Relationship between human resource management practices and organizational performance

Whenever we hear these terms, we conjure images of efficient managers busily going about their work in glitzy offices. As outlined above, the process of defining HRM leads us to two different definitions.

Relationship between human resource management practices and organizational performance

Consideration is then given to its aims and characteristics. The chapter concludes with a review of reservations about HRM and the relationship between HRM and personnel management. He suggests four aspects that constitute the meaningful version of HRM: They further explained that there is a human resource cycle an adaptation of which is illustrated in Figure 1.

This framework is based on the belief that the problems of historical personnel management can only be solved: Without either a central philosophy or a strategic vision — which can be provided only by general managers — HRM is likely to remain a set of independent activities, each guided by its own practice tradition.

These pressures have created a need for: They were the first to underline the HRM tenet that it belongs to line managers. They also stated that: The Harvard school suggested that HRM had two characteristic features: The Harvard framework as modelled by Beer et al is shown in Figure 1.


According to Boxall the advantages of this model are that it: As Ulrich and Lake remark: Extensive research see Chapter 4 has shown that such practices can make a significant impact on firm performance.

More specifically, HR strategies can be concerned with the development of continuous improvement and customer relations policies. Human capital the human capital of an organization consists of the people who work there and on whom the success of the business depends.

Human capital has been defined by Bontis et al as follows: The human elements of the organization are those that are capable of learning, changing, innovating and providing the creative thrust which if properly motivated can ensure the long-term survival of the organization.

HRM aims to ensure that the organization obtains and retains the skilled, committed and well-motivated workforce it needs.

Relationship between human resource management practices and organizational performance

This means taking steps to assess and satisfy future people needs and to enhance and develop the inherent capacities of people — their contributions, potential and employability — by providing learning and continuous development opportunities.

It also means engaging in talent management — the process of acquiring and nurturing talent, wherever it is and wherever it is needed, by using a number of interdependent HRM policies and practices in the fields of resourcing, learning and development, performance management and succession planning.

HRM aims to support the development of firm-specific knowledge and skills that are the result of organizational learning processes. Reward management HRM aims to enhance motivation, job engagement and commitment by introducing policies and processes that ensure that people are valued and rewarded for what they do and achieve, and for the levels of skill and competence they reach.

Employee relations The aim is to create a climate in which productive and harmonious relationships can be maintained through partnerships between management and employees and their trade unions.

Meet diverse needs HRM aims to develop and implement policies that balance and adapt to the needs of its stakeholders and provide for the management of a diverse workforce, taking into account individual and group differences in employment, personal needs, work style and aspirations, and the provision of equal opportunities for all.

Rhetoric and reality The research conducted by Gratton et al found that there was generally a wide gap between the sort of rhetoric expressed above and reality. This arises because of contextual and process problems: There are many models, and practices within different organizations are diverse, often only corresponding to the conceptual version of HRM in a few respects.

Hendry and Pettigrew play down the prescriptive element of the HRM model and extend the analytical elements. As pointed out by Boxallsuch an approach rightly avoids labelling HRM as a single form and advances more slowly by proceeding more analytically.

The hard version of HRM emphasizes that people are important resources through which organizations achieve competitive advantage. These resources have therefore to be acquired, developed and deployed in ways that will benefit the organization.

As Guest comments: It is a philosophy that appeals to managements who are striving to increase competitive advantage and appreciate that to do this they must invest in human resources as well as new technology.

The emphasis is therefore on the interests of management, integration with business strategy, obtaining added value from people by the processes of human resource development and performance management and the need for a strong corporate culture expressed in mission and value statements and reinforced by communications, training and performance management processes.

The soft version of HRM traces its roots to the human-relations school. It emphasizes communication, motivation and leadership. It therefore views employees, in the words of Guestas means rather than objects.

Attention is also drawn to the key role of organizational culture. And research carried out by Gratton et al found that, in the eight organizations they studied, a mixture of hard and soft HRM approaches was identified. This suggested to the researchers that the distinction between hard and soft HRM was not as precise as some commentators have implied.The aim of this study is to evaluate the effects of human resources management practices on organizational commitment, singly and systematically. has been an NCCRS member since October The mission of is to make education accessible to everyone, everywhere. Students can save on their education by taking the online, self-paced courses and earn widely transferable college credit recommendations for a fraction of the cost of a traditional course.


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Human Resource Management (HRM) is the process of managing people in organizations in a structured and thorough manner. ORGANIZATIONAL PERFORMANCE JOHN T. DELANEY ological issues for consideration in examinations of the relationship between HRM systems and firm performance.

In recent years, U.S. companies have been urged to adopt a variety of performance-enhancing or progressive human resource management (HRM) practices . Published: Mon, 5 Dec This research proposal studies on the relationship between Human Resource Management Practices and organizational performance.

Six Human Resource Management Practices are used as independent variables to determine .

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