The Value of an Effective Human Resource Management Strategy - Essay Example

?Assess the value of an effective human resource management strategy to the achievement of organisational goals and objectives Introduction Human resources have shifted in function with the introduction of technologies which have established new opportunities for strategic leadership in the evaluation of human capital and corporate culture. Issues on the strategic insight for HR in the current organisations are being considered. Effective human resources strategies can make or break organisations. This essay shall assess the value of an effective human resource management strategy to the achievement of organisational goals and objectives. This essay is being carried out in order to help provide this student a better understanding of HR strategies in successful corporations and to provide possible cues for corporations in the improvement of their corporate performance using better HR strategies. Body Various companies and researchers believe that human resource management processes can help organisations secure and achieve various strategic options. However, only a few would agree on how the HR actually impacts on performance (HR Spectrum, 2005). HR’s impact includes basic aspects like identification or recruitment of top performers; training these top employees to work effectively; and monitoring employee progress and supporting employees in the accomplishment of company goals (HR Spectrum, 2005). Based on company’s economic processes and concepts, competitive goals and strategies, HR management usually controls various functions. To support the organisation’s competitive advantage, HR managers can support various tools and strategies in order to secure their goals. Some approaches often emphasize the importance of best practice. Another HR approach highlights best fit, and aligning such fit within the organisation and its general environment (HR Spectrum, 2005). Still another approach considers the person to organisation fit which evaluates how individual employees view HR practices and whether such perceptions are in line with the organisation’s values. Companies may have various HR policies which managers believe are being applied; however, not many companies understand how their employees perceive their HR policies (Baird and Meshaulaum, 1988). Until the employees understand how these HR strategies work and how they impact on their company’s success, these strategies would not likely have any impact or meaning. In order to understand the association between corporate strategy and employee output, it is important to establish and HR system which supports shared beliefs and attitudes among employees (HR Spectrum, 2005). HR practices can secure higher values for the organisation and for its human capital pool by focusing the employees’ actions towards the fulfilment of corporate goals. This can further be secured if employees are willing to stick with the organisation (Baird and Meshaulam, 1988). HR managers can secure flexibility and can align the corporate values by securing traditional functions and the application of HR strategies using cost-effective mechanisms. These managers can also consider beyond the traditions of their organisation and evaluate the current trends in contemporary business management, as well as the speed of change among organisations and the implications of these changes for employees and other stakeholders (Baird and Meshaulam, 1988). Managing companies strategically highlights the internal organisation and the management of issues. This would involve the acknowledgement of the corporate climate and culture as well as the alignment of employee values with corporate and social goals. For instance, in improving labour outputs and improving company flexibility, human resources can also provide a wide range of strategic choices, including higher shareholder return and competitive advantage (HR Spectrum, 2005). Due to the improved dynamics of the marketplace, HR goals must also be flexible. Flexibility includes processes which refer to improved accommodation for changes, knowledge management and responsiveness to exploration and market shifts. Agility for the HR refers to improved sensitivity to consumer needs as well as mass customization (HR Spectrum, 2005). Under such an approach, HR management highlights mainly on employee development as well as knowledge management with the end goal of recognizing the wide range of strategies available. As various corporations face a higher pressure to succeed, HR management is the key to guiding corporate tools and successfully safeguarding these (Brewster, 1994). As corporate managers evaluate the possible benefits of strategic options and assess the value of performance-based programs, they must also evaluate the impact of employee performance on the corporation (Brewster, 1994). Instead of concluding that business options can support HR strategies, successful companies can utilize their HR options and tools to secure a wide range of business options (Brewster, 1994). Relationship between HR and business strategies The relationship between business strategies and human resource management primarily relates to the factors and the actors (Van Sluijs and Kluytmans, 1994). The primary consideration here is on the importance of the HRM in relation to the business strategies applied by the organisation. This relationship still refers to the senior managers occupying top management positions and the human resources department helps ensure strategic management of the organisation (Buller and Napier, 1993). Human resource management of organisations can be evaluated in relation to its impact on business activities. Based on various points of analysis, HR and business strategies refer to the cooperation and communication between the managers and the human resources department, integrating the business and personnel concerns in order to achieve corporate success (Buller and Napier, 1993). Another worthy assumption in the HR and managerial relationship refers to the acknowledgement of the impact of a high degree of integration for the favourable performance of firms (Hart, 1992). Applying a high level of integration under these conditions is highly productive for corporations because most corporations are functioning in unpredictable business settings. In these instances, corporations with a high level of integration between corporate strategies and HR management would have significant competitive advantage (Hart, 1992). Moreover, better integration is based on the favourable discretion of the firm. Various analysts have evaluated this assumption by pointing out that integration is based on political elements (Quinn, 1980). It therefore seems illogical to evaluate strategic HR management only based on the perspective of the business strategies and HR management. There are various theories explaining the elements of integration between business strategies and HR management. Some of these theories include the behavioural theories and resource-based theories (Van Sluijs and Kluytmans, 1994). Behavioural theories are supported by the assumption that in order to secure business goals, some employee behaviour or activity is essential. The employee behaviour in fact acts as the link between the business strategy and the corporate performance. HR management is therefore used as the means by which employee behaviour can be controlled (Wright and McMahan, 1992). HR management is therefore considered the most effective tool in securing the aims of the organisation. HR management is also applied in different ways for different organisations and within organisations, depending on the goals and the work environment involved (Van Sluijs and Kluytmans, 1994). Organisations are therefore likely to utilise various HRM tools at different levels. Moreover, a good fit between HR practices and organisational strategies would be more favourable than the lack of fit, and there is a need to establish an empirical evaluation of the subject matter. Nevertheless, Kydd and Oppenheim (1990) already discuss how human resource management can be a significant tool which can be used to improve competitiveness when policies are driven by the corporate goals and environmental elements which challenge it. The resource-based theory is founded on the assumption which points out that competitive edge can be established when a corporation has the specific tools which are also generally immobile (Van Sluijs and Kluytmans, 1994). This means that it can be difficult for competitors to imitate such resources. In relation to the more traditional perceptions on strategic management, this theory highlights the relations between the internal elements and the corporate strategies. For human resources to secure sustainable advantage, these resources have to secure favourable value to the firm, be unique among current competitors, be imitable; and must not be replaced with other similar firms (Barney, 1991). Corporations focused on knowledge, including consultancies or software corporations can qualify under the above qualifications as they often retain and develop human capital. Other firms which are founded on corporate-specific skills can also secure competitive advantage based on how they develop and secure human resources (Van Sluijs and Kluytmans, 1994). The resource-based theory also discusses how the corporate resources when linked with other capacities can provide a foundation for competitive advantage, and therefore secure strategies which can utilize the resources and capabilities of the corporation. In effect, the business strategy is based on the presence of specific resources (Van Sluijs and Kluytmans, 1994). The resources would therefore be the primary aspect upon which the strategies can be directed. Competitive advantage is based on what is discovered by the corporation and resources for the corporation must be based on what they can achieve in terms of corporate goals. Conclusion Based on the discussion above, it is important to note that effective human resource management strategy can help achieve organisational goals and objectives. The tools of effective HR management as based on the effective use of these human resources to the best advantage of the corporation. It is founded on the utilization of the different distinct qualities of employees and matching them or aligning these with the corporate goals and qualities. In effect, it is about utilizing the human resources to the best advantage they can secure for corporations, especially in terms of the goals of corporations already set. Effective human resources strategies relate to the training of employees, the hiring of top employees, as well as the aligning of employee behaviour to meet corporate goals and achievement of organisational goals. Human resources are the means by which corporate goals are met, and for HR managers, the challenge is to ensure that their management processes would ultimately serve the best competitive advantage for their corporation. Reference List Baird, L. and Meshoulam, I., 1988. Managing two fits of strategic human resource management. Academy of Management Review, 13 (1), pp.116-128. Barney, J., 1991. Firm resources and sustained competitive advantage. Journal of Management, 17 (1), pp.99-120. Brewster, C., 1994. The integration of human resource management and corporate strategy. In: Brewster, C. and Hegewisch, A. (eds.), Policy and practice in European human resource management. London: Routledge. Buller, P.F., 1988. Successful partnership: HR and strategic planning at eight top firms. Organisational Dynamics, 17 (2), pp.27-43. Hart, S.L., 1992. An integrative framework for strategy-making processes. Academy of Management Review, 17 (2), pp.327-351. HR Spectrum, 2005. HR strategy and corporate strategy [online]. Available at: http://www.ilr.cornell.edu/cahrs/research/pubs/hrspectrum/upload/HRSpec05-12.pdf [Accessed 01 November 2012]. Kydd, C.T. and Oppenheim, L., 1990. Using human resource management to enhance competitiveness: Lessons from four excellent companies. Human Resource Management, 29 (2), pp.145-166. Quinn, J., 1980. Strategies for change: Logical incrementalism. Homewood, Illinois: Richard D. Erwin. Van Sluijs, E. and Kluytmans, F., 1994. Business strategy and human resource management: setting the scene. MERIT Open University [online]. Available at: http://www.merit.unu.edu/publications/rmpdf/1994/rm1994-036.pdf [Accessed 01 November 2012]. Wright, P.M. and McMahan, G.C., 1992. Theoretical perspectives for strategic human resource management. Journal of Management, 18 (2), pp.295-320. Read More