Essay: Organization Performance and HRM strategies

Sample Essay

Words 1,430

There are many strategic human resource approaches that help improve an organizations performance. The business world and market become more complex by day and to deal with each type of organization a different strategy should be implemented. The “Soft” HRM approach uses a yin and yang type of approach which seeks to build trust amongst employees to produce a harmonic work environment that promotes achieving tasks while maintaining a balance among all activities. The “Hard” HRM approach views people as investments that should be trained and updated according to the needs of the organization to battle threats in a highly competitive business. The contingency approach offers a customized and microscopic solution to problems. All three approaches can be used to get improved organizational performance.

Michael Armstrong and Angela Brown (2002) have underlined the theme behind strategic HR and how it can lead to an improved business. They define HRM as “a strategic and coherent approach to management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of its objectives.”(p. 3) One thing that is clear is that the right people are essential for an organization to be successful. “In the general business domain, it has become increasingly apparent that strategies for organizational change have become an aphorism for maintaining success and creating competitive advantage in complex organizations.” (Farquharson & Baum 2002, p. 243)

There are two different forms of HRM: the hard and the soft. “The “soft” model, reflective of “development humanism” (Storey, 1987; Hendry and Pettigrew, 1990), recognizes the need for integration of HR policies with business objectives through treating employees as values assets which comprise a source of competitive advantage through commitment, adaptability, high quality skills and performance.” (quoted in Farquharson & Baum 2002, p. 243) Successful organization improvement depends on people who work in it. “This approach embraces the HR policies of recognition, development, trust, participation and employee choice (Beer and Spector, 1985) through communication, motivation and leadership (Storey, 1987).” (quoted in Farquharson & Baum 2002, p. 243) People need leadership, a guiding hand a someone who will motivate them. People are the means to and end and not just objects according to the words of Guest (1999, quoted in Armstrong and Baron 2002, p. 6)

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