...Measuring the impact of HRM on organisational performance Anastasia A. Katou University of Macedonia (GREECE) akatou@uom.gr Received September 2008 Accepted December 2008 Abstract: The purpose of this paper is to measure the impact of HRM on organisational performance in the context of Greece. Data were collected from 178 organisations using a questionnaire survey in the Greek manufacturing sector, and analysed using the ‘structural equation modelling’ methodology. The results indicated that the relationship between HRM policies (resourcing and development, compensation and incentives, involvement and job design) and organisational performance is partially mediated through HRM outcomes (skills, attitudes, behaviour), and it is influenced by business strategies (cost, quality, innovation). Thus, the contribution of this study for academics and practitioners is that HRM policies associated with business strategies will affect organisational performance through HRM outcomes. Keywords: HRM policies, organisational performance, Greece 1 Introduction Over the last ten years significant steps forward have been made in identifying the HRM – performance relationship. However, serious gaps in our understanding still remain with respect to the causal ordering of the variables involved in the HRM – performance relationship (Purcell, Kinnie, Hutchinson, Rayton, & Swart, 2003; Wright, Gardner, Moyniham, & Allen, 2005). Specifically, in analysing the impact of HRM on organisational...
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...practises echo of Taylor’s “One Best Way” and scientific selection of people, and welfare theorists such as Robert Owen and Elton Mayo’s recognition of the need for, and benefits from, improved working conditions and motivation can be seen as the origins of organisational culture and motivation theory. Just as each theory reflected the influencing environment of its time, both internal and external, the political, social, economic and other changes of the past 20 or so years, has evolved people management to where human resources management (HRM) is today. Over this period, the global and local business environment has prospered and suffered, industry and organisations have grown and retrenched, and against these backdrops, ideas on what approach best yields superior employee/organisational performance has evolved, with HRM the widely supported approach in today’s business environment. The popularity of HRM rose from US theorists in the 1980’s such as Storey, whose “ideal type” of HRM pinpointed 27 differences (Appendixes 1) between the personnel management role, “essentially an administrative support function…perceived as being remote from business performance issues” (Storey, 2007, cited in Beardwell and Claydon, 2010, p. 21) to encompass, “all management decisions and action that affect the nature of the relationship between the organisation and its employees”. (Beer et al, 1984, cited in Armstrong, 2009) The argument...
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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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...Scientific or Closed management, Human Relations or Semi open system, Open System or Contingency system 1.2 Personnel management/ Personnel Manager 1.3 The genesis of Human Resource Management(HRM)/Defining Human Resource Management 1.4 What is ‘Hard’ and ‘Soft’ HRM? 1.5 The Debate between Human Relations(HR) and Human Resource Management(HRM) 1.6 The Human Resource Manager and his role 2.0 Attempting a framework for Human Resource Management(HRM) 2.1 Using HRM as a style, a strategy and an outcome 2.2 Is HRM a restatement of Personnel Management? 2.3 Is HRM a new managerial discipline? 2.4 HRM as a resource-based dimension of management 2.5 The Strategic and international possibilities of HRM 3.0Using some models of HRM to critically assess HRM “Hard” and “Soft” Approaches. 3.1The Harvard Model 3.2The Michigan Model 3.3Guest comparative models 3.4The ‘Choice Model’ and its benefits. 4.0The influence of senior management and their Effectiveness 4.1 policy makers 4.2 senior managers and their frames of reference 4.3 The more effective the better the policies 4.4 The Japanese example 5.0 Conclusion, limitations and proposals 5.1HRM a widespread contemporary, evolving & contingent tool 5.2The ‘softness’ of HRM, “bundles” and performance 5.3 Holistic thinking, right and egalitarian based HRM 1.0Introduction, Perspectives in Management and the genesis of Human Resource Management. Human Resource Management is increasingly considered a contemporary development that continues to reshape...
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...Abstract: this paper explore the relationship between the corporate strategy and human resource management of the organisation and their effect on organisation performance outcome. A survey based approach is used to collect data from selected number or organisation. Overall we expected that the fit between corporate strategy and HRM practices will yield to a positive effect on organisation performance List of Contents Abstract ……………………………… 1 1. Introduction 1.1. Overview ………………………………. 3 1.2. Literature review and hypotheses ………………………………. 4 2. The research method and conceptual framework 2.1. Method ………………………………. 6 2.2. Measures ………………………………. 7 3. Results and conclusion ............................... 8 4. References ………………………………. 9 Appendix ………………………………. 10 1. Introduction: 1.1 Overview: Each organization has its particular strategy to fit its distinctive competencies, needs and circumstances. Strategy can be conceptualized into three levels: corporate level, business...
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...Total Quality Management Vol. 23, No. 11, November 2012, 1227–1239 Which HRM practices contribute to service culture? Akiko Ueno∗ ,† Royal Docks Business School, University of East London, Docklands Campus, 4-6 University Way, London, E16 2RD, UK It is known that Human Resources Management (HRM) can help to develop service culture, which will in turn improve service quality. The purpose of this article is to determine the relative importance of six HRM practices in terms of their impact on culture. A questionnaire survey of medium and large-sized UK service businesses was conducted. The results reveal that there is a strong association between culture and HRM practices, and that some management practices are more strongly associated with culture than others. Further research should explore the reasons why some HRM practices are more contributory to culture than others. Service businesses in pursuit of service quality should make use of these HRM practices for developing service culture in their organisations. This research has confirmed a strong association between culture and HRM practices, and also clarified the relative importance of HRM practices in terms of their impact on culture in order to improve service quality. Keywords: culture; HRM; services Introduction This article investigates the relative importance of six Human Resources Management (HRM) practices in terms of their impact on culture in order to improve service quality. In a previous study, it was found...
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...Introduction This study examines the linkages between Human Resource Management, Organisational Strategy and Organisational culture. With every single link exists between them we studied the relations and how that effects management and ultimately helps the Human resource managers through several of theorists and management theories to achieve their goal and benefit the organisation in order to bring profitability. Human Resource Management (HRM) In simple and short form Human resource management is the process of hiring and developing employees so that they can become more valuable to the organisation. HRM is also strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organisation’s goals and objectives. HRM is moving away from traditional personnel, administration, and transactional roles. Now HRM is expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and culture. Developments in the field of HRM are well documented (see Sisson and Storey, 2000). The history of HRM goes back as far as the 1950s. This was succeeded by the ‘Behavioural science movement’ in the 1960s headed by Maslow, Argyris and Herzberg. These theorists argued for a better quality of working life...
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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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...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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...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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...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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...embedded in an organisational and societal context. Activities which are performed by HRM are mainly strategic planning, staffing, recruitment and selection, performance management, training, compensation, labour relations, workforce planning and talent management (Bratton & Gold 2012). Human resource management (HRM) is decisions made about the relationship between people and the organisation. These decisions are influenced by internal and external factors. Internal factors can be classified by organisation, job and individual which relates to the analysis of strengths and weaknesses in an organisation. External factors consist of political, economic, social and technological reflects on how the organisation evaluates its opportunities and threats. The aim of this report is to evaluate the importance of human resource management in terms of workforce planning, strategic planning, managing talent and recruitment and selection. Strategic Planning The activities mentioned above support the managing of organisation. An area of expertise is strategic human resource management (SHRM) which relates HR strategies with business strategies and evaluate the outcome of organisational performance. Strategic planning is defined as long-term planning to represent a particular series of behaviour accepted by senior level of the organisation to achieve its performance goals. Strategic planning is the practice of formalised analysis which intends to predict organisational consequences...
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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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...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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...management; and explain the functions of HR, and responsibilities and new roles of HR practitioners. Structure 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Introduction Concept of HRM Objectives of HRM Human Resource Functions Summary Self Assessment Questions Further Readings 2.1 INTRODUCTION Human resource management (HRM) is an approach to the management of people, based on four fundamental principles. First, human resources are the most important assets an organisation has and their effective management is the key to its success. Second, this success is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with, and make a major contribution to, the achievement of corporate objectives and strategic plans. Third, the corporate culture and the values, organisational climate and managerial behaviour that emanate from that culture will exert a major influence on the achievement of excellence. This culture must, therefore, be managed which means that organisational values may need to be changed or reinforced, and that continuous effort, starting from the top, will be required to get them accepted and acted upon. Finally, HRM is concerned with integration - getting all the members of the organisation involved and working together with a sense of common purpose. 2.2 CONCEPT OF HRM HRM is a strategic approach to the acquisition, motivation, development and management of the organisation’s human resources. It is a specialised field that attempts...
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