...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 performance...
Words: 7932 - Pages: 32
...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...
Words: 6827 - Pages: 28
...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
...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...
Words: 1344 - Pages: 6
...management literature and practises 3 | Page today. Models 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...
Words: 3393 - Pages: 14
...Changing HRM Landscape Changing HRM Landscape Table of Contents 1) Introduction2 2) The theoretical and changing HRM landscape2 Insight of HRM history for modern practitioners 3 3) Significance of HR best practices and organisational behaviour (OB) tools within a MNC 3 4) Assumptions underpinning the way in which HR best practices are being propagated within a MNC, particularly in different cross-cultural environments. 5 5) The influence of culture on HR best practices………………………………………………………. 5 6) Conclusion…………………………………………………………………………………………………………… 6 7) References…………………………………………………………………………………………………………… 6 Introduction Human Resource Management (HRM) has brought profound change and debate to how employees are seen within an organisation. A review of HRM history with a look at relevant theories being propagated today for a better understanding of the HRM context with insights to the HR Practitioner moving forward. This is followed by a breakdown of the HR best practice, recruitment and selection and its challenges for MNCs. The accompanying OB tools are reviewed to see how MNCs would be able to best address talent acquisition. Assumptions are then looked at underpinning the way in which HR best practices are being propagated within a MNC, particularly in different cross-cultural environments with focus on MNC originating from emerging economies. Finally the influence of culture on HR Best Practice with OB solutions is reviewed. ...
Words: 3171 - Pages: 13
...The Phrase ‘commitment’ is frequently used by HRM practitioners in the control of absenteeism and its contribution to business objectives. Evaluate the evidence to reinforce commitment and reduce absenteeism. Mowday et al have defined organizational commitment as “ the relative strength of an individual’s identification with an involvement in an organization” (Chapter 7 Attitudes at work, Page no, 265 Work Psychology, Understanding Human Behaviour in the Workplace by John Arnold (ft) fourth edition) Commitment is very powerful human concept as if a person is committed to an organization; therefore he or she has a strong identification with it and will turn out to be a long-term employee for the organization. Sir Richard Branson is an example of someone’s commitment towards its work. He born in an ordinary established family but it was his commitment, which led him to build the virgin empire and now he is one of the richest man in the world. Controlling the absenteeism is the objective of nearly every business organization and the phrase commitment is regularly used by HRM practitioners in order to control the absenteeism, In this essay I will explain the above statement in more details and also provide the evidence to support it. The question arises here why absenteeism is important? Absenteeism is important because it’s not only costly but it also affects the morale of other employees. The cost of absenteeism is greater than the...
Words: 1563 - Pages: 7
...committed employee will identify with the goals and values of the organization, has a stronger desire to belong to the organization and is willing to display greater organizational citizenship behaviour i.e., a willingness to go over and beyond their required job duties. And if human resources are said to be an organization‘s greatest assets, then committed human resources should be regarded as an organisation‘s competitive advantage. This paper will analyze the concept of organizational commitment, what it means and why it is so relevant to organizations. In fact, vast numbers of studies have found positive relationships between organizational commitment and employee behaviours such as a greater effort exerted by the employee in performing tasks, higher employee retention, better work attendance, increased willingness to engage in citizenship behaviour and higher delivery of service quality. In essence, this shows an all-round higher employee performance effectiveness. Moreover, in today’s fast paced and dynamic business environment, organizations can no longer guarantee "a job for life" which has made the notion of organizational commitment even more pertinent. It is therefore in the organization's best interest to elicit this kind of behaviour. Various means of securing organisational commitment, in a cost effective way, are also highlighted in this paper. Ranya Nehmeh is a holder of a Masters degree in Human Resource Management & Industrial Relations from the London School...
Words: 2829 - Pages: 12
...its environment of the business. It explores the close link between strategic management and HRM by assessing the extend to which there is a vertical integration between an organisation business strategy and its HRM policies and practices. 'Best practice' school claims that certain 'best' human resource practices would result in enhanced organisational performance, manifested in improved employee attitude, lower level of absenteeism and turnover, higher level of skills for higher productivity, enhanced quality and efficiency. That is why the 'best practice' model is also referred as high commitment models. These two concepts are generally described within the literature but it is sometimes difficult to stretch the specifications of each approach. This essay will attempt to fill that gap. Section two compares these concepts according to human resource studies. It will highlight areas of agreement between each approach. Section three therefore stretches the differences between 'best fit' and 'best practice' approaches. We now try to discuss in section four the approach taken in this debate by the CIPD. Concluding elements are found in section five. The terms 'best fit' and 'best practice' are used in strategic human resource management literature. The 'best fit' approach to strategic human resource management (HRM) explores the close relationship between strategic management and HRM by considering the influence and nature of vertical integration. Vertical integration, where...
Words: 1878 - Pages: 8
...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
...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...
Words: 5328 - Pages: 22
...Lovell Southern Cross University Publication details Lovell, K 2009, 'Strategic human resource management: what does it mean in practice?', DBA thesis, Southern Cross University, Lismore, NSW. Copyright K Lovell 2009 ePublications@SCU is an electronic repository administered by Southern Cross University Library. Its goal is to capture and preserve the intellectual output of Southern Cross University authors and researchers, and to increase visibility and impact through open access to researchers around the world. For further information please contact epubs@scu.edu.au. Strategic Human Resource Management: What does it mean in practice? Ken Lovellll Ken Love B Com (Industrial Relations), University of New South Wales B Soc Sc (Hons) (HRM), Southern Cross University A research thesis submitted to the Graduate College of Management, Southern Cross University, Australia, in partial fulfilment of the requirements for the degree of Doctor of Business Administration 15 May 2009 Statement of Original Authorship I certify that the substance of this thesis has not currently been submitted for any degree and has not previously being submitted for any other degree. I also certify that to the best of my knowledge any help received in preparing this thesis and all sources used have been acknowledged in this thesis. Signed ………………………………………………. Ken Lovell 15 May 2009 K Lovell: SHRM in Australia Page i Acknowledgements This study had its origins in my curiosity about the divergence...
Words: 108427 - Pages: 434
...Lovell Southern Cross University Publication details Lovell, K 2009, 'Strategic human resource management: what does it mean in practice?', DBA thesis, Southern Cross University, Lismore, NSW. Copyright K Lovell 2009 ePublications@SCU is an electronic repository administered by Southern Cross University Library. Its goal is to capture and preserve the intellectual output of Southern Cross University authors and researchers, and to increase visibility and impact through open access to researchers around the world. For further information please contact epubs@scu.edu.au. Strategic Human Resource Management: What does it mean in practice? Ken Lovellll Ken Love B Com (Industrial Relations), University of New South Wales B Soc Sc (Hons) (HRM), Southern Cross University A research thesis submitted to the Graduate College of Management, Southern Cross University, Australia, in partial fulfilment of the requirements for the degree of Doctor of Business Administration 15 May 2009 Statement of Original Authorship I certify that the substance of this thesis has not currently been submitted for any degree and has not previously being submitted for any other degree. I also certify that to the best of my knowledge any help received in preparing this thesis and all sources used have been acknowledged in this thesis. Signed ………………………………………………. Ken Lovell 15 May 2009 K Lovell: SHRM in Australia Page i Acknowledgements This study had its origins in my curiosity about the divergence...
Words: 108427 - Pages: 434
...Human Resource Management Revision week 1 HRM encompasses -Policies - Practices and systems (Influence employees behaviour, attitudes and performance) - 1945-1979 HR focus was on Personnel Management - making sure employees comply with law…conditions - 1980-1990s HR focus was on management of human capital Strategic Human Resource Management (SHRM) - Plans activities for organisations to achieve its goals - To receive ultimate employee performance, they need to be linked to organisational goals and strategy - Achieved by consistently influencing employee attitudes and behaviours - HRM policies are linked towards organisational goals, HRM contribute to them in a meaningful way. Theoretical bases for HRM Behavioural view - HRM controls employee attitudes and behaviours to suit the situation - Suggesting HR focuses on behaviour rather than skills / knowledge of the job Resource Based view - HR are seen as a resource which give an upper hand for the reason they keep employees in right mind of frame for the goals set Political – influence view HR act as a Political leader through - Social communication through one and another - there to prevent negative social influences and maintain positive environment Harvard framework for HRM -HR take raw influences in business - Tune them providing an organisation that has positive, individual wellbeing, effectiveness and social wellbeing. Roles for HR professionals - Strategic...
Words: 5530 - Pages: 23
...TwoAdvises on and/or manages HR related issues relating to an individual or a team. Has a clear understanding of the evaluation process and the solutions available. | | Band ThreeLeads a professional area acting as a consultant or partner, addresses key HR challenges at an organisational level for the medium and long-term. | | Band FourLeads and manages a professional area(s) and/or the organisation. Responsible for developing and delivering organisational and HR strategy. | | Professional Areas | The three areas of most interest and value to me are (for definition see over page): | I have this interest because… | I will develop my knowledge in this area in the following ways: | 1 | | | 2 | | | 3 | | | Professional Area | | MSc HRM Modules | 1 | Contemporary Issues in Human Resource ManagementThe aim of this module is to introduce the student to the theory and practice of human resource management and to critically examine contemporary local, national and international issues that impact on the changing role and function of human resource management. | 2 | Managing Change and Organisational LearningThe module aims to develop knowledge and skills with regard to organisational change and the design, delivery and evaluation of learning and development. | 3 | Recruiting and Retaining EmployeesThis module explores recruitment, selection and retention of employees. As such it explores policies, procedures and benefits that promote employee satisfaction...
Words: 1109 - Pages: 5
