HRM in organisation

Over recent years there has been great debate about the impact of Strategic Human Resource Management. Critically evaluate the evidence that high performance human resource practices lead to high performance and successful results in organisations. Illustrate your answer with practical examples from UK or US organisations. Compare and contrast this with at least two examples from organisations in international markets. In such an intense competitive environment, especially with the impact of recession, organisations strive just to survive and retain the market shares from being grabbed.

Hence, the organisations’ performance becomes one of the crucial factors to keep and attract the customers from competitors. At the same time, the people have widely been viewed as the main factors that would affect the organisations’ performance. As based on a report from CIPD (2003), “people are only one of many variables influencing productivity in numerous ways such as the educational level, skills, motivation, willingness to innovate, and diversity which affect the overall performance. “

Therefore, the “employee performance appraisal (PA) and performance management (PM) systems have been extensively studied as a core responsibility of the human resource management (HRM) function, particularly in the United States and, more recently, in the United Kingdom (Varma A et al 2008, page 15). ” Such systems bring advantages and help organisations to improve and enhance performance. “As according to Torrington (2005), PM has been developed to coordinate some features such as targets, training, appraisal and payment in order to deliver effectiveness.

” Moreover, “research in US found that, organisation with strong PM system are 51% more likely to outperform their competitors on financial measures and 41% more likely to outperform their competitors on non-financial measures such as customer satisfaction, employee retention and quality of product and services (Bernthal et al 2003, Varma A et al 2008, page 16). ” The evidences from studies and researches lead to increasing numbers of organisation realised the huge impact of human resource practice on organisation’s performance.

These organisations view human resource practice as a large part of achieving successful results and started to focus on human resource functions. For this reason, “according to CIPD (2009), the intangible values of an organisation which emphasise on the people it employs is gaining recognition by accountants and investors, and are commonly believed that this has implications for long run sustained performance. “

As a result, human resource strategy should be linked to the corporate strategy in order to achieve the organisation’s goals. This is because the potentialities of people who implement the corporate strategies are the main factor which affects the output of organisation. Human resource department therefore, bear the responsibility to recruit and select the right people into the ‘big family’ or the team whom would fit in and be able to coordinate well with the rests in order to create values which uplift the organisation’s performance.

In addition, Human resource department also play an important role as a trainer to train and develop the skills and knowledge of both the managers and employees. It could neither by creating a learning environment which shape the organisation culture nor conduct a series of training programme based on training needs analysis of each individual. Through training, the performance and productivity will be increased.