The responsibility of human resources has been transforming over time. Human resource strategies are responsible for defining plans and intentions related to the overall organizational concerns, such as the organizational effectiveness. It enables a coherent approach to the design and management of personnel, and most importantly it matches the human resource policies and activities to some specific business strategies. With human resource strategies, human resource professionals can implement strategic change and improve the skill base of the company and ensure that the organization can compete effectively in the future. However, it has been hard to determine the impact of these human resource strategies on the companys performance. This is because just like other strategies within the business, human resource strategies focuses on organizational objectives and their effects are slowly felt in the business compared to other strategies.
According to Springer (2008), most organizations often choose one or multiple indicators to measure their performance. It is always important for companies to manage their inputs to achieve their outputs. It has always been hard to determine the impact of human resource strategies on the organizational performance since they are several factors related to these strategies that have to be evaluated to determine the accurate performance of the company. Some of these factors include; customer satisfaction, employee commitment, absenteeism, executives perception of the companys performance and other behavioral aspects. There is no common theory which provides a clear framework for the evaluation of the companies performance. Therefore the researchers have resort to utilizing several variables to measure this construct (Springer, 2008).
It is also difficult to determine the impact of human resource strategies on the companies performance since most performance translate to results and behaviors. Based on Starineca (2016) findings, behaviors emanate from the employees, and they transform them to actions. Furthermore, behaviors can be said to be the product of physical and mental effort applied to tasks. Therefore, this definition means that when determining the performance of the company both behaviors and results need to be considered. Now, the difficulty arises from here since a lot of competency factors need to be considered in the process. In general, when determining the performance of a company impacts of human resource strategies are often considered least, since these strategies do not provide the relevant dimensions of performance standards (Starineca, 2016).
Job satisfaction, employee motivation, and commitment have always been regarded as crucial human resource dimensions to determine the organizational performance. Employees are proactive input components of the production process of the company. Their efforts result in improved economic performance of the company. However, according to Sun (2010), there is a casual link between the enterprises performance and job satisfaction. This is because it has not been easy to determine the impacts of human resource strategies on the companys performance. Determining employees commitment and involvement in the operations of the company is a long process and a nearly impossible event. Since it requires multiple mechanisms to be put in place to monitor their work rate, behaviors and other elements which may influence the performance of the company (Sun, 2010).
According to Kidger (2011), it is very hard to conceptualize the performance of the company regarding outputs, results, and processes using the human resource strategies, this is because it is difficult to evaluate the impact of people management on organizational performance. Moreover, it is always hard to explain the association between the human resource policies and the performance outcomes. The effect of people management on the companys performance is more obvious in the medium than it is in the short term (Kidger, 2011).
In conclusion, when using human resource strategies to determine the performance of the company a lot of qualitative human capital analyses are carried out to predict the sustainability of the company and most importantly determine its future financial performance. Different employee management practices affect business performance differently. The relationship between business performance and the human resource strategies can be identified at different levels ranging from the establishment level all the way the corporation level. Moreover, there is a different approach to determining the performance of the company.
sReferencesKidger, P. (2011). Human resource management responses to global strategy in multinational enterprises. Globalization, Employment and the Workplace, 170-190. doi:10.4324/9780203451670_chapter_9
Springer, C. (2008). Human Resource Strategy. Journal of Business Strategy, 1(2), 78-83. doi:10.1108/eb038905
Starineca, O. (2016). Human Resource Selection Approaches and Socially Responsible Strategy. Economics and Business, 28(1). doi:10.1515/eb-2016-0015
Haq, I. U. (2014). How Well Is Your Organisation? Business Strategy Review, 25(1), 76-76. doi:10.1111/j.1467-8616.2014.01034.xSun, B. (2010). Analysis of impacts of strategic human resource management innovation-oriented on enterprise performance. 2010 Second International Conference on Communication Systems, Networks and Applications. doi:10.1109/iccsna.2010.5588865
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