Wednesday, April 13, 2022

The Impact of strategic human resources management on organizational performance

 




 

Introduction

Groups of companies try to create more opposition between them, gain more market, more customers, and more sales. Quick changes due to globalization and expansion of Information systems and other factors have led to high competition (Cania, 2014). As clarified by (Caliskan, 2010) Represents Strategic Human Resource Management (SHRM) A relatively new transformation in the field of human resource management. SHRM is concerned with the role of human resource management systems Play with consistent performance, exclusively focusing on the alignment of people Resources as a means of gaining competitive advantage.

Human useful resource control goals to make sure that the corporation obtains and keeps the skilled, dedicated, and well-motivated personnel it wishes. This manner takes steps to evaluate and satisfy destiny human’s wishes and to decorate and broaden the inherent capacities of humans – their contributions, capacity, and employability – through providing getting to know and non-stop improvement opportunities. It entails the operation of recruitment and choice procedures, control improvement, and schooling sports connected to the wishes of the business (Armstrong, 2008).

 


How SHRM Impacts Organizational Performance


Figure – 01 (Joyice W. Kariithi, 2016).

Conferring to the (Noe, 2007). Strategic HRM and Business Performance dominated Research Studies and the debate of professionals for more than two decades. However, in many studies and publications, the concept is defined in terms of individual applications in the HRM field To Create and maintain a competitive advantage in this type of environment, Organizations need to continually improve their business performance. Increasingly, organizations are recognizing their human potential Resources as a source of sustainable competitive advantage. Related to this, more and more organizations are relying on measurement approaches as a labor force scorecard, to gain an understanding of how man is Ads resource value to their organization (Caliskan, 2010).

Deliberating to the (Voorde, 2010). The growing interest in measurements is further stimulated by an increasing number of studies showing a positive relationship between humans Resource management and organizational performance.


Figure -02 Cited (Cania, 2014, p. 378)

“In HRM-performance research, the performance outcomes of HRM can be viewed in different ways. HRM researchers have mostly referred to Dyer and Reeves’ (1995) classification of performance outcomes as follows:

o HR-related outcomes, such as turnover, absenteeism, job satisfaction n, and commitment.

o Organizational outcomes, such as productivity, quality, service, efficiency and es, and customer satisfaction.

o Financial accounting outcomes, such as profits, sales, return on assets, return on investment.

o Capital market outcomes, such as market share, stock price, growth (Boxall, Purcell and Wright, 2007 “ (Cania, 2014, p. 378)

 

Below are the Examples for implementing SHRM in the organization

·         Google

In 2006, co-founders SerBrinyrin and Larry Page decided to take an empirical approach to human resources based on feedback and employee data. This publication is an ongoing study of management practices that help identify and nurture project oxygen, and key management behaviors (Bartram, 2020).

·         Cisco

 Factual to their business, CISCO formed its own HRM System to gain an approach and good assist the requirements of the corporate. The CISCO Capacity Cloud is an internal CRM that provides managers capability of the assistance and skills of the company’s 70,000+ workers. More, it provides the staff’s the need to take the creativity in their growth. This method agrees leaders set composed the greatest crew wanted to whole an exact plan, and workers the opening to absorb by occupied on a mission that benefits them chance an exact objective. High-ranking supervisors can entree present intellect on crew routine, in what way they yield marks, implement urgencies and points of commitment. Cisco noises this a ‘one-size-fits-none’ worker involvement and it appears to be occupied. CISCO is classified amount one of Fortune’s Best 100 companies to work for and is up to appeal to top talent assistants who encounter occupational objectives (Bartram, 2020).

·       Hilton Worldwide Holding

The secret to Hilton's success, on both fronts, is not a small part of a highly strategic approach to managing its company culture. Culture is important because it represents the way people work together daily and on projects (Bartram, 2020).

According to the (Khan, 2018).In the cutting-edge enterprise world, businesses are seeking to make aggressive gains with exclusive enterprise and to control their human assets in getting the organizational overall performance required. To obtain this mission, businesses are which include fee reduction, reaching better income levels, Improving the wide variety of customers, growing the marketplace share, growing product availability, exceptional products, and awareness of maximization of wealth. Human assets act because of the maximum essential aspect in reaching these concert goals. An efficient HR strategy can help a large company to come forward, but if it is not used properly, the HR strategy can be detrimental to the overall health of a company. Human resources can help in the development of strategies Company goals as well as new projects. It is important to include the company’s goal for development Attempts to implement one HR policy and the other without one can lead to dissatisfaction and misguidance of Employees (Wright, 2005).

 

 

 

Reference

Armstrong, M., 2008. Strategic Human Resource Management: A Guide to Action. 4 ed. London: Kogan Page.

Bartram, F., 2020. https://peoplemanagingpeople.com/articles/strategic-human-resource-management/. [Online]
Available at: https://peoplemanagingpeople.com/articles/strategic-human-resource-management/
[Accessed 08 April 2022].

Caliskan, E. N., 2010. The Impact of Strategic Human Resources Management on Organizational Performance. Journal of Naval Science and Engineering, 06(02), p. 107.

Cania, L., 2014. The Impact of Strategic Human Resource Management. Economia. Seria Management, 17(2).

Joyice W. K., & Ogutu, M., 2016. https://www.semanticscholar.org/. [Online]
Available at: https://www.semanticscholar.org/paper/IMPACT-OF-STRATEGIC-HUMAN-RESOURCE-MANAGEMENT-ON-(A-Kariithi-Ogutu/69422d8e286e4b9dd7e6228a0478aea3d10821a8
[Accessed 08 April 2022].

Khan, M. D. & Yusof. H., 2018. Strategic Human Resource Practices and its Impact on Performance towards Achieving Organizational Goals. Business Ethics and Leadership, 2(2), p. 72.

Noe, R.,& Hollenbeck, J. R.,& Gerhart, B., & Wright, P.  M., 2007. Fundamentals of human resource management. 2 nd ed. Boston: McGraw Hill.

Voorde, V. D.,& Paauwe K.J.& Veldhoven,V. M., 2010. “Predicting Business Unit. Human Resource Management Journal, 20 (1), pp. 44-63.

Wright, R. C., 2005. Destructive trends in mental health. New York: Routledge.

 
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5 comments:

  1. Rohitha SamarathungeApril 15, 2022 at 9:10 PM

    Organizational performance is getting more and more important, especially in a market with greater competition and dynamics. Organizational performance is measured through different indicators. It guarantees the continuity of the organization to be competitive in a global marketplace. Normally, the implementation of performance indicators is achieved through human resources. Human resources are the key to keeping the organization in the market so competitive. These human resources need to be managed effectively to achieve the required performance of the organization. It is necessary to manage strategically the human resources and to adapt its strategy to organizational strategy.
    References:
    Cania, L., 2014. The impact of strategic human resource management on organizational performance. Economia. Seria Management, 17(2), pp.373-383.

    ReplyDelete
  2. Geethal PereraApril 30, 2022 at 10:23 PM

    Human resources is doing a vital role in performance management. Identifying the correct talents, mapping correct job roles to the correct persons, and training and developing or empowering the employee are some of the key roles in SHRM. In this case, training and development gives a great advantage. The most effective way to learn these strategies is to develop integrated training and personal development plans that are environmentally friendly.

    ReplyDelete
  3. Kasun WarnapuraMay 1, 2022 at 5:52 AM

    Organizations are seeking to create much competition between them, taking more market, more customers, more sales, etc. Many organizations are driven by the market to set their goals in their performance. Some of the goals are: cost reduction, achieving sales levels, increasing the number of customers, increasing the market percentage, improving productivity and quality, innovative products. The realization of these goals will be achieved through the human resources management in organizations. Workforce, as the key to success, will enable the achievement of organizational performance.

    (Hanno,2017)

    ReplyDelete
  4. maduwanthisilva.blogspot.comMay 3, 2022 at 8:27 PM

    SHRM can influence on individuals performance, organisational commitment and job satisfaction. It was found as direct and positive impact. Therefore its contribution to organisational performance has recognized all over the world. Specially SHRM practices inflences employees performance allowing them to work desirable environment. Satisfied and loyal employees improve themselves and organistion

    ReplyDelete
  5. sampathJMay 3, 2022 at 9:28 PM

    Organizations are seeking to create much competition between them, taking more market, more
    customers, more sales, etc. Rapid changes stemming from globalization, advancement of
    information systems and other factors have caused higher competition. Many organizations are
    driven by the market to set their goals in their performance. Some of the goals are: cost reduction, achieving sales levels, increasing the number of customers, increasing the market percentage, improving productivity and quality, innovative products. The realization of these goals will be achieved through the human resources management in organizations. Workforce, as the key to success, will enable the achievement of organizational performance. Human resources are regarded as one of the most important sources of today's firms. Human resources management is more important than other competitive sources because these people use other assets in organization, create competitiveness and realize objectives.

    ReplyDelete

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