This assignment will find out answer the question which is that do u think the linking of HRM with strategic goals and objectives by any organization will help to improve business performance and develop organizational cultures that foster innovation flexibility. Besides it will illustrate the objectives of strategic HRM in the organization and how they influence competitive advantage of organization.
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Companiesare as good as their staff. The demand to maximise the potencyl of the company and their manpower by clever people management and organisational growth is a dutyaccomplish through the HR area. It is the aim of a company to be successful and to turn a profit. It is necessary for people to play a crucial role in succeeding this objective. The aim of this assignment is to supply an apprehension of the relevancy of HR strategy that advocates the business strategy to the task of HR department a company.
Several growing companies believe that Human Resource (HR) supplies them competitive advantage. It was seen by many companies that competitive advantage can be found by quality manpower or employees and culture. Ä°t evaluates the long-run performance of a company. Strategic HR assures that staff of a company helps to its success with their abilities and performance. Traditional HR is related to carrying out of rules and techniques such as recruitment, staffing,assessment. But linking the general HRM and the company’s strategy gives HR department more background to increase the skills of their manpower and concentrate on the vision and mission.
Human Resource Management
The overall aim of HRM is to contribute companies succeed their tasks which are vitally seen in terms of efficiency by its people. HRM emphasises on the importunity of gettting dedication to the companies task and values with emphasis on the need for strategic adjustment, which is the combination of business and HR strategies. Nevertheless , different opinions to the strategic management of human resources are likely. This is a kind of managing andcontrolling the manpower so as to get a competitive advantage. However , it emphasises on the human issues of HRM as valuable assets, by stressing on communication, motivation and leadership. It can be seen as a typical way of leading people, one that focuses on the value of staff as investigationsto be improved by the company.
The accent is one which has the involvement of management focused on assuming a planned approach which is intimately incorporated with business strategy. “The interpretation of HRM is based on incorporating either a “soft”, developmental humanist approach or a “hard”,
situational contingent approach” (Liao, 2005)
In a perfectcompany one would adopt it to be well- adjusted and incorporated with all people partaking the organisational purposes and working together as a team. This concludes that the distinction between the two approaches was not and still is not a precise one. Human resource management policies and rules might affect the recruitment process, in that people could be afected to apply for jobs if the organization becomes considered for its good human resource management approach. On the other hand, poor human resource management practices might rise sales.“Effective recruiting is essential to an organizations financial future”(Dessler). Human resource managers should actively improve training and aid line managers in the performance appraisal process.Managers should actively revise employee performance to supply feedback to staff and address performance subjects. Performance appraisals should be indifferent and focused on essential performance issues.Managers should make a point staff understand what is expected of them and the demand of their job.
HR Strategy and Business Strategy
First of all ,strategy will be defined and how it connects to human resource management. Strategy is obtaining from where we are now to where we would like to be; it may be demonstrate or inexplicit in organisational behaviour. Schneider (1994) has suggested that in “the “soft” approach, effective HRM is seen necessarily to involve a focus upon fostering employee motivation, commitment and development.” Thus, HR strategy is connected to organisational strategy. Ä°fdefinitions will be looked. Business strategy could be described as those people who work an organisation that find ways to place their business duties through the use of controlling the planning environment and to fully use the future use of the capital and human assets.
Nevertheless, HR strategy could be described as the procedure of joining tactics, programmes and purposes within an overall model, planned to improve to meet a companies duties. Because of that, it is saidthat HR strategy should play an important role in improving the companies competitive advantage and not only as a way to contribute the business strategy but also to improve it is a right supposition to the extent of both going hand-in-hand to succeed the companies main purposes and objectives. Of all the demand related to the above, HR strategy could be vindicated by business strategy. HR strategies will be considered by management as of little relevancy to the real duties of the business without business strategy, and it will leave the HR function in a difficult position, however it might have a important role in the delivery of the long-term future plans of a company. All the determinationsif becoming HR or business could be incorporated at a strategic level therefore all aspects and demand are introduced by making new opportunities for what is hold thinkable. Human resource strategy has got too many topics. Because of that , it is difficult to describe human resource strategy.
The centre of HR strategy is a kept up focus on the people who work for a company.A HR strategy is vital for keeping quality customer satisfaction,being loved and continuing high quality staff and assuring kept dedication from the staff to steady develop the company. It means that the growth of strategies to appeal the right people to the organisation with the right abilities and competences and strategies to continue them only they are enrolled.Key issues in attracting and continuing staff are Recruitment and Selection, Rewards and pay, Training and development and appraisal management.The main purpose of any HR strategy is to make the highest value company.
Ä°t is explained what HR strategy and why organisations should improve a HR strategy.For many organisations there is a essential situation to improve a HR strategy because of the risingly rivalry business globalization. HR strategy educesthe desire to fully work the capacity of people as a opportunity of competitive advantage but also to meet the needs of HR practioner’s.The only real source of sustainable competitive advantage for many companies is letting loose the power of its people, people and procedures not only supply unbelievable competitive advantage, they are also difficult to copy or buy in.
The factors which should be considered by management
In performing the work, the manager should think the strategic elements of the organization system. These elements are individual element, formal organization element, informal organization element and The Role and Status Patterns element.
- Ä°ndividual factors: which include attitudes, feeling, and personality traits, motives and other variables that help determine individual’s behavior
- Formal organization factors: are the formal structure, the hierarchy of authority, the communications channels, and the pattern of relationship that it supplies together with is objective, policies, process and other management devices that help to develop and facilitate its system
- Informal organization factors: it involves the standards and behavioral forms that are enforced upon by its staff by the work group. This element also involves informal systems for communication and the processes for short-cutting formal methods.
- The Role and Status Patterns factors- are those that are made by both the informal and the formal companies, and by the backgrounds and the behaviors of the people who work these companies
The price level and general interest rate will influence top managements’ decision on main problems.“Because financial resources are scarce, management must allocate them in ways that would yield the maximum return. each Porterian competitive strategy involves a unique set of responses from workers or ‘needed role behaviours’ and a particular HRM strategy that might generate and reinforce a unique pattern of behaviour”(Schuler and Jackson, 2002
The competitive climate also influences management strategy.
Statue, common or administrative law curbs business operation.
- FactorsImposed by Trade Unions
- Technological factors
SAMPLES FROM COMPANIES
It is crucial to search how organization’s human resource management (HRM) improves to highly skilled, loyalty staff and influence company’s performance, therefore resulting in important competitive advantages. It may be important to clarify the strategy throughout the hierarchy to every employee (Huang, 2001).
Eventuality-based approach to HRM is often known as a necessary part of a cost-minimisation strategy. Nevertheless , in M&S it is adviced that for a successful carrying out of changes, there is a more need of “soft” approach for the medium term success, when everyone who works in the company needs to get together and see the importance of the changes. Bergenhenegouwen (1996) states that the concept of core competences goes beyond this in a search for those few activities that underpin competitive advantage
For M&S the dedication of senior management and the appointed heads of the business units to HRM are important to organization’s effective procedure. It could be necessary to have the information and abilities essential to carry out a believable HRM programme within the company.() For a medium term success, M&S should think the following HRM approaches:
A clear apprehension and dedication of the management to the attractive change shouldkeep any struggles and operational roadblocks;
Good active and attractive leadership will have to come about and be contributed by the managers of M&S.
It is also important to think as teamwork in make decision procedure. The staff have to be incorporated into the change process management;
To be more service-focused company, M&Swould have a look at a culture of communication because of thatpeople could use the advantage of ateamwork for the advancement and the company’s success. Therefore , M&S has to put a great accent on development of social communication abilities of all organisational staff;
Staff participation is possible to advocate to a signified of obligation and property and, thus, organisational dedication and commitment. “The norms and beliefs that increase mark spencer’s skill to get, see, and return signals from the environment into internal organisational and behavioural change will promote its survival, growth and development”( http://www.ivoryresearch.com/sample13.php)
HRM could make an attractive influence on organisational performance in many ways, these are:
- improve and successfully carrying out high performance work practices, especially those interested in job and work design, flexible working, imagination, staff improvement, reward and giving staff a voice.
- develop a clear vision and adjust of values and assure that it is enclosed, imparishable, collective, measured and managed.
- improve a attractive psychological contract and means of rising the motivation and dedication ofstaff.
- develop and carrying outpolicies that know the essentials of people and make a great place of work
- supply support andrecommend to line managers on their role in carrying out HR policies.
McDonalds runs in so many countries, HRM should be conscious of the different employment and contract laws, culture, currency differences, and staff costs all over these countries. The extension plans for India must not influencethe company critically when the operation guidelines and policies already exist.
When the company increases into new countries they should think other subjects such as uniform and eating habits, certain religions do not eat certain products, other cultures enforce dress code, all these subjects should be considered by the HRM to assure the arrangement of right policies. Because of dropping sales there are plans to change the image and culture of the company; showing new decor, uniforms and packaging. Unless HRM have included the staff in the planning stage of these changes, they will come across great difficulty in getting cooperation; staff should buy in to changes. Ä°n spite ofthe mc donalds does have training facilities around the country studying staff on these changes. Consumers might also protest to this image change.
The meeting of healthy foods might cause problems, staff will should be re-trained, which might cause staff missing, andrise training costs.
A few of the stores located in city centres are setting facilities to let the customer linking to the Internet. The HRM will have to embed policies to assure right usage of the Internet; and improvements to assure that wrong websites are not possible.
Toyota looks for to improve human resources by the action of making things. toyota thinks that development of human resources providespassed on of values and perspectives. Ä°t can be seen that business expansion is related to strategic human resource management. Ä°t has become priority concept. “Toyota is building both tangible (a new learning facility) and intangible (course content) structures relating to team member development that ensures a secure and steady flow of qualified human resources to conduct Toyota’s global business in the 21st century”.( http://www.toyota.co.jp/en/environmental_rep/03/jyugyoin03.html) Toyota has described the needed qualifications of professional staff for office and engineering positions, and shaped human resources who are able to perform day-to-day activities and enlarge their abilities in technical positions. Company-wide training is went on based on employee qualifications, as well as specialized training for individual divisions, language training, and special knowledge and skill training
Pepsico is training store managers in merchandizing techniques to help rise store sales as well as sales of Pepsico. “Unifi helps consumers with their efficiency appraisal
systems, making their customers more competitive andA thus better able to buy Unifi products.”
Mercedes gave training mechanics in service by the United States so as that Mercedes can advise 24-hourgiving service anywhere in the United States. Nissan Motors and HondA Motorsadvise busy training programs to their parts suppliersso asto increase the quality of their goods.McDonald’s advises comprehensive training to their franchise owners.
Thecase of Lincoln Electric is an instance of the using of HRM practices to rise the performance of production and thereby lower the cost of the electric motors and arc welders. People Express Airlines is similar example of, a cost/efficient thrust. Unifi, McDonald’s, and Honda help in the HRM practices of their consumers, distributors, and suppliers, respectively, so as to help them sustain costs down as well as to make sure a rivalry, and thus enduring, set of customers, distributors, and suppliers. IBM can make itself different than rivals by providing programming training for customersemployees.
The American Productivity Center in Houston makes use of its staffing practices to get a rivalry advantage. Moreoverit assists its staffing practices with coherent training practices. The Baltimore Orioles also get differentiation by their staffing practices, this time with their suppliers.
“At Emery Air Freight, the company was losing $1 million yearly because
employees on the airport loading docks were shipping small packages separately rather than placing those with the same destination in one container that. would be carried at lower rates by air carriers.”( http://www.rci.rutgers.edu/~schuler/mainpages/GainingCompAdvantageHRMpractices.pdf)
People Express Airline and Lincoln Electric, who use Financial benefit practices to get a cost/efficiency competitive advantage, TRW and the Hewlett-Packard Company use compensation to drive their search for innovative products and services.At Hewlett-Packard, attempting behavior is irritated in project leaders by trying more rewards to their achievement
To sum up, improving a HR strategy is active for companies in today’s competitive business environment. The different approaches to HRM strategy in this assignment are not always practical as in reality. In reality when companies are improving a HR strategy they will make possible somewhere between the “hard” and “soft” approach.Another point is that evatulaty should be thought, as HR, strategies should be contingent with the companies subcultures.The following concepts should be thought whether the HR strategy a company espouses is to be influence.Different human resource practices should be consistent and accompaniment each other.There should be a fit between the consistent sets of human resource practices and other systems within the organisation.The human resource systems need to be in line with the business or competitive strategy of the company.
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