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Human resource.

Extracts from this document...

Introduction

Content 1. Preface 2. Fit between HR strategy and business strategy 3. Recruitment and Selection 4. Performance management 5. Conclusion p. 3 p. 5 p. 9 p. 12 p. 15 Bibliography p. 16 1. Preface Different people, at different times, have different perceptions of what human resource is about. However, HR is now increasingly being viewed as an important strategy needed to fulfil final corporate goals. As defined by Keenoy in 1990, HRM is a method of maximizing economic return from labour resource by integrating HRM into Business Strategy. And as defined by Storey in 1995, HRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic development of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques. These definitions definitely reveal the importance of HR strategy in achieving corporate goals. As shown in illustration 1.1, corporate goals to be achieved, when associated with HR, should go through the process of HR management, which includes recruitment, selection and performance management. Illustration 1.1 Interactive Framework between HRM and Business Strategy The purpose of recruitment and selection is to attract sufficient proper candidates and then to select qualified and most suitable persons from candidates to match people to specific works. It is not possible to optimise the effectiveness of human resources, by whatever method, if there is a less than adequate match. Performance management is then designed to motivate the selected people for better performance. Therefore, recruitment, selection and performance management are integrated together to form a driving force by which the organisation comes to the realisation of corporate goals. ...read more.

Middle

However, due to the following problems, HR strategy may be underestimated for its importance in achieving corporate goals. 1. Human resource competencies are highly context-specific. The competencies and commitment shown by people in one context may be completely worthless in another. 2. Despite continued efforts to link strategic HR management with bottom line profitability, no real connection has yet been proved. 3. HR should be seen much more in terms of creating a cultural climate and organisational framework in which success occurs, rather than as a direct cause of goals achievement. It's hard to get the immediate return on investment of HR strategy. 4. Those acting strategically tend to be individuals rather than teams. There is no solid track record of loads of people, doing loads of good things - and until there is, there will always be a sense of mystique attached to strategic HR. 3. Recruitment and Selection Continued success is dependent on attracting and retaining high-quality individuals who can respond effectively to this dynamic environment. There can be 'wrong' people, individuals who are not going to contribute to organizational success and who may even harm the organization. Hiring the 'right' people is of paramount importance and this is dependent on effective recruitment and selection procedures as shown below, which aim to select the 'right' individuals and reject the 'wrong' ones. Illustration 2.1 The key stages of a systematic approach to recruitment and selection However, there are many difficulties that we will face in the procedure of recruitment and selection. ...read more.

Conclusion

And vice versa, a negative rating in one aspect could lead to other performance factors being evaluated negatively. Problems of subjectivity are particularly evident when non-quantifiable criteria are being used for assessment purposes. * The appraisers may find it difficult to identify and measure the distinct contribution of each individual especially when they constantly change the project or when individual contribution can't be separated from the contribution of whole team. * There may be many external factors beyond the control of the individual employee that affect their performance, such as resources, processes, technology, corporate and HR strategy, working environment, external business context and management. * If there is a long time span between appraisals, appraisers may place greater importance on more recent performance, thereby possibly ignoring incidents that had occurred earlier. * A lack of time and resources may hinder appraiser in providing comprehensive and effective performance reviews and objective setting. Moreover, managers may perceive the appraisal process as a bureaucratic nuisance and form-filling exercise. This would be particularly evident in small companies. 5. Conclusion Obviously, there is no doubt that organizations need to match their HR strategies to their business strategies so that it can be seen quite clearly that HR practices are contributing to the achievement of corporate goals. However, as what we discussed above, the difficulties beyond control make this aim hard to achieve. Well designed HR strategy and organisation, with effective recruitment, selection and performance management system, is the basic and necessary premise of achieving corporate goals. Meanwhile, full consideration shall also be given to the deviation from expectation aroused in the process of recruitment, selection and performance management. ...read more.

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