HRM contribution to success of an organization

HRM contribution to success  of an  organization
HRM contribution to success of an organization

HRM contribution to success of an organization

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HRM contribution to success of an organization

Abstract

Human resource department is a critical function contributing to the well – being of employees in any business. In the past, human resource professionals were always in their traditional roles and played the role as an administrative expert who looked after the day-to-day operational human resources but today human resource professionals are becoming a more strategic role. Therefore, the purpose of this study was to explore human resource professionals’ experiences and strategies that may have contributed to the development and accomplishment of the organization objectives. The data collection process of this study used the interviews of two line managers who are in a business leader role. This study would help researchers, academicians, HR practitioners, business leaders or CEOs to improve their strategic skill sets and would provide suggestions for future research in human resource professionals’ roles.

Background of the Study

The role of human resource professionals is primarily accepted to be that of a supportive and an administrative one involving paperwork, but not that of strategy management. Traditionally, the role of human resource professionals in many organizations is to serve as the systematizing, policing arm of executive management.

According to Sondhi (2013), Human Resource (HR) had to transform itself from just being a support system to a strategic partner in business policy. HR can as well play a role of Strategic human resource management (SHRM) by participating in the formulation of the business strategy. Strategic human resource management involves making decisions that define the overall vision, mission, core values, and objectives of the organization. Human resource strategies are important because they help determine how to manage people in relation to business strategies (Brauns, 2013). Human resource professionals are moving towards a more strategic role today whereby they play a main role in devising strategies for the company together with other top level managers. Human resource professionals need to transform their roles, activities, and responsibilities to be more strategic business partner. According to Khatri (2013), HR transformation builds upon the excellence of HR professionals who are always ready to execute their role to achieve the business objectives. Even though, HR functions continue to change  and HR professionals viewed as business partners, but they seem to lack enough skills and competencies to contribute to organizational profitability.

Problem Statement

42% of business leaders believe their HR professionals are underperforming (Benko et al., 2014). Hence, the specific business problem is HR professionals do not have the business skills/strategies required to help an organization increase its profitability. HR professionals need to develop deeper business acumen to become an effective business partner (Benko et al., 2014). Less than 8% of HR professionals have confidence that they have the business skills needed to meet the challenge of today’s global environment and consistently deliver innovative programs that drive business impact (Benko et al., 2014). 95% of HR professionals’ responsibility is administrative work that can be outsourced but most organizations would internally hold this work because of lack of lack of confidence in the HR (Vosburgh& Resorts, 2013). The general business problem is the most business leaders do not believe that HR professionals can transform their roles from an administrative role to a strategic business partner.

Purpose Statement

The purpose of this qualitative phenomenological study is to explore what HR professionals can do to help an organization increase its profitability. HR professionals need to learn and understand the business of organizations. They need to transform their roles, activities, and responsibilities to be more of a strategic business partner to add value to the organization. HR professionals have therefore, an obligation to embrace change in this modern times (Khan, 2012). Interviews will be conducted to seek roles, experiences, activities, and responsibilities of HR professionals with the targeted R professional participants located in Bangkok, Thailand. The researcher will use purposeful sampling to select the interviewee the choice of this strategy is intended to ensure to select interviewee with experience in the field of HR. HR transformation implication on business is to help HR professionals improve their knowledge and skills in business and help the organization increase its profitability.

Nature of the Study

             Studying the role of HR professionals required an analysis of their experiences in an organization. Such in-depth assessment of HR professionals’ role may better align with the qualitative research design. Qualitative research is a method of inquiry and data collection. According to Creswell (2009), qualitative research is a form interpretative inquiry in which researchers make an interpretation of what they see, hear, and understand. Qualitative research is used to gather in-depth information and it is primarily exploratory research. It is also used to gain an understanding of underlying reasons, opinions, and motivations. Conducting a qualitative study has enabled a researcher to analyze individual’s behaviors, opinions, beliefs, emotions and relationship. Therefore, this research involves a phenomenological qualitative study to explore what HR professionals should do to help an organization increase its profitability. Phenomenology is concerned with the study of experience from the perspective of HR professionals. According to Creswell (2013), phenomenological study focuses on describing what all participants have in common, as they experience a phenomenon. It is also based in a paradigm of personal knowledge and subjectivity, and emphasizes the importance of personal perspective and interpretation. Phenomenology primarily uses interviews with individuals and observations to collect data. Other researchers have used phenomenological qualitative study to conduct their research and succeed in achieving their objectives hence, the choice of this method (Sedivy-Benton, Strohschen, Cavazos & Boden-McGill, 2015).

Central Research Question

The objective of this research study is to explore how HR professionals’ transformation contributes to increased productivity. In line with the statement of purpose, this study addressed the following research questions.

Research Question 1: What is the transformation for HR professionals as seen through their roles and as experienced in HR activities in the organization?

Research Question 2: What is the strategic plan in the transformation of HR professionals’ role to help an organization increase its profitability?

Research Question 3: What is the strategy being used and made changes in business by HR professionals to help an organization increase its profitability?

Significance of the Study

The study provides a framework for exploration of human resource professionals’ strategic roles. It study supports the organizations to create business value and competitive advantage. The study also provides insight into human resource professionals’ perceptions of strategic business partner role. It as well suggests human resource strategy to help the organization improve its performance for HR practitioners, business leaders, and CEOs. Moreover, this study will focus on the mastery of business acumen and HR strategic skills. Business leaders and HR professionals can learn more about HR professionals’ strategic roles. Furthermore, business leaders and HR professionals can apply the concept of this study for their business practice. The study can lead organizations in areas such as organization development, strategic utilization of employees to serve business goals, talent management and development. It can also make an impact improvement on management such as performance management, business development and skill improvement in the organizations.

Literature Review

Human Resource Department is a critical component of employee well – being in any business. HR responsibilities include payroll, benefits, hiring, firing, and keeping up to date with state and federal tax law. Historically, HR has grown up in a void of unaccountability. In the past, or up until recently, (need a temporal component here) HR leaders have not been held accountable for delivering metrics that show the value of their programs or investment (Robb, 2011). HR in business must focus on aligning itself with the business and think about key business challenges as well as design HR plan to respond to the challenges. Strategic human resource management (SHRM) is a link between HRM and strategic management processes of an organization (Sondhi & Nirmal, 2013). The most general implementation (of SHRM) challenge facing HR professionals reflects an interesting challenge. Executive business leaders expect human resource professionals to lead organizational initiatives and change efforts that can produce value to the organization.

Arachchige and Weerasinghe (2012) stated that traditional role of personnel or HR as a HR administrator is now not sufficient for survival in the highly competitive modern business environment. Brauns (2013) stated that human resource strategies could help determine how to manage people in relation to business strategies. The way in which people are managed within organizations need to be aligned with the strategy of the business. Moreover, Florah et al. (2013) argues that strategic human resource management provides a direct and economically significant contribution to a firm’s performance. However, the transformation towards strategic human resource management is a goal of most HR departments today (Glarino, 2013). HR professionals began to evolve and become strategic business partners by adding value to the firm. In an organization, SHRM means accepting and involving the HR functions as a strategic partner in the formulation and implementation of the companies’ strategies through HR activities (Jain, 2014). HR professionals have to work together with top executives to make competitive business strategies and to figure appropriate HR strategies to support the business strategies (Khatri, 2013). Khan (2014) illustrated that in the business partner role, HR helps various units in implementation of their business model. For HR professionals to have a major role in business strategy, they need to have critical skills, such as, business understanding, strategic planning, and cross-functional experience. Business leaders and HR professionals are all critical to the creditability and capability to engage in business decisions.

Hr professionals are expected to contribute to the business strategy through their domain expertise Khan, 2012). HR professionals need to spend time understanding the business strategy, competitors, technologies and customers, to help the firm gain a competitive advantage using HR practices (Loshali& Krishnan, 2013). In addition, HR role has changed from administrative services to business partner, and that the newest view that is less developed in most corporations is that of a strategic partner. HR professionals bring business, change, consulting and learning to their partnership with line managers, so that they can create value (Saleem and Perwez, 2012). To make HR professionals more available for participation in strategic decision-making process, HR professionals should be delegated to line managers as they have direct and frequent contact with employees (Sani, 2012).

The role of HR has become strategic with increasing competition, creating a motivating workforce, facilitating change management, recruiting, and retaining the most efficient employees (Sondhi and Nirmal, 2013). These functions make HR professionals’ key players and increase their role as part of strategic business partners within their organization (Mitsakis, 2014). However, Ugheoke et al. (2014) states strategic human resource management has a direct impact on the achievement of the business goal and performance improvement. HR professionals have shifted the role of an operational HR to be more strategic partner to the organization by getting more involved in strategic decision-making (Yousoff, 2012).

References

Arachchige, B. J. &Weerasinghe, B. L. (2012). Role Transition of HR Professionals in the Sri Lankan Banking Sector: A Study. The IUP Journal of Management Research,  XI(4).

Benko., C., Bohdal-Spiegelhoff, U., Geller, J. & Walkinshaw, H. (2014). The Reskilled HR Team: Transform HR Professionals into Skilled Business Consultants. Deloitte University Press.

Brauns, Melody (2013). Aligning Strategic Human Resource Management to Human Resources, Performance and Reward.International Business & Economics Research Journal, 12(11).

Creswell, John, W. (2009). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches 3rd Ed.

Creswell, John. W. (2013). Qualitative Inquiry & Research Design: Choosing Among Five Approaches. 3rd Ed. Los Angeles: Sage.

Florah, O. M., Nyagol, M. O. & Susan, R. (2013). Strategic Humane Resource Management Practices and Performance of Sugar Manufacturing Firms in Western Kenya. International Journal of Research in Social Sciences, 3(4).

Glarino, G. G. (2013). Strategic Human Resource Management: Influences on Perceived Organizational Support and Job Attitudes. International Journal of Business and Social Science, 4(12).

Jain, Mitushi (2014). Organizational Success through Strategic Human Resource Management. Journal of Social Welfare and Management, 6(1).

Khan, B. M. (2012). A Study on the Emerging Dimensions of Strategic HRM in Different Subsectors of IT Industry.The IUP Journal of Management Research, XI(2).

Khan, D. M. (2014). HR as a Strategic Partner: A Critical Review. International Journal  of Human Resource Studies, 4(1). doi: 10.5296/ijhrs.v4il.5129.

Khatri, B. (2013). Modifying HR to Meet Advanced Business Prospects. International  Journal of Management Research and Review, 3(11).

Loshali, S. & Krishnan, V. R. (2013). Strategic Human Resource Management and Firm Performance: Mediating Role of Transformation Leadership. Journal of Strategic Human Resource Management, 2(1).

Mitsakis, F. V. (2014). Human Resources (HR) as a Strategic Business Partner: Value Creation and Risk Reduction Capacity. International Journal of Human Resource Studies, 4(1).

Robb, Drew. (2011). Creating Metrics for Senior Management. Society For Human Resource Management, 56(12), 109-111.

Saleem, S. M. &Perwez, S. K. (2012). The Human Resources Role and Challenges in the Hotel Sector in Kanyakumari, Tamil Nadu. International Journal of Management Research and Review, 2(10), 1758-1763.

 

Sani, A. D. (2012). Strategic Human Resource Management and Organizational Performance in the Nigerian Insurance Industry: The Impact of Organizational Climate. Business Intelligence Journal, 5(1).

Sedivy-Benton, A., Strohschen, G., Cavazos, N., & Boden-McGill, C. (2015). Good Ol’ Boys, Mean Girls, and Tyrants: A Phenomenological Study of the Lived  Experiences and Survival Strategies of Bullied Women Adult Educators. Adult  Learning, 26(1), 35-41.

Sondhi, V. &Nirmal, P. S. (2013). Strategic Human Resource Management: A Reality Check. Review of Management, 3(1/2), 4-10.

Ugheoke, S. O., Isa, M. F. & Noor, W. S. (2014). Assessing the Impact of Strategic Human Resource Management on Tangible Performance: Evidence from Nigerian SMEs. Management and Business Research, 1163-1173.

Vosburgh, R. M. & Resorts, M. (2013). The Evolution of HR: Developing HR as an Internal Consulting Organization.Human Resource Planning.

Yusoff, Y. M. (2012). The Path from an Administrative Expert to a Strategic Partner Role: A Literature Review. Interdisciplinary Journal of Contemporary Research  Business, 3(9).

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