HRM System in Sustainable Value for Stakeholders

Running head: HRM SYSTEM IN SUSTAINABLE VALUE FOR STAKEHOLDERS
HRM System in Sustainable Value for Stakeholders
Name
Affiliate Institution

HRM SYSTEM IN SUSTAINABLE VALUE FOR STAKEHOLDERS
Introduction
A company is as strong as its employees, their motivation, training and performance. It is the
job of the HR department to ensure employee satisfaction. Considering all these aspects help in
achieving an effective Human resource management system in the company. A company can only
succeed if it hires, motivates and maintain individuals who are able to respond to and adapt to the
challenges and changes in the future. As employees matter more to a business, the competencies sought
by companies are changing focus towards the management of relationships, people's ability to network,
innovate and to partner.
A Human Resource Management system can be defined as a complex system comprising of
several internal systems resulting from HRM activities and HRM levels and sub-levels which have to
work together in order to achieve harmony within the company, achieve competitive advantage and
promote innovation (Alfes, 2012). In order to link all the levels, sub-level and the whole HRM
mechanism and to see how these level and the mechanism work together to achieve company's
organisation and performance outcome, a Strategic Human Resource management system( SHRM) is
applied (Arthur & Boyles, 2007;). The HRM systems that have to fit together are HRM processes,
practices, policies and philosophies (Alzola, 2018).
Jenkins and Delbridge (2017) define HRM philosophies( highest level) as, “an integrated set of
assumptions and beliefs about the way things are and should be guiding organization’s policies to
treating its employees on the one hand, and shape the perceptions shared by employees on the other
hand”. These assumptions are basically a company's mission and vision. HRM policies ( second
highest level), provided the guideline on how to achieve HRM philosophies. They include the
company's goals and they are based on HRM practices. This level of HRM contains details of how a
company values of its human resources and defines how employees and managers should be treated in
order to realize company success. Human resource managers are responsible for creating HRM

HRM SYSTEM IN SUSTAINABLE VALUE FOR STAKEHOLDERS
philosophies and policies since their stakeholders develop statements and the denotations on how
employees are valued and recognized and how this is reflected with the particular goals the company is
trying to achieve. The third and fourth levels of an HRM system are HRM practices and HRM
processes. HRM practices contain the method to implement the pre-determined HRM policies. They
are specific means to achieve company goals and can, therefore, be motivating to employees and
provide a perception into task performance. HRM processes, on the other hand, are the actual
implementation of HRM practices. They are the actions of the employees. The key difference between
HRM policies and practices is that policies do not contain explained information on how to implement
a specific practice since it lacks precision. In short, HRM philosophies entail a perception into how
employees contribute value to the company in order to contribute to the company success, HRM
policies can be regarded as particular HRM-associated goals which should be achieved, HRM
practices are tools and means on how to achieve these goals and HRM processes are the actions
executed by employees achieve these goals.
The word stakeholder was first used in 1963. It means those individuals without whose support
the company would cease to exist. They include share-owners, employees, customers, lenders and
society (Jenkins & Delbridge, 2017). The major aim of any organization is profit maximization, this
can only be achieved through co-operation of all the parts of the company. Human resource department
ensures a good employee engagement. According to Tillmann (2016), employee engagement can be
defined as a positive attitude held by the employee toward the organization and its values. An engaged
employee knows of the business context and works other with employees to improve the performance
of their work, Kahn (2011). An engaged employee has vigour and dedication to the extent that they are
fully focused on their work. In order to fully engage an employee, HRM resorts to several activities
Training aims at giving an employee the opportunity to improve and hone skills, qualifications,
and activities. Training provides the opportunity to cope with and adapt to problems and challenges and