STRATEGIC HRM

Methods through Which Strategic Approaches to HRM can Drive Enhanced Organizational Performance



Methods through Which Strategic Approaches to HRM can Drive Enhanced Organizational Performance

Introduction

In the modern organizations, HR managers seemed to be the backbone of the whole system. The managers have to motivate employees to develop high performance working system. This high performance system includes the comprehensive working structure, the human resource processes, maximizing the knowledge of employees and developing committed and flexible environment. All these elements complement each other if there is a loop hole in the single element the other elements would speedily disturb. So it becomes significant to integrate these elements together in order to achieve the ultimate goal of the organization. In the recent years, the importance of Human Resource Management in an organization has increased manifolds. The globalisation effects have impacted the business setup throughout the world, the competition has increased, the work boundaries have expanded, and the work nature has changed considerably. This has led to creating newer challenges for HR managers around the globe. The challenges include the changing world of work and the psychological contract, managing job design and flexibility, managing recruitment and selection, developing high performance working, managing retention and absenteeism, and managing work life balance and wellness of employees (Bates, 2002, pp. 25).

Discussion

Changing world of Work and the Psychological Contract

The changing nature of work and psychological contract, have created more challenges for the employers, especially in periods dominated by harsh competition or during phases of financial downturn when employers have to tighten their belts in order to become and/or maintain their competitiveness (Dowling, 2004, pp. 13). The most effective, and to some extent most obvious, approach, which an HR manager can use is, to deal with the issue could just be to give each individual what he/she actually wants and would like to receive. In order to find out individuals' preferences focus groups, “have your say” communication sessions, and staff consultation forums, large group sessions, internal surveys and other similar initiatives could reveal to be extremely useful. That done, appropriate actions should be taken accordingly, for instance designing and developing cafeteria-style benefits approaches, which enable individuals to choose, amongst a number of identified benefits, the one(s) which more appropriately meet(s) their needs and interests (Cohen, 2002, pp. 37).

Since it is not only people who are subject to change but also the world outside every organisation is continuously changing, a thorough and comprehensive investigation cannot miss to consider both the internal and external environment. Having clear how the world changes and to what factors and circumstances those changes relate, can definitely help HR managers to better understand the outcomes provided by internal investigations (Sparrow, 2004, pp. 45-65). It is absolutely vital that HR manager should see the employees as valuable assets. The HR manager should develop plans for employees training and development and in return expect employees to be flexible, creative and productive. This psychological contract can be seen as a fair deal (Arthur, 1994, ...