HRM PRACTICES

HRM Practices



Abstract

In this study we try to explore the concept of HRM practices in a holistic context. The main focus of the research is on HRM practices and its relation with to its impact on the Great Britain. The research also analyzes many aspects of HRM practices and tries to gauge its effect on Britain as they are meeting their objective in HRM. Finally the research describes various factors which are responsible for HRM practices and tries to describe the overall effect of Britain.

HRM Practices

Introduction

Human resources - is an integral part of any organization. To succeed in business, company or organization needs an effective human resource management. In the current climate, which concerns the scope of business, this activity plays an important role (Finegold and Soskice 1988, pp. 21). 

Today's companies transcend geographical boundaries, reinforcing its position in the global arena. These organizations go beyond their state to become multinational. Excellent communication within the organization is the key to success. Employees need to understand the views, goals and ethics of the organization to emotionally unite to achieve common goals related to profit, increased production, improved quality, etc (Edwards and Ferner 2002, pp. 94).

HRM Best Practices in Britain

Employment Flexibility

Lifetime employment is also changing in Britain. In 1999, the terms of the post-1997 Crisis International Monetary Fund (IMF) bailout forced the government to legalize layoffs, weakening this traditional concept. The general direction has moved away from lifetime employment toward easier employment adjustments. Consequently, permanent, full-time workers markedly declined and were replaced by part-time or non-regular employees (Rowley & Bae, 2004).

Performance-Based Rewards

Some Britain managers think that performance-based rewards of several forms (commissions, bonuses, profitsharing, share options, etc.) are Western best practices. This is because they tie rewards to job performance as opposed to traditional Asian “seniorityism” of compensation based on age and/or tenure. Companies offering such plans try to be more attractive than their competitors in recruiting and retaining the best talent (Rasiah 2004, pp. 587).

Employee Development Investment

An educated and well-trained work force is considered a major contributor to the economic performance records of Britain (Cooke, 2005). The need for skilled professions and high-quality executive training have created a boom for managerial training courses, MBA programs, and higher education opportunities in Britain(Cooke 2005, pp. 26).

Human resource practices are one important way that leaders send signals to individuals in organizations. Incentive pay plans, for example, are intended to drive behavior consistent with strategic organizational goals. But, is a single HRM practice, or even a cluster of practices enough to create the strong situation Mischel envisioned? We do not believe this to be true (González and Tacorate 2004, pp. 56).

While questions have been raised about the value added by the HR function, efforts to prove the positive impact of human resource management on the market capitalization or financial performance of firms have a well-established history (Becker and Huselid 1998, pp 898; Wright et al., 2003, pp. 628). Burdened by an administrative heritage, human resources practitioners have long been interested in empirical proof that their work is as valuable ...