“Our people are our most important asset!”
Critically assess this statement demonstrating your understanding of HRM strategy and operations and HRM’s interconnectedness to other management functions and corporate goals.
Employees are an organisations most important asset as they ultimately determine organisational success or failure. The management of employees therefore forms a crucial component in an organisation’s strategy. Throughout the last few decades the awareness of employee importance has grown with a shift from personnel management to a more individually focused human resource management. In this time it was realised that optimal employee performance can be achieved through an integrated strategy that establishes and maintains an employment relationship. Human resources management (HRM) shares, as a result, an interconnection with corporate strategy and mission because the function will help determine the level of an organisation’s success. This is further extended to all management functions such as marketing, finance, IT etc as employee management will have significant influence over the way in which managers work towards goals within their own department. Due to the nature of their interconnectedness, alignment of HRM strategy and corporate strategy will thus be crucial in achieving the organisation’s mission. By analysing HRM strategy and operations this point can be explored and will emphasise both the importance of employees as well as their management to the objectives and success of an organisation. Finally it is important to consider corporate culture in the implementation of HRM strategy and frequent HRM evaluation, as the field is constantly changing through employment legislation and new generations taking the place of others in the workforce. Organisations will thus need to be flexible and adapt in order to plan and implement a strategy that maintains a good employment relationship, whilst working towards achieving corporate goals because an organisations most important asset is its people.
Over the last few decades there has been an increased emphasis on employee importance and the nurturing of an employment relationship. As a result there has been a shift in employment management style from personnel management to a broader and more integrated approach of human resource management that aims to enhance employee performance. Human resource management is seen as part of the movement away from unions and collective bargaining, to an emphasis on staff as individuals with the belief that it will release greater commitment from employees. Today an organisation’s HRM strategy is thus concerned with creating a new equal partnership between employer and employee in the form of the employment relationship. FedEx is an example of an organisation that has placed particular emphasis in this area and in doing so has established a reputation as being one of the most employee friendly companies in the world. The company has being credited for introducing many innovative HR practices such as the people service profit (PSP) philosophy which has been implemented since FedEx’s founding in 1973. This formal HR policy linked FedEx employees directly to profitability and long term growth and thus emphasised the importance of meeting employee needs to boost motivation and work quality. Frederick W Smith Founder, Chairman and CEO of FedEx Corporation stated "Federal Express, from its inception, has put its people first both because it is right to do so and because it is good for business as well." This has paid off as FedEx became the first company to grow to a billion dollars in 10 years of existence and continues to grow globally today. Employees can thus be judged as an organisations most important asset as treating them right should release better performance and organisational success.
Better employee performance is yielded through effective employment management so HRM will significantly influence the...
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