Understanding Definitions Of Hrm And Benefits Business Essay

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Storey (1995) explained HRM is distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of culture, structural and personnel techniques.

On the basis of description from Legge (1995), human resource management had been divided into two models which called "soft model" and "hard model". The hard model states that it is important for business strategy to be associated with human resource policies, system, and activities. On the other hand, soft model emphasizes on treating employee as value asset which provide company with competitive advantage through human recourse policy.

Definitely, HR function plays an important role of organization today. Derek (2008) explained that organization might be benefited a lots through HR function. Firstly, HR function can help organization to gain competitive advantage including profit maximization, workforce mobilization, flexible management and so forth. Through useful human resource management function, organization might perform efficiently and establishes good commitment to the staff that becomes loyal to company. And such loyalty might be established during recruitment, training and rewarding. Secondly, it also provides organization with maintain competitive advantage such as recruit and allocate outstanding people effectively who might make a great contribution to company. What they do can be seen as barriers to prevent rivals who desire to capture organization market. When organization recruits competent peoples, it means the rivals loss their opportunity to admit them. It also can reduce their competitiveness at the same time. Totally, competitive advantage concludes two parts. One is that the opinion or idea from the talents to help the company to defeat the rivals or capture the market share. Another is that they improve organization performance through hard working and individual effort. At last, HR function also exists as an important key factor in establishing good reputation for organizational in different aspects. The first part includes building organizational commitment to staff. It would be achieved through recruitment, training and promotion to the new employees. Staff would integrate their personal objective into organizational goal that allows them spare no efforts in developing organizational performance. On the other hand, brand image of organizational will be damaged as organization treats their staff worst. It will be hard for organization to recruitment new staff who would like to select its competitors because of the better reputation. Moreover, reputation influences on the organization look for business collaborations. It would reduce organization opportunities and offer competitors opportunities.

Integrate HRM function into corporate strategy

Foss (2003) explained that corporate strategy is "the pattern of decision in a company that determines and reveals it objective, purpose, or goals, purpose the principal policies and plans for achieving those goals". Generally speaking, corporate strategy is that firm keeps sustainable development so as to cope with difficult chandelles and changeable environments in a long term period. According to Armstrong (1992) assumption, SHRM is a part of HR function which aims to long-term company interest. It allows organization to deal with problem through efficient human resource management in a long term. He issued that strategic human resource management might be explained as the relationship between human resource and organization strategic objective so as to develop organizational culture and improve business performance that allows organization obtain a competitive advantage. Definitely, Strategic human resource management helps company to achieve their organizational objective such as employee motivation and high quality of good or services through HR function by recruitment, training and rewarding.

HRM function affects organization

Derek (2008) stated strategic human resource management can be divided into three theoretical approaches. Firstly, it described that SHRM includes certain best way to manage human resources so as to boost organization performance. For example, company introduced an efficient model to staff which called "high performance working system" ( Appelbaum and Batt 1993) that produce a high-efficient performance to the organization. The main purpose of HWPS is to build a stable environment in an organization which is employee involvement, commitment and empower, not employee control.(John 2001) Secondly, it focused on achievement that aligns employment policies and practice with organizational strategy so that company's objective will be successful to finish. It is a useful evaluation for a company to revise their strategies when they fail to achieve their target. Finally, SHRM affects organizational to change their view from resource-based to value of human capital. According to this conversion, organization might more emphasis on the people who are broad knowledge and experience that provide firm with a competitive advantage. Sometimes, those people might still make a high performance although company has a limitation resource to allocate.

Guest (1989) described a model which called "a high-commitment model" associated with high performance in organization. The final objective of this model is to enable that organization performance outcome will be prominent. This model defined four goals for the HR function including strategic integration, commitment, flexibility and quality. Each of them relates to HR function and HRM policy which aims to achieve desired organizational performance.

Strategic integration manes that combine HRM function including human resource policies with strategic planning. Organization will benefit from it because managers will apply it into their daily activities and to evaluate staff performance that ensure employee do follows organization's strategy. Commitment explained that employees agree organization's belief that they improve company performance by their personal effort. The advantage of this part is that employee would try their best to work without any compelling rule. Sometime, benefit that company get will much exceed than they have paid. Flexibility explained that adopt different skill to adapt organization structure and function. If an organization wants to restructure, it might minimize cost and time because of multi skilling and experienced staff that caused a little influence on firm. Quality explained that a high quality of performance such as good and services would be produced through outstanding and flexible staff. It is that high quality performance always be popular with the customer. It permits company to build a good brand image and reputation among the customers that help company to establish a high market share.

HRM function affects mangers

Actually, HRM also help mangers to develop themselves through framework raised by Goleman (1998). The framework he found related to excellent leadership performance including technical, cognitive and emotional. Moreover, the most important factor is emotional intelligence including self-awareness, self- regulation, motivation, empathy and social skill.

Self-awareness helped manger to define and understand everyone's strengths, weakness. It also includes personal needs, value and goals. Furthermore, manger would found his own limitations as well. According to this skill, mangers might allocate the appropriate task to suitable people. This allocation can make full use of people their fortes and avoid their shortcoming that ensures a high performance. On the other hand, people would be efficient when the task he got was match with his value. Self- regulation defined a method which aims to control staff's feeling so as to make them comfortable.

Motivation defined that manger should encourage staff to get more rather than stop to improve themselves. It allows employee to keep improvement through by setting higher requirement than before. It is a potential approach to improve staff's attitude, knowledge and so forth.

Empathy helps mangers to focus on employees opinions when they make decision. It helps manger to pay more focus on the employees and build loyalty and motivation to employees. Staff would be proud of themselves for they have been treated as a key factor when managers make a decision.

Social skill explained that a good manager who is good at commutating with staff and building a good relationship with them through special method such as discusses them with their interest. Mangers might have an opportunity to understand and get their concern to organization so as to react with relevant strategies. As a result, firm can get along with the staff.

As we can seen from this framework that staff are always be treated as value of company's asset.

HRM function affects employees

Definitely, human resource has influenced on employee personal activities through HR practice. HR practice plays an important role in HRM function to develop employee's knowledge, skills and attitude. (Shipton, West, Dawson, Birdi and Patterson 2006) On the basis of agreement, a basically HR practice system includes training, performance evaluation and reward. It is also designed to develop employee teamwork. Though efficient HR practices, staff will become skillful, loyalty, creativity so that improve organization performance.

Formal, training always might be designed to achieve organizational goal rather than to promote the creativity associated with exploratory learning (Levinthal and March, 1993). Definitely, the final purpose of organization is to maximize their profit. As a result, company design training to employee that helps organization to perform better. There are two methods for training the staff. One is "internal course" (Brown and Dugid, 1991) such as coaching, another one is "external course" (Kolb, 1984) such as further study. The internal course allows employee to develop their skill and knowledge in the organization. In contrast, the external course offer staff a systematic training however they might have to be away from the company and the expense is higher. On the other hand, company does not only deliver skill and knowledge but also build loyalty to employee during the training. An appropriate training strong establishes organizational commitment to staff that they willing to stay with the organization and try their best to improve organization performance.

Guzzo and Bondy (1983) explained performance evaluation as an approach to improve organization performance including quality of goods or service, cost-saving and productivity. Feedback is a role part of evaluation because it can tell employee the different between their performance and organizational target. It can also encourage employee to work hard if they have done a terrible. On the other side, performance evaluation also assesses the capability of the staff. It might indicate company that there are some people who need be trained again because they fail to achieve organization target. Finally, it can distinguish talents from others through feedback.

A good reward system establishes staff loyalty and improves job satisfaction. The traditionally way of payment depends on fixed salary or wage. However, there is a term called "pay for performance" which is more popular in the firms now that allows employee get extra reward because of outstanding performance with group. However, "there is issue raised that some people will be feeling that they are controlled by others because of they should work with others although some of them usually don not work hard". (Shipton, West, Dawson, Birdi and Patterson 2006). They might lose their motivation in doing work because they believed their got a bad team member. And this system is unfair to him although he want to perform well. Abbey and Dickson (1983) suggest one of revaluations to this situation is that company set such external reward such as bonus which might encourage people that become creativity and aggressive.

Team working is good at supporting organizational innovation and performance that encourage staff to be more interest in organization. (West et al, 2004). There are lots of benefits from team work. Firstly, it permits team member to share personal knowledge and experience. In additional, culture information can also be available through exchanging idea that makes whole team closer. Secondly, a team work might build a trust relationship with other members. Through a frequently communication, members will become more familiar with others. Thirdly, it offers member a good opportunity to deal with conflict. Generally, there must be a lot conflict during the teamwork. In this part, member should learn how to respect others. Fourth, team work also helps staff to develop their capability to deal with the changeable environment. Once the external environment or task environment changed, they should be quick response to change to ensure that their team work keeps smooth.

Difficulties in HRM managers may meet

However, there are two difficult points existed in the human resource management that it is not easy for a mass of mangers to use the human resource management. First, According to Rothwell (1995) explained that there is a significant gap between theory and practice in the related human resource planning activity. It is hard for manager to define human resource strategy. These difficulties include company size, industry sector and ownership. Another reason is because of high requirement of efficient human resource management; mangers must improve and practice themselves so as to control human resource management as soon as they can.


I have defined HRM (human resource management) and certain HRM function including SHRM (strategic human resource management) to determine their benefits to the organization that not only in short term but also in long term. I also adopted other three methods to analysis the impact of human resource management function in both organization and individual. And now to sum up, the purpose of what I motioned is that all of them that HRM functions enable organization to improve performance and to be more efficient. As I stated above, it is no doubt that organization and manager would benefit a lots from efficient human resource management. Words (2297)