We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

DOES THE PRACTISE OF HRM GIVE ORGANISATIONS A COMPETITIVE EDGE - Essay Example

Comments (0)
Summary
In the current global arena, there has been a notable acceptance of the soft model of human resource management as business organisations embrace the commitment of motivating and leading employees to attain strategic goals. Human resource management has been perceived as a driver of competitive advantage when aligned with organizational objectives…
Download full paper
GRAB THE BEST PAPER
DOES THE PRACTISE OF HRM GIVE ORGANISATIONS A COMPETITIVE EDGE
Read TextPreview

Extract of sample
DOES THE PRACTISE OF HRM GIVE ORGANISATIONS A COMPETITIVE EDGE

Download file to see previous pages... Business organizations has been apt in declaring their commitment in treating employees as valued assets and a source of competitive advantage yet empirically "organisational reality appears 'hard' with an emphasis on the quantitative, calculative, and strategic aspects of managing a head count" (Gill 1999).
Empirical evidences on the effectiveness of human resource management as a source of competitive advantage have been widely documented. During 1995, the study of Huselid conducted in almost 1000 US players in various industries concluded that "the magnitude of the returns for investments in high performance work is substantial." Furthermore, "a one percent standard deviation increase in such practices is associated with 7.05% decrease in labour turnover, and on a per employee basis US$27, 044 more in sales, and US$18,641 and US$3,814 more in market value and profits, respectively" (Huselid 1995). This study has been one of the earliest and most extensive works linking HRM to actual business performance. The findings has been strongly supportive on the view that HRM provides companies with competitive edge because HR practices increased employees' trust, job satisfaction, and commitment while eliminating work intensification and reducing stress.
In the United Kingdom, wide array of case studies have also been documented which strongly links HRM to organisational performance. In 1997, Patterson et al released the results of their survey utilizing 67 manufacturing industries. This has been published by the Institute of Personnel Development which is currently known as CIPD and highly quoted for its enlightening insights. The study has put forward the "importance of HRM as a driver of, and contributor to, improved performance" (Patterson et al 1997). It is also interesting to note that this study asserts that "HRM had a greater impact on productivity and profits than of other factors including strategy, research and development, and quality" (Patterson et al 19997). Going further, Patterson et al, uncovers that while 8% in variations from profitability is explained by R&D, 17% is explained by HRM practices. This is highly significant compared to the 2% and 1% garnered by the strategy and quality, respectively.
The study of Guest et al in 2000 also stresses the importance of human resource management practices in organisational performance. This research links specific human resource practices like job security, recruitment and selection, and training and development with performance outcomes including financial performance, quality, and productivity. It has been uncovered that 70% of the chief executives interviewed for the study asserts that their business strategy relied a lot on people as a source of competitive advantage (Guest et al 2000). On the other hand, less than half of them "felt that 'people issues' are more important than financial and marketing issues" (Guest et al 2000).
This particular research opens an important field for further queries. Even though it concluded that HRM is positively correlated with performance, it has also been observed that only a small proportion of the companies considered do practice more than ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Nice Wood Developing a Competitive Edge
Due to the financial crisis that besieged the local and global economies, the firm is currently faced with the problem of addressing the potential set-back and decline in the construction industry due to the sub-prime mortgage dilemma.
8 Pages(2000 words)Essay
Organisations succeed when they develop competitive advantages
It is important to consider the overall performance of an organization to that of other firms on the same platform of production as that organization when making such plans. This is because competition happens between firms in the same industry and is characterized mostly by the products created.
6 Pages(1500 words)Essay
Does history teach us lessons Give examples
The events, which take place at present on the international arena, especially those connected with the violence and death of people, make us think and reflect on the assertion, that people can hardly learn the lessons which history gives us. However, another question in connection with this arises - are there really any lessons which history offers us, or this is just a result of our false interpretation of the historic events
10 Pages(2500 words)Essay
Conscience or the Competitive Edge
According to the report Nike most definitely has had a problem with social responsibility when outsourcing overseas. It is understandable that the company would like to earn a profit, and decreasing labor costs is one sure-fire way to do that, but it all came with a large price. Nike ended up over their heads in a short period of time.
5 Pages(1000 words)Essay
Leadership and Management: Defining the Competitive Edge
This paper, Leadership and Management: Defining the Competitive Edge, will further report on the impact that diversity and culture have on management and leadership by observing a centuries old traditional Indian system of management. One of the most important tasks for a leader is to create a mental vision of where the firm will be in the future.
4 Pages(1000 words)Essay
To what extent does the variety of capitalism prevailing in a particular economy determine the choice of HR policies by organisations in that economy Give re
In spite of the fact that companies are at liberty to describe and enforce their own HR policies as they wish to, it can be seen that the way the economy functions and the variety of capitalism used in the country
8 Pages(2000 words)Essay
Relationship Management
This paper is being carried out to establish how relationship marketing can help the company to keep it existing membership base and gain new members, to review how relationship management is an effective means of achieving business objectives, to examine all the aspects of relationship management such as loyalty.
12 Pages(3000 words)Essay
HRM
McDonald, and the employees group create no representation that the employ of any product, apparatus, process, technique, or other in order will not infringe confidentially owned rights and will suppose no legal
10 Pages(2500 words)Essay
Microsoft: Maintaining the Competitive Edge
This paper describes Microsoft - the business of developing, manufacturing, license and support software products and services for computing devices. IMicrosoft has gained competitive advantage over its rivals such as Netscape, Apple, IBM, Sun Servers, etc. by improving product differentiation; improving features and implementing innovations etc.
5 Pages(1250 words)Essay
Competitive Edge
From this discussion it is clear that the employers can have a drive for competitive edge, an insensitive and profit driven point of view, and that if she adopts a conscious step and then her employment status is extremely threatened. This is a great dilemma that human beings face every day, and draw the question of morals and ethics. 
3 Pages(750 words)Essay
Let us find you another Essay on topic DOES THE PRACTISE OF HRM GIVE ORGANISATIONS A COMPETITIVE EDGE for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us