In today's highly competitive business environment and increasing number of organisations have realised the importance of becoming to emphasize their human resource and more customer-centric and invested a large amount of time and resources with the aim of better managing their business environment and their customers. A large number of human resource management (HRM) and customer relationship management (CRM) projects, however, end of failing or struggling in the competitive global business arena. While many studies have been conducted about methodologies, tools and theoretical conceptualisations of HRM and CRM, there is little, if any, emphasizing the critical stage and key challenges to its successful implementation.
In the field of strategic human resources management (HRM) focus exclusively on “the pattern of planned human resource deployments and activities intended to enable the firm to achieve its goals,”(Wright & McMahan, 1992:298). This focus emphasizes two types of correspondence or fit. First, vertical fit involves the alignment of HRM practices and the strategic management process of the firm (Schuler & Jackson, 1987). Second, horizontal fit implies a congruence among the various HRM Practices (Baird & Meshoulam, 1988). Vertical fit is viewed as directing human resources toward the primary initiatives of the organization, whereas achievement of horizontal fit is viewed as instrumental for powerfully allocating those resources. The following check-lists present some questions that may prove helpful for an organization to think about when planning for development programs for human resources (their people/internal customers) in the organization.
Any organization is more than likely in trouble if any of following issues are as follows:
- Chronic employee relation's problems
- No means of resolving employee grievances
- Increasing/erratic employee turnover
- Increasing number of customer complaints
- No pride in the organization
- Inter-group conflicts
- No career paths for ambitious talented employees
- Dissatisfaction with pay and conditions
- Unclear job roles
- No clear performance measures
In addition to discussions of fit, researchers increasingly have emphasized the concept of flexibility in strategic HRM (Kerr & Jackofsky, 1989; Lengnick-Hall & Lengnick-Hall, 1988; Milliman, Von Glinow, & Nathan, 1991), advocating that organizations faced with a complex and dynamic environment require flexibility to adapt to diverse and changing requirements (Snow & Sness, 1993). From this perspective, strategic HRM is concerned primarily with developing the organizational capability to adapt to changing environmental contingencies (Sness, Youndt, & Wright, 1986).
At first glance, it might come into sight that the desirability of strategic fit and the need for organizational flexibility conflict. Indeed, the relationship between fit and flexibility in the context of strategic HRM may not be well understood, and little agreement exists regarding the definitions and the value of each. Our purpose, here, is to present a framework that provides a theoretical foundation for understanding the dual roles of both appropriate the HR system to the strategic need of the firm and building this system so as to enable flexible reaction to a variety of strategic requirements over time.
CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise to manage customer relationships in a well thought-out way. For example, an enterprise might build a database about its customers that described the relationships in sufficient details so that the management, salespeople, people providing service, and perhaps the customers directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth. According to one industry view, CRM consists of the following things: - Helping an enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns with clear goals and objectives, and generate quality leads for the sales team. Assisting the organization to improve telesales, account, and sales management by optimising information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices) Allowing the formation of individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits; identifying the most profitable customers and providing them the highest level of service. Providing employees with the information and processes necessary to know their customers, understand their needs, and effectively build relationships between the company, its customer base, and distribution paterns. Customer Relationship Management (CRM) has entered the typical. Despite the uncertainty of the economy, CRM is being thrust into corporate budgets and talked about as a critical initiative by hundreds of Fortune 1,000 and tens of thousands of other companies. It has gone from being an important edge in the business world to a necessary tool for survival. The notion of the customer as king or queen is once again the rule. How any organization treats this is a mission-critical business issue. So now a day most of the renowned organizations believe that “Customer is the King”.
The benefits of CRM: It is very probable that your company is composed of several distinct silos including:
- Information Technology
- Customer Service
Aims and Objectives
Every research paper has some aims and objectives based on some data that help the researcher to understand the view of the research. I also have some aims and objectives. My research paper aims to-
- Introduce the concept of a strategic integration of knowledge management (KM) and customer relationship management (CRM).
- Compiles the critical steps and provides a conceptual framework for the better implementation of the organisation.
- Develop a data-based, customer focused management strategy that aims to increase customer satisfaction by cultivating long term relationships.
- Recognised the key ingredient in the creation of market value.
- Over come the “cross-functional, customer-driven and technology integrated business process management strategy” that maximises relationship.
- Apply the concept to supply chain management (SCM), product development management (PDM), enterprise resource planning (ERP) and network management (NM) that offer different perspectives into knowledge management adoption.
Human resource managers are always involved to describe several HRM practices. Items consisted of brief descriptions such as Performance appraisal results are used to determine compensation and employees receive bonuses for company-wide productivity improvements or profitability gains. For most items, respondents were asked to indicate the percentage of employees covered by the practice described. They were instructed as: Below are descriptions of several HRM practices. For each item, indicate the percentage of employees for whom the statement is currently true in the firm/division. Give separate percentage estimates for each category of employees. Estimates were requested for top managers, other managers and supervisors, non-exempt salaried employees and hourly employees. For a few items, a different format was used. The alternative format asked respondents to divide a total of 100 points among several response categories. Thus, to assess the extent to which performance appraisals focused on short term versus long-term projects.
But, what is CRM and how does it change the way companies do business? The changes in the world have been so dynamic and so dramatic that the path isnt necessarily all that obvious. How CRM impacts that business path is a continuing source of debate in the world of corporate management.
Successful companies attach great importance to human resource management and internal communications (Young and Post, 1993; because they are aware of the value of those activities and of strategic advantage they can bring to the organization. They should also realize that it is necessary to live internal marketing philosophy, if they stream to offer quality products and services to both markets: internal and external. The new internal marketing philosophy should be grounded in a relationship marketing theory. It should not be limited to neither of three functional areas that are commonly connected to it - internal communications, human resource management and customer relationship management. It is for sure that managing internal relationships should not be restricted to any function, and should not apply traditional marketing concepts and tools. That would ruin the nature of internal relationship marketing, and would not encompass all tasks it should fulfill.
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