The Relationship between Human Resource Management and the Performance of an Organization - Essay Example

Human Resource Name of Student: Name of Professor: Name of Course: Code of the Course: Date of Submission: Human Resource The relationship between human resource management and the performance of an organization has been a subject of intense discussion for several scholars and professionals. From years of study on this subject, it has been acknowledged that indeed relations do exist between the two. Over the recent years, human resource management has become a very important process in an organization. Organizations are establishing new ways of managing their human resources with an aim of ensuring that they increase their productivity (Abdalkrim, 2012). On this aspect, it is important to note that human resources are as of today being regarded one of the most important asset to an organization. Human resource management is a broad process. It entails all activities involved in recruitment and selection, employee development, employee motivation and employee retention among several other practices used in human resource management. The key aspect in human resource management is to always ensure that an organization has the right people working at the right positions and that their production is highly optimized. On the point of optimization of an employee’s performance, human resource management aims at providing him/her with a conducive environment so as to ensure that his or her performance is high. The following essay will give a lengthy discussion as to why human resource management influences the performance of an organization. Human resources are as of today being regarded as an organization’s greatest assets. This is due to the competitive advantage which they give to an organization. Generally, an organization which has the right people working for it with respect to having relevant skills, experience and knowledge has a competitive advantage over its competitors (Rogers & Wright,1998). This explains the reason as to why many organizations are focused in improving their human resource practices in order to attract and retain the most competent employees in the market. On this point, it is important to note acknowledge that the integration of technology in human resource management is a common trend in modern human resource management (Rogers & Wright, 1998). Taking E-recruitment as an example, it can appreciated that most of companies which have embraced sustainable development are using it to ensure that they are able to attract a large number of highly qualified potential employees from the global employee resources market. This ensures that they are able to get qualified people, hence gaining a competitive advantage over its competitors on the basis that it is able to implement its processes in addition to aligning itself to the current market trends. With respect to an organization gaining a competitive advantage over its competitors due to human resource management, it can be noted that innovation has become the factor which is giving a distinction between successful and unsuccessful companies (Alwis & Hartmann, 2008). In this modern age of competition, several substitute products and an age of surplus, it is important for organizations to embrace innovation; an aspect which will give their products and services a competitive edge over those of their competitors. On this aspect, it is important to note that innovation is a direct product of tactile knowledge of the human resources. Tactile knowledge is one of the two types of knowledge, the other being explicit knowledge (Alwis & Hartmann, 2008). As opposed to explicit knowledge which is public, tactile knowledge is contained in the minds of employees. Appropriate knowledge management is vital to ensuring that innovation is developed and upheld in an organization (Alavi & Leidner,1999). Moreover, it is important to note that knowledge management is part of the broader human resource management. Therefore, it can be concluded from the above arguments that an organization is able to develop innovation if it has the appropriate human resource management policies. This ultimately ensures that an organization is more productive. Human resource management also ensures that an organization has the right working environment for an employee, hence ensuring that he/ she is more productive (Lambert, Lynne & Barton, 2001). On this point, it is important to note that a happy employee always translates to a happy organization. Therefore, human resource management is focused on making an employee happy. This is achieved through the use of several human resource management practices. First and foremost, human resource management should ensure that it provides a good working environment (Lambert, Lynne & Barton, 2001). This is with respect to such aspects as the job design, the creation of a performance enabling environment and good employer employee relations. One factor which comes out strongly on this point is the ability of an organization to motivate its employees. Ideally, it can be acknowledged that employee motivation is a major tool geared towards ensuring that human resources are more productive. Ways in which human resource management does this is by establishing appropriate human resource benefits scheme. The benefits scheme may seek to reward employee according to their performance, but also ensure that every employee has something to feel proud of. This ensures that the employee feel appreciated by the company, hence being more productive (Lambert, Lynne & Barton, 2001). With respect to employee motivation practices, it is important to keep remuneration at the core. Employees need o feel that their work is rewarded at appropriate rates. Ideally, human resource management should acknowledge that remuneration is one of the greatest employee motivation factors (Lambert, Lynne & Barton, 2001). A low compensating job ultimately leads to low motivation in an employee. In addition to this, the rate of compensation is a major factor which employees consider in their decision to remain in a specific organization. In this modern age of job shifting and employee poaching (owing to human resources being a competitive advantage) , it is important that an organization rewards work with an appropriate compensation. In addition to ensuring that the employees are motivated, hence productive, this also ensures that the employee retention rate is higher, hence enabling an organization to benefit longer from the services and skills of competent employees (Deery, 2008). Another key element which makes human resource management an important factor in the performance of an organization is its ability in ensuring that an organization keeps up with the current trends in the market. Generally, it can be appreciated that an organization is only successful if it is able to keep up with the market forces and trends in the market. Human resources management is able to ensure that organization is able to do this by constantly developing its employees. Oblivious of the fact that employee development is a tool used in employee empowerment and in employee motivation, it also plays a key role in ensuring that an organization is able to align itself with the current market trends in the market (Kouhy, Vedd,Yoshikawa & Innes, 2010). Taking an example of the IT industry which is very dynamic, it is always important to ensure that employees are acquitted with the current market trends. This ensures that the employees are able to deliver in the dynamic market. Ideally, organizations which have invested their resources in employee development always have a good story to tell. Google is a perfect example of such a company. In addition to ensuring that an organization is able to keep up with the current market situations, it ensures that an organization is able to retain its employees, hence guaranteeing it of sustainable performance. Lastly, it can also be argued that human resource management is one of the processes in an organization. Taking the perspective of a network analysis, it can be acknowledged that human resources management is important to the general performance of an organization; just like other business practices and processes (Katou, 2008). On this note, it is important that all the processes in an organization are synchronized towards ensuring that an organization is able to achieve its objectives with the given timeline. It is also important to acknowledge that organizations are able to curve it’s productivity via the use of appropriate business strategies. Ideally, business strategies are aimed at ensuring that organizations have a competitive edge in the market. However, the success of attaining competitiveness is only possible if an organization is able to align is other organization practices with the established strategies. On this point, it can be acknowledged that business strategies should be matched by appropriate human resource management policies (Katou & Budhwar, 2009.).This ensures that an organization is able to implement its strategies in a sustainable manner. When this happens, an organization is more successful. In conclusion, it can be acknowledged from this essay that human resource management plays an important role in defining the performance of an organization. The better the human resource management practices, the more successful an organization is. The essay has discussed about the role of human resource management in establishing an appropriate working environment for an employee, hence increasing his/ her productivity. The essay has also given an in depth discussion on the role of human resource management in knowledge management, implementation of an organization’s strategies, giving an organization a competitive advantage, and enabling an organization to keep in touch with the current market trends in the market (Luoma, 2000). One thing which comes out strongly in the essay is that human resources are an important asset to an organization. Therefore, their appropriate management ensures that an organization is able to increase its productivity. Therefore, it can be concluded from this essay that human resource management is a major influence to an organizations performance. References Alwis, R., & Hartmann,E., 2008. The Use Of Tacit Knowledge Within Innovative Companies: Knowledge Management In Innovative Enterprises, Journal Of Knowledge Management, 12(1); 133-147 Alavi, M. & Leidner, D. (1999). Knowledge management systems: issues, challenges and benefits, Communications of the Association for Information Systems,1(7);2-36. Abdalkrim, G., 2012. The Impact of Human Resource management Practices on Organizational Performance in Saudi Banking Sector, European Journal of Business and Management,4 (21); 188-198 Deery, J.,2008.Talent management, work-life balance and retention strategies, International Journal of Contemporary Hospitality Management, 20(7);792 – 806 Katou, A., &Budhwar, P., 2009. Causal Relationship Between HRM Policies And Organisational Performance: Evidence From The Greek Manufacturing Sector, European Management Journal, 30(10); 1-15 Katou, A., 2008. Measuring the Impact of HRM on Organisational Performance, Journal of Industrial Engineering and Management, 1(2); 119-142 Kouhy, R., Vedd, R., Yoshikawa, T., & Innes, J., 2010. Human Resource Policies, Accounting and Organizational Performance, Chartered Institute of Management Accountants, 5(4); 1-12 Lambert, G., Lynne Hogan, N., & Barton, M., 2001. The Impact of Job Satisfaction on Turnover Intent: A Test of a Structural Measurement Model Using A National Sample Of Workers. Social Science Journal, 38(2), 233-250. Luoma, M., 2000. Developing People For Business Success: Capability-Driven HRD In Practice, Management Decision, 38 (3); 145- 153 Rogers, E., & Wright, P., 1998. Measuring Organizational Performance in Strategic Human Resource Management: Looking Beyond the Lamppost, (CAHRS Working Paper #98-24). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies, 1- 31 Read More