For and Against the Claim That Hr Strategies Hold the Key to Organizational Performance

Topics: Human resource management, Management, Strategic management Pages: 8 (2366 words) Published: April 17, 2013
Individual Essay – For and against the claim that HR Strategies hold the key to organizational performance

Nowadays, organizations are facing more and more unprecedented competition in the market. Therefore, many organizations today have increasingly become aware of the importance of HR strategies to response to those pressures. However, there has been a non-stop debate whether HR strategies hold the key to organizational performance over the past several years. In order to explain the relationship between HR Strategy and firm performance, this report firstly provides a deep vision on the definition and importance of Human Resource Strategy, explaining the positive consequences of implement effective practices of Human Resource Strategy in organizations and explains the relationship between HR strategy and organizational performance. After that, the report focuses on two models of Human Resource Strategy which is best-fit and best practice model. The evaluation of whether HR strategies hold the key to organizational performance will be given at the end of the report.

The importance of HR Strategy and how it contributes to organizational performance. First of all, we must have a clear idea of what is Human Resource Strategy. From what we have learnt from this subject, we know that Human Resource strategy is a plan of action designed to develop skill, attitudes and behaviours of employees and help organization to achieve business goals and outcomes and make a significant contribution to organizational success.

“Effective HRM strategy systematically organizes all individual HRM measures to directly influence employee attitude and behaviour in a way that leads business to achieve its competitive strategy” (Huang, 2001). “The practices of Human Resource Strategies such as resourcing, training and development, employee retentions and reward management are concerned with how people are employed and managed in organizations so as to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce” (Armstrong and Baron 2004 cited in Esther and Elegwa and James, 2012). For instance, recruitment and selection can help organization choose the best fit employees from labor market; rewards can motivate employees and enhance high involvement and satisfaction and contribute to organizational performance as a consequence etc.

Therefore, practices of effective HR strategies directly affects what employees feeling and attitude and it will manifest in work-productivity outcomes such as product quality, customer service, company profit and which would continuously contribute to company performance and company success as a whole. In the following context, I would like to list several typical HR practices and discuss how these HR practices integrated and benefit company’s success as a whole.

1) Employee Satisfaction:
During the past decades, employers are beginning to realize employees are key assets and key factors and components to sustain a business. Boxall & Purcel (2008) has stated that “Employee voice, evolving as worker participation, employee involvement and industrial democracy. Attention is directed to HR strategy and the extent to which employees are central to the achievement of firm performance or are deemed peripheral. Linked to the strategic process, consistency of actions is vital and trust is critical or conversely. A lack of trust will negatively affect firm performance and achievement”. Hence, employers should pay more attention to employee satisfaction and motivation. Employee’s satisfaction and involvement will directly affect organizational performance. This would be fulfilled by implementing a set of systematic practices such as carry out job analysis programs, empower employees, develop a competitive rewarding system, and enhance work experience etc.

Now I would like to choose how work life balance could enhance job satisfaction and contribute to...
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