Impact of HRM on Organizational Success and Employee Motivation

MANAGEMENT

TABLE OF CONTENTS
Question 1........................................................................................................................................1
Question 2........................................................................................................................................5
REREFENCES................................................................................................................................9

Question 1
HRM
HRM is a kind of strategic approach which helps in effectively managing people within
an organization in order to achieve success and gain competitive advantage. HRM theory was
originally originated in US. This theory of HRM is based upon theories of human behaviour and
theories of motivation (Chang and Chin, 2018). Theory of HRM has been predicted on the basis
of a view that most of the workers search and respond to the working environment that provides
various kinds of challenges, they are paid above average, they can gain various kinds of
opportunities for learning, training and development as well as their level of autonomy can also
be increased. So, it can be said that HRM is completely based upon an assumption that managers
will try to motivate their employees in order to retain and attract employees with correct skills
and knowledge within the organization either with the help of recruitment and selection or with
the help of an appropriate management style (de la Rosa-Navarro Díaz-Fernández and Lopez-
Cabrales, 2019). It can also be said that it is based upon two primary objectives i.e. to enhance
job performance and to increase employee’s motivation. HRM is completely different from
traditional approaches that were used to manage people as traditional approaches were based
upon bureaucratic power structures, money- based incentives and many more but HRM is
different for those traditional approaches and lay emphasis on motivating employees, focus on
individual role, enhance sense of involvement within employees so that they can remain
committed towards the organization. This shift from traditional controlling approach to
commitment strategies has helped organizations to enhance their employee’s productivity,
achieve desired organizational objectives and gain competitive advantage with the help of an
effective and efficient Human Resource management (Xu Gollan and Wilkinson, 2018).
HRM policies
Other than management strategies, HRM also requires development of HR policies and
integrate them with business strategy. There are various kinds of HR policies that are required to
be integrated into business decision making such as employee influence, HR flow, reward
systems, equality and diversity and many more. Equality and diversity issue are one of the most
important and basic elements of HRM model. HRM can have long- term positive consequences
for both individuals and for society (Song, Gu and Wang, 2019). In order to highlight equality
and diversity issues managers are required to focus and take an account of aging population,
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increasing women participation, minority ethnic group in labour force and many more. There are
various kinds of similarities between DM (diversity management) and HRM such as DM
characteristics integral echoes to all the versions of HRM. Despite of this a thin parallel line can
be drawn between and HRM like human resource management is considered as personnel
management whereas diversity management is regarded as capturing equal opportunity territory
by managers (Qazi and Jeet, 2017). Diversity management plays a vital role in success of an
organization and HRM in management of resources.
Soft and hard HRM
There are two different kinds of approaches of managing employees with HR: Soft HRM
and hard HRM. Soft HRM focuses on positioning all of their employees as highly valued assists.
All the HRM policies are directed towards high commitment level, skill development,
competence and adaptability (Shaban, 2019). HRM versions that lay emphasis on human has the
potential to enhance equality and development initiatives. Whereas, hard HRM focuses on
traditional business outlook in which cost effectiveness is primary. HR is one of the main
business expense like other resources of HRM. Main focus is on all the organizational resources
and policies that are directed towards achievement of organizational objectives rather than
employees development.
Four main goals or dimensions of HRM
There are four main goals or dimensions that are encompassed in HRM according to the
guest model, that are: Strategic integration, Commitment, Flexibility and Quality.
Strategic integration:
As per the Guest theory, it is one of the main and first dimension of HRM. It focuses on
organizational performance as long term primary strategic goal. In order to achieve this, it
important to integrate HR policies, practises and functions to organizational strategic planning
process for this both horizontal and vertical integration is required. HRM is vertically integrated
with strategic functions and business concerns such as production, sales, marketing and many
more. Whereas horizontal integration is required to ensure HRM policies so that they form a
coherent entity for example organizational work and payment system complement each other.
HRM should be integrated into line managers responsibilities. Line managers should be
empowered to managing people responsibilities rather than residing responsibilities within
function of HRM. So, for this, it can be said that HRM is important for an organization as it
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