A strategic approach for organizing the most valued assets of management is referred to as Human Resource Management. Valued assets are said to be the people who are working for the company and contribute to the success and progress of the company. The success of the company relies on the proper management of its people because the workforce of a company is the major factor that runs the business.
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Human Resource Management and Human Resources consequently reinstated management of the personnel that describes the process in terms of manipulating the people around the organization. The development of Human resource management is coming out at the pace. This approach can be classified into an academic theory or by a business practice that credits the theoretical techniques and their applications when it comes to managing the labor force of the employees.
In an academic theory, Human Resource Management centers on maintaining the strategic goals of an organization by building a good rapport with the employees through managing them accordingly. A link should be given a highlight between the company and its employees. As such, an organization should give importance to its employees and give them just treatment on the way they are handled. Some of the things that an organization must give to the employees are proper handling, concern with the way of allotting the workforce through various departments, providing the benefits, and settling the legal requirements (Wilkinson, 1988).
Basically, the academic theory in Human Resource Management is indicating that people should not be manipulated like robots or machines by the superiors hence an interdisciplinary evaluation of the people inside the workplace is needed. Certain areas like psychology, industrial engineering, industrial psychology, and organizational as well, sociology, critical theories, and industrial relations are important players in Human Resource Management.
And now, many schools especially colleges and universities give bachelor’s and master’s degrees in HRM. A model which is used by many organizations that were developed by Dave Ulrich illustrates the areas that Human Resource Management plays (Ulrich, 1996). These areas are Strategic business partner, Administration, change agent, and Employee champion.
On the other hand, in critical theory, postmodernism is seen to be one of the essential parts in the academic theory, and Legge (2004) actually questioned whether Human Resource Management is a postmodern dissertation or a modernist project. It argues whether Human Resource Management is the chase of shaping an attitude according to Wilkinson (1998). This comprises of taking consideration of empowerment or may be referred to as pseudo- empowerment.
A lot of critics remind us that man should be separated and treated differently from a machine. Critical theory in Human Resource Management determines that for the reason that people are the subject in the workplace. The subject is said to be a crucial one and thus, a simple idea of the best way or the uniformity of the perspectives on the main subject arises. Power and authority in the workplace is a large and intricate subject that can not be quickly described. This left many critics to recommend that management professionals, consultants, and HR managers are more often than not exceeds simplicity but to be able to make an idea, they are made simple and often lead management as a total to fall into the catch of oversimplifying the connections.
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There are known challenges that SHRM or Strategic Human Resource Management are facing. New directions in the academics and practice of SHRM should be given a focus as well though it has already emerged in most Universities worldwide. Giving attention to the overt interpretation of the “black box” between HR and the performances of the firm, the integration of implementing HR strategy as the main umpire of the changeable subject in this connection. There had been direct implications for the nature of fit and contingencies in SHRM and the significance of a distinguished HR architecture not just only across the firms but also inside the organization (Becker and Huselid, 2006).
Globally, Human Resource Management is emerging into a corporate scene. Management of the people has given a big part in academics, consultants, programs and training, and the like. There has been a broad eagerness in Human Resources in a proactive and strategic sense that appears widely in large products such as a service organization. At the same time, management strategies have become a significant discipline for professional people and academics though the nuance and are said to be varying from the point of view of a long- term planning into that of taking incremental stages in a strategic path of indefinite business environments such as the macro and micro environmental factors it comprises.
Writings on Human Resource Management have grown exponentially over a long period of time (Tharenou et al., 1994). Many contributions on the strategies of Human Resource Management mostly came from the West through a large number of educations in journals, business magazines, and books as well. However, though personnel management has been given an emphasis as a critical resource in an organization, it really does not occupy a position in the strategic management writings.
Observed SHRM research has been a stimulating line of the question for more than a long period of time. One of the major influences that affect the shifting forms and kinds of analyzing the strategy on Human resource management are those that connect with the resource- based and principles of a knowledge-based view. Also, it comprises the level of performance that the managers and employees should take note of rather than planning.
The internal sources of the benefits and reliability put the focus on the resources that are significant in the success of an organization through somehow they are rare. Perhaps, those are not readily available and not suitable for alternatives such as altering people by the latest technology. Such instances can appear imperfectly because the combination of the two does not match the capabilities or course of action that can be imitated by each other. A man can never be changed by a machine because the two performs tasks differently and they do not resemble the same level of thinking.
According to Boxall and Purcell (2008), “Firms that want to enhance the quality of their HRM need to think carefully about the ‘black box’ links between HRM and organizational performance.” The ascending importance of the employees to the success of its organization merely connects with the emergence of strategic human resource management and it is a matter of fact viewed worldwide.
The corresponding strategies of Boxall and Purcell regarding this matter gives a keen review of the diverse literature in a structure that makes it convenient for the readers to identify the evolution of the area and the contemporary thinking of the people about Strategy and Human Resource Management. The idea distinguishes itself from other same pictures in various ways. One of these illustrates the U.S and European points of view about SHRM (Strategic Human Resources) that came into different views.
The researchers in the U.S agrees with an implied managerial approach that caters to how the Human Resource can gain shareholders while in Europe, they emphasize more n the significance of parity among the interests of the different stakeholders like the employees, subordinate organizations, governments, and the total system of society. Thus, Europeans attempt to highlight the importance of the perspectives and environment while the U.S points out the ‘best practices’.
Bowen and Ostroff (2004) opposed that Human Resource practice is a way of communication mechanism to the employees, and those communications should be interpreted by the personal interpretation of each person. A newer conceptualization should be promoted about commitments and this can go through the inclusive measures to make sure that the categories are sheltered. The experiential evidence about the connection of an organization’s human resources strategy and its performance outcomes implies various results as what the recent information provides.
A commitment can be one of the things that can be viewed to measure the link between the HR practice and its performance with the employees. While most of the studies had been paying attention to the firm’s as the center of the attachment, an individual can conceive for other focus that scopes both that perhaps attributable by the Human Resource practice and that subsequently illustrate performance. Just, for example, is committed to the goals, the main job, to the heads of leaders, or maybe to the whole team could act as a determinant of whether a commitment to the whole organization exists. This idea prevails a general view of the supposed commitments which can be impacted by the practice of HR and may be linked to the performance of the firm.
The concept of the underlying principles recognizes that people play an important role in the Human Resource practice that they experience and it greatly affects their remorse with regard to their commitment. As the multilevel paragon illustrates the impact of the Human Resource practice on the performance and viewed that each should perceive, react to those practices and interpret as well as the processing of information largely influenced by their previous experiences (Dryer and Reeves, 1995). To cite an instance, people who have worked for the superiors that tried to exploit them will most likely share a new employer’s gain-sharing program as simply another technique of exploiting the workforce.
An individual who is a result of a positive workforce from his or her past employer nevertheless interprets and reacts to the same kind of programs as a humane way of sharing its progressive organization with the employees. Also, matters about commitment can add up to an employee’s desire to remain as a function of a lack of alternatives where people can make more money and gain benefits from it.
Apparently, the result can be an affective antipathy, simultaneous, and highly motivated per se. An employee may feel obligated to choose to render a longer service in the company because the firm is compensating him/her accordingly. The attribution for commitment overtly can differ in the exact human resource practice experience. Having multiple commitments describe the fact that a conflict may arise even though HR practice aims at being successful in handling this matter because of setting priorities (Legge, 1987).
One can be highly dedicated to an organization but however, having an external commitment with other affiliations such as being into sports can take over the person’s commitment in his company. A more specific example is like when a company’s president resigned from his position, considering that his position that all his subordinates’ aim for. The president’s position compensates well and he serves as the master of all, but because of his dedication with other affiliations for example his own family, he opted to leave his work and manage his own family.
In addition to, subcultures in terms of gender classification are increased because of the everyday and practices on neutral gendering that becomes vital on shaping the view of social reality. Australian organizations broadly pay a lip service to primary practices that obeys the law where in it maintain the credibility of neglecting an honest fairness and egalitarian practices (de Cieri and Kramar, 2003).
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People or employees inside an organization are seen to be the most important factor that should be considered in unlocking the black box between the HR practice and the performance of its organization. The success of an organization relies primarily on its people who serve as the key players on manipulating the different departments of a firm. An emphasis should be brought by the best quality of Human Resource Management because they are the ones who directly constitute the leadership among the employees.
The success of an organization also relies on the effectiveness of HR practice as to how they relate with the employees and give them reasons why such employee should make up with the firm and stay for a long- term basis. This is what Boxall and Purcell is trying to depict about the black box links, which are the relationship inside an organization. Outcomes of the employees consist of emotional reactions such as satisfaction and commitment and also the behavioral responses like the absenteeism and turnover.
On the other hand, organizational outcomes centers primarily on the operational act measures such as quality, productivity, and customer satisfaction. While conversely, outcomes on financial aspects such as accounting profits stand for the next step as a result of the two working together as one. These are attainable through building a just and fair treatment of each variable which leads to the high- quality performance of a firm.
Commitment is seen to be the most important factor for the result of strategies that Human resource should give an emphasis to. It merely suggests that to be able to fully understand how human resource practice affects performance; a measurement should be made in all aspects of practice not only on giving dedication to the work and being committed to it. The roles of SHRM are likely to be the first one to promote the formation of having acquainted of the people in an internal environment of a firm. This depicts the things that will help the management to gain the commitment and motivation of the employees to stay in the company.
Having a big position in a firm does not ensure that an employee is committed to the firm and he/she will maintain a long lasting stay within. There are different aspects that a person faces aside from being into his work.
Thus, this primarily encourage the firms to evaluate the performance of SHRM and apply it to the firm by making sure that the key players meet their satisfaction with regard to the work and be personally complacent. And in return, the employees will be encouraged to have a dedication, if not commitment, to the firm. Managers should be held liable for handling the workforce and maintaining the good relationship between them in an organization. It can be a good thing that a firm should provide the benefits for the employees which will, in the first place, motivate them to do their job well done as what the firm wanted. It was previously noted that satisfaction with the work set up makes an employee to commit with the firm.
In addition to, a practical work in SHRM should be extensive and be able to take account of a focus on measures of helpful implementation of the said strategies. In particular, an attention should be given to the strategic business processes that illustrate the involvement of human content or the people who makes up an organization (Ulrich, 1996). However, it is crucial that these actions have a theoretically clear line of sight to the final strategic outcomes and certainly in financial aspects. Through these, the variables should be the one to be highlighted on.
Becker, B., and Huselid, M. (2006). Strategic Human Resources Management: Where Do We Go From Here? Journal of Management, vol. 32: pp. 898 – 925.
Boxall, P. and Purcell, J. (2008) Strategy and Human Resource Management, 2nd edition, Palgrave Macmillan.
Bowen, D.E., and C. Ostroff. (2004). Understanding HRM–firm performance linkages: The role of ‘strength’ of the HRM system. Academy of Management Journal 29: 203–21.
de Cieri, H. and Kramar, R. (2003) Human Resource Management in Australia. Sydney: McGraw-Hill.
Dyer, L and Reeves, T (1995) Human resource strategies and firm performance: what do we know and where do we need to go?, The International Journal of Human Resource Management 6(3): 656-670.
Legge, K. (2004). Human Resource Management: Rhetorics and Realities, Anniversary Edition, Basingstoke: Palgrave Macmillan.
Legge, K. (1987) Power, Innovation and Problem- Solving in Personnel Management London: McGraw- Hill.
Tharenou, P. Latimer, S. and Conroy, D. (1994) How do you make it to the top? An examination of influence on women’s and men’s managerial advancement. Academy of Management Journal, 37, 599-93L.
Ulrich, D. (1996). Human Resource Champions. The next agenda for adding value and delivering results. Boston, Mass.: Harvard Business School Press.
Wilkinson, A. (1988). “Empowerment: theory and practice”. Personnel Review 27 (1): 40–56.