Critical Evaluation of the Article in Human Resource Practices - Essay Example

A critical evaluation of “The relationship between human resource practices and firm performance: an empirical assessment of firms in Malaysia,” by Osman, Ho and Galang (2011). Name Institution A critical evaluation of “The relationship between human resource practices and firm performance: an empirical assessment of firms in Malaysia,” by Osman, Ho and Galang (2011). It is evident in the literature that the greatest limitation of the study is that it was conducted in a single national context (Malaysia) and was restricted to the peninsular Malaysia. The study by Osman, Ho and Galang (2011) discuss the relationship between an organization’s success and proper implementation of human resources management (HRM) practices. It is important in providing an understanding of HRM history in Malaysia including the current human resource (HR) practices in the country. The research also serves to examine the extent of proper implementation of HRM practices in the context of Malaysian firms. The third objective of the research is to evaluate the relationship existing between HRM practices and extent of performance among firm in Malaysia. Despite their justifications for the necessity to conduct the research, there are flaws in its design, methodology and analysis of data. The first limitation is that it was in Malaysia and, therefore, restricted to practices in the context of the country. Furthermore, the study is limited to the peninsula Malaysia. Their literature review refers to earlier research to justify their standpoints and views. They use the research by De Cieri et al., 2008 and Dessler, 2007 to define human resources management practices. According Osman, Ho and Galang (2011), HRM entails undertaking recruitment of personnel, engaging in promoting labor relations, ensuring the health of workers, and enhancing safety concerns for employees in an organization. Osman, Ho and Galang (2011) attribute the economic growth in South East and East Asian countries as a factor that compels the necessity to undertake research in human resource management. Remarkably, that might not be similar reasons that compel local firms in Malaysia, where the study is based, to adopt proper HRM practices. There is limitation in justifying the necessity for local firms to adopt the proper implementation of HRM practices in Malaysia because the reasons may be different from those adopted in other countries. There is limitation in attributing the implications of globalization, which is a global trend, to the heightened necessity to adopt proper HRM in the context of Malaysia. Osman, Ho and Galang (2011) highlight the heightened competition to local companies promoted by globalization and entrance of multinational companies in different countries as a factor that necessitates greater HRM practices. Local companies, therefore, must enhance their HRM practices to stand the competition that is present in the contemporary world. Osman, Ho and Galang (2011) emphasize that proper implementation of HRM practices has an inherent relations to a firm’s success. They emphasize the inherent relationship between proper HRM practices implementation to a firm’s success by findings of earlier research conducted by Ordonez de Pablos and Lytras (2008), Collins (2007), Chew and Basu (2005), and Khandekar and Sharma (2005). Notably, the various research used to justify that were not similarly conducted in the peninsula Malaysia and the results differ extensively. That implies the conclusions might be different from the intended results in the context of peninsula Malaysia, where the research is based. A key limitation of the study relates to the inclusion of views of HR managers and other top executives in the study and failure to incorporate other stakeholders in the management of firms. It is noteworthy that the management of a firm is an inclusive process that not only involves top executives but also other stakeholders, fact that the study fails to recognize. In their research, Osman, Ho and Galang (2011) intended to determine the relationship between human resource practices and firm performance by considering empirical assessment of companies in Malaysia. The research method applied by Osman, Ho and Galang (2011) involved the use of a survey instruments adopted from various studies. Moreover, applied questionnaires divided in three parts during the study. Osman, Ho and Galang (2011) gathered information about respondents. Questions were based on education and gender of the respondents (Osman, Theresa & Galang, 2011, p. 12).The procedure used in the analysis of the study included frequency distribution profile of the sample and reliability analysis in testing the internal consistency of scales. The findings of the research explore the extent of implementation of human resource practices in Malaysia and its relationship to firms’ performance. According to the study by Osman, Ho and Galang (2011), nearly 50 percent of a firm‘s performance is dependent on proper implementation of HRM practices by the management. Another limitation in the study is the general conclusion that globalization and competition affects managers only and excluding the influence on other stakeholders in management. According to Osman, Ho and Galang (2011), globalization frustrates managers to survive during challenges as modeled by foreign investors and multinational companies. Moreover, the current economic crisis compels firms in the global market to withstand stiff competition through the integration of proper HRM practices. The challenges are evident from the findings of the research by Butler and Lee (2003). According to Osman, Ho and Galang (2011), competition compels firms to re-examine the importance of human resource management as a strategy to navigate through challenging times. Based on the research findings, that justifies the differences posed by global markets affects HRM practices, hence firms’ performances decreases alongside the efficiency of human resource managers. The study, therefore, only concentrates on HR managers’ perspectives to make a general conclusion about a firm’s performance. This evaluation highlights a range of limitations on both the design and underlying principles of the research conducted by Osman, Ho and Galang (2011). The study ascertained there major HR practices that have the greatest influence on a firm’s performance. First, Osman, Ho and Galang (2011) attribute employee relations and communication as a vital factor that influences a firm’s performance. Second, career planning aspects form a central factor in influencing a firm’s performance. The third factor highlighted by the study’s results is work or job design. The results, however, are arguably incorrect in other countries because of the limitations identified in the research study. The first limitation is that it was in Malaysia and, therefore, restricted to practices in the context of the country. There is limitation in attributing the implications of globalization, which is a global trend, to the heightened necessity to adopt proper HRM in the context of Malaysia. Bibliography Butler, J.E. and Lee, T.W. (2003), ‘‘Regional recovery and development: the role of HRM in East and Southeast Asia’’, Human Resource Management Review, Vol. 13, pp. 367-72. Chew, K.H. and Basu, S. (2005), ‘‘The effects of culture and HRM practices on firm performance. Empirical evidence from Singapore’’, International Journal of Manpower, Vol. 26 No. 6, pp. 560-81. Collins, A.B. (2007), ‘‘Human resources: a hidden advantage?’’, International Journal of Contemporary Hospitality Management, Vol. 19 No. 1, pp. 78-84. De Cieri, H., Kramar, R., Noe, R.A., Hollenbeck, J., Gerhart, B. and Wright, P. (2008), Human Resource Management in Australia. Strategy/People/Performance, 3rd ed., McGraw-Hill Irwin, Sydney. Dessler, G. (2007), Human Resource Management, 11th ed., Prentice-Hall, Englewood Cliffs, NJ. Khandekar, A. and Sharma, A. (2005), ‘‘Managing human resource capabilities for sustainable competitive advantage. An empirical analysis from Indian global organizations’’, Education + Training, Vol. 47 Nos 8/9, pp. 628-39. Ordonez de Pablos, P. and Lytras, M.D. (2008), ‘‘Competencies and human resource management: implications for organizational competitive advantage’’, Journal of Knowledge Management, Vol. 12, No. 6, pp. 48-55. Osman, I., Ho, T. C., & Galang, C. M. (2011), “The relationship between human resource practices and firm performance: an empirical assessment of firms in Malaysia,” Business Strategy Series, Vol. 12, No.1, pp.41-48. Read More