...RELATIONSHIPS BETWEEN HUMAN 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...
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...Journal of Management 1999, Vol. 25, No. 3, 385– 415 Human Resources Management: Some New Directions Gerald R. Ferris University of Mississippi Wayne A. Hochwarter University of Alabama M. Ronald Buckley University of Oklahoma Gloria Harrell-Cook Mississippi State University Dwight D. Frink University of Mississippi The theory, research, and practice of Human Resource Management (HRM) has evolved considerably over the past century, and experienced a major transformation in form and function primarily within the past two decades. Driven by a number of significant internal and external environmental forces, HRM has progressed from a largely maintenance function, with little if any bottom line impact, to what many scholars and practitioners today regard as the source of sustained competitive advantage for organizations operating in a global economy. In this 25th anniversary Yearly Review issue, we conduct a less comprehensive and more focused review of the field of HRM. In doing so, we attempt to articulate some key concepts and issues that can be productively integrated with HRM to provide some interesting and important directions for future work, and consider ways to bridge the gap between the science and practice of HRM. © 1999 Elsevier Science Inc. All rights reserved. This 1999 Yearly Review marks the 25th anniversary of the Journal of Management, and indeed, over this quarter century, the organizational sciences have witnessed an evolution...
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...effective human resource management practices. The current study is intended to provide analysis of the relationships between HRM practices and organizational commitment. These include “manufacturing and human resources fit, behavior and attitude, team activities, interaction facilitation, incentives to meet objectives, training on job skills, training in multiple functions, communication of strategy, feedback on performance. In organizational behavior and industrial and organizational psychology, organizational commitment is the individual's psychological attachment to the organization. Organizational commitment predicts work variables such as turnover, organizational citizenship behavior, and job performance.. Data was analyzed using descriptive statistics to project the respondents’ profiles as well as the general patterns of the variations in the HRM variables and organizational commitment. Correlations and multiple regression, statistic regression analysis were used to explore the relationship between the variables involved in the study. As a result of analysis of the findings from top, middle and, the first-tier managers except for “training on job skills”. It was found that there was a strong and statistically positive significant relationship between other HRM variables and organizational commitment. The findings of the study provide support for the variables concerned and are confirmed by the results of the previous studies. The study of HRM has come a long way in a...
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...RP Assignment Outline ____________________________________________________________ _______________ Reference System: APA. Primary Question: What are the impacts of the internationalisation of HRM? Thesis statements: Internationalisation effects on the human resource management in different ways .Its has an impact on the level of qualifications, recruitment and the exchange of HRM approaches. Outline: 1. Introduction Draft 1: 2. The internationalisation of HRM. The internationalisation combines with the human resource and form the concept of the internationalisation of HRM (IHRM). Internationalisation effects on the human resource management in different ways .Its has an impact on the level of qualifications, recruitment and the exchange of HRM approaches. 2.1. The internationalisation. The internationalisation refers to the ability of linking and communicating between the state and the social which create the present word system.(Petrella,R,1989.p.64). Internationalisation is, about creating a new set of capabilities that make the company able to use resources on an ideal basis to join differentiated customer demand profitably and cost-competitively without regard for geography. Put more simply, internationalisation is about getting an organisation into a position of doing business in any market it chooses, and doing business is not just about marketing and selling. Looking at globalisation as a process of acquiring and renewing competencies...
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...The Impact of Human Resource Management Practices on Perceptions of Organizational Performance Author(s): John T. Delaney and Mark A. Huselid Source: The Academy of Management Journal, Vol. 39, No. 4 (Aug., 1996), pp. 949-969 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/256718 . Accessed: 13/08/2013 00:20 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . Academy of Management is collaborating with JSTOR to digitize, preserve and extend access to The Academy of Management Journal. http://www.jstor.org This content downloaded from 128.248.155.225 on Tue, 13 Aug 2013 00:20:09 AM All use subject to JSTOR Terms and Conditions RESEARCH NOTES ? Academy of Management Journal 1996, Vol. 39, No. 4, 949-969. THE IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON PERCEPTIONS OF ORGANIZATIONAL PERFORMANCE JOHN T. DELANEY University of Iowa MARK A. HUSELID Rutgers University In 590 for-profit and nonprofit firms from the National Organizations Survey, we found positive associations between...
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...activities. 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. The activities involved in HRM function are pervasive throughout the organization. Line managers, typically spend more than 50 percent of their time for human resource activities such hiring, evaluating, disciplining, and scheduling employees. Human resource management specialists in the HRM department help organizations with all activities related to staffing and maintaining an effective workforce. Major HRM responsibilities include work design and job analysis, training and development, recruiting, compensation, team-building, performance management and appraisal, worker health and safety issues, as well as identifying or developing valid methods for selecting staff. HRM department provides the tools, data and processes that are used by line managers in their human resource management component of their job. What is the focus of HRM department? “The HRM focus should always be maintaining and, ideally, expanding the customer base while maintaining, and ideally, maximizing profit. HRM has a whole lot to do with this focus regardless of the size of the business, or the products or services you are trying to sell.” (Dr. James Spina, former head of Executive Development at the Tribune Company). HRM is involved in managing...
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...activities. 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. The activities involved in HRM function are pervasive throughout the organization. Line managers, typically spend more than 50 percent of their time for human resource activities such hiring, evaluating, disciplining, and scheduling employees. Human resource management specialists in the HRM department help organizations with all activities related to staffing and maintaining an effective workforce. Major HRM responsibilities include work design and job analysis, training and development, recruiting, compensation, team-building, performance management and appraisal, worker health and safety issues, as well as identifying or developing valid methods for selecting staff. HRM department provides the tools, data and processes that are used by line managers in their human resource management component of their job. What is the focus of HRM department? “The HRM focus should always be maintaining and, ideally, expanding the customer base while maintaining, and ideally, maximizing profit. HRM has a whole lot to do with this focus regardless of the size of the business, or the products or services you are trying to sell.” (Dr. James Spina, former head of Executive Development at the Tribune Company). HRM is involved in managing...
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...human resource management practices and their effects on company performance on the basis of service sector, ownership and private-public organizations. Data were collected from several articles (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...
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...valuable characteristic of people has been far from being optimally exploited. In certain other cases, the attribute has not seen the light of day let alone put to use. On account of the initially stated, the apparent conjecture of the soft model is that people will be inclined to work to the best of their abilities and by extension bring positive returns to the organization they work for if they by any means become committed to their organization (Beaumont, 1992; Dunham and Smith, 1979; Lundy, 1994). Hope (1994, p.3) stated that when people, of their own will, feel persuaded to work under the direction of an HRM system, they would passionately offer their services with full measure such that the aims and values of the overseeing officers are met, thereby offering added value via self-motivated performance rather than by trying to abide by the rules and regulations of the management of the organization or...
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... Abstract Human Resource Management in Mergers & Acquisitions Organizations of all sizes and across all industry sectors are increasingly looking to M&A to support their global growth strategies. The primary objectives for M&A’s are to cut costs, broaden market shares or take advantage of each other’s synergies and most typically to accelerate growth. Yet several studies indicate that more than half of all M&A deals fail to meet management’s strategic, operational and financial objectives. The crux of the matter lies in the excessive focus on financial due diligence, risk assessments. Quite often, the people factor, i.e. issues that relate directly to people as workforce management and cultural integration, are left out of the due diligence process creating major challenges later during integration. In the past, HRM was expected to provide support in postintegration efforts, as well as increased business focus and knowledge to ensure that the full value of M&A deals is realized. For organizations, it important to believe in the fact that People are its key assets. However, today we realize that, mastering the softer issues is the hardest part of integration and has the strongest influence on an M&A’s long-term success. HRM professionals are expected to be ready to manage the people, opportunities and the risks associated in these transactions. Managing organizational change and business / culture integration requires more attention by Leadership and HRM to M&A deals. ___...
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...Human Resource Management (HRM) is a division in practically every organization, however over the years the role of HRM has experienced significant changes. According to the business dictionary, HRM is defined as “Administrative activities associated with human resources planning, recruitment, selection, orientation, appraisal, motivation, remuneration, etc. HRM aims at developing people through work.” In past times HRM were considered responsible for simply hiring and firing and at one point in time were labeled event coordinators and planners. Due to the numerous legal changes and advancements in technology the HRM responsibilities have changed drastically and are essential to maintaining a successful organization. The HRM today is responsible for all aspects of employee development from recruitment to training and beyond in addition to impacting the organizations strategic plan. Constant legal changes and advancements to technology have created an increase in responsibility for HRM. Legalities organizations are required to follow witness constant changes, which require HRM to be both educated and up to date with the laws that effect their organization. The slightest of mistakes could result in fines, lawsuits, and in some cases an organization being shut down entirely. Those employed within an organizations HRM are expected to know these laws to refrain from violating employment laws, employment practices, and more. Another challenge those in HRM face with today’s...
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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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...Third AIMS International Conference on Management January 1-4, 2006 Exploring the Role of Individual’s Attitude in the HR-Organization Performance Linkage Process Ramkumar, N., PSG College of Technology, Coimbatore ram_mba_stc@yahoo.co.in Krishnaveni, R., PSG College of Technology, Coimbatore kegi_4@yahoo.com There is a growing debate in the corporate arena regarding the level of contribution of the human resource practices to the bottom line of the organization. In line with this, researchers have conducted numerous studies to demonstrate the positive association between HR and performance and provide encouragement to the HR professionals with their empirical results. The present paper makes a critical analysis of such literature and adds value to the concept. Although such strong relationship exists, the mediating or intervening variable in the process was not dealt with. This review based work identifies the intervening variable and provides a convincing evidence and explanation to the linkage process. The theoretical background for a new direction in the HR-performance linkage research is put forth to the researchers associated in this field. Keywords: Human Resource Practices, Organizational Performance, Organizational Commitment. 1. Introduction Today across the globe, it is widely accepted that organization success depends on its people. It is clear that human capital and intellect drive business growth. Over the years, the profession of HR has developed around...
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...Muhammed Mughni Atique B.sc (Hons), Business Administration Gift University Gujranwala IMPACT OF HUMAN RESOURCE PRACTICES ONORGANIZATIONAL PERFORMANCE: A STUDY OF BANKING SECTOR OF GUJRANWALA Keywords: Organizational Performance, Employee Satisfaction, Recruitment &Selection, Training & Development, Performance Appraisal and Compensation Abstract: The purpose of this study is to evaluate HRM practices and their impact on organizational performance in banking sector. People believe that HR is not important it’s just a sunk cost and have no significant positive effect on org. performance. The aim of this study was to check the impact between Human resource management and organizational performance. The research was conducted in banking sector of Gujranwala .We have evaluated the impact of functions of HR like Selection, Training, Appraisal and Compensation (as Independent Variables) on Organizational Performance (Dependent Variables). We have done research with the help of questionnaires. The conclusion and results are presented at the end of this paper. The analysis showed the positive relation between the dependent and independent variables. Introduction: Our financial sector evolved very differently from banks in the developed world. For nearly a year after partition, Pakistan had no central bank. Habib Bank – established in 1941 – filled this gap initially, until the State Bank of Pakistan (SBP) was set up in 1948 under quasi-government ownership. Commercial...
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...essay suggests that the evidence of HRM-performance linkage is weak because theoretical and methodological issues remain among most of these studies. So, this essay will mainly analyze theories concerning on HRM and firm performance relationships and methodological problems in empirical studies. As there are flaws in both theories and the process of studying the relationships, this essay concludes that the evidence in favor of HRM’s impact on organisatioanl performance is weak. It seems that it is better to pay more attention to the HRM’s theories and methodologies in order to further the understanding the correlation between HRM and firm performance. TABLE OF CONTENTS 1. Introduction 4 2. Evidence of previous studies 5 3. Theoretical evidence 8 3.1 Categorizing theories 9 3.1.1 Strategic theories 9 3.1.2 Descriptive theories 11 3.1.3 Normative theories 11 3.2 Conceptual theories 13 4. Methodological issue 15 4.1 Measurement of HRM 16 4.2 Measurement of performance 17 5. Conclusion 18 1. Introduction Human resource managers have been worrying about the inability to prove their contribution to the organisations for a long time (Drucker, 1954, and Stewart, 1996, cited in Wright, Gardner, Moynihan and Allen, 2005). As responses to the uncertainty of whether human resource management (HRM) has an impact on organisational performance, there have been a lot of studies emerging and attempting to prove HRM does add values to firms. Until now...
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