Resource Management

Human Resource Management is an integral part of a corporate organisation. It has been said that the most important resource of an organisation is its people and employees. After all, they make it possible for the firm to continue its operations and achieve its targets. Even in the midst of organisation’s increasing dependence on technology, the role of people working for the organisation cannot be done away with. 

According to Konzelmann, et. al (2006, p. 542), human resource management is a way to ensure that the welfare of the people working for the organisation is taken care of while ensuring that the goals of the organisation are met. As such, the labour force should work hand with hand with the organisation in pursuing such goals. The links between organisational performance and human resource management (HRM) practices have been investigated by several authors in the field. 

Marchington and Grugulis (2000, p.1105) investigated the literature on the notion that best practices in HRM contribute to better organisational performance. Based on their analysis, however, they argue that the concept of ‘best practices’ is subjective and that the impact of HRM practices and policies on organisational performance is difficult to determine from the literature already written about the subject. In support of this, Chan, Shaffer, and Snape (2004, p 18) agreed with the conclusion of Marchington and Grugulis.

In their study, they analysed data from managers and HRM practitioners regarding the impact of HRM policies and practices together with organisational culture on the performance of the organisation. The authors found out that organisational culture does have a positive impact on the performance of the firm while the impact of HRM policies on performance was not very important. Because of this, they recommended the prioritisation of the development of organisational culture over HRM ‘best practices’ in enhancing the performance of the firm.

In a more moderate tone, Gelade and Ivery (2003, p. 386) said that HRM practices do matter in organisational performance provided that the work climate is good. After studying performance, work climate and HRM policies and practices in a retail bank, they were led to their conclusion. The authors mentioned above appear to agree that there are only a few links between organisational performance and HRM ‘best practices’. Perhaps these authors did find out that monetary and benefits rewards only come second to the values developed in the organisation.

Although HRM practices seek to balance the interests of employees and that of the organisation, if the values and principles of the organisation correspond with that of the employees, then the latter become more loyal to the organisation and they own the goals of the organisation for themselves. In regards to these findings, the challenge for organisations is not only to look for the best HRM policies and practices but also to ensure that the work climate and the organisational culture is strengthened as these two variables do affect organisational performance positively (Bititci, et. al, 2006, p. 1327)

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