Human Resource Management in Business Essay Example For Students

Human Resource Management in Business Essay Running Head: Human Resource Management in Business Essay Human Resource Management in Business Sylvan R. Wilcox Warner Southern College Abstract Human Resource Management (HRM) is no longer a personnel office that is simply a record-keeping and maintenance function. Huselid (1995) points out that there is a positive correlation that has developed between HRM as a strategic ally and company performance. HRM research has grown from an atheoretical origin to view organizational activities from an interdisciplinary perspective (Jennings, 1994) that is concerned with a movement toward methodological and theoretical development (Ferris Judge, 1991). This review will look at the different ways HRM plays into the overall scheme of providing an organization with a more sustainable competitive edge. Table of Contents Introduction..4 Background..4 Strategic Human Resource Management.6 Multicultural Knowledge Transfer. .8 HRM in the Public Sector9 Conclusion.11 References..13 Human Resource Management in Business The fast paced area of HRM as seen many new developments in the science and practice of the field over its roughly 80-year history (Ferris et al., 1999). One of the earlier developments in HRM research that still has significance today was, at the time, a theoretical foundation that challenged researchers to design measures to assess the relationship between individual personalities and company personalities (Gilmer, 1960). This field of inquiry led to the research that has come to be known as strategic human resource management (SHRM), a field that attempts to align HRM functions and activities with the strategic goals of the organization (Butler, Ferris, Napier, 1991). Another aspect of this review takes a look at HRM from an international perspective. This viewpoint acknowledges the importance of the global economy, as well as emphasizes the value of the Human Resource (HR) activities that address cross-cultural concerns (Napier, Tibau, Janssens, Pilenzo, 1995). Lastly, the political perspective of HRM presents an opportunity to address those features of public sector HRM practices that have become outdated by contemporary organizational standards (Soni, 2004). Background Human Resource Management is a diverse entity consisting of a variety of activities. Some of these activities include the decision about staffing needs and if hiring employees or contracting with independent sources will fill these needs, recruitment and training of employees, making sure those hired are high performers, dealing with performance and evaluation issues, and ensuring that HR practices comply with various regulations (McNamara, 1999). Additionally, McNamara (1999) points out three other activities that fall within the realm of HRMmanaging the approach to employee benefits and compensation, employee records, and personnel policies. Several HRM practices may influence individual performance by providing incentives that bring out appropriate behaviors (Minbaeva et al., 2003). Such incentive systems may include performance-based compensation and the use of internal promotion systems that focus on employee merit and help employees overcome barriers to career growth (Huselid, 1995). Previous research has shown that employees are more motivated when they are informed about the organization. Sharing of information on strategy and company performance tells the employees that they are trusted. Additionally, it is important that employees are kept current on company performance so that they can use the knowledge that resides in the organization to its fullest potential (Pfeffer, 1998). And by factor-analyzing HRM practices, Huselids (1995) influential study of the impact of high performance work practices points out the importance of HRM as it relates to organizational turnover, productivity, and corporate financial performance. Without HRM practices in place, organizations are likely to suffer in the three areas described above. The importance of HRM as a business function is exemplified in Huselids (1995) view that HRM practices influence employees skills and competencies through the acquisition and development of a businesss human capital. Because HRM is such a fast-changing study it seems appropriate here to explain the alternative terminology that is starting to make the scene. Ellasaurus Product EssayIn response to these deficiencies the Office of Personnel Management (OPM) has taken steps to improve the skills of human resources professionals so that they can be prepared to take a strategic role in agency management. The OPM Director James in addressing this issue states, We are hoping to elevate the entire profession, advise agencies on the kind of training and skills that the human resources professionals need and urge every agency to have their HR professionals at the table when they are developing their strategic plans and goals for the next several years (MSPB, 2002). ConclusionThe field of Human Resource Management is an ever-changing study of activities undertaken by organizations in an effort to gain the competitive advantage over other firms. It has become clear that in truly progressive organizations in the future, HRM will not be merely viewed as a set of policies and practices, nor will it be defined as just a department or function. Instead, in such effective organizations, HRM will be a mentality or way of thinking. It will have to be an extensive entity in the organization and integral to all of its decisions and actions. Organizations will have to make the choice to expend capital in order to have the diversity offered by HRM. Smaller firms will need to incorporate some form of HRM if they hope to remain, or become, competitive with other similarly sized organizations. The public sector will have to build and maintain a strong HRM body so that declines of the past are not realized today. They must also offer something to potential recru its that will be enticing enough to draw good stock from the workforce pool. And regardless of how contemporary an organization believes they have become in the field of HRM, it would behoove them not to become lax in their diligence to stay on top of the competition. New theories and models are being tested with greater frequency in order to further the field of study and maintain, or gain, the competitive advantage. ReferencesBarney, J. 1995. Looking inside for competitive advantage. Academy of Management Executive, 9, 49-81. Butler, J. E., Ferris, G. R., Napier, N. K. 1991. Strategy and human resources management. Cincinnati: South-Western. Council, W.P. (2001). Managing multiculturalism: Valuing diversity in the workplace. Journal of Property Management, 66, 6, 22 (3). Retrieved November 12, 2004, from InfoTrac database. Ferris, G. R., Judge, T. A. 1991. Personnel/human resources management: A political influence perspective. Journal of Management, 17, 447-488. Retrieved November 3, 2004, from InfoTrac database. Ferris, Gerald R., Hochwarter, Wayne A., Buckley, M. Ronald, Harrell-Cook, Gloria, Frink, Dwight D. (1999). Human resources management: some new directions. Journal of Management, 25, 3, 385(3). Retrieved November 3, 2004, from InfoTrac database. Gilmer, B. V. 1960. Industrial psychology. In C. P. Stone D. W. Taylor (Eds.), Annual review of psychology, 11, 323-350. Stanford, CA: Annual Reviews, Inc. Harrison, D.A., Price, K.H., Bell, M.P. (1998). Beyond relational demography: Time and the effects of surface- and deep-level diversity on work group cohesion. Academy of Management Journal, 41, 1, 96 (12). Retrieved November 12, 2004, from InfoTrac database. Hirschman, C. (2000). For PEOs, business is still booming. HR Magazine, 45, 42-48. Huselid, M. 1995. The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38, 635-672. Retrieved November 3, 2004, from InfoTrac database. Jackson, S. E., May, K. E., Whitney, K. (1995). Understanding the dynamics of diversity in decision-making teams. In R. A. Guzzo, E. Salas, Associates (Eds.), Team effectiveness and decision making in organizations (pp. 204-261). San Francisco, CA: Jossey-Bass Publishers. Klass, B.S. (2003). Professional employer organizations and their role in small and medium enterprises: The impact of hr outsourcing. Entrepreneurship Theory and Practice, 28, 1, 43-61. Retrieved November 10, 2004 from H.W. Wilson database. Klass, B.S., McClendon, J., Gainey, T. (1999). HR outsourcing and its impact: The role of transaction costs. Personnel Psychology, 52, 113-136. Light, P. C. (1999). The new public service. Washington, DC: Brookings Institution Press. McNamara, C. (1999). Human resource management. Accessed November 7, 2004, from the web site http://www.mapnp.org/library/hr_mgmnt/hr_mgmnt.htm. Merit System Protection Board. (2002). Making the public service work: Recommendations for change, Government Printing Office, Washington, DC. Minbaeva, D., Pedersen, T., Bjorkman, I., Fey, C.F., Park, H.J. (2003). MNC knowledge transfer, subsidiary absorptive capacity, and HRM. Journal of International Business Studies, 34, 6, 586-99. Retrieved November 7, 2004 from H.W. Wilson database. Napier, N. K., Tibau, J., Janssens, M., Pilenzo, R. C. 1995. Juggling on a high wire: The role of the international human resources manager. In G. R. Ferris, S. D. Rosen D. T. Barnum. (Eds.), Handbook of human resource management: 217-242. Oxford, UK: Blackwell Publishers. Pfeffer, J. (1998). The human equation: Building profits by putting people first. Harvard Business Press: Boston. Romano, E. (1995). Opportunity in diversity. Journal of Property Management, 60, 2, 30 (6). Retrieved November 12, 2004, from InfoTrac database. Soni, V. (2004). From crisis to opportunity: Human resource challenges for the public sector in the twenty-first century. The Review of Policy Research, 21, 2, 157-178. Retrieved November 8, 2004 from H.W. Wilson database. Sundstrom, E., DeMeuse, K. P., Futrell, D. (1990). Work teams: applications and effectiveness. American Psychologist, 45, 2, 120-133. Walker, D. M. (2000). (Statement from David Walker) Managing human capital in the 21st century. Report no. GAO/T-GGD-00-77. Washington, DC: General Accounting Office. Webber, S.S. Donahue, L.M. (2001). Impact of highly and less-related diversity on work group cohesion and performance: A meta-analysis. Journal of Management, 27, 2, 141. Retrieved November 12, 2004, from InfoTrac database.