Critically Discuss How Human Resource Management Can Contribute to Improved Organisational Performance. to What Extent Has a Link Has Been Established Between Human Resource Management and Improved Organisational Performance?

Human resource management is the function within an organisation that deals with recruitment, management and communication. The size of an organisation’s HRM is dependent on the general size of the organisation a small businesses may for example only have one member of staff responsible for HRM where as a multinational company   would have a huge HRM department in its head office. This assignment will look at how much HRM is responsible for improving organisational performance.   Human resource management is clearly an integral part of any business and without it a business may not achieve a greater level of success as it would have by employing a successful human resource management operation. By employing staff to conduct human resource activities within the business it then allows the other areas of the business to focus on their individual job roles

Before looking at how HRM affects performance it’s important to note what organisational performance is. Organizational Performance" is a broad construct which captures what agencies do, produce, and accomplish for the various constituencies with which they interact.   There are six dimensions in which for measuring organisational performance these are
Productivity
Employee satisfaction
Client satisfaction
Client impact
Service quality
Resource acquisition and domain maintenance

Organisations will always strive to achieve the best structure and performance possible.   In order to maximise the effectiveness of this a good use of HRM will be required. The way HRM is best used to improve organisational performance is by implementing a good strategy.
The strategy in relation to HRM can be split into two terms strategy as a plan and strategy as a system of management.

Strategy as a plan is when an organisation uses there strategy as a way of interacting with the competitive environment. It’s derived from the term “military strategy” and what it means is that an organisation will use this as their corporate... [continues]

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