Strategic Human Resource Management (SHRM) can be defined as a link between human resources and the strategic goals and objectives of the business. Most importantly, the aim of that is to improve business performance and to develop an organizational culture that will foster innovation, flexibility and competitive advantage. In other words, the HR function is seen as a strategic partner helping the company to implement and formulate strategies as well as reach its goals and flourish. The main activities of HR department include selecting and recruiting the right people for the job roles, training and rewarding them. Very often SHRM is being confused with HRM. SHRM has more of a long-term orientation towards objectives. It doesn’t focus on internal human resource issues; the attention is focused more on addressing and solving problems that have an effect on management programs in a long run. In other words, SHRM focuses on occurring Continue reading
Human Resource Strategies
Significance of Human Resources in International Business Arena
As the success of domestic business depends on its human resources, the success of a multinational company depends on international human resource management. Human resources managers are kind of people managers of any business organization, and are responsible for managing a wide range of employees. The human resource manager in a multi-national company with divisions or subsidiaries in foreign countries has all the normal HR responsibilities plus a brace of additional tasks that are specific to offshore operations of his department. He is literally responsible for international human resource management. International human resource management functions cover many different activities related to a business organization’s employees and contractors. The first and most important is the staffing needs of the company whether staff members are company employees or outside contractors. Other functions include recruiting and training employees, ensuring that they are performing at expected levels or better, handling performance issues and making Continue reading
Performance Related Pay – Definition, Objectives and Conditions
Rewarding performance is the element of the performance management process which seeks to give employees some kind of return for achieving their targets. This is wider than just financial recompense and includes such things as praise, greater opportunities for training and development, and promotion. Very often one of the things most sought by an employee is the recognition that he or she is doing a good job and where, for example, this is expressed in terms of bonus it is very often the recognition rather than the cash that really matters. It is only when money enters the equation that rewarding performance become very tricky and the emphasis her is therefore on the financial aspects. People very often consider performance management solely in terms of Performance Related Pay (PRP). PRP is a method of remuneration that provides individuals with financial rewards in the form of increases to basic pay or Continue reading
HR Strategy Formulation: Organization Mission and Goals Analysis
Even similar organizations often pursue different goals; a thorough organizational analysis of the organization’s overall mission and goals is a second integral aspect of identifying human resource strategies. All organizations exist to accomplish something in their larger environments. The mission — the purpose of an organization’s existence — should guide its strategic thinking. For example, two similar electronics manufacturers may have varying missions. One may want to “be a successful organization in the entertainment business,” while the other may define its mission as “occupying a technological leadership position in the industry.” The associated strategies are likely to show significant differences. Apart from manufacturing electronic goods used for home entertainment, the former firm may acquire video and film production firms and get into the music industry (e.g., producing music DVD’s); while the second firm may be more committed to innovative electronic products through research and development. The associated human resource strategies Continue reading
Types of Motivation Theories
Motivation is defined as a general term for any part of the hypothetical psychological process which involves the experiencing of needs and drives and the behavior that leads to the goal which satisfies them. In essence, the motivational theories provide explanations as to why people behave the way they do. These diverse motivation theories helped identify and determine the myriad of factors that drive people to behave in particular ways. There are numerous motivation theories with more than one may of grouping or classifying them. However, the most common one is to classify them according to four general types, namely: need theory; expectancy theory; equity theory; and goal setting theory. These are considered as the formal motivation theories. 1. Need Theories Need theories buttress the assumption that people have psychological needs arising out of, though going far beyond, basic biological drives like hunger, thirst, sex or the avoidance of pain. Continue reading
Deal and Kennedy’s Organizational Culture Model
As a lead up to the discussion on corporate culture in people’s management, it is important to consider Deal and Kennedy’s contribution. Deal and Kennedy suggests that ‘People are a company’s greatest resource, and the way to manage them is not directly by computer reports, but by the subtle cues of a culture’ Deal and Kennedy (2000) examined organisational culture from a different perspective, concluding that there are six interrelated elements which define organisational culture. These are: The history of the organisation, because shared past experiences shape current beliefs and values and the traditions which organisation is built on. For example, firms often draw on their heritage and use this as part of their branding strategy, as well as asserting a belief in traditional values. The values and beliefs of the organisation are critical as these focus on the shared beliefs of employees and the organisation as a whole, including the written and underwritten Continue reading