...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 Strategy formulation - selecting...
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...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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...Britni Davis January 21, 2013 HRM 530 Ethical Issues in HRM Strategy Dr. Daniel C. Frost Introduction As a Human Resource Management Consultant you are there to solve the problems of the company that has hired you. Also not only is that the key objective of your job you have to be ethical due to not messing up business relationships with other clients you may have. This paper will focus on different objectives that a HRM Consultant may have while doing his or her job. Identify the areas of overlap in the new client organization with others that you have had as clients. An Area that may overlap in a new client organization with others that you have had as clients would be giving a completive edge to another client. An overlap could be when a HR consultant departs one client and joins another. The knowledge acquired at the previous company can be sensitive and valuable to the new client. This can cause ethical problems for me as the new HRM consultant. Ethical Dilemmas: There are many ethical issues that can come about in the case of HRM consulting. When you have knowledge of the company and previous assignments that can be useful in your new position. As a consultant you can encounter many obstacles some can be being Fair, Competitive Edge and not being biased. Fairness: The wisdom of a consultant improves with experience. An old client‘s project experience has helped the consultant in providing a more wise consultation to future clients. Therefore, whether or not...
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...13 Table of Contents 1. Introduction1 2. HRM Transformation in general terms2 2.1 HRM phenomenon 3 2.2 Trends driving it3 3. HRM formulation for the manufacturing company 4 3.1 About the company4 3.2 Harvard HRM model 4 3.3 Situational and Stakeholders Aspects 5 3.4 Defining business strategy6 3.5 HRM policies 8 3.6 HRM Delivery9 4. Recommendations and Conclusions 10 4.1 Interpretational model and recommendations10 4.2 Conclusion13 References14 1. Introduction The first part of the report will provide an insight to what circumstances triggered HRM transformation. Then we’ll explore the complex issues debated around HRM transformation at present and attempt to examine some theoretical perspectives and approaches that may be suitable in advising CEO what HRM transformation would mean for the manufacturing industry. We’ll emphasize in our report that restructuring and retrenchment should be practiced only when relevant. In the last section of our report we’ll present an interpretational model amalgamating figures and some rhetorical findings analysed in the earlier sections of the report and based on the analysis of the same model we’ll provide recommendations and conclusion as to how HRM transformation might achieve both cost cutting and increased effectiveness. 2. HRM transformation in general terms 2.1 HRM phenomenon During Margaret Thatcher’s administration we observed ‘an ascendancy of a new political and economic...
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...MANAGEMENT (HRM) UNIT 10 SHRM, SESSION 2 P R E PA R E D B Y: M S S H A B N A M Unit 10 SHRM, Prepared By: Ms. SHABNAM LEARNING OBJECTIVES By the end of this session students will be able to: Understand the HRM system Explore various models of HRM To gain an understanding in relation to the application of the various HRM models within organisations Unit 10 SHRM, Prepared By: Ms. SHABNAM HRM SYSTEM HRM system operates through HR systems that bring together in a coherent way: HR philosophies describing the overarching values and guiding principles adopted in managing people HR strategies defining the direction in which HRM intends to go HR policies which are the guidelines defining how these values, principles and the strategies should be applied and implemented in specific areas HR processes consisting of the formal procedures and methods used to put HR strategic plans and policies into effect HR practices comprising the informal approaches used in managing people HR programmes which enable HR strategies, policies and practices to be implemented according to the plan Unit 10 SHRM, Prepared By: Ms. SHABNAM VARIOUS MODELS OF HRM The Harvard Framework Guest’s Model of HRM Best Practice Model Storey’s Hard and Soft HRM Patterson’s Model of HRM Best Fit/Contingency Model Unit 10 SHRM, Prepared By: Ms SHABNAM Theoretical Perspectives on HRM The HRM models: Provide an analytical framework for studying HRM Legitimate certain HRM practices...
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...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 undergoing have led to increased importance of managing human resources (Devanna, Fombrum, & Tichy, 1981; Wright, 1998). In this scenario, a human resource (HR) department that is highly administrative and lacks strategic integration...
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...RESOURCE MANAGEMENT PRACTICES, BUSINESS STRATEGY FIT AND FIRM PERFORMANCE Oya Erdil & Ay e Günsel Gebze Institute of Technology, Turkey ABSTRACT While there has been growing interest concerning the relationship between human resource (HR) practices, firm strategy and firm performance, limited research attention has been paid providing empirical evidence in support of them. This study investigates the relationships between HR practices, human resources management (HRM) - firm strategy fit and the firm performance of 63 small and medium sized firms located around Kocaeli and Gebze from both theoretical and empirical perspective. The findings indicate a strong relationship between different HR practices and HRM-firm strategy fit and firm performance. Further, the results provide support for the assertion that HR-firm strategy fit can significantly assist a firm in improving performance. Therefore, empirical support is obtained for the efforts at aligning HRM practices with firm strategy and firm performance. (recruitment, development, etc.) share the same basic character and play a similar kind of role in relation to strategic management (Luoma, 2000: 771). Effective HRM strategy systematically organizes all individual HRM measures to directly influence employee attitude and behavior in a way that leads business to achieve its competitive strategy. (Huang, 2001: 134). In view of the fact that the goals and necessities of each of the competitive strategy types are different, the...
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...(mentioned in the reference section) and studies about different range of strategic HRM practices. The findings indicate that a valid set of strategic HRM practices (training, participation, results-oriented appraisals, and internal career opportunities) affect both service performance and financial performance. HRM strategies may be influenced by the decisions taken on strategy (the nature of the business currently and in the future) and by the structure of the enterprise (the manner in which the enterprise is structured or organized to meet its objectives). In an enterprise with effective HRM policies and practices, the decisions on HRM are also strategic decisions influenced by strategy and structure, and by external factors such as trade unions, the labor market situations and the legal systems. In reality most firms do not have such a well thought-out sequential model. But what we are considering here is effective HRM, and thus a model where HRM decisions are as strategic as the decisions on the type of business and structure. This study explores the three important questions in the context of Bangladesh mentioned below: 1. Whether extent of impact of strategic HRM varies from sector to sector within service sector? 2. Whether influence of strategic HRM depends upon the ownership? 3. Is there any difference between private sector and public sector so far as impact of strategic HRM or performance is concerned? A company is known by the people it keeps. Researchers...
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...The HRM Models ← There are a good number of models that have been postulated by various scholars to describe the HRM concept. ← However, as shall be seen these various models either fall under the soft or the hard approach of HRM. The Harvard Model ← The Harvard Model was postulated by Beer et al (1984) at Harvard University. ← The authors of the model also coined it the map of HRM territory. ← The Harvard model acknowledges the existence of multiple stakeholders within the organization. ← These multiple stakeholders include shareholders various groups of employees, government and the community at large. ← The recognition of the legitimacy of these multiple stakeholders renders this model a neo - pluralist model. ← This model emphasizes more on the human/soft side of HRM. ← Basically this is because this model emphasizes more on the fact that employees like any other shareholder are equally important in influencing organizational outcomes. ← In fact the interest of the various groups must be fused and factored in the creation of HRM strategies and ultimately the creation of business strategies. Source : Beer et al (1984 : 16) ← A critical analysis of the model shows that it is deeply rooted in the human relations tradition. ← Employee influence is recognised through people motivation and the development...
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...in tandem with the increasing focus being given by the companies to strategy. Faced with an accelerating changing and unsteady environment, the response of the corporation has been to attempt to create a sound internal configuration that includes human resource management (HRM) systems. The key to providing an effective response is to have an HRM system attuned to strategic requirements. The philosophical and academic bases for SHRM, proposed during the past three decades, have followed differing paths. This project attempts to bring together the differing approaches to SHRM and presents a consolidation and evaluation of these viewpoints. A discussion highlights the problem of semantics and pinpoints the controversies and contradictions implicit in the different viewpoints. This project underscores the emerging area of agreement viz. the increasing emphasis on the strategic nature of HRM and considering human resource as a strategic resource to be used to create and sustain a competitive edge for organizations. Definition Strategic Human Resource Management is essential to every firm and organization to define its plans and strategies on how the company vision and goals should be aligned and attained through people. It is founded on the following propositions: 1- Human resources is a key source of competitive advantage 2- Employees are those who implement the strategic plans 3- A systematic strategy should be implemented to define which pass the firm is willing to take...
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...successfully, strategies at different levels need to inter-relate.1 Throughout the first half of our century and even into the early eighties, planning – with its inevitable companion, strategy – has always been a key word, the core, the near-ultimate weapon of ‘good’ and ‘true’ management. Yet, many firms, including Sony, Xerox, Texas Instruments, …have been remarkably successful… with minimal official, rational, and systematic planning.2 Chapter outline Introduction p. 38 Strategic management p. 38 Hierarchy of strategy p. 42 Strategic human resource management p. 46 HRM and organizational performance p. 60 Chapter objectives After studying this chapter, you should be able to: 1. Explain the meaning of strategic management and give an overview of its conceptual framework. 2. Describe the three levels of strategy formulation and comment on the links between business strategy and human resource management. 3. Explain the two models of strategic HRM, the matching model and the resourcebased model. 4. Comment on the various strategic HRM themes of re-engineering, workplace learning, trade unions and leadership. 5. Explain the methodological difficulties of measuring the link between HRM practices and organizational performance. 38 The Nature of Human Resource Management Introduction In the first chapter we examined the theoretical debates on the nature and significance of the new HRM model, in this chapter we explore various strategic issues associated with HRM. Just...
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...Assignment Questions Question #1: (250 each part) a) Provide a brief description of the models of HRM discussed in the first chapter of the textbook, and explain how each one related to strategic human resource management. First there is the Fombrun, Tichy and Devanna model which “emphasizes the fundamental interrelatedness and coherence of HRM activities” (Bratton & Gold, 2012, pg. 18, para. 3). There are four main components consisting of selection, appraisal, development and rewards that attribute to the HRM cycle. This model ignores different stakeholder interests, situational factors and management’s choice, but gives strength to the “coherence of internal HR policies and the importance of ‘matching’ internal HR policies and practices to the organization’s external business strategy” (Bratton & Gold, 2012, pg. 18, para. 3) Second, is the Harvard model, which addresses the issue of management’s goals and the specific HR outcomes. The Harvard model has six components: situational factors, stakeholder interests, HRM policy choices, HR outcomes, Long-term consequences and a Feedback loop. Each of the components are a result of the previous which effects the HR outcomes and the long term consequences; and the feedback loop carries the outputs directly into the organization and to the stakeholders. The Guest model looks at labour management in the context of goals, employee behaviour, performance and long-term financial outcomes. “Managers are advised to consider...
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...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 undergoing have led to increased importance of managing human resources (Devanna, Fombrum, & Tichy, 1981; Wright, 1998). In this scenario, a human resource (HR) department that is highly administrative and lacks strategic integration...
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...between corporate strategies and HRM and identify issues which organisations need to address that make such a link work effectively in aligning HRM and corporate goals Over the years, there has been increased recognition and awareness that business needs to match its business strategies according to the human resource functions and practices. The main reason behind this is that economy has changed from manufacturing based to knowledge based economy. Many organizations’ competitive advantage now stems more from their human assets (Bal et al., 2013). This concept of integrating business strategy and human resource management is called strategic human resource management where it gradually became well known in the 1980s (Azmi, 2011) This paper discusses evidences related to links between corporate strategies and human resource management and issues that needs to be identified for the link to work effectively. According to Liao (2005), “a strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantage”. Whereas, strategic human resource management involves creating and applying a set of internally consistent guidelines and practises that safeguard a firm’s human capital, which directly contributes to the achievement of its corporate goals (Baird & Meshoulam, 1988). Bal et al. (2013) describe this approach of linking business concept and HRM practices as “bridging” between business strategy and utilization...
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...HRM level 2_ Module 1_Eve Lawrence What is HRM? Human resource management (HRM) is a complete and clear approach to the development and employment of people within an organization. HRM is structured and supported by a number of theories relating to the behaviour of people and organisations, strongly concerned with ethical employment and how people should be treated in terms of moral values. HRM aims to build good relationships with employees based on trust and personal achievement therefore benefiting the achievement of business goals. HRM deals with all aspects of employees within an organization. Areas of HRM include recruitment, interviews, orientation, induction, motivation, learning, performance reviews, employee relations & wellbeing, training, development, change management and complying with employment law. The core purpose of HRM is to develop and make efficient use of the workforce within an organization. HRM is people management within organizations designed to maximise employee performance focusing on the company’s strategic objectives. Effective HRM enables employees to contribute productively to the overall company direction and accomplishment of the organizations goals and objectives. What was the main message of the Harvard framework? Through my research and understanding I have come to the conclusion that the main message of the Harvard model by Beer et al is that decisions and actions made by line managers have a long term effect on relationships...
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