...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...
Words: 1524 - Pages: 7
...trategic process. This will include the function of recruitment and training programs in HRM, the concept of strategic fit and how human resource management can lead to a competitive advantage. The manner in which an organization’s personnel are managed has a tangible influence on the productivity of the employees, which ultimately acts upon the firm’s bottom line. Corporate success is dependent upon the integration of the human resource plan and the corporate strategic plan. It has become a prominent part of business management, that people provide organizations with an important source of sustainable competitive advantage and that the effective management of human capital, not physical capital, may be the ultimate determinant of organizational performance (Youndt, Snell, Dean, Jr, & Lepak, 1996). The relationship between the strategic planning of an organization’s people and the overall strategy is being increasingly recognized as one of great importance. A growing recognition of human resources as being a company’s most important asset has, and will continue to, changes the focus of strategic planning. It is no longer acceptable to exclusively plan for those assets that will appear on the balance sheet. A plan integrating human resource management and the overall strategic plan is necessary, such that the management of people is not a distinct function, but acts as a medium through which all other business strategies are implemented (Armstrong and Long, 1994: p. 42)...
Words: 1874 - Pages: 8
...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 undergoing have led to increased importance of managing human resources (Devanna, Fombrum, & Tichy, 1981; Wright...
Words: 9227 - Pages: 37
...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 undergoing have led to increased importance of managing human resources (Devanna, Fombrum, & Tichy, 1981; Wright...
Words: 9211 - Pages: 37
... ISSN 2278‐0629 THE LINK BETWEEN INTERNAL MARKETING AND HUMAN RESOURCE MANAGEMENT SEYED MEHDI MOUSAVI DAVOUDI*; RAVNEET KAUR** *Student of Executive MBA, Faculty of Management and Economics, Semnan University, Semnan, Iran. **Faculty of management, JIMT, Radaur, India. ABSTRACT Pinnacle Research Journals 59 http://www.pinnaclejournals.com This paper attempts to demonstrate the important linkage between internal marketing (IM) and human resource management (HRM). As a result, first of all, the present paper reviews the relevant literature about IM. In the next step, the elements of IM are introduced. Then, the main objectives of IM are clarified. Further, the relevant literature of HRM and the link between IM and HRM are described. Thereafter, by proposing a model, this paper illustrates the linkage between IM and HRM which leads to firm’s superior performance. This paper states that Marketing and Human Resource management departments should be aligned and integrated with each other. In other words, it is necessary, to have a market-oriented HR managers in order to make an impact on the success of an organization. HR managers should apply the same strategies that marketing managers use to promote products and services outside the organization. Therefore, the tools that are widely used in the external environment (e.g., market research...
Words: 4781 - Pages: 20
...such as Pfeffer’s set of best 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...
Words: 3393 - Pages: 14
...been substantially determined by the major changes occurred in the external environment in which organizations operate and in their internal environment as well. As Ulrich et al (2001) have argued the HR function was traditionally seen as a primarily executive and professional, with the HR staff focused on administering remunerations, payroll and operational functions. However, from the 1990s, a new emphasis on strategy and the importance of HR system emerged and researchers began to recognise the impact of the HR system in the company’s larger strategy (Ulrich et al, 2001). As stated before, this growth of interest in the strategic HRM has been affected by numerous dramatic competitive changes, growth of new technologies and regulatory reforms that the economic system has seen in the past decades (Boxall e Purcell 2008). Particularly, according to Bas (2012), today’s fast-changing competitive landscape requires that every company needs a clearly defined competitive strategy and in this sense, HR function can assume a strategic partnership role and be a facilitator for the implementation of the strategy. The aim of this article is to critically evaluate how both internal and external aspects of the environment influence HR strategy. In order to attain this aim, the paper will start with a brief definition of two key concepts -strategy and HR strategy- needed to understand how important the internal and external environment are in the strategy formulation process. After this,...
Words: 2984 - Pages: 12
...took place to develop a market place orientation to its products and services. The internal and external structures of the financial service implemented strategic changes to their banking services and stock trading position. Added criteria included their employees who have participated in decision making participation for the purchase new technology. This summary considers some of the decisions that were contained to choose the right type of technology that worked for their environment and business in general (Greer, 2001, p. 156-157). Based on these descriptions of the experiences of People’s Bank, Ingersoll-Rand, Maid Bess, what is the unifying theme of the role played by human resource management? Human Resource Management (HRM) develops the company or organization’s integrated strategic planning processes by implementing the changes and technologies needed for a company’s growth and continued success and competition. HRM implements planning in the business unit and value chain unit. How this is done is setting goals for the organization and having alternative strategies for the business units in the marketing department for example, where the marketing department will further develop the alternatives into the plan that extenuates the strategy as part of the planning process (Greer, 2001, p. 127). When describing the role of HRM for People’s Bank, Ingersoll-Rand, and Maid Bess, HRM has designated to enhance and populate a competitive advantage by identifying strategies...
Words: 1312 - Pages: 6
...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...
Words: 6510 - Pages: 27
...activity aimed at bettering the performance of individuals and groups in an organizational environment. Human resource training is of growing importance to companies seeking to gain an advantage among competitors. Training has an effect on both the employee and organizational goals. Forces at various levels influence changes in human resources strategies and directions. Those with the most direct effect include changes in the nature of the organization’s mission, work and overall policy direction. Other forces are internal to the organization itself (its culture, work organization and management style), while still others originate outside the organization and are related to the global economy and other changes in society. Training and development helps an organization to equip each employee with the knowledge and skill needed to perform his/her job effectively. This project will evaluate the effectiveness of the training and development programs offered by the HRtrainingCenter.com. A HRM company which provides training and certification services Marketing Environmental Forces That Affect Human Resource Management Industry Introduction As with any market there are external environmental forces that directly and/or indirectly impact an organization. Changes in the environment can create opportunities as well as threats for that organization. These outside factors can impact the success or failure of marketing a product/service. Human resource management is a business function...
Words: 1433 - Pages: 6
...Assessment 1: Discuss the ways strategic human resource management (SHRM) could contribute to organisational performance in the next five years. Human resource management (HRM) is the function within an organisation that focuses on its most valued asset – its personnel. HRM is one of the most important functions in any business and is detrimental to the company’s overall success. It has taken quite a while for HRM to be adopted into the business strategy as organisations were unwilling to accept or change their ways. Their focus was on economic growth for the company. However researchers such as Hezberg, Maslow and Lewin revealed that employee performance was influenced by their social and emotional needs and their desire for interesting work. This is when the shift began for companies to not only focus on economic growth, but to satisfy the needs of their employees in order to improve performance and productivity which will bring greater success to the company. Human resource management has a number of key policy areas including recruitment and selection, job analysis and design, workforce planning, performance management, training and development and career planning. It is through these policies that we can understand the concept of strategic human resource management (SHRM). SHRM explicitly links these policies, practices and systems to enable the achievements of an organisations strategy and goals. In my understanding, SHRM represents an attempt to methodically manage...
Words: 1778 - Pages: 8
...approach to human resource management • Appreciate the strategic challenges facing human resource management What is Human Resource Management? The focus of human resource management (HRM) is on managing people within the employer-employeerelationship. It involves the productive use of people in achieving the organisation's strategic business objectives and the satisfaction of individual employee needs. HRM is a major contributor to the success of an enterprise because it is in a key position 'to affect customers, business results and ultimately shareholder value'. Ineffective HRM is a major barrier to employee satisfaction and organisation success. HRM and Management The purpose of HRM is to improve the productive contribution of people, and should therefore be related toall other aspects of management. There are two basic approaches to HRM: Instrumental HRM - (or hard) approach that stresses the rational, quantitative and strategic aspects of managing human resources; and humanistic HRM - (or soft) approach that emphasises the integration of HR policies and practices with strategic business objectives, but recognises that competitive advantage is achieved by employees with superior know-how, commitment, job satisfaction, adaptability and motivation. The new role of HR Managers As HRM becomes more business oriented and strategically focused, four key roles for HR managers can be identified: • strategic partner – a strategic...
Words: 1279 - Pages: 6
...This article was downloaded by: [Academy of Management] On: 11 February 2014, At: 16:20 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK The Academy of Management Annals Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rama20 An Aspirational Framework for Strategic Human Resource Management Susan E. Jackson , Randall S. Schuler & Kaifeng Jiang a b a a School of Management and Labor Relations, Rutgers University b Mendoza College of Business, University of Notre Dame Accepted author version posted online: 04 Dec 2013.Published online: 04 Dec 2013. To cite this article: Susan E. Jackson, Randall S. Schuler & Kaifeng Jiang (2014) An Aspirational Framework for Strategic Human Resource Management, The Academy of Management Annals, 8:1, 1-56, DOI: 10.1080/19416520.2014.872335 To link to this article: http://dx.doi.org/10.1080/19416520.2014.872335 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views...
Words: 23604 - Pages: 95
...The Effect of HRM Practices on the Perceptions of Organizational and Market Performance of the Firm • 185 THE EFFECT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON THE PERCEPTIONS OF ORGANIZATIONAL AND MARKET PERFORMANCE OF THE FIRM Gedaliahu H. Harel and Shay S. Tzafrir The purpose of our study is to extend the emerging empirical literature on the firm-level impact of human resource management practices. Results based on a national sample of organizations from private and public sectors in Israel indicate that these practices have a significant impact on both the perceived organizational and market performance of the organization. The single independent variable found to be statistically significant in affecting perceived organizational performance was training practices. In the case of perceived market performance, we found that, in addition to training practices, employee selection practices also significantly affected the perceived market performance.1 © 1999 John Wiley & Sons, Inc. Introduction In today’s world, organizations are in a constant state of competition. The intensity of competition increases annually and the need to continuously improve organizational performance has never been greater. Managers must be on a constant lookout for ways to maximize their organizations’ strategic resources. The resource base approach contends that the organization can develop a sustained competitive advantage only if its activities create value in a unique way, one that...
Words: 7697 - Pages: 31
...How Coca-cola hrm activities can help organization... HRM Activities: A case study of the Coca-Cola Company Human resource management (HRM) involves the management of employees in an organization. It involved various activities which comprises of recruitment and selection, training and development, rewarding and appraisal, motivation, directing, and controlling employees (Eslami N & Nakhaie H., 2011). HRM can also be referred to as the framework of philosophies, procedures, policies and practices used in the management of the existing relationship between employers and employees (Wilton, 2010). The five broad categories as discussed by Wilton (2010) include: a) Resourcing- The activities here comprises of HR planning where the HR manager must match the organization’s demand and the workforce supply. Recruitment, selection, induction, employment contracts management, talent management, and succession planning are all part HRM resourcing functions. b) Performance- This involved management of individual or group performance, and how the employees contribute to the organizational goal. The activities here included performance appraisals and goal-setting. c) Reward-The function involves designing and executing a reward system that covers individuals. It may be financial or non-financial. d) Learning and development- The function involves identification of an organization, individual and team requirements. The HR manager then designs and implements a training...
Words: 1262 - Pages: 6
