Boddy (2008: 354) defines Human Resource Management (HRM) as “the effective use of human resources in order to enhance organizational performance”. What precisely is HRM and what evidence is there to support the contention that it is linked in some way to improvements in a firm’s performance?
In the first part of your essay you should describe the context for HRM together with the key concepts and practices associated with this discipline. In the second part of your essay you should explore the evidence linking HRM to improved organisational performance.
Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems ...view middle of the document...
g. diversity). That is why HRM is important for an organisation to improve the competitive advantage. Professor Pfeffer (cited by Bernadin, H.J., Chapter1, 2007) notes that "traditional sources of success (e.g., speed to market, financial, technological) can still provide competitive leverage, but to a lesser degree now than in the past, leaving organizational culture and capabilities, derived from how people are managed, as comparatively more vital."
The main functions of HRM (Human Resource Management) are to employ people, to develop their resources and to utilises maintain and compensate their services for the organisation. Other HRM functions and activities are falling under the following categories: Firstly the organisational design, because acquiring HRM capability should begin at the origins and involves interactions between people, technology and the tasks to be performed in context with the organisations objectives, goals and strategic plan (e.g. job design, team building, restructuring etc.). Furthermore the staffing, which involves recruitment, employee orientation, selection, promotion and termination processes and the performance management including individual assessments, improving and measuring work performance. HRM is also concerned with employee and organisational development programs to maintain and improve employee skills as well as reward systems, benefits and compliance available for staff (also: laws, policies, health and safety). (Bernadin, H.J., 2007).
Each and every of these functions influences simultaneously organisational performance. One can say that HMR is concerned with maintaining and ideally maximising organisational performance and profit. This is done by managing the human resources with a focus on expanding customer base that gives profit to the company. Under this directive it is obvious that there are many opportunities for HRM to influence organisational performance as HRM plays an important part for the functioning of every single department in an organisation due to the fact that it can take direct influence on the people working there.
HRM practices can be classified in terms of their impact on organisational performance through employee's skills, ability, motivation and the way that work is structured:
Firstly, organisations can adopt various HRM practices to enhance their staff's skills.
HRM cares for the professional development of their workforce and the planning, who is working where with which skills needed. This is mostly done through a job description and people get hired to for fill a certain position in the organisation. For this reason HRM can influence organisational performance beforehand through hiring highly qualified, educated and/or skilled people, which bring all of the required and desired characteristics with them to enhance organisational performance through effective work performance delivered through optimised work processes. Employees can be hired through sophisticated...