Human Resource Management Essay: Impact of HR Practices on Performance
Task: Discuss the link between various strategic human resource management practices and organizational performance and write a detailed human resource management essay in not more than 3000 words (including references).
It is stated in the human resource management essay that human resources have always been considered as one of the greatest assets of any organization. However, there are very less organizations that have been wholly successful in harnessing their ultimate potential. The Human Resource Management or HRM can be defined as practices, composed policies as well as a system that has the full power of influencing an employees’ attitude or overall performance(Saridakiset al., 2017). A sound and correct approach for Human Resource can range from employee participation, their empowerment, the job redesign that comprises extensive employee training, contingent “incentive compensation” and their performance that can be deemed as the driving forces of a top-notch performance given by an organization. Thus, in case of the overall growth of performance and productivity of an organization in an entirety, suitable practices of human resources are of absolute importance.
This essay on human resource management essay will be attempting to discuss the link between the various human resources practices within an organization and its direct impact on the performance of the overall organization. It would also explore the difficulties that researchers, as well as HRM practitioners, are often subjected to, in the course of practicing HRM. It can be arguably said that the Human Resource practices or decision, ranging from the selection of the employees, their training and many more are most likely to have a substantial impact or influence over the overall performance of an organization. The obvious “linkage” can be achieved whether through improved efficiency and even absolute contribution to the dehydration of revenue. However, Masri and Jaaron (2016), state that the “transmission or mechanical” model that have been linking the two aspects have undergone massive changes since past few decades. The apparent change has taken place alongside with a proper change in the perceptions about HRM for being a key factor of cost minimization and sound potential sources of “value creation” that can also be termed as “numerator management”( O'Donohue and Torugsa, 2016).
Jabbouret al. (2016), stated that variegated HR configurations are required in case of achieving the highest level of “form performance”. However, it has also been indicated that different types of Human Resource practices “generate” different types of organizational outcomes. Ogunyomiet al. (2017), have suggested that certain HR practices are carried out those concerns leveraging financial performance or an organization. However, others can be related to the case of employee turnovers. There are certain factors that can be chronologically listed that form the basic foundation of a suitable HRM practice. The first one on the trajectory includes setting up the organizational goals and mission. The second one revolves around planning, organizing the department of HR.
One of the biggest factors mentioned in the human resource management essay that directly impact the state of organizational performance outcomes is the factor of the introduction of programs and training sessions that help the employees to work on their innate skills and competencies whilst also acquiring certain job based technical skills (Abubakaret al., 2019). The first factor can be formed by overseeing employee advancement programs. There are certain organizations that follow an organic structure or the organizational structure that motivates its employees to share their thoughts and ideas freely within their work premises irrespective of which department they belong from.
Kaynaket al. (2018), have indicated that Jon Oringer who is the owner of one of the most famous American stock photography providers has been adopting the best human resource practices within its organizational setup. He is seen to involve a team composed of people belonging from the top management group to the manager of production units.This type of organizational culture encourages employees to take help of organizational learning that automatically helps them to provide better performance.
The theory of Social Learning, introduced by Albert Bandura examined in this section of human resource management essay may have a resemblance with the above situation that states various behaviors are learned from the environment and the process of observational learning (Collings et al., 2018). There are various mediating processes that push in between stimuli and responses. One of the key human resource practices, extensively used by biggest business enterprises and have also been showing its potential in expanding the revenue margins in providing employees with proper safety, psychological needs as well as attractive compensations. Companies like Starbucks that offer its employees various performance-based monetary and non-monetary incentives like a paid holiday, free insurance, regular medical checkup and various other coupons increase the commitment from the part of the employees towards their work (Subramonyet al., 2017). Maslow’s hierarchy of needs theory can be applied in this scenario that states that there are five integral needs of every human being or in these case employees. Safety needs, respect, recognition and self-actualization. A business enterprise implementing sound HRM practices has fulfilled all the above-stated needs that eventually drive an employee to provide their optimal performances. Self-actualization refers to the point of time where one realizes and acquires a portion of true potentiality (Noe et al., 2019). This need is fulfilled by companies that offer exclusive self- development programs to its people by helping them gain industry-based skills. Adobe, a multinational America based software company has a performance rating of 783 where the extensive emphasis is given on the hiring process. Adobe engages a diverse interview panel and makes good use of its HR team. Investing time in acquiring the best employees has always paid off dividends to Adobe. Baileyet al. (2017), have stated that the more the performance index of any company, the better its HR practices are considered to be.
Sales force, the company that has always been at the top of its game with 30,000 employees and a performance index of 9.975 boosts the spirit of an employee by providing them utmost mobility and flexibility (Reverteet al., 2017). The flexibility has been ingrained in the DNA of the company. Sales force provides its employees with the opportunity to travel to its other branches across the whole world providing them a platform to interact with other colleagues that are scattered across a vast topographical area. All these HRM practices identified and briefly discussedin the present context of human resource management essayhave contributed immensely in helping all the above-mentioned companies taste the level of success that they have. Thus, it testifies for the fact that the sound HRM practices have the potentiality to change the whole face of the performance of an organization. A series of discussions were conducted amongst a focus group of leave-managers hailing from 23 private companies of India both from service as well as manufacturing sectors on plausible “links'' between HR practices as well as to ensure organizational performance. There were various intervening processes ``factors' ' that were considered. The discussion concluded that HR practices frequently lead to a high level of pet furnace from a firm's end. The Results of the discussions indicated that the direct impact that HRM practices had on an organization was positive (Guest, 2017). Further, it was discovered that SHRM practices positively influence the individual performance of each employee along with her organizational commitment, their fervor for the job and job satisfaction.
Singhet al. (2017), have also discussed a framework in their journal that various external and internal factors affect “HRM '' and in turn generate extensive benefits for the company and result in the overall improvement of corporate performance. Companies like TATA AIG, Grasim Industries Ltd, HCL technologies and many more provide extensive employee training to its staff for better outcomes (Chowhan, 2016). Providing the employees with an upper hand and involving them in decision-making procedures can also be considered an integral practice of HRM that indeed helps to increase the individual performances of each employee by providing them a sense of responsibility towards their job or the company they are working for. An ideal example of this can be of America based company Shutterstock. Not having a proper trajectory and strategies of HRM can result in poor organizational performance, less employee satisfaction, rapid redundancy, people issues leading to a High Employee Turnover Rate. Kraft Heinz which is one of the most popular brands across the world has received terrible reviews from its former employees complaining about the company’s abrupt cost-cutting measures and huge workload hampering their personal lives (O'Donohueet al., 2016). It also has a high employee turnover rate.
However, there are several challenges that are faced by HRM practitioners as well as researchers. With the constant change in the laws and regulation, complying with the employment laws can be a true struggle for all the business owners (Ogunyomi, 2016). Some HR personnel fail to register in their minds and comply with regulation linked from hiring, wage payment, practices and many more.
Another emphatic issue discussed in this human resource management essay that creates difficulty for all HRM practitioners, as well as researchers, is the constant shift in the preference and demand of the external market. When a business expands, the structure, strategies and the internal process also grows with the same. Thus, in this scenario designing tailor-made HRM strategies from resigning employee programs, recruiting employees with more industry demand skills can be challenging for the practitioners. HRM practice is a vase segment in its own that has several paths that could be explored. Thus, at times of uncertainty, it is nearly impossible for the practitioners of HRM to select a specific and single HRM strategy that could leverage the growth of a company.
Technology is constantly getting revolutionized and changing the whole face of business and the methods it was previously undertaken with. It is quite a challenge for the HR departments or practitioners to make their employees embrace innovation and learn novel technologies as not all of them can do the same with ease. The budgetary issues follow the previously mentioned aspect that many of the HR practitioners may or may not have proper financial resources provided by the company to assist the employees with these training sessions (Abubakar et al., 2018).It has already been previously mentioned that in order to practice an effective Human Resource management strategy, companies are required to fulfill the basic psychological needs and safety needs of their employees. Thus, the rapidly increasing medical expenses can be considered as one of the major restaurants that practitioners encounter when suggesting a tailor-made human resource strategy.
Another big limitation outlined in the human resource management essay that the HR personnel is supposed to face when practicing and probing into further strategy development is the uncertainty of its effectiveness in case of their pragmatic application in an organization. The recruitment availability and their local labor also accounts for 24% of the issues that are faced by HR practitioners. Competition for employees having proper expertise is fierce, The small and medium enterprises may or may or have budgets for huge retirement plans, expensive insurances and other costly items, in that case, the researchers or the practitioners have to come up with better options and strategies of HRM in case of trying to help- threes companies.
Another biggest issue that has been indicated by Kaynaket al. (2017), in their journal is workplace diversity. Gaining a proper momentum in the international as well as domestic markets requires the expertise of various individuals from various backgrounds. Three individuals can even hail from different walks of lives as well as different cultural backgrounds. There are many factors like lingual differences, differences in perspectives, differences in cultural beliefs that can disrupt the harmony of any organization. Thus, in such cases, the researchers, as well as the practitioners, are required to come up with suitable ideas that can mold the very course or root of the issues. Interactive training sessions are required to be introduced by business organizations to maintain a healthy atmosphere amongst the workforce. There is also another issue regarding the retention of expert and talented employees as reports suggest that one in four senior employees are bound to lean and their organization after a point of time (Jabbouret al., 2017). In what case, HR personnel and researchers should come up with better reward or incentives schemes that would help the organization to retain its working employees. Employee retention has a very close nexus with organizational development and also cuts the cost of training new employees.
This essay on human resource management essay attempts to provide a clear picture of the various nuances that act as the driving force for suitable Human Resource activities and its apparent link with overall organizational development. It talks about with the help of various theories to establish the correct plausibility of the assumption that organizational performances are linked with effective HRM techniques.Strategic Human Resource practices (SHRP) involve tactful operations. They form the integral foundation as well as guidance for properly managing a company's staff and employees along with helping them to coordinate with the “Executive business plans” (Stewart and Brown, 2019). Issues that practitioners as well as researchers come across whilst identification of appropriate approach for developing suitable HRM strategies, have also been highlighted.
Employees are regarded as the biggest assets that a company bears (Inkinen, 2016). Thus, taking good care of them also includes itself as one of the requirements for implementing good HR practice (Saridakiset al., 2017). The factors that generally make a direct impact on the employee preferences are a selection of appropriate workforce, providing them proper guidance and compensations, providing them industry-based skills, creation of an egalitarian organization and encouraging the free exchange of information that have been highlighted in this essay.
Abubakar, A.M., Elrehail, H., Alatailat, M.A. and Elci, A., 2019. Knowledge management, decision-making style and organizational performance. Human resource management essayJournal of Innovation & Knowledge, 4(2), pp.104-114.
Bailey, C., Madden, A., Alfes, K. and Fletcher, L., 2017. The meaning, antecedents and outcomes of employee engagement: A narrative synthesis. International Journal of Management Reviews, 19(1), pp.31-53.
Chowhan, J., 2016. Unpacking the black box: understanding the relationship between strategy, HRM practices, innovation and organizational performance. Human Resource Management Journal, 26(2), pp.112-133.
Collings, D.G., Wood, G.T. and Szamosi, L.T. eds., 2018. Human resource management: A critical approach. Routledge.
Guest, D.E., 2017. Human resource management and employee well being: Towards a new analytic framework. Human resource management journal, 27(1), pp.22-38.
Inkinen, H., 2016. Review of empirical research on knowledge management practices and firm performance. Journal of knowledge management.
Jabbour, C.J.C. and de Sousa Jabbour, A.B.L., 2016. human resource management and supply chain management: Linking two emerging agendas. Journal of Cleaner Production, 112, pp.1824-1833.
Kaynak, R., Toklu, A.T., Elci, M. and Toklu, I.T., 2016. Effects of occupational health and safety practices on organizational commitment, work alienation, and job performance: Using the PLS-SEM approach. Human resource management essayInternational Journal of Business and Management, 11(5), pp.146-166.
Masri, H.A. and Jaaron, A.A., 2017. Assessing green human resources management practices in manufacturing context: An empirical study. Journal of cleaner production, 143, pp.474-489.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
O'Donohue, W. and Torugsa, N., 2016. The moderating effect of ‘Green’HRM on the association between proactive environmental management and financial performance in small firms. The international journal of human resource management, 27(2), pp.239-261.
Ogunyomi, P. and Bruning, N.S., 2016. Human resource management and organizational performance of small and medium enterprises (SMEs) in Nigeria. The International Journal of Human Resource Management, 27(6), pp.612-634.
Reverte, C., Gomez-Melero, E. and Cegarra-Navarro, J.G., 2016. The influence of corporate social responsibility practices on organizational performance: evidence from Eco-Responsible Spanish firms. Journal of Cleaner Production, 112, pp.2870-2884. Saridakis, G., Lai, Y. and Cooper, C.L., 2017. Exploring the relationship between HRM and firm performance: A meta-analysis of longitudinal studies. Human resource management review, 27(1), pp.87-96.
Singh, S., Darwish, T.K. and Poto nik, K., 2016. Measuring organizational performance: A case for subjective measures. British Journal of Management, 27(1), pp.214-224.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. Human resource management essayJohn Wiley & Sons. Subramony, M., Segers, J., Chadwick, C. and Shyamsunder, A., 2018. Leadership development practice bundles and organizational performance: The mediating role of human capital and social capital. Journal of business research, 83, pp.120-129.