This reflective essay has been executed on the topic “Human resource management” in which discussion will be made regarding the human resource management in Australia and strategic human resource management. Human resource management is an important aspect of every business as there is a need to manage the human resource of the business in an effective manner for executing the operations of the business. With the change in the business environment, the role of human resource is changing. Human resource determines the effectiveness and competitiveness of the business. Human resource management practices are being used by the businesses for the attainment of the goals of the business.
It has been analyzed that the role of human resource management in Australia is increasing with the change in the business environment. Management of people is a tough task which needs to be done in an effective manner so as to eliminate the adverse impacts on the performance of the business. Changes are taking place in HRM due to change in the legal framework, change in the number of employees, change in the economic structure of the country, involvement of different stakeholders, change in the theories or ideas used for managing human resource, impact of social roles and change in the level of competition in the business environment (Onnis, 2014). I have analyzed that the process used for the management of people in Australia has changed. The economy of Australia has developed from the sole dependence on agriculture to matured industries. Systematic human resource management techniques have been adopted by the organizations in Australia. Different practices are being followed by the different organizations operating at different levels. Organisations operating at small level prefer to maintain direct contact with the employees for managing the employees. On the contrary, organizations operating at large medium use intermediaries for the management of the large employee base (Al Wahshi, et. al., 2013).
Human resource management can be explained as the policies, practices, theories, and system adopted by the organization for creating an impact on the attitude, behavior, and performance of the employees. I believe that the attitude, performance, and behavior of the employees are key aspects which determine the chances of survival, success, and growth of the business. The motive behind the use of HRM practices is to effectively manage the human resource for achieving the desired outcomes (McDonnell, et. al., 2015). Selection of HRM practices are based on the nature of the business, size of the business, size of the employee base, the environment of the country, rules and regulations formed for human resource in the country and age group of the employees. HRM departments are there in many organizations which are responsible for the management of human resource. The growth of the concept of personnel management in the Australia has been identified between the early and mid-20th century as the size of the organizations was growing during this phase. With the increase in the number of employees, the need to adopt training programs, policies for managing the issues related to human resource and managing the performance of the business has increased. Australia has faced increases in the level of competition due to globalization and increase in the trade activities between two economies. HRM practices have been used by the Australian businesses for coping with these issues faced (Nadarajah, et. al., 2012).
It has been analyzed with the increase in the competition and internationalization, the need to develop the human resource of the organization has increased. Australian companies have identified the human resource as an important resource for gaining a competitive advantage over the others. Human resource has been recognized as a resource which is capable of utilizing the other resources in an effective manner. Different aspects are responsible for the increase in the use of HRM practices and policies and these aspects include globalization, increase in the diverse workforce, influence on the economy and changing the role of management strategies (Kramar, 2012). Different researches have been conducted for the analysis of the impact of behavior and performance of human resource on the performance and effectiveness of the business. For coping with the issues or challenges identified in these researches, HRM practices have been designed. These HRM practices are providing support to the commitment of employee for the enhancement of quality of the activities performed. Organisations were facing conflicts among the human resources, concern related to the quality of the products or services produced, concern related to environment or culture of the organization and lack of coordination. These aspects have raised the need for human resource practices in the Australian businesses. Different concepts or theories have been applied by the Australian businesses for managing the human resource. These concepts include HRM theories, leadership theories and motivational theories (McCarthy, et. al., 2011).
HRM is considered as an extended version of the concept of personnel management. HRM practices have been considered as a way for enhancing profitability, quality, and performance of the business. HR professionals are fulfilling different roles and responsibilities related to the human resources. These activities for which HR professionals are responsible include compliance with labor laws, fulfilling the need of human resource of the organization, ensuring the quality of the culture of the organization, administration of compensation, selection and recruitment process and training and development programs. Another important aspect which is being used by an Australian business for ensuring that different areas of HRM are effectively managed is Outsourcing (McDonnell, et. al., 2014). Outsourcing can be explained as a business practice in which control of a business operation is handed over to a private company. I have understood that outsourcing is used by the businesses for the purpose of reducing the cost of the business and enhancing the quality of the areas of business. Recruitment and selection process and training and development programs are outsourced by the businesses in Australia. Human resource gets affected due to the environment of the business. Gender issues have been faced by the organizations operating in Australia due to which need of managing the diversity arises. Diversity has become an important aspect of every organization as a human resource of the organizations of Australia is becoming diverse which includes individuals of different age, gender, culture, caste and racial background. Knowledge management is an important challenge for HRM which needs to be managed in an effective manner Van (Gramberg, et. al., 2014).
I have analyzed that strategic human resource management is an approach which is used for the purpose of management of the human resource for supporting long-term objectives of the business by applying the strategic overall framework. Motives behind the selection of this approach by the organizations are to analyze the level of participation of human resource in the decision-making process, analysis of the rights of employees and responsibilities of the organization towards its employees. SHRM create an impact on the performance of the business. With the increase in the competition in the market, there is a need to focus on the performance of the business, reducing the cost, increasing the productivity, enhancing the quality of products or services and competing in the market effectively (Alharthey & Rasli, 2011). Strategies adopted by the business which leads the human resource management system of the business. I have learned that strategic human resource management focuses on engaging the human resource for attaining the objectives of the business. It has been adopted by the businesses for dealing with the issues related to human resource management faced by an organization (Phanwattana & Vichit, 2017).
Different strategies are being used in SHRM for enhancing the performance of the business and achieving the objectives of the business. These strategies include overall-cost leadership strategy and differentiation strategy. The focus of overall-cost leadership strategy is the reduction of the cost and gaining an advantage due to the low cost. For example, Dell and Compaq have produced low-cost personal computers which have affected the performance of IBM and Apple. Differentiation strategy is used with a motive to differentiate the products offered by the business from the others in the market. This can be done with the use of advanced technology, providing different features in the products and providing differentiated customer services (Walsh, et. al., 2010). Strategies are applied by the organizations for coping with the different issues related to human resource management. The main focus of the organization is on managing the performance of the business. SHRM is used as a tool for gaining a competitive advantage over the others in the industry. With the rise in the level of competition, there has been a rise in the use of SHRM practices. Another strategy has been analyzed which is a directional strategy. The directional strategy is divided into four categories and these four categories include internal growth strategy, downsizing strategy, concentration strategy and external growth strategy. These strategies provide various opportunities to the HRM and make way for the fresh ideas for enhancing the performance of business (Cania, 2014).
Different HR challenges are being faced by the businesses which are creating a huge impact on the performance of the business. These HR challenges can be due to lack of effective communication, lack of clarity of job roles, relationship with the employees and lack of leadership. All these challenges can be dealt with the application of different strategies of SHRM. HR policies are being formulated by applying the SHRM approach. HR strategies are being developed with a motive to address HR issues. The human resource of the business provides a strategic competitive advantage to the business (Jacksona, et. al., 2014). Enhancing firm’s competitiveness and emergent strategies are the ways for attaining a strategic competitive advantage. There are different advantages associated with the use of SHRM. These advantages of SHRM include outsourcing of HR, consistent management, development of HR leadership, redesigning the HR processes, strategic HR planning and valuation of human capital of the business in a fair manner (Hamid, 2013).
The role of SHRM for the businesses is increasing as these are practices or approaches which help in attracting, developing, rewarding and retaining the employees for the purpose of gaining an advantage. With the increase in the trade across borders, there has been a rise in the use of SHRM. Diversity issues are being dealt with the businesses with the help of SHRM. I have analyzed that it is crucial for a business to cope with the changing aspects of the dynamic business environment. Organisational learning has been improved with the use of SHRM. It is essential to focus on the roles and responsibilities of the human resource. SHRM approach has helped in defining the practices or policies for enhancing and managing the performance of the employees. Collaborating working practices can be implemented with the application of SHRM. Implementation of SHRM has resulted in assigning the role of managers in an effective manner and enhancing their responsibilities towards resolving the issues, managing diversity, enhancing interpersonal relationships and enhancing employee performance (Molineux, 2013).
Different strategies are being adopted by the business which needs the support of the employees for implementation of the strategy. SHRM has led a complete transformation of HRM practices. The scope of SHRM not only covers HRM but it includes different aspects of the business. It includes personnel management, HRM, the relationship in the industry and organizational psychology. SHRM has been adopted by the organizations for the attainment of higher performance and targets. A link has been established between the human resource practices and strategies. SHRM promotes participation of employees in the decision-making process of the business for generating trust and loyalty among the human resource of the organization (Amberg & Mcgaughey, 2016).
Thus, it can be concluded that human resource management and SHRM are crucial aspects of every business. These aspects play vital role in the management of human resource of the business. There has been a rise in the use of HRM practices in Australia due to the changes in the business environment. Different approaches are being used by the businesses for enhancing their capabilities and coping with the competition in the business environment. SHRM is an effective approach which is applied by the businesses for dealing with the HR challenges as well as management of the human resources in this dynamic environment in a better manner.
References
Al Wahshi, A. S., Omari, M. & Barrett, R., 2013, “Human Resource Planning: Sector Specific Considerations”, In 27th Australian and New Zealand Academy of Management Conference 2013 : managing on the edge, 4-6 December 2013, Hobart, Tasmania.
Alharthey, B. K. & Rasli, A., 2011, Key role of strategic human resource management (SHRM) in advancing the degree of team learning”, Research gate.
Amberg, J.J. & Mcgaughey, S.L., 2016, “Strategic human resource management and inertia in the corporate entrepreneurship of a multinational enterprise”, The International Journal of Human Resource Management, pp.1–35.
Cania, L., 2014, “The Impact of Strategic Human Resource Management on Organizational Performance”, Economia. Seria Management, Volume 17, Issue 2.
Hamid, J., 2013, “Strategic Human Resource Management and Performance: The Universalistic Approach—Case of Tunisia”, Journal of Business Studies Quarterly, Volume 5, Number 2.
Jacksona, S. E., Schulera, R. S. & Jiang, K., 2014, “An Aspirational Framework for Strategic Human Resource Management”, The Academy of Management Annals, Vol. 8, No. 1, pp. 1–56.
Kramar, R., 2012, “Trends in Australian human resource management: what next?”, Asia Pacific Journal of Human Resources, Vol. 50, p. 133–150.
McCarthy, G., Almeida, S. & Ahrens, J., 2011, “Understanding employee well-being practices in Australian organizations”, International Journal of Health, Wellness & Society, 1 (1), 181-198.
McDonnell, A., Boyle, B., Stanton, P., Bartram, T. & Burgess, J., 2015, “Delineating human resource management practice in domestic and foreign-owned multinational enterprises in Australia”, Aisa Pacific Journal of Human Resources.
McDonnell, A., Lavelle, J., & Gunnigle, P., 2014, “Human Resource Management in Multinational Enterprises: Evidence From a Late Industrializing Economy”, Management International Review, 54(3), pp. 361-380.
Molineux, J., 2013, “Enabling organizational cultural change using systemic strategic human resource management – a longitudinal case study”, The International Journal of Human Resource Management, 24(8), pp.1588–1612.
Nadarajah, S., Kadiresan, V., Kumar, R., Kamil, N. N. A. & Yusoff, Y. M., 2012, “The Relationship of HR Practices and Job Performance of Academicians towards Career Development in Malaysian Private Higher Institutions”, Procedia – Social and Behavioral Sciences, Volume 57, pp. 102-118.
Onnis, L. A. L., 2014, “Managers are the key to workforce stability: an HRM approach towards improving retention of health professionals in remote northern Australia”, ANZAM.
Phanwattana, P. & Vichit, U., 2017, “A Literature Review of Strategic Human Resource Management”, Silpakorn University Journal of Social Sciences, Humanities, and Arts, Vol. 17(1), pp. 23-40.
Van Gramberg, B., Teicher, J. & O’Rourke, A., 2014, “Managing electronic communications: a new challenge for human resource managers”, The International Journal of Human Resource Management, pp.1–19.
Walsh, K., Sturman, M. C., & Longstreet, J., 2010, “Key issues in strategic human resources”, Cornell University, School of Hospitality Administration.
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