Human Resource Management

QGM5023

STRATEGIC HUMAN RESOURCE MANAGEMENT

QGM5023

STRATEGIC HUMAN RESOURCE MANAGEMENT

MOHD LOKMAN BIN CHE DAUD @ MAT ZAIN

KLM 1410005

Submitted to: Dr. Kenneth Cafferkey

MOHD LOKMAN BIN CHE DAUD @ MAT ZAIN

Submitted to: Dr. Kenneth Cafferkey

Strategic Human Resource Management

Mohd Lokman B. Che Daud

Question: “Critically evaluate the assumed relationship between HRM and performance”

The importance of human resource management (HRM) practices as a core people management in a business is undeniable. The effectiveness of HRM in regards to the relationship of organizational performance has been widely discussed and studied by previous scholars. Some of them offered positive arguments through their paper, also, a few results showed opposite perception towards the relationship between HRM and performance. However, based on research proof, it becomes clearer that an organization turn into more effective and gain competitive advantage underlying to the components highlighted through HR system (Becker & Huselid, 1998). Nevertheless, it remains the question is, how does HRM contribute to organization performance?

Taken the view addressed by Purcell (2003) who recognised this condition as ‘black-box’ in illustrating the gap between the practices and performance. The gap focused on the philosophy of ‘ability, motivation and opportunity’ perspective (AMO) as the mediating to influence organisational performance (Boselie et al., 2005; Purcell & Hutchinson, 2007). Conversely, it is debated that the must be sufficient enough number of employees with required skills, experience and knowledge to perform all of the necessary job for the advantage of the firm (Appelbaum et al., 2000). In addition to above argument, it is argued that in order to ensure getting better results and able to survive longer to obviously contribute to the firm success, it is very important to have motivated, committed and satisfied employees (Paul...