The Role Of Human Resource Management ( Hrm ) On The Wider Organisational Strategy

Business strategies touch every entity of the business including HR which is where many of the business necessities begin. The HR function needs to be involved in the strategic management process as “each component of the process involves people related business issues” (Noe et al., 2002, 59) which is the primary function of HR. “Once the strategy has been determined, HRM has a profound impact on the implementation of the plan by developing and aligning HRM practices that ensure that the company has motivated employees with the necessary skills” (Noe et al., 2002, 83).

Armstrong (2009) defines Human Resource Management (HRM) as a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations. Similarly, Legge (1989) defines Human resource management as a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques.

Bill Gates, the Funder of Microsoft once said, “take our 20 best people away, and I will tell you that Microsoft will become an unimportant company” (Silistre, 2007). Microsoft is one of the most successful companies in the world. The driving force to such success is derived from Bill Gate’s strategic vision for his company. Different from other entrepreneurs, he values the employees, and favoring intelligence over experience in his employees. In modern society, human capital is the most dynamic resources for a company. How to attract excellent human resource and utilize their ability to reach organizational goal is something managers should think about. Strategic human resource management could explain the relationship between human resource management and organizational strategy.

Today 's fast-paced, competitive business environment has resulted in "rediscovery" of the human resource management function as a group that may be able to enhance firm competitiveness and performance by being "strategic" (Dyer & Kochan, 1995; Ulrich, 1997). Strategic Human Resource Management is a term describing an integrated approach to the development of Human Resource Strategy that will enable the organization to achieve its goals (Armstrong, 2005). Whiles strategy is an action that managers take to attain one or more of the organization’s goals. Strategy presents a general direction set for the company and its various components to achieve a desired state in the future. This results from the detailed

The importance of HRM’s role is not debated and some key characteristics of its influence have been identified. The degree of ‘fit’ between HRM policies and the wider organisational strategy for knowledge sharing, integration and creation must be analysed. Placing emphasis on individual experience or on collective knowledge bases has dramatic implications for the kinds of selection, career development and reward policies that will be effective for the organisation. There are also longer-term effects from HRM policy which have an impact on the quality of trust and relationships through which knowledge is shared. Newell et al (2002) note that there is something that emerges in an organisation ‘bottom-up’ out of informal interaction, which

Human resource management refers to the process of dealing with people or controlling them. It plays an important role in effective utilization of human resources and bringing effective people in an organization (Attridge, 2009). With the following research at DaVita, one shall come to know about the standard model of HRM and how it is employed in the strategic planning of an organizational structure.

This essay discusses the role and function of Human Resource Management (HRM) within an organisation. The Harvard and Michigan models have been explained within the essay as they support the analysis of “soft” and “hard” HR approach that managers adapt when applying the HR policies to achieve different organisational strategies like diversification, acquisition and cost reductions. Subsequent section of the essay will examine the link between HRM and its strategies with examples taken from organisations like Harrods’ and Disney and institutes like NHS on how they use HR policies and strategies to achieve their organisational goals.

Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’

The focus on integration of HRM with strategy provides a wider range of solutions to difficult organisational problems and results in achieving a competitive advantage (Lengnick-Hall and Lengnick-Hall, 1998).

One of the current trends in strategic human resources management (strategic HRM), is research regarding whether a company’s human resources department should put more effort in the strategic or organizational aspect of the company. Should a company focus more towards one aspect than on the other? In order to find answers to this question, researchers are using different theories, methodologies, evidences, gabs in research, and conclusions. The purpose of this literature review is to collect knowledge about the current thinking and research of the function of strategic HRM to improve the overall performance of a company.

The term Human Resource Strategy is well defined as - “Human Resource management (HRM) is a strategic approach to managing employment relations which emphasises that leverage people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.” [ Bratton and Gold,4e,p3]

Strategy is the skill and planning that are involved in governing resources. In a business sense this relates to "a set of ideas, policies and practices which management adopt in order to achieve a people management objective" in studying Human Resource Management it is important to differentiate between the 'operational' and the 'strategic' methods of managing a workforce. A Strategic focus will require operating HR initiatives with an eye to long term corporate strategies and objectives. To focus on strategy would mean tackle and

It makes it realistic by motivating the workforce, developing commitment in them and improving communication.(Armstrong M,2003) Traditional Personnel management deals with short term planning and controlled externally. With employee relations’ perspective, it has low trust and less communication. It has lot to do with labour management.(limited to the people and not deals with strategy) On the other hand, HRM emphasizes that employees are critical to achieving sustainable competitive advantage and is central to organisational strategic performance.(Bratton and Gold,1999).HRM plays great role with organisation’s corporate strategy. But to do this, all HR strategies must be integrated and must be in line with overall business strategies.(Lecture Notes,2004 Topic 1)

The benefits of proper human resource management are many. An organization cannot build a good team of working professionals without it. The key functions of the HR management team include recruiting people, training them, performance appraisals, motivating employees as well as workplace communication, workplace safety, and much more. The Recruitmentbeneficial effects of these functions are discussed here: and Training

Within this essay an in depth analysis will be conducted on the difference between Human Resource Management and Strategic Human Resource Management using contemporary perspectives. Human Resource Management (HRM) is the process of managing human resources in a systematic way. It is a practice devised to maximise the performance of employees and is concerned with the application of management principles to manage organisational personnel while paying attention to the policies and systems of the entity (Delaney & Huselid, 1996). Strategic Human Resource Management (SHRM) is a function of management which entails development of policies, programmes and practices related to human resources, which are aligned with business strategy so as to achieve the strategic objectives of the organisation (Patrick M. Wright, 1992). Its primary purpose is to improve the performance of the business and maintain a culture that encourages innovation and works continuously to gain competitive advantage. In this essay the Resource-Based View, High Performance Management and High Commitment Management perspectives of Strategic Human Resource Management and Traditional and Collaborative