The Role of Human Resources Management in Improving an Organisation

Coursework question:

Boddy (2008: 354) defines Human Resource Management (HRM) as “the effective use of human resources in order to enhance organizational performance”. What precisely is HRM and what evidence is there to support the contention that it is linked in some way to improvements in a firm’s performance?

In the first part of your essay you should describe the context for HRM together with the key concepts and practices associated with this discipline. In the second part of your essay you should explore the evidence linking HRM to improved organisational performance.

Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function." (Bernadin, H.J.2007). Furthermore Armstrong (2006, p.4) defined it as a strategic and coherent approach of an organisation's most valued assets. - the people working there, who individually and collectively contribute to the achievements of the objectives of the business.

The term Human resource management is therefore also widely known as "Personnel Management" as a description of the process of managing people in organisations.

In a constantly changing world, which requires flexible responses, with strong competition from nearly every continent, due to increased globalisation, it is important for organisations to have some kind of competitive edge. Especially in the service industry, but more generally spoken throughout every industry, the human leverage is the most contributing factor to being competitive and making a difference to customer satisfaction and general organisational performance. Other elements effecting HRM and increasing its importance are technological changes, increasing litigations due to changes in legislations worldwide (e.g. EU) and the changing characteristics of the workforce (e.g. diversity). That is why HRM is...