The Overview Of Human Resource Management

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02 Nov 2017

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Introduction

Human Resource Management (HRM) is a management process to enhance the working relationship of the people and management in an organization. HRM helps to ensure the employee in an organization is being cared and help them to achieve their best performance in their position. Today, there are many researches that focus on the impact of HRM in an organization performance. The goal is to find out how HRM can enhance an organization performance, in which aspect, and how this contributes to the growth and profit of the organization. Because of this, there have been many research showing different aspect of HRM contribute to the growth and expansion of organization. These include the field of global expansion, leaders’ development, and employees as well.

Content

According to one of the research lead by McChelland (1973), he brings in the idea of competencies for an argument with the title "Testing for Competence Rather than Intelligence." The word "competencies" is to build people in the aspect of creativity or what they can bring in for the organization instead of choosing people which are only academically equipped. This is true because in today society, education itself is not enough to judge a person capability in the working environment. An academically well equipped person might not have the necessary skill for marketing, which is socializing skill or persuading skill. The idea of McChelland had triggered the use of competencies in identifying high performing people or in other word, outstanding employees in the human resource management (Rodhiguez et al., 2002; cited from Boyatzis et al, 1982). From then on, this widespread has leaded many companies into success by having the HRM in searching for people by conducting interview. Thus, the human resource management comes to play an important role in filtering or selecting people based on their potential.

Apart from that, human resource management also plays an important role in training the employees for adaptation in international companies. Many organization in seeking for way to survive and prosper, come to understand that the current trend is to expand its business into international business in order to increase the organization profits (Mura, 2011). However, an organization will need to go through many changes in order to adapt into foreign cultures. During this process of adjustment, the human resource management plays an important role in dealing with the organizations employee in order to help them recover their usual performance. For instance, conducting training in smaller number in a group to learn about the people or conducting survey. Only then, the organization can survive the new environment and slowly penetrate into the new market. According to Mura (2011) the process of internationalization or globalization, the HRM is given an important role in dealing with cultural factors. This is true because in this process, many changes such as personalities, attitudes, people relationship have to be transformed in order to blend in to the new culture. Only by doing that, the organization can slowly have the knowledge to penetrate or tackle the new market in order to increase the profit of the organization.

"Human resource is a strategic asset that holds a critical role in both strategy implementation and management system (Becker et al, 2001)." An organization main resource is the employees. The human resource management role is to strategize the placement of the employees’ potential, placing them in best fitted position to bring in best profit to the organization. In short, the human resource management is the management in the implementation of human power placement. This is because the human resource management understands or knows better about the employee potential compared to any other faculties. For example, in producing a small team for marketing or any other purpose, the human resource management will be the first to be asked for opinion for man recommendation. "The solution is to manage human resource as a strategic asset and measure human resource in terms of its strategic impact (Becker et al, 2001)." The key here is to manage the human resource as a strategic asset through the human resource management. Hence, the human resource management also carries an important part in managing the people in bringing profit into the organization.

In other research, human resource management also considered a representative of high performance work system (HPWS). The HPWS is a system to help enhance the employees’ knowledge, skills, motivation and opportunity. All these are part of the factor to increase an organization performance, sales and growth. According to Huselid (1995; cited on Wright et al, 2003) in his work of HPWS which later served as a foundation for many other researches, he found out that his HR index was significantly related to the gross rate of return on assets from a survey he did with employees who practices human resources management. This shows that the human resource management provides profitability on the organization. The HPWS served as a foundation for the development of many human resource management training. According to Pfeffer (1998), there are all together seven key being emphasized which include employment security, selective hiring of new personnel, self-managed teams and decentralization of decision making as the basic principles of organizational design, comparatively high compensation contingent on organizational performance, extensive training, reduced status distinctions and barriers, including dress, language, office arrangements, and wage differences across levels.

To ensure the future growth and development of the organization, the human resource management also plays a vital role in producing global new leader. Bringing the best out of the employee and ensure them to maintain on the right path is a vital role from the human resource management. By helping each and every one of the employee to achieve their best, this will help filter and ensure the production of most capable leader from the organization. It was a new role given for the human resource management back in the 90’s based on the HR role model of Ulrich (1997) in finding new people for development of leader. This happen back in the 1990’s, where there was a question among the seniors of Fortune 200 company, whether the new executive were able to support for the global expansion work. Conner (2000) stated that there was an urge for new leaders with capabilities and required skills due to the rapid growth of global expansion work and aging of current managers. As a result, the human resource management was given the task to instill the required skill in producing new leaders.

Firms or organization operate differently from different policies set inside; hence these practices will differ and will bring in competitive advantage (Lado and Wilson 1994). The structure of an organization carries different way of managing the human resource. Human resource management will develop a suitable organization structure and policy in order to have competitive advantage over other organization. One simple example, if organizations have a good management structure and policy, it will automatically attract people to that organization. This is an advantage because it gives the organization the opportunity to filter and get good quality employee or even employer. There were also other practices mentioned by Colbert (2004), including internal career opportunities, formal training system, result oriented appraisal, employment security, participation and profit sharing. All these will give an organization an advantage over other organization that does not practice these or does not have the same standard of practice. Hence, when an organization obtain better human resource and can incite them to give out their best performance, the organization will definitely be the winner of the market.

Conclusion

As conclusion, an organization performance is indeed enhanced through the human resource management. There can be different method of strategy being applied in an organization to improve the outcome, such as in the field of adapting to new environment, producing different management structure, developing new leader for organization future, training employees, recruiting outstanding employee, but all these are the factor or source of an organization success from different aspect; leading the organization to its growth and profit. In short, organization with extraordinary human resource management system or talent will have better advantage over other organization in becoming the market winner.



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