Human Resource and Business Management Order Instructions: What can HR and other organizational leaders do to study the link between HRM and business performance?
This ‘black box’, as it is often called, resists easy explanation. In the case of HR policy, how policies are formulated, aligned with business strategy, operationalized and implemented ought to have a significant impact on business performance. The question remains, how can this impact be determined?
Bamberger, Biron, and Meshoulam (2014) describe three perspectives from which HR strategies, and their attendant policies and practices, can be studied: 1) universalistic, 2) contingency and 3) configurational. From these three perspectives, HR strategy and policy should be formulated, in turn, by identifying ‘ideal’ HR practices, by aligning HR practices and business strategy and by ensuring internal coherence amongst HR practices. These three perspectives are not mutually exclusive. One could argue that the best approach would be to combine the best aspects of all three perspectives. Again, how to do this?
This essay asks you to propose specific ways in which you might approach this challenge in your own context.
To prepare this essay:
•Read the files which I sent by email.
•Reflect on the challenges of measuring or assessing the impact of HR policy on business performance.
•In approximately 850 words, describe strategies that you might use in an organization familiar to you (one where you work or aspire to work) to assess the impact of HR policy on business performance.
•In formulating your essay, consider the following questions:
o Which of the three perspectives described by Bamberger, Biron, and Meshoulam (2014) (or combination of perspectives) would you find most useful in your investigations?
o How might you account for special or unusual aspects of your organization, such as multidimensional business objectives?
o How might you go about enlisting the aid of key stakeholders and/or communicating your findings and arguments to organizational leaders?
Human Resource and Business Management Sample Answer
Introduction
Human resource management concerns itself with the welfare of the personnel of an organization. Strategic human resource management plays a crucial role in ensuring that employees are well taken care of so that they can increase their productivity. In many organizations, human resource policies are developed without consideration of business goals. However, over the years, business organizations have realized that there is a need for alignment of business goals and human resource policies. The two aspects must always be in tandem in order to propel an organization forward.
Human resource management can be explored from there different perspectives namely universalistic, configurational and contingency. Although each of these perspectives has been found to be effective, none of them can be considered fully exclusive. As such, there is a need to find a way to combine all of them. This discussion has looked at ways of overcoming the challenges that come with combining the three aspects.
Challenges of Assessing Impact of HR Policies
The role of HR policies in a business organization cannot be undermined. The personnel of any organization play central roe and remain a big asset to the organization. However, despite this crucial role of HR policies, it still remains a challenge for any business to quantify the benefits of the same. In many cases, the HR policies are intertwined and often behind the scenes. For instance, HR policies that ensure all employee welfare are taken care of are crucial. Yet, the credit for such an elaborate mechanism is more likely to go to the top management as opposed to the human resource department.
Human Resource and Business Management in HR Perspectives
Bamberger, Biron and Meshoulam (2014) have described three strategies or theories upon which human resource strategies are founded. They include universalistic, configurational and contingency. Universalistic is better known as best practice theory. This theory assumes that in the business world, there are a set of practices that are found to be best and universally applicable. This theory argues that the adoption of these practices by any organization will lead to the achievement of projected goals. Although there is some practicability to this argument, there are some loopholes. This is because not all organizations have similar needs. As such, there is a need to customize certain practices to accommodate the needs of different organizations.
Contingency Theory
This theory recognizes that there is indeed not one uniform practice that can accommodate the business needs of all organizations (Armstrong, 2009). As such, this theory advocates for customized practices that vary from one organization to another. This theory emphasizes or contextual approach so that every organization develop HRM practices that are best suited for them. Further, this theory notes that strategic human resource management is not the only determining factor to performance. Rather, alignment of SHRM to business strategies largely determines the outcome (Porter, 2012).
Configurational approach is seen as the most sound of all the proposed HR strategies. This theory seeks to combine both universalistic and contingency approaches. This theory note that the two other approaches have benefits and shortcomings in equal measure (Redman &Wilkinson, 2010). As such, for an organization to successfully perform, it ought to combine both approaches. Therefore, of the three discussed approaches, the configurational approach has been as the best because it employs best practices in the industry while at the same time customizing some to meet its specific business needs (Delery, 2010).
Special or Unusual Aspects
From the above HR strategies, it is expected that businesses will have a structured and organized strategies. This is, however, not the case as organizations tend to deviate from the normal (Barney, 2011). For instance, a company in the information technology sector is more likely to go outside the norm. This is in order to accommodate the dynamism in the market. The need to remain relevant with changing trends and consumer patterns will lead to special or unusual aspects in some organizations.
The Aid of Key Stakeholders
It is highly imperative for business organizations to appreciate the role of each person in an organization. Every stakeholder plays a significant and contributory role towards the success of the organization (Purcell, Hutchinson, Kinnie, 2013). More often, certain areas of an organization have been given preference to the exclusion of others. For instance, despite the crucial role played by strategic human resource management, it has often been ignored in the favor of other business strategies. While business strategies are crucial, so are human resource management policies (Scholes & Johnson, 2014). None should be treated as lesser of the other.
Human Resource and Business Management Conclusion
There is a need to bring on board all aspects that directly or indirectly contribute to the success of an organization. More importantly, it is necessary that all these aspects are intertwined. Of greater importance is to ensure alignment to the business goals. All these aspects should be geared towards achieving the projected goals of an organization. The various theories that have been developed must all be combined to ensure that an organization gets the best. Each of all these theories are crucial but cannot support organizational success solely. They must be brought on board while customizing in order to meet the specific needs of the organization.
Human Resource and Business Management References
Armstrong, M.A. (2009). A Handbook of Human Resources Management. (11thed.).London: Kogan Page.
Barney, J. (2011).Is resource-based view a useful perspective for strategic management research? Yes. Academy of Management Review. 26(1), 41-56.
Delery, J., & Doty, H. (2010). Modes of theorizing in Strategic Human Resource Management:
Tests of universalistic, contingency and configurationally performance predictions.
Academy of Management Journal. 39(4), 802-835.
Porter, M. (2012). Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press.
Purcell, J., Hutchinson, S., Kinnie, S. (2013). Understanding the Role and Performance Link: Unlocking the Black Box. London: CIPD.
Redman, T., &Wilkinson, A. (2010). Contemporary Human Resource Management: Texts and Cases. (eds.) Harlow: Pearson Education.
Scholes, K., & Johnson, G. (2014). Explaining Corporate Strategy. Hempstead: Prentice Hall.
