HUMAN RESOURCE MANAGEMENT STRATEGIES

Human Resource Management strategies for managing workplace cultures be applied to the event management industry?

Human Resource Management strategies for managing workplace cultures be applied to the event management industry?

Introduction

Human resources strategy focuses on two primary issues:

1. The degree to which human resources (HR) practices are aligned with business strategies

2. The extent to which these practices influence organizational performance

It is also based on three key assumptions:

1. Human resources can be a source of competitive advantage.

2. Human resource practices have a direct influence on the motivation and productivity of organizational members.

3. Such practices are key determinants of organizational performance.

Although strategies for managing people in organizations have been the focus of research in management and industrial and organizational (I/O) psychology since the turn of the century (e.g., Scientific Management, Likert's Systems-4 Management), there has been a renewed interest in the topic in recent years. Furthermore, researchers have offered several new frameworks for understanding the effects of HR practices on organizational performance including the best practices model, the alignment model, and the resources-based model. These models and research examining their effectiveness are described in the following text.

The Best Practices Model

One framework for understanding strategic human resources management has been labeled the best practices model. This approach argues that there are sets of best practices in the field of HR management, and the use of these practices has a positive influence on organizational performance or profitability. Some empirical research conducted in a variety of countries, such as the United States, Japan, Israel, and Korea, supports this prediction. For example, research has indicated that the use of high-performance work practices—including job analysis, training, employment testing, quality of work life programs, and incentive compensation—is positively related to firm performance and profitability. Similarly, research comparing production lines in the United States and Japan found that Japanese production lines were more productive than U.S. lines. However, the productivity rates of U.S. lines were equal to the Japanese lines when Japanese management systems were used. Although most research has found that highperformance work practices are positively related to an organization's profitability, results of one recent study found that these work practices increase productivity but also increase labor costs.

The Alignment Model

Another framework for understanding HR strategy has been characterized as the alignment model. This approach suggests the effectiveness of organizations can be increased if HR practices are aligned with the competitive strategies used by organizations to differentiate themselves in the marketplace. For example, firms that differentiate themselves based on cost or speed use different HR practices than those that seek to gain a competitive advantage based on quality or innovation. Some empirical research has shown that organizations following different business strategies use different HR practices, and studies have shown that manufacturing and financial performance is enhanced when firms align their HR practices with the firm's business strategy.

The Resource-Based Model

Still a third model of strategic human resources management has been designated as the resource-based model. This model emphasizes that human resources can be a source of competitive advantage for organizations, ...