Hrm Practices And Their Impact On Company Performance Business Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

HRM research includes contingency theory. It implies that organizational strategy moderates the relationship between strategic HRM practices and company performance. A particular HRM practice may influence company performance positively in combination with another strategy while best practices approaches include formal training system, results oriented appraisals, employment security and participation. Within the best practice approach to strategic HRM, refers to the organizational empirical support for these approaches. The present study adopts the best practices approach to examining strategic HRM practices and their influence on company performance. It contributes to the extant literature in three ways. It examines the factorial validity of the previously outlined seven strategic HRM practices in the context of Chinese enterprises using a large sample that cuts across firm age, size, industry sector, ownership, and location of the enterprise. We expect that our results. Will help to determine the measures of strategic HRM practices can be generalized across organizations and countries with a view to facilitating comparative research. We discuss in some detail how the seven strategic HRM practices currently are applied in Chinese enterprises and their development trends. HR management is an often-underestimate task in work environments. However, it is adequate and conscientious HR management that will establish and retained a qualified, well cooperating workforce.

The most important tasks of the Human Resource department include legal requirements, contribution to organisation, fit with corporate strategy, human capital management and strategic HR Management. HR make sure that the people working in an organization feel happy, are in the right job, and get the opportunity to upgrade their skills when necessary. Of course it is also HR's task to coordinate the recruitment of new employees for vacant positions. This brings up the interesting point of internal recruiting versus external recruiting. Yet it is, HR department, together with the particular department management, to determine which way to go in certain cases.(e.g.) When you hire people from the inside you have the advantage that they are already familiar with the culture and the work climate, but you also have the disadvantage of having to retrain the ones that are now performing in new positions, and having to fill the positions that fell open when employees got promoted. Hiring externally, on the other hand, has the advantage of bringing in fresh ideas, saving costs by hiring the person with the right skills, but it may have the disadvantage of having to guide this newly hired person through the organization, which can be a time consuming process. And you never know what you get with new people, right? HRM is also more important because the primary role of human resource management is to listen to the suggestions made by the employees and to understand their views. At the same time the company cannot take all the responsibility of taking care of the employees they can't always keep an eye on them, so if an HR is present he can watch the activities of the employees or workers keep an eye and record them. Even the responsibility of allocating salary, recording leave, will be taken care by the HR.It is also important because people are the key asset of the company. Due to the high complexity of structures and processes in that organisation the impact on company performance in Chinese enterprises are very complex and difficult to handle. Therefore, we aimed to support systematic systems analysis by developing a comprehensive framework that presents and describes potential areas of analysis.

Harvard Model of HRM sees employees as resources. This approach recognizes the element of mutuality in all businesses. Employees are significant stakeholders in an organization. They have their own concerns and needs along with other groups such as shareholders and customers. Harvard framework demonstrate the economic rationale for investigating in women as well as man, Assists planners design more efficient project and improve productivity and emphasise the importance of information as basis for meeting the efficiency goal. And also it contains a series of checklist consisting of key questions to ask each stage of project cycle, identification, design , implementation and evaluation. Framework is best suited for project planning, rather than policy planning and for also baseline data collection The strength of Harvard framework is practical and hands on and it is easy to adapt to a variety of settings and situations. A framework for system analysis in one organisation was developed and applied and to provide a clear structure the framework describes the potential views and levels of system in an organisation. The framework comprises views such as roles and responsibilities, information processing tools, business processes, communication, cooperation and team structure. It includes also levels of analysis such as organisational unit, staff member, overall organisation, and role task.

Strategic human resource management often is viewed as a set of development, transformation, cultural management, knowledge management, developing trust, and reward. It has now become popular practice in Chinese enterprises that each employee has clearly defined duties which are always given to know his/her compensation, reward or incentives from the company. An incentive is an object, item of value, or desired action or event that spurs an employee to do more of whatever was encouraged by the employer through the chosen incentive. And there kinds of incentives are available for employers to use at work such as compensation incentives, recognition incentives, rewards incentives and appreciation incentives. The major goal of an organisation's reward system is to keep employees motivated so that they continually perform better at their given assignment.

Chinese enterprises include also knowledge management which is also useful in management principles and method which is necessary for a modern organisation. Knowledge management has become a very 'hot' topic today and plays a key role in making companies competitive. Knowledge has become the most precious property of an organization and is one of the core elements in an evolving corporation in the age of knowledge economy. Particularly knowledge is the basis of modern organizational existence, especially knowledge intensive organizations. It makes a different contribution to an enterprise depending on their different aspect. Knowledge is the most important part of development of an organization in today's knowledge-economic environment. The purpose of knowledge management strategies in an organization requires that every employee,not only knowledge workers should suggest effective knowledge work every day. Employee's eagerness to do something on knowledge management is very important because their work is the basic force of projects. They should use their resource to share their knowledge willingly and make some contributions to developing projects. So it is necessary that the organization establishes employee performance measure systems which signify what performance they want to do.

The aim of development strategy in enterprises is to move to a high performing authority. This will mean a workforce that focused on what the customer needs, that is constantly striving to develop itself, that communicates internally and externally and that maximises the talent of its diverse workforce. Managers and leaders are required to address new challenges such as climate change, globalisation, provide inspirational and engaging leadership that encourage people to go the extra mile Development strategy will succeed in an organisation if managers lead the workforce. Tapping into the diverse skills base and letting the staff at the front line drive initiatives to meet the needs and expectations of customers, encouraging ownership and offering genuine support.

In assessing roles of strategic HRM in an organisation or company enterprises they include motivation of their employee such as promotion, racial discrimination,health and safety and substance abuse. Strategic HRM in Chinese enterprises motivates their employee.. The manager choose an excellent employee in each department or he choose employee who is qualified for the promotion..It means higher level of job title, higher responsibilities in the company. Sometimes a promotion results in an employee taking on responsibility for managing the work of other employees. A promotion is viewed as a desirable by employees because of the impact of promotion has on pay, authority, responsibility, and ability to influence broader organisation decision making. The past few years have witnessed dramatic developments in strategic HRM practices in Chinese enterprises. Our findings support recent assertions by researchers that strategic HRM practices not only are widespread, but also are valued by Chinese organizations. The Chinese economy seems to have gained momentum to nurture and develop human capital with the purpose of becoming a knowledge economy.

Chinese social science institute observed that future developments in strategic HRM would be characterized by treating human resources as organizational capital, emphasizing the management of employee knowledge, skills, and capabilities; developing strong corporate culture; making performance appraisals objective and reward systems just and fair; redesigning jobs to facilitate career development; and changing the role of the HR function from one of administrative bureaucracy to one of possessing the strategic role of facilitating and achieving strategic goals. These characteristics of strategic HRM closely reflect HRM trends in advanced economies. We believe that in a decade or two, with some local adaptations, mainstream strategic HRM will prevail in most Chinese organizations. In the highly competitive Chinese market, a firm's success increasingly will rely on the quality of its human capital. HR Departments will have to design systems that enable their organizations not only to attract managerial talent, but also to train, involve, motivate, and reward managers in ways that support organizational strategy. The Chinese enterprises are trying to fit between its unique capabilities and competitive requirements of an industry that distinguished from others. The challenge for management is to choose or create an environmental context where the company's distinctive competence and resources could produce a relative competitive advantage. This strategy then would be actualised through a consistent effort that coordinated the firm's goals, policies, and functional plans. The strategy of the organisations decides its future sustainability. The strategies are implemented by employees in the organisation. The effective management of employees is done by HR management

If the employees are not able to manage properly, they will automatically converts as non-performers in the organization. The organisation lags behind in the competitive environment. So there is a need for HR manager to act as strategic HR. HR gives efforts to the organisations, to sustain in business environment. Human resource professionals are equipped with the knowledge, skills, and abilities to not only be involved in the strategic management of the organization but drive the implementation of it. HR as a strategic business partner should be the driver of organization, to move the organization in right direction. To fulfil a strategic HR role, HR managers must understand the organization's business. In addition to fully understanding the business, HR manager must understand the environment in which it operates strategic planning process, the competition and the circumstances that could influence the progress of organization. The HR roles are broadening according to the changing business environment. So it is significant to study the role of strategic HR side through Alignment of HR with business strategies, proactive HR practices, Leadership. These things build the HR to act as strategic business partner in the organisations of Chinese Enterprises.