Hrm's Role in Achieving Organisational Objectives
Introduction
In a rapidly and continuously changing work environment, organisations are becoming more volatile giving rise to renewed concerns for human resource management (HRM). To survive in an intense competitive environment and subsequently achieve their objectives, organisations require human resources (HR) and capabilities that are exceptional and create value in an inimitable way (Barney & Clark, 2007; Pfeffer, 1994). Boxall and Purcell (2003) reinforced that the unique talents among employees provide a critical ingredient in developing an organisation’s competitive position. But how employees are managed as vital HR to provide a competitive edge from an organisation’s perspective requires an understanding of the strategic role of HRM and its contribution to the achievement of organisational objectives. Despite the wide recognition of HRM as a significant source of strategic competitive advantage, Galford (1998) and McElwee and Warren (2000) researched that there is a prevailing assumption among organisations that HRM is only responsible for administrative functions and has no strategic accountability. There has been confusion about what HRM actually entails and what value it can deliver to an organisation. Therefore, this essay will specifically highlight and discuss the organisational role and context of HRM by offering new perspectives and their implications, thereby, developing a case of the relevance of HRM to organisation’s objectives. However, it is important to note that HRM is not an end in itself but a means to assist an organisation with its primary objectives.
Organisational Role and Context of HRM
According to Banfield and Kay (2012), HRM, which sees people as a key organisational resource that needs to be developed and utilised to support the organisation’s operational and strategic objectives, is a more recent approach to the management of employees. Wright, McMahan and McWilliams (1994) regarded this perspective as a
In a rapidly and continuously changing work environment, organisations are becoming more volatile giving rise to renewed concerns for human resource management (HRM). To survive in an intense competitive environment and subsequently achieve their objectives, organisations require human resources (HR) and capabilities that are exceptional and create value in an inimitable way (Barney & Clark, 2007; Pfeffer, 1994). Boxall and Purcell (2003) reinforced that the unique talents among employees provide a critical ingredient in developing an organisation’s competitive position. But how employees are managed as vital HR to provide a competitive edge from an organisation’s perspective requires an understanding of the strategic role of HRM and its contribution to the achievement of organisational objectives. Despite the wide recognition of HRM as a significant source of strategic competitive advantage, Galford (1998) and McElwee and Warren (2000) researched that there is a prevailing assumption among organisations that HRM is only responsible for administrative functions and has no strategic accountability. There has been confusion about what HRM actually entails and what value it can deliver to an organisation. Therefore, this essay will specifically highlight and discuss the organisational role and context of HRM by offering new perspectives and their implications, thereby, developing a case of the relevance of HRM to organisation’s objectives. However, it is important to note that HRM is not an end in itself but a means to assist an organisation with its primary objectives.
Organisational Role and Context of HRM
According to Banfield and Kay (2012), HRM, which sees people as a key organisational resource that needs to be developed and utilised to support the organisation’s operational and strategic objectives, is a more recent approach to the management of employees. Wright, McMahan and McWilliams (1994) regarded this perspective as a
References: Akhtar, S., Ding, D. Z. & Ge, G. (2008). Strategic HRM practices and their impacts on company performance in Chinese enterprises. Human Resource Management, 47(1), 15-32. Armstrong, M. & Baron, A. (1998). Performance management: The new realities. London: Institute of Personnel and Development. Auluck, R. (2007). Mere nip and tuck? Training and development’s changing role. Industrial and Commercial Training, 39(1), 27-34. Banfield, P. & Kay, R. (2012). Introduction to human resource management. Oxford, UK: Oxford University Press. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. Barney, J. & Clark, D. (2007). Resource-based theory: Creating sustainable competitive advantage. Oxford, UK: Oxford University Press. Barney, J. B. & Wright, P. M. (1998). On becoming a strategic partner: The role of human resources in gaining competitive advantage. Human Resource Management, 37(1), 31-46. Beaumont, P. B. (1993). Human resource management: Key concepts and skills. London: Sage Publications. Becker, B. & Gerhart, B. (1996). The impact of human resource management on organizational performance: Progress and prospects. Academy of Management Journal, 39(4), 779-801. Becker, B. & Huselid, M. (2001). The strategic impact of HR. Boston: Harvard Business School Press. Becker, B. E. & Huselid, M. A. (2006). Strategic human resources management: Where do we go from here? Journal of Management, 32(6), 898-925. Bowen, D. E., Ledford, G. E. & Nathan, B. R. (1991). Hiring for the organization, not the job. Academy of Management Executive, 5(4), 35-51. Boxall, P. & Purcell, J. (2003). Strategy and human resource management. Basingstoke, UK: Palgrave Macmillan. Cappelli, P. (2005). Will there really be a labor shortage? Human Resource Management, 44(2), 143-149. Chiavenato, I. (2001). Advances and challenges in human resource management in the new millennium. Public Personnel Management, 30 (1), 17-26. Galford, R. (1998). Why doesn’t this HR department get any respect? Harvard Business Review, 76(2), 24-26. Gomez-Mejia, L. R., Balking, D. B. & Cardy, R. (1995). Managing human resources. New York: Prentice-Hall International, Inc. Gupta, A. K. & Singhal, A. (1993). Managing human resources for innovation and creativity. Research Technology Management, 36(3), 41-48. Hartel, E.J., & Fujimoto, Y. (2010) Human resource management: Transforming theory into innovative practice. Frenchs Forest, NSW: Pearson Education Australia. Huselid, M. A., Jackson, S. E. & Schuler, R. S. (1997). Technical and strategic human resource management effectiveness as determinants of firm performance. The Academy of Management Journal, 40(1), 171-188. Inyang, B. J. (2010). Strategic human resource management (SHRM): A paradigm shift for achieving sustained competitive advantage in organization. International Bulletin of Business Administration, 3(7), 23-36. Jackson, S., Hitt, M. & DeNisi, A. (Eds.). (2003). Managing knowledge for sustained competitive advantage: Designing strategies for effective human resource management. San Francisco: Jossey-Bass. Keen, S. (2005, February). Work in progress. HR Monthly, 18-20. Kirn, S. P., Rucci, A. J., Huselid, M. A. & Becker, B. E. (1999). Strategic human resource management at Sears. Human Resource Management, 38(4), 329-335. Krafcik, J. (1986). Learning from NUMMI. Unpublished International Motor Vehicle Program Working Paper, Massachusetts Institute of Technology, Cambridge, Massachusetts, USA. Lawler III, E. E. & Mohrman, S.A. (2003). HR as a strategic partner: What does it take to make it happen? Human Resource Planning, 26(3), 15-29. Lockett, J. (1992). Effective performance management: A strategic guide to getting the best from people. London: Kogan Page. Maital, S. (1994). Executive economics: Ten essential tools for managers. New York: Free Press. McElwee, G. & Warren, L. (2000). The relationship between total quality management, human resource management in small and medium-size enterprises. Strategic Change, 9(7), 427-435. Mobile Pundit. (2006). Motorola has 14% market share in India. Retrieved March 23, 2012, from http://www.mobilepundit.com/2006/11/29/motorola-has-14-market-share-in-india/ Nel, P Niehaus, R. (1995). Strategic HRM. Human Resource Planning. 18 (3), 53-59. Norton, D. (2001). Managing the development of human capital. Boston: Harvard Business School. Pfeffer, J. (1994). Competitive advantage through people: Unleashing the power of the workforce. Cambridge, M.A.: Harvard Business School Press. Rowden, R. W. (1999). Potential roles of human resource management professional in the strategic planning process. Advance Management Journal, 64 (3), 22-27. Sheehan, C., Holland, P. & De Cieri, H. (2006). Current developments in HRM in Australian organisations. Asia Pacific Journal of Human Resources, 44(2), 132-152. Srivastava, P. & Bhatnagar, J. (2008). Turnover @ Motorola India-Mobile Devices Business through the HR lever. Vikalpa, 33(1), 119-129. Sullivan, J. (2007). Google. Workforce Management, 86(20), 42. Ulrich, D. (1997). Human resources champions: The next agenda for adding value and delivering results. Boston: Harvard Business School Press. Waal, A. A. (2007). Strategic performance management: A managerial and behavioural approach. New York: Palgrave Macmillan. Wei, L. (2006). Strategic human resource management: Determinants of fit. Research and Practice in Human Resource Management, 14(2), 49-60. Wright, P. M., McMahan, G. C. & McWilliams, A. (1994). Human resources and sustained competitive advantage: A resource-based perspective. International Journal of Human Resource Management, 5(2), 301-326. Yeung, A. K. & Berman, B. (1997). Adding value through human resources: Reorienting human resource measurement to drive business performance. Human Resource Management, 36(3), 321-335.