essay

Annual Report Axiata

...Annual Report 2010 Axiata Group Berhad Axiata Centre 9 Jalan Stesen Sentral 5 Kuala Lumpur Sentral 50470 Kuala Lumpur Malaysia (242188-H) Website: www.axiata.com This publication has been printed on recycled material. principled collaborative optimistic excellence local relevance innovation uncompromising affordable connectivity innovative technology developing world class talent Our goal is to advance Asia via telecommunications and technology. The road ahead is exciting and full of possibilities. In the years to come, we at Axiata, hope to explore new frontiers of communications and to get more people connected across Asia and beyond. To move ahead towards a better, brighter future. Axiata Group Berhad (242188-H) Corporate inForMation BOARD OF DIRECTORS Chairman Non-Independent Non-Executive Director tan sri dato’ aZMan HJ. MoKHtar Managing Director/President & Group Chief Executive Officer Independent Non-Executive Director JUan VillalonGa naVarro Independent Non-Executive Director dato’ sri JaMalUdin iBraHiM Independent Non-Executive Director daVid laU nai peK Independent Non-Executive Director tan sri GHaZZali sHeiKH aBdUl KHalid Senior Independent Non-Executive Director MUHaMad CHatiB Basri Non-Independent Non-Executive Director datUK aZZat KaMalUdin dr. Farid MoHaMed sani GROUP COMPANY SECRETARY AUDITORS sUrYani HUssein ls0009277 REGISTERED OFFICE Level 5, Axiata Centre...

Words: 95517 - Pages: 383

Free Essay

Information Technologies

...improving our operations and becoming more customer-oriented than ever. We believe that the strategic transformation we manage today, is not only for us to become relevant and sustainable tomorrow, but most importantly it will deliver superior shareholder value to you. As always. Profitability Profit before tax Operating margin EBITDA margin Return on assets Return on equity Balance Sheet Total assets Total equity attributable to equity holders of the company Current ratio Staff Information No. of staff Staff costs to revenue Revenue per employee % RM’000 RM million RM million times RM million % % % % 2010 99.1 10.4 16.0 8.0 8.1 2009 109.3 9.1 14.5 5.9 9.6 2008 (0.5) 9.4 13.7 6.2 (4.4) 2007 15.5 11.8 16.9 7.9 (3.9) 2006 155.9 13.2 18.0 8.1 11.5 1,375.2 828.6 1.4 1,274.6 799.6 1.2 1,537.8 764.5 1.1 1,247.1 859.4 1.3 1,326.0 938.0 2.2 15,618 55.1 65.0 15,780 56.8 57.2 16,125 55.7 57.2 15,777 53.1 54.5 15,425 52.2 53.2 2 Pos Malaysia Annual Report 2010 Group Financial Highlights Pos Malaysia Annual Report 2010 3 4 Pos Malaysia Annual Report 2010 Business Highlights BUSINESS REVIEW • Revenue : RM624.3 million (up 17.0%) 2010 ACCOMPLISHMENTS • Successfully started operations of National Mail & Parcel Hub in October 2010 • Implemented the countrywide beat recasting exercise • Received the GOLD Award for Quality Management Certification Program from Universal Postal Union (UPU) MOVING FOWARD • Streamline...

Words: 50839 - Pages: 204