Critically analyse and evaluate (Human resources) - Essay Example

Human Resource Management Practices Introduction “Human resources and the resource based view of the firm” and “The impact of human resource management on organizational performance: process and prospects” are two articles that both seek to establish the significance of human resource management on organizational performance. For a long time, there have been serious attempts aimed at justifying the importance of HR functions. When organizations operate in an environment of financial surplus, they often try to justify the large investments directed at acquiring these functions.

However, in times of financial challenges the HR department is usually the first one to suffer from cutbacks. This fact appears to contradict the real significance of this department as evident in many business organizations. Human resource functions and decisions ought to drive positive performance gains in terms of personal efficiency and financial gains (Becker & Gerhart, 1996:782). The procedures by which HR functions and decisions develop sustainable value are intricate and difficult to fully comprehend.

Instruments such as the resource based view are critical in evaluation of HR significance. Resources which are uncommon, unique and valuable can offer sources of sustainable competitive edge. Many people have argued that, HR practices no matter the uniqueness can not be fully relied on to offer a competitive advantage since they can be copied. Nevertheless, a point noteworthy is that effective human capital has the capacity to contribute largely to the development of a sustainable competitive advantage (Wright, Dunford, & Snell, 2001:704).

Professionally crafted strategies which are deeply entrenched within an organization’s structure are not easy to imitate. This is because, it is not easy to fully comprehend the real approaches through which interaction between HR practices and procedures accrue value. Without the capacity to understand the interactions between elements of an intricate system, it is just impossible to imitate it. The resource based view remains to be considered a fundamental factor contributing to the intangible and hypothetical development of human resource study (Kirsch, 2007:3).

Despite the contradicting perceptions regarding HR practices and function, the truth is that organizations that invest on innovativeness and unique HR practices will always testify to its benefits as both of these articles reveal. References Becker, B., & Gerhart, B. (1996). The impact of human resource magement on organizational performance: process and prospects. Academy of Management Journal , 39 (4), 779 801.Kirsch, K. (2007). Critically Review How the Resource-Based View Has Developed Our Understanding of Strategy.

NorderStedt: GRIN Verlag.Wright, P. M., Dunford, B., & Snell, S. (2001). Human resource and the resource based view of the firm. Journal of Management , 27, 701-721.