Hr Essay

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STUDENT NUMBER
201312572

MHC605 HUMAN RESOURCE MANAGEMENT

ESSAY

21/02/2013

LECTURER:
SANDHY MASSIE

Table of contents

Introduction……………………………………………………………………………...| 3| Essence of HRM functions integration in the frame of business strategy………..| 3| Peculiarities and obstacles in strategic issues of HRM…………………………….| 7| Conclusion…………………………………………………………………………….| 8| References………………………………………………………………………………| 10|

Introduction
The basis for effective company management is all-around assessment of all aspects of business. In the context of fast-growing markets and globalization, it becomes significantly important for any company to keep HRM actions in the same pace with global strategy. In the second half of XX century, company management theory moved toward a new paradigm of management. Personnel are to be considered as the main asset of a company, the strategic factor that determines the success of all business. Human resources intend to be one of the main competitive advantages of a company. At the same time more attention is paid to strategic issues of a company. HR is supposed to be one of the most important areas of a company functioning, which should be able to increase productivity repeatedly. During this period, functions of HR were significantly increased from common personnel management to motivation system development, career planning, conflict management, labor market research etc. This essay is aimed to assess the importance of HRM functions aligned with the position of global business strategy and HRM and business strategies relation, in order to examine its necessity and possible difficulties during its implementation.

Essence of HRM functions integration in the frame of business strategy The strategic issues of HRM got its particular importance at the beginning of 1980s, since it became evident that HRM provided skills development of personnel in order to meet the overall company strategy. Relying on the fact that personnel became one of the most important assets of a company, we can presume it stays important for a company to formulate HR plans within the context of business strategy. At the early stage of HRM development, Schuler, Galante and Jackson (1987) stated that a company can achieve strategic goals by managing its human resources. It means that HR objectives and policies should be integrated to each other and with company's strategic objectives. It is essential for HRM to be strategic. What does it mean? Be strategic - means to coordinate tasks and HRM initiatives with organizational goals and strategy according to business environment (Nankervis, 2011). First of all, to determine why maximum integrity of HRM functions is so significant for a company, it is essential to understand what are HRM and business strategy on their own today and why it is important for HRM to reckon with strategic issues of a company. According to Johnson and Scholes (2012), strategy is a long-term direction of the company, including configuration of all its resources according to market needs, environment and stakeholders’ expectations. Referring to the previously mentioned fact that personnel are stated as one of the main resources of a company, we can suppose that every business strategy assumes to have corresponding HR measures. Human Resource Management (HRM or HR) is the management of an organization's employees (Armstrong, 2006). According to Nankervis et al. (2011), strategic model of HRM consists of nine main functions, that is – IR; job design; attraction and retention; learning, education and development; performance management; remuneration; occupational health and safety; negotiation and conflict resolution; and HRM evaluation. As we can see, the main purpose of HRM in global strategy frames becomes to ensure the use of human resources so that company could get the maximum benefits from their skills; and workers could get the maximum possible material and psychological...
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