Discuss About The Developing People And High Performance Organizations?
In the widely popular industries, it is seen that a competitive ambience within the organization is somewhat intensifying and various organizations should develop some core competencies resources and innovative capabilities to facilitate them to compete in today’s ever-changing business setting. It can be said that, Globalization in the form of greater than before dissemination of technology and access to the akin resources make traditional sources of competitive advantage easier to replicate, and thus making it harder for various organizations to distinguish themselves from the competition (Katzenbach and Smith 2015). It is a matter of fact that, as the speed of change and the level of uncertainty increases, the strategic thinking becomes more vital. Thus recognizing those challenges some organizations are increasingly emphasising human resources as one of the key sources of competitive advantage in their organizations. The main focus of transforming the human resource management’s role from a reactive function, focussed by the operational needs of the organization to a specific strategic function wherein a systematic approach is engaged towards the coordination of employee management that aims to be allied with and conductive to accomplish the organization’s strategic objectives.
The strategic human resource management is when the organizations take strategical decisions in their human resource practice along with targets of attainment of the economic goals of their shareholders, the satisfaction of workforce as well as their social legitimacy. Thus to effectively make parallel Human resource management with such strategies, the organizations should assess how their contemporary HRM policies, practices and initiatives are configured as well as how these are all connected to and can add some value towards achieving strategic objectives (Boso, Story and Cadogan 2013). The management of such organizations must consider the fact that which human resource practices and resources are critical to their company’s performance, and identify the gaps stuck between available and required human resources and determine Human resource management strategies to resolve those gaps and contribute to generate competitive advantage. It is also seen that some specialists in this field, defined strategic human resource management as making the HR department aware of the organization’s business strategy and structuring the HR practices to support these (Blackman et al., 2012).
Many scholars stated that some organizations increasingly depend on the effective management of human capital for success of the organizations. Through partaking is strategy development and considering the resulting operational consequences, HRM can effectively align, plan and design actions to best fit the goals and thereby better contribute to the organization’s competitive abilities. Being conscious of the company’s human capital, education, knowledge and other proficiencies, HR managers can decide whether this capital would require enhanced abilities through training and development or via recruitment and selection of new employees (Spreitzer and Porath 2012).
The available knowledge within an organization’s human capital is most possibly the significant root of all the competitive advantages. The challenges for the companies must be to transform the implicit knowledge found in employees into explicit knowledge of the organization.
Primarily, human resource development is a function of strategic HRM expanded on for various organizations that operate in a more multifaceted and unpredictable environments. Additionally, some areas of strategic human resource development and performance appraisal in strategic HRM are interlinked with HRD in a way that they overlap and complement each other. It is a matter of fact that, human capital as well as other resources can be easily generated inside the company or else can be acquired from various external suppliers (Parmenter 2015).
There are varieties of definitions of HRD in the literature, and the difficulty of a straightforward HRD definition and model originates in with the contributions to the subject from a wide range of scholars and researchers in some areas, like industrial relations, education, psychology, management and engineering. Many contemporary scholars narrows it down to three basic principal bases; those are,
It is a matter of fact that, the external environment is monitored by an organization’s strategic plan and HRD must be guided by this which can be seen in the supply and needs of the local labour, political and legal situations in the external environment (Schleicher 2012). It is also a fact that, the need for monitoring the domestic environment and those HRD executives needs to keep an eye on a company’s quality control system, financial system, sick-leave figures, safety reports, performance appraisal systems and an overall managerial observations. These are the areas that provide human resource development executives an early warning of areas those need attention. HRD management has four basic stages, and those are, the investigation stage, the implementation stage, the design stage and finally, the evaluation stage. The investigation phase is the one, where, the needs of the companies are investigated and identified. Then in the design stage, the aims are examined along with the objectives and the content those are to be learnt. The stage of implementation is consisted of the management and coordination of the program and the conducting of structured or unstructured learning strategies (Parmenter 2015). The final evaluation stage can employ a range of dissimilar models to assess the extent and effectiveness of the intended learning.
In this matter, it is seen that the companies apply a supply chain model in order to forecast its human resource demand. This model involves two approaches to address the uncertainty on the demand side by comparing buy versus make decisions and how to reduce risk in demand forecasting ,(Patel, Messersmith and Lepak 2013). In addition to that, it is seen how this model proposes two other approaches on the supply side where the organizations must consider the return on venture in HR development along with protecting the investment by generating the internal opportunities to give surety that the talents sustain within the company.
It is seen that, there are numerous definitions of the strategic HRD found, and the basic difference between the HRD and strategic HRD, and the latter one actively contributes to a company’s strategic planning and protects the development of the core competencies. The main purpose of the HRD in core competency management is one of involve informing the strategic planning procedure, identify, and protect the core competencies (Patel, Messersmith and Lepak 2013). Some experts say that HRD is a support function, and on the other hand, it is seen that HRD is one of the strategic value creating activities.
The HR managers will be needing a comprehensive understanding of the strategic objectives and how those can contribute to the company’s strategies and aims. It is seen that various executives struggle to locate the core competencies and the competitive advantage that HRD can bring in to their company (Kehoe and Wright 2013_. There are four basic challenges in facing strategic HRD, and the primary one is the presence of recognition within the company. It is also a matter of fact that HRD in most cases stays absent in the boardroom meetings and other leadership positions, which might be attributed to the perceived lack of relevancy, contribution and impact on the strategy and bottom lines. Sometimes it is also seen that, HRD practitioners were unable to convince organizational leaders of the strategic value that their profession can bring in as well as the inability to develop the methodologies required to integrate HRD management in companies (Scheerens 2012). In addition to that, it is seen how HRD professionals were unable to present a workable return on the investment model. It is a matter of fact that, the lack of clear HRD identity is the largest attributer of these challenges.
Thus to conclude, it can be said that a properly aligned strategic approach to HRD must play a strategic role within a company contributing advancement towards organizational objectives and an overall competitive success and advantages. It is a matter of fact, which many experts suggest that available knowledge within an organization’s human resource can emerge as a root of all the competitive advantages. This essay stresses on the fundamental strategies to attain competitive advantage using the HRD and also sheds light on the necessity of the proactive nature of the HR managers within the organization. It is a matter of fact that, in many organizations HRD is facing problems regarding its own meaning in some cases, as very less people has the appropriate idea of HRD and activities of HRD and its effectiveness. Thus, in short it can be said that, when an organization effectively implies HRD needs according to the strategies they have chosen, they would definitely taste the success and would surely emerge as a great organization in no time.
References
Blackman, D.A., Buick, F., O’Donnell, M., O’Flynn, J.L. and West, D., 2012. Developing high performance: Performance management in the Australian Public Service.
Boso, N., Story, V.M. and Cadogan, J.W., 2013. Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy. Journal of Business Venturing, 28(6), pp.708-727.
Boxall, P., 2012. High?performance work systems: what, why, how and for whom?. Asia Pacific Journal of Human Resources, 50(2), pp.169-186.
Grimmelikhuijsen, S.G. and Meijer, A.J., 2012. Effects of transparency on the perceived trustworthiness of a government organization: Evidence from an online experiment. Journal of Public Administration Research and Theory, 24(1), pp.137-157.
Katzenbach, J.R. and Smith, D.K., 2015. The wisdom of teams: Creating the high-performance organization. Harvard Business Review Press.
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices on employees’ attitudes and behaviors. Journal of management, 39(2), pp.366-391.
Lee, A.V., Vargo, J. and Seville, E., 2013. Developing a tool to measure and compare organizations’ resilience. Natural hazards review, 14(1), pp.29-41.
Parmenter, D., 2015. Key performance indicators: developing, implementing, and using winning KPIs. John Wiley & Sons.
Patel, P.C., Messersmith, J.G. and Lepak, D.P., 2013. Walking the tightrope: An assessment of the relationship between high-performance work systems and organizational ambidexterity. Academy of Management Journal, 56(5), pp.1420-1442.
Patel, P.C., Messersmith, J.G. and Lepak, D.P., 2013. Walking the tightrope: An assessment of the relationship between high-performance work systems and organizational ambidexterity. Academy of Management Journal, 56(5), pp.1420-1442.
Scheerens, J., 2012. Summary and conclusion: Instructional leadership in schools as loosely coupled organizations. In School Leadership Effects Revisited (pp. 131-152). Springer Netherlands.
Schleicher, A., 2012. Preparing teachers and developing school leaders for the 21st century: Lessons from around the world. OECD Publishing. 2, rue Andre Pascal, F-75775 Paris Cedex 16, France.
Spreitzer, G. and Porath, C., 2012. Creating sustainable performance. Harvard Business Review, 90(1), pp.92-99.
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