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Introduction To Human Resource Management - Essay Example

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Developments during the last decades of the twentieth century have produced what may be termed an era of globalization. As business has continued to globalize or migration of many companies to other economies, one of the most challenging aspects has focused on how UK firms manages its human resources to sustain a competitive advantage…
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Download file to see previous pages The world of work and organization has become increasingly demanding and turbulent. There are eight major challenges currently facing United Kingdom organizations. These are: globalization, migration of many companies to other economies, increasing revenue and decreasing costs, building organizational capability, change and transformation, implementing technology, attracting and developing human capital, and ensuring fundamental and long-lasting change. Thus, levels of competition among organizations have increased. In present period of the migration of many companies to other economies, the UK organizations can replicate technology, manufacturing processes, products, and strategy. On the other hand, personnel management practices and organization are difficult to reproduce, in this manner representing an exceptional competitive advantage. To be successful in the future, UK organizations will have to build organizational capability. Personnel management professionals and personnel management practices will be required to create value by increasing organizational competitiveness.
Traditional views on competitive advantage have emphasized such barriers to entry a...
More recent views have highlighted a different source of competitive advantage, a firm's human resources and behavior of employees at different levels of the corporate hierarchy. New demands facing UK organizations as a result of the migration of many companies to other economies, heightened competition, globalization, and technological advances have put a premium on creativity and innovation, speed and flexibility, as well as efficiency. The critical firm assets do not appear on a balance sheet but reside, instead, in behaviors of employees working at different levels of the corporate hierarchy and management systems. The role of company strategy, human resources, and personnel management in company performance is being rethought. Rather than seeing the personnel management function as a cost, a personnel management system that supports a company's strategy should be seen, instead, as an investment, a strategic lever for the organization in creating value.
The 2000s witnessed a growth in research interest in examining the link between personnel management strategies and practices and UK companies' financial performances. In the past research studies have shown a strong positive relationship between the two, and this relationship has been observed in studies of one company, one industry, and multiple industries (Brown et al., 2003). Brown et al., (2003) have shown in three separate national surveys (over 2,400 companies) an economically and significant impact on several measures of company performance. They observed a link between changes in the sophistication of a company's personnel management architecture and dollar change in market value per employee, suggesting three stages of personnel management practices on company performance.
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