HR plans and the organizational context Essay Example | Topics and Well Written Essays - 2750 words

HR plans and the organizational context - Essay Example HR management can play a role in identifying and analyzing external opportunities and threats that may be crucial to the company's success. It is in a unique position to supply competitive intelligence that may be useful in the strategic planning process. The HR function needs to be treated as a line function. HRM first reared its head in the 1980's with increased globalization of markets and intensified competition (Sisson, 1989, 1990; Blyton and Turnbull, 19941). The globalization of markets was facilitated by an IT- induced communication system and the diversification of the labor market. The international division of labor coupled with the rise and growth of multinational companies saw the emergence of Human Resource Management as a new and key factor in organizational success (Nolan and O'Donnel, 1991)2. HRM is an offshoot of Personnel Management and deals with the practice of identifying and placing the 'right people' people into the 'right' into jobs. Thus the basic gist of HRM lies in tying individual employee empowerment with organization development (Glueck, 1974). 3 The main dimensions of HRM involve the goal of integration (i.e. ... the use of planning a coherent approach in the design and management of personnel systems as an employment policy and manpower strategy, and often underpinned by a philosophy matching welfare and management activities and policies to an explicit business strategy, and seeing the people of the organization as a strategic resource for achieving competitive advantage. Guest in 1987 5outlined the main components of HRM: The main dimensions of HRM involve the goal of integration (i.e. human resources can be integrated into strategic plans, if human resource policies cohere, if line managers have internalized the importance of human resources, and this is reflected in their behaviour and if employees identify with the company, and then the company's strategic plans are likely to be more successfully implemented), the goal of employee commitment, the goal of flexibility/ adaptability (i.e. organic structures, functional flexibility), the goal of quality (i.e. quality of staff, performance, standards and public image. In a nutshell, HRM encompasses all the essential nitty- gritty details which build the foundation of an organization. But HRM should not be considered in a 'stand alone context.' According to Rao, 2001, HRM today ought to be taken in conjunction with external market, labor and media forces. HRM is heavily influenced by socio- economic and political policies shaping the industrial workplace. In addition, HRM also has to consider internal organizational corporate climate. Thus, HR executives don many hats dealing effectively with many influences to get the best performance from employees. Thus, HRM is not only about profits and productivity. It is about understanding employees. HRM in today's global society is concerned with employee empowerment to