THE IMPACT OF STRATEGIC HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE
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The focus of this study is the impact of strategic Human Resource Management on Organizational performance. The aim of strategic human resource management is to improve organizational performance through the management of people. The organizations need to effectively and efficiently manage their human resources in order to achieve the desired goals and objectives. The attainment of the goals and objectives translates also in better performance (corporate, financial, etc.). Therefore, the issues raised in this study is the approach used by organizations to manage their human resources and to check if strategic human resource management help to meet the requirements, the goals and objectives of the business organization.
The aim of this study is to establish the potency of human resource management in an organization, to ascertain the correlation in strategic human resource management practice and organizational performance, to investigate the interrelation of strategic human resource management exercise and organizational performance and to explore the relationship between these strategic human resource management practices and numerical difference.
Sources of information for the study were obtained from questionnaire responses, books, seminar, and journals.
The discovery of the study is based on the analysis that: there is a beneficial link between strategic human resource management (recruitment, appraisal, training, etc.) and an organizational performance. There is a remarkable correlation of output per employee and strategic human resource management. There is an association between profit per employee and strategic human resource management. There is a beneficial and remarkable relationship linking strategic human resource management and the overall enhancement of organizational operation.
The following recommendations were made on the basis of the above;
- The role of trust towards achieving service delivery should be addressed.
- Management should accept a service orientation for an employee in order to meet their professional standard.
- Human resource management should be made an element of learning at all levels.
The study presumes that human resource management is concerned with all the areas of an organization in order to obtain the needed skill and will-motivated workforce in organizations so as to achieve organizational performance.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Strategic Human resources management is apprehensive towards the input human resource strategies add to the effectiveness of the and the various ways whereby these contributions are achieved. (Jeff Erickson, Lee Dyer 2004) As a result, the aim of strategic Human Resources Management is to make sure that the organizational culture, the quality, dedication and inspiration of the employees contribute significantly to the attainment of business objectives. According to Michael Armstrong, 1992, a strategic orientation is a vital component in human resource management. It makes available the structure within which a reasonable approach can be initiated leading to the implementation of Human resources management policies, practice and the likes. Strategic human resource means admitting the HR role as an important part in the formulation of the organization’s plans as well as in the implementation of those plans by means of HR pursuits, such as recruitments, selection, training and rewarding staff. Whereas strategic HR identifies the HR’s role in the strategizing process, the term HR strategies refer to particular HR courses of action the organization has in mind to attempt to reach its aims (Siddhartha Chaturvedi, 2002).
Organizations are resorting to developing much rivalry between them in order to get more market, customer base, increased sales, etc. Quick changes owing to globalization, advancement of technology/information systems and other factors have caused the increase in competition. Several organizations are moved by the market to set their organizational goals in their corporate performance (Hendry & Pettigrew, 1990). Some of these goals are; reduction in cost, the increase in sales levels, increasing the number of customers, enhancing productivity and/or quality, etc. The understanding of these goals will be reached by the human resources management in organizations. Human resource, as the key to success, will enable the advancement of organizational performance. Human resources are considered as one of the most critical sources of today's firms (Lance, 1994). To strengthen competitive edge, organizations must reevaluate their corporate mission and realign their strategic goals. Well-ordered schedule to enhance corporate achievement considers robust performance management methods that successful organizations use to compete successfully in a rapidly-changing global economy (Boxall & Purcell, 2003). With a broadened knowledge of how to analyze and pass on the business plan, employees can learn how to handle both operational risk and strategic risk while advancing to establish breakthrough innovation and performance.
Managing the human resources in the organization is the common duty of the personnel manager, a vanguard to human resource management (HRM). Some scholars, nonetheless, make equal HRM with personnel management, involved with the provision of staff support in the organization (e.g. Guest, 1989). Other scholars regard HRM as a natural improvement of personnel management methods in the face of evolving economic and business environment (Armstrong, 1989 & 2004, and Fajana 2002). The people management system is undergoing ceaseless modification, with the recent development of strategic human resource management in the organization.
Human resources management is more significant than other competitive sources since these people use different assets in the organization, build competitiveness and achieve objectives. Hence, organizations must recognize the anticipations of their workforce in order to produce the desired corporate performance. The awareness of the expectations of workers will allow the wanted reaction of employees in the organization (Guest, 1987).
Some of the aspired outcomes of the organization in managing their workforce comprise;
- competence, the cooperation of employees with managers, the cooperation of employees amongst them, showing the inclinations of employees;
- motivation, commitment, and satisfaction;
- attitude and presence;
- employee behaviors.
The overall aim of corporate performance management is to build a culture of high performance whereby individuals and teams apply their skills and take responsibility for the continuous enhancement of business processes and contribute to achieving the targets set by managers. In particular, the performance of management can be expressed as the similarity of personal objectives of employees with the organizational objectives given that employees maintain the culture of the organization. It makes available for expectations to be clearly defined and agreed upon in terms of roles, responsibilities and accountabilities (what is expected to do), skills (what is expected to have) and behaviors (what is expected to be) (Armstrong, 2006). Strategic human resource management denotes a comparatively new conversion in the area of human resource management. Strategic human resource management is involved with the role played by the systems of human resource management in firm performance, focusing particularly on the alliance of human resources as a way of gaining competitive advantage.
1.2 STATEMENT OF THE PROBLEM
As stated earlier, strategic Human Resources Management is intended at making sure that the culture and structure of the organization, the quality, devotion and motivation of its workforce, fully contribute to the attainment of business goals, thereby determining the extent to which these aims are achieved is also of paramount importance.
The aim of strategic human resource management is to improve organizational performance through the management of people. The organizations need to effectively and efficiently manage their human resources in order to achieve the desired goals and objectives. The attainment of the goals and objectives translates also in better performance (corporate, financial, etc.). Therefore, the issues raised in this study is the approach used by organizations to manage their human resources and to check if strategic human resource management help to meet the requirements, the goals and objectives of the business organization.
1.3 OBJECTIVES OF THE STUDY
The study aims at determining how Strategic Human Resource Management adds to organizational success.
Specifically, the main objectives include;
- To determine the impact of strategic human resource management and
organizational performance.
- To determine if organizations use strategic human resource management and to
what extent it is used.
- To determine the usefulness of strategic human resource management in an
organization.
1.4 RESEARCH QUESTIONS
- What is the impact of strategic human resource management on organizational performance?
- To what extent is strategic human resource management used in an organization?
- Is strategic human resource management practice important to the organization development?
1. 5 HYPOTHESIS
H1: There is no significant correlation between strategic human resource management and organizational corporate performance.
H2: There is a significant correlation between strategic human resource management and organizational performance.
The importance of this study includes but not limited to the following:
- To educate the management of an organization and the society at large on the importance of strategic human resource management and its impact on organizational performance.
- To serve as a resource base to other scholars and researchers who are interested in conducting further research in this field eventually if implemented will go to an extent to give a new explanation to the topic.
1.8 SCOPE OF THE STUDY
As explained above, this research work concentrates on the impact of Strategic Human Resource Management on Organizational performance of an IT firm - Cinfores Limited located in Port Harcourt, Rivers State, Nigeria. Since the aims set for this research is to explain and measure the role that strategic human resource management play in shaping organizational accomplishment, practical implications for a Nigerian firm that consider human resources management as a strategic partner is to be studied. The purpose of the empirical data used is to make it possible to test assumptions of how strategic human resources management can result in organizational performance.
This study on the impact of strategic human resource management on organizational performance will cover strategies involved in successful human resource management.
1.9 LIMITATION OF THE STUDY
Time constraint- The researcher will simultaneously engage in this study with other work. This consequently will cut down on the time devoted for the research work.
CHAPTER FIVE
FINDINGS, CONCLUSION AND RECOMMENDATIONS
Findings from the study revealed the following
- Strategic human resource management influences the profitability of an organization.
- Strategic human resource management improves the corporate performance of Cinfores Limited.
- There is a significant relationship between strategic human resource management and organizational performance.
- There is a low level of strategic human resource management in Nigerian organizations.
In addition, recent research has suggested that more needs to be done by the way of proper control variables to better understand the relationship between strategic human resource management and corporate performance (Wright et al, 2005).
The study also unfolds that, the understanding of corporate performance in relation to workforce (human capital) should not be regarded as a phenomenon that only adds ‘more zeros’ in a firm’s profits; it is rather transforming the entire workforce as the most ‘valuable assets’ in order for the organization to pave ways for greater achievements through innovativeness and creativity. Therefore, organizations should come up with some effective plans especially in investing the various aspects of human capital as not only does it direct firms to attain greater performance but also it ensures firms to remain competitive for their long term survival.
CONCLUSION
The study contributes to the strategic human resource management literature by investigating the relative effects/impacts of different levels of strategic integration on organisational performance. From the study, it can be explained in a way that when HR strategy and policies are driven by business strategies they tend to be implemented to meet strategic needs. The study concludes that; strategic human resource management is a key influence in the organizational profitability of any high profile organization. The study presumes that human resource management is concerned with all the areas of an organization in order to obtain the needed skill and will-motivated workforce in organizations so as to achieve organizational performance.
RECOMMENDATIONS
The study recommends that organizations should employ best human resource management practices to achieve consistently improving results in their organizational performance. The following are recommendation on the basis of the research, in order to attain corporate performance;
- The role of trust towards achieving service delivery should be addressed.
- Management should accept a service orientation for an employee in order to meet their professional standard.
- Human resource management should be made an element of learning at all levels.
Future research could extend the findings of this study by looking at other human resource management systems such as high performance work systems, or high commitment work systems to understand the role that different strategic human resource management systems play in the performance or organizations.
CHAPTER TWO: The chapter one of this work has been displayed above. The complete chapter two of "the impact of strategic human resource management on organizational performance" is also available. Order full work to download. Chapter two of "the impact of strategic human resource management on organizational performance" consists of the literature review. In this chapter all the related work on "the impact of strategic human resource management on organizational performance" was reviewed.
CHAPTER THREE: The complete chapter three of "the impact of strategic human resource management on organizational performance" is available. Order full work to download. Chapter three of "the impact of strategic human resource management on organizational performance" consists of the methodology. In this chapter all the method used in carrying out this work was discussed.
CHAPTER FOUR: The complete chapter four of "the impact of strategic human resource management on organizational performance" is available. Order full work to download. Chapter four of "the impact of strategic human resource management on organizational performance" consists of all the test conducted during the work and the result gotten after the whole work
CHAPTER FIVE: The complete chapter five of "the impact of strategic human resource management on organizational performance" is available. Order full work to download. Chapter five of "the impact of strategic human resource management on organizational performance" consist of conclusion, recommendation and references.
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