(PDF) Human Resource Management and Performance
Added on 2021-06-15
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Running head: HR MANAGEMENT AND PERFORMANCE LINKHR Management and Performance LinkNameInstitution
HR MANAGEMENT AND PERFORMANCE LINK2IntroductionThere is great relationship between organizational performance and the human resource management of every organization. The way a firm manages its stock of competence directly determines its overall performance, the culture of the firm, and the masterplan both internal and external used to control the human resource links to the performance of the firm. Therefore, the HRM plays an integral role in ensuring effective management of every organization. given the fact that there is stiff competition in the job market, the resource that most firms focus on to increasing theoretically and empirically is the stocks of competence or human capital.Human resource management refers to the bustle in relation to management of stock of competence (Roca-Puig & Escrig-Tena, 2016). For a firm to be considered successful, several factors have to be fabricated together and used at the optimum for it to yield results. One of this is the relationship between human resource and performance link. A number of theories have been used to explain the human resource management performance link such as ability, motivation and opportunity theory, the contingency theory, and resource-based view theory.The contingency theoryFleetwood and Hesketh (2018), contingency theory holds the belief that there isn’t any universal human resource management (HRM) structure that can be utilized evenly in all organizations at every situation that will give out similar performance. However, the consequences of a specific human resource rely greatly on the master plan of the firm. It is concerned with the structure of the organization and interrelating factors such as socialization in the firm, political issues and theculture of the firm. Tessema and Soeters (2016) denote that the theory majorly involves modifying the human resource management activities for it to function for both intrinsic and
HR MANAGEMENT AND PERFORMANCE LINK3extrinsic situations to get ultimate production in the firm. However, factors within the context have to interplay for there to be performance in the firm. It means that HRM must act accordingly to the firms environ such as working closely with the business master plan or strategy (Tessema & Soeters, 2016).Resource-based View theoryThe second theoretical framework is Resource-based View theory. Guedri and Hatt (2018) hold that this theory is constructed with the view that the firms presentation is as a result of its production. It focuses on achieving competitive advantages and argues that for better performance of the firm. Applying the theory requires an organization to look keenly within its structure so that it may come up with the resource that gives it competitive advantages opposed to focusing on the competitive environment. It goes further to explain that for a firm to outdo its rivals in the arena, it should pay much attention to it internal resources which mostly focuses on the stock of competence this refers to the human capital. Its major philosophical basis of this theory is that HRM policies play a crucial function in developing stock of competenceThis theory suggests that the unique or outstanding historical circumstances of an organization makes it hard for competing firms to achieve the same level and quality of human capital that is the knowledge, skills and abilities within the firm (Barbely, 1991). The RBV framework implies that human resources may be of even greater significance for smaller firms, for they can generatemore using scarce resource to remain competitive n the market. According to this theory, being in possession of strategic resources gives an upper hand for a firm to outdo its competitors (Hesketh, 2016). A strategic resource is that which can seldombe found almost impossible to ape and cannot be substituted. The strategic resources of the firm
HR MANAGEMENT AND PERFORMANCE LINK4need not to be cash and machinery but rather the culture of the organization. Being in possession of both tangible and intangible properties such as knowledge and skills of the workers the reputation of the firm and culture is a major determinant of the performance link. Paying close attention in this area enables the firm to compete favorably with its opponents.it is also importantto note that in the smaller firm context, whether stocks of competence practices are formal or informal it must be carefully considered. Ability, motivation and opportunity theory (AMO)This theory provides a good link between human resource management and performance in the firm. Faems and Forrier (2016) denote that AMO theory is based on three dimensions that work together to shape the personalities of the stock of competence in the organization which in turn fosters the growth of the firm. According to this theory, the distinct features that may facilitate the performance of the firm are ability, motivation and opportunity. Ability refers to the knowledge or the knowhow and the extend of expertise the stock of competence has in order to tackle the assigned work. This dimension is abbreviated KSA (knowledge skills and ability) thus fostering practice leads to improving the three parts (Salas-Vallina & Fernandez, 2017). The seriousness given during the recruitment of workers in terms of their competence and passion to work fabricated. It also involves offering further training and giving the right equipment that enables the employees to work at their optimum significantly translates to the performance of thefirm. When the abilities of the workers have been enhanced either through training or exhibitions, there is a general increase in the productivity.Increased competition for talented workers has also given the organizations an added incentive which they can use to review their workers relations strategies in order to attract motivate and
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