‘Effective Strategic Human Resource Management Leads to Improvements in Organizational Performance.’ Discuss

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‘Effective strategic human resource management leads to improvements in organizational performance.’ Discuss

Over the last centurary, Human Resource Management (HRM), the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization and also performed by line managers (Heathfield), has exploded with interest and its prominence has increased greatly. However when used strategically it is the way it puts the needs of the organisation first and helps it achieve its goals and objectives by guiding it down the correct path. Every organisation has goals and objectives to help it grow and better its organizational performance, which comprises of the actual output or results of an organization as measured against its intended outputs (or goals and objectives) (al, 2009). It is very common that the history of HRM is not known resulting in the knowledge of the subject not being too great and this is what will be looked at first. The running of Human Resources by managers of an organisation is one of the most fundamental parts of the job, the main goals of human resource management are often not very clear on a macro and micro scale and can be a particular within an organisation which can often lead people astray when looking at it from an outsiders point of view. The HR departments within an organisation can affect the way processes are run. This essay will look into the performance of organisations and whether effective HRM leads to improvements in it. HRM has been shown to have had roots from the prehistoric times, where processes were developed to select tribal leaders, knowledge was also passed on from generation to generation about safety, health, hunting and gathering. In 2000 BC, scriptures have shown that the Greeks used apprenticeship schemes, to help find, develop and train the best people for specialised jobs such as being and artist or marble sculptor. In the latter part 1700’s AD the English industrial revolution began which with it changes and transformations in processes and practices of production. Machined goods started replacing hand made goods and this saw the emergence of large factories. This brought about the onset of large scale production. As the industrial revolution was in full flow both in the USA and Britain, this brought led to the onset of many migrant workers looking for jobs which in turn resulted in a new line of managers who were in charge of the workers and were considered higher than them socially and on a business level. It was in this period that the gap between workers and management grew. As the condition of the lower classes lifestyle went down and the deterioration became quite evident, there was a massive call out for effective HRM. In the beginning HRM focused on helping all these migrants adjust to the English/American way of life and eventually with all other aspects such as housing and healthcare. As employee power grew, so did the formation of unions in the 1790’s and as their power grew into the 1800s and 1900s so did their ability to influence “politics and diplomacy” (History Of Human Resource Management).

Most enterprises, in particular medium and large enterprises have a designated human resource or personnel team who look after the company’s workforce needs. The way companies manage their human resources can be subdivided in the views of managerial strategy, the “soft” and “hard” HRM approach (Truss et al, 1995, 1997, 1998). When a company is in its development phase and considered a small enterprise, as shown by Fig.1, the director of the company is able to deal with all staff members on a personal level and assist them with all their needs thus doing all the necessary HR work. As the company grows to the introduction, growth and maturity levels, the director has to focus their efforts more on leading the business and making decisions for the business’s future, examples include contracts...
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