This document discusses the current trends and development that impact an organization's Human Resource strategy, as well as the external and internal factors that influence HR strategy and practice. It also explores theories and concepts for the growth and development of strategic Human Resource Management.
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Strategic Human Resource Management
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Table of Contents INTRODUCTION...........................................................................................................................4 TASK 1............................................................................................................................................5 P1 Current trends & development that impact on organisation's Human Resource strategy......5 P2 External & Internal factor influence Human Resource strategy and practice........................6 M1 Analysis effect of external & contextual development on Human Resource strategy of an organisation.................................................................................................................................7 D1 Evaluation of impact of external & contextual development applying theories as well as concepts.......................................................................................................................................7 TASK 2............................................................................................................................................7 P3Theories&conceptsforgrowthanddevelopmentofstrategicHumanResource Management................................................................................................................................7 M2 Analysis of how HR theory relates to an organisation.........................................................9 D2 Evaluation of how HR theory relates to organisation context..............................................9 TASK 3............................................................................................................................................9 P4 Change Management models................................................................................................9 M3 Justifications of change model and how it supports Human Resource strategy.................11 D3 Critically Evaluate change management model and strategies..........................................11 TASK 4..........................................................................................................................................11 P5 How Human Resource outcomes can be measured and monitored with an example..........11 P6 Evaluation of effective HR management and development which can support sustainable performance...............................................................................................................................12 M4 Suggestion for Human Resource development techniques................................................12 D4 Evaluation of how monitoring & evaluating techniques contribute towards growth and sustainable performance of company........................................................................................13 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION StrategicHumanResourcemanagementisdecipheredasaprocessofattracting, rewarding & retaining staff members for the goodness of both employees as well as organisation. In another words, it is a procedure of interrelate functions of HRM with organisational objectives and goals. In this practice, strategies and actions is developed in order to optimally utilize human resource of an organisation. This assist company to enhance their performance level and raise their level of profits(Armstrong and Taylor, 2020).Human resource department of an organisation maintain effect relationship with employees that assist company to retain their staff members for longer time period. The other functions that is performed by Human Resource involves recruitment, selection, Training & development, performance management and many more. In the present report, ALDI is chosen as a base company. The company was established in the year 1913 by Karl & Theo Albrecht. The existence of the company is in more than 11,000 locations globally which is the reason behind its large market share. ALDI deals in products such as Household essentials and variety off groceries. The report covers current trends that effect on the human resource strategy of an organisation along with its impact on external and internal factors. Moreover, Theories and models associated with strategic human resource management is discuss in this project. TASK 1 P1 Current trends & development that impact on organisation's Human Resource strategy In this dynamic world, it is important for an organisation to be flexible & keeps n changing their policies and strategies that assist companies to maximise their effectiveness level. In context to ALDI, it is determined that company care and value their employees and focuses on providing them positive culture in the premises(Brewster, 2017). In order to retain employees and to deal with changing trends, ALDI require to give interesting future opportunities to all the staff members. Some of the current trends that influence on Human Resource strategy of an organisation is defined below: Manpower Diversity: It is defined as people who belong from different places, culture, is working at one place. It is important for companies to have diverse manpower which assist in improving the efficiency and help in gaining competitive edge at marketplace. With reference to ALDI, its higher authorities express human resource manager to recruit candidates of different
culture,religion,ageandethnicity.Thiswillassistcompanytobemoreinnovative& competitive in market that directly leads to growth and development of ALDI. Influence of Globalisation:Globalisation assist company to expand their business activities and increase the level of profitability. In relation to ALDI, the company has existence in more than 11 countries but in order to enhance their operations globally they require to bring some innovative and creative idea in market so that they can sustain in market of other countries in an effective manner. Advanced Technologies: Nowadays, technology is changing rapidly that effect on the overall strategies of an organisation. In context to ALDI, its human resource manager requires to use new methods of recruitment and selection which help company to hire effective and talent candidate for the organisation(Chadwick, Super and Kwon, 2015). Nowadays, many technical softwareisdevelopedin ordertoselectcandidateswhichdirectlyeffecton theoverall organisation HR strategy. Competition for Talent: Due to increase in competition, companies are focusing on hiring talented and effective employee who can perform activities in a proper and effective manner. In relation to ALDI, the company provides many benefits to employees and emphasise on satisfying their needs so that they can attract fresh talent for the company which effect on the overall efficiency of ALDI in positive manner. It is essential for human resource manager of ALDI to change their strategies and policies in order to hire talent candidate for the organisation. Changing skills: With the passage of time, the requirement as well as needs of employees is changed so it is essential for ALDI to make innovation in its Human resource strategy that will help in gaining desired goals in a desired manner. Continuous emphasise on improving customer experience: In this competitive world, it is important for an entity to provide to provide high customer experience as it sales as well profit is totally depend on them. In order to achieve this, ALDI need to enhance productivity of staff members who provide effective and on time service to customers. P2 External & Internal factor influence Human Resource strategy and practice. Externalfactorsinvolveelementswhichinfluenceontheoveralloperationsand functionsofanorganisation.Theexternalfactorsaretechnologicalchanges,economic conditions, change in legislation & policies, social factors and many more. This element indirectly or directly effects on operations of an organisation which in turn impact on the overall
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objectives of the company. The external factors that influence on practices and strategies of HR is mentioned below: Market Trends: Change in market trends effect on the overall activities and operations of a company. The market trends are changing due to change in technology, perception as well as buying behaviour of customers(Delery and Gupta, 2016). In order to deal cope with the changing market trends, it is important for companies to change their level of production processes and services. In relation to ALDI, it is important for Human Resource manager to give appreciation and rewards to employees so that they can bring innovative idea for company that strengthen position of ALDI globally. It will also assist company to gain competitive edge at marketplace and fight with their rivals in a proper manner. Laws: There are many legislations and policies that effect on the functioning of a company. In relation to ALDI, the company head office is in United Kingdom and according to their laws it is essential for all the organisation to maintain personal data of employees. Change in laws and policies impact on overall practices & strategies of Human Resource as they need to alter their policies which assist company to function in a smooth and effective manner. Environmental change: Nowadays, people are more conscious towards their health and protect the environment. With reference to ALDI, it is plan to offer herbal products in market in order to contribute towards protection of environment and builds positive brand image in market. Technical change: The technology is changing continuously that affect on the buying behaviour of customer as they prefer to consume innovative and new things. In context to ALDI, it is important for higher authorities to use advanced techniques in its process as it decline the overall cost and increases profits of company. Internal Factorsinvolves employees, stakeholders, funding, investment opportunities and so on(Delery and Roumpi, 2017). All these factors effect on operations and functions of a company which in turn effect on the strategies and practices developed by the Human Resource manager of an organisation. The internal factors that effect on activities of ALDI are as follows: Availability of Funds:In order to smoothly function out business activities, it is important for an organisation to have enough and enough funds available in the company as it assists in formulation of policies and strategies in a proper manner. With relation to ALDI, its higher authorities ensure that funds are available to all the departments of a company. If it is talked about human resource department, lack of funds impact on the practices and strategies that
is developed by them as they are not able to perform activities in a proper manner. This will directly affect on the overall organisational objectives and goals in a negative manner. Relation with Employees: Human Resource manager of an organisation build strategies in order to maintain effective relationship with employees that help company to retain their employees for longer time frame. In context to ALDI, its HR manager emphasise on developing good relationship with staff members which motivate them to work with full potential and enhance productivity and profitability of company. HR generic strategies:The human resource generic strategies include three factors that is differentiation, focus, and cost leadership. This are given below with relation to company. Cost Leadership: In this strategy, the main focus is on providing high quality goods and service in market at lower rates. It help ALDI to gain competitive advantage at marketplace and reaches to leading position. Differentiation: Herein, the main focus is on providing unique and different service in order to attract maximum number of people prevailing at marketplace. This strategy will assist ALDI to develop strong brand position that leads to increase in sales and profit of company. Focus: it involves two strategies that is cost focus and differentiation focus that is providing unique and different goods in market at lower rates. From the above discussion, it has been analysed that ALDI should adopt differentiation strategy as it help company to attain competitive edge at marketplace. M1 Analysis effect of external & contextual development on Human Resource strategy of an organisation. External factors such as political, legal, social , economic and many more impact on the strategies develop Human Resource manager(Liu, 2017). Along with this, Advancement in technologies, increase in market competition, workforce diversity also effects on the plans and Human Resource strategy. In order to cope up with the changing environment, it is important for HR department to be flexible and dynamic that help company to hire talented candidate which in turn raise the productivity as well as profitability level of an organisation. D1 Evaluation of impact of external & contextual development applying theories as well as concepts It is important for an organisation to make development in their strategies so that monitoring & controlling of staff members can be done effectively. ALDI can use strategic
model like performance management which affect positively on the productivity of employees. This will also help company to gain competitive advantage at marketplace and attain their desired goals within the specified time period. TASK 2 P3 Theories & concepts for growth and development of strategic Human Resource Management There are different theories as well as concepts which assist companies to build & enhance their processes of strategic human resource management(Marchington, 2015). ALDI offers its products globally in order to raise its market share and to gain leading position in the industry.The present situation that is occurred in the company is inequality in pay structure as employees feel that salaries given to them is not equal to the wages that is received by other employees. In order to solve this, the higher authorities of ALDI uses some theories and concept that is mentioned belowwhich assist an organisation to attain their objectives in an effective manner: Performance Management: It is a process of evaluating the performance of all the staff members prevailing in the organisation with an aim to attain desired objectives and goals. Moreover, it is a procedure of building, guiding & improving efficiency of employees so that they can contribute their best towards the attainment of objectives within stipulated time frame. In context to ALDI, acquisition of this concept at workplace assist managers to improve efficiency and attain desired goals of company. For Instance, ALDI serves its product in all over the world. In order to analyse performance level of staff members, human resource manager can use this concept of performance management as it will help them to evaluate efficiency and contribution of employees towards attainment of objectives(McClean and Collins, 2019). It will also help them to improve productivity of staff members which directly increases profit of ALDI. Example 1: In Aldi, the management of the company can implement the concept of performance management. With the utilisation of this theory the company can determine the execution of the employees that they are effectively perform their roles and responsibilities or not. If they are not perform well the management of the company will provide training and development sessions so that they can do their work in effective manner. It will help in developing and improving the profit and productivity of the company. It will also help in retaining the employees of the firm till long term duration.
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UniversalisticTheory:Thistheoryisassociatedwithinternalresourcesofan organisation and its relations to the performance of business activities. This theory aid companies to formulate effective strategies as well as plans. In context to ALDI, acquisition of this theory helps HR manager to frame recruitment and section process in an effective manner. Along with this, it helps ALDI to bring new and creative idea in the company that leads to raise in efficiency and productivity of company. Example2:IftheadministrationofAldiimplementandusethisconceptinbusiness organisation. Then with the help of it, the HR function of firm can organise and conduct recruitment and hiring process. It will also crucial to hire skilled and knowledgable persons by using different recruitment methods. If the organisation have skilled and qualified employees then innovative and creative ideas are bring which help in development of the firm in term of raising profit and enhancing productivity. Contingency Theory: This theory signifies the uncertainties that is occurred in an organisation at any time so it is suggested that no theory is applied in organisation as it is depend on the situations arises at workplace. In relation to ALDI, if Contingency theory is adopted by higher authorities it will assist them in dealing with uncertainties or situations occurred in future that directly leads to achievement of organisational goals within time frame. Example 3: By implementing this concept in business organisation, the management of the firm can deal with complex situation that can be occurred with the firm in current era or in upcoming time. By using this concept, the management of the firm can instantly work towards attainment of the aims and objectives of the company in set time duration. It will beneficial to make increment in the revenue, market share, net profit and productiveness. Flexible working arrangements:It is described as giving facility of flexible hours of working to the staff members as it raises the productivity level of employees which in turn affect positively on the profits of an organisation(Ostroff and Bowen, 2016). With reference to ALDI, company can adopt this concept as it will motivate employees as they get to work according to their time. This will maintain work-life of employees that affect positively on their efficiency level which in turn leads to raise in profits of ALDI. Example 4: By adopting this concept the firm can make development in the business. Because with the help of it, the administration of company make flexibility in working process so that employees can do their work as per them. Like if an individual is not able to come to office then
the person can do work with the help of work from home as a flexible working option. It will help in retention of the employees as well as enhancing productivity of the firm. All these theories and concept can be acquire by ALDI as it helps them to manage human resource in a proper and effective manner which leads to enhancement of productivity as well as efficiency of staff members of the company. M2 Analysis of how HR theory relates to an organisation All these theories acquired by ALDI assist in motivating employees due to which their efficiency and productivity level increases. This will help ALDI to achieve organisational objectives within given time period that leads to increases in profits of company. Along with this, by applying theories company can make optimum use of human resources which affect positively on the efficiency of ALDI. D2 Evaluation of how HR theory relates to organisation context HR theories help managers of an organisation to motivate their staff members which affect positively on the productivity and performance of a company. Contingency theory suggest that no particular strategies is effective for an organisation as it is changed according the circumstancesarisesatworkplace.UniversalisticTheoryassistanorganisationtobring innovativeanduniqueideathatfurtherhelpcompanytogaincompetitiveadvantageat marketplace.In order to solve issue of payroll structure, the company uses performance management concept which assist in evaluating performance of staff members in a effective manner. It also show results that is contribution of employees towards organisation objectives and goals of company. TASK 3 P4 Change Management models Change is a continuous procedure and in order to cope up with this, it is important for an organisation to be flexible and dynamic. This will help company to easily deal with the situations and achieve their objectives on time period(Reiche, 2016). There are some models of change management which will be acquire by ALDI in order to formulate as well as develop Human resources strategies. This model is also help managers of ALDI to manage all staff members of an organisation. The models are defined below in relation to company:
Kotter’s 8 Step change Model: The model was proposed by John Kotter, a professor of Harvard Business school. The steps of model are mentioned below with relation to company: Establish Urgency: It is refer as creating the need of change by establishing a sense of urgency in the mind of employees. Moreover, it is settling the significance of a project in the mindset of staff members so that they can finish the task given to them on urgent basis. By developing the environment of urgency, employees’ competencies and skills is enhanced that effect on the overall results in a positive manner. Along with this, it also assists ALDI to evaluate the performance of employees and give them appreciation accordingly. Build a Powerful Team: It is difficult to managers to bring changes in an organisation at their own, so it is essential for higher authorities to build a team which direct others and cope up with changes effectively. In relation to ALDI, the company would develop a team that help in implementation of activities in a proper manner. This will also help managers of ALDI to bring out positive results and develop brand image of company in market. Create Vision: In order to make understand change to employees, companies can develop a vision which is associated with the objectives o0f an organisation. This will build a clear statement in mind of staff members of ALDI that will lead to attainment of goals within time frame. Communicate Vision: After creating the vision, the other role that is needed to be perform by higher authorities of an organisation is to Communicate the set vision to all the staff members so that they can motivate and contribute their best towards the attainment of goals (Shields, 2015). It will also help team members to clarify task require to be perform by employees in order to adopt change in a proper manner. With reference to ALDI, it has different channels of communication which assist them to update employees about change taken to be place in the company. Remove Hurdles: All the above four steps are important for an organisation in order to initiate change, but it is also essential to identify the barriers that reduce the chances of adoption of change. In relation to ALDI, it is important for managers to analyse the obstacles within short span of time so that changes are adopted by employees that directly effect on objectives of company in positive manner. Develop short term wins: Change processes take time that creates mindset of employees that their efforts are wasted. In order to deal with this, it is important for an organisation to
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develop short term targets which motivate employees to work with full zeal and contribute their efforts towards attainment of objectives(Taylor, Doherty and McGraw, 2015). This will also build confidence level among staff members due to which their productivity raises and affect positively on the organisation profits. Build on the change: It has been analysed that change process get failed due to which projects are not completed properly. It is essential for managers to stick with the change till the objectives is not achieved. In addition to this, the managers should focus on improvements instead of getting failed as it will help ALDI to enhance their productivity and profits. Example 1: This change management theory is implemented by the firm to develop the ability of change and maximise its chances of growth. In Aldi, if the administration of the company adopt this model thenby following al the step of this plan,m company can avoid failure and become adept at implementing change. Kotter's approach offers a wide robust checklist of most of the things the management need to think about at time of change process. If the company will make technological change in the company of the effective running of the firm then it should hire skilled and qualified employees which help in running the business of the firm. Nudge Theory: This theory is associated with behavioural science that develops positive behaviour and attitude of employees towards the change taken place in the organisation. This theory assist company to attain aim of change management in an effective manner. In relation to ALDI, its higher authorities can adopt this model at workplace which helps in development of positive behaviour of staff members towards change that directly leas to achievement of organisational objectives on time period(Stewart and Brown, 2019). Example 2: Nudge theory is a flexible and modern concept for understanding the thinking, decision making and behaviour of people. If the administration of Aldi implement this concept then it help in improving employees thinking and decision making ability, managing change of all sorts etc. In context of making change, this theory will be beneficial to the firm in term of a way of offering small clues that support decision making. It willnot penalising employees and organisation financially. In formof implementing this concept, the organisation can make development in the functioning of the business. Lewin's Theory: Lewin's theory is a 3 step procedure that involves unfreeze, change, freeze. This theory help companies to make high level of improvements that ledas to incraese in productivity of an organisation in an effective manner. In the unfreeze stage, the changes that is
required is clear to employees. In the change stage, employees adopt the changes that is needed to improve conditions of company. In the last stage, changes take place in an organisation that leads to attainment of organisational objectives within time frame. Example 3:This model of change management can be use by administration of Aldi in term of managing change that is made by the firm for the growth and development of it. Lewin's change management theory assists account for both the uncertainty and resistance to change that can be experienced at all staff extents in the company. If the management of Aldi make change regarding implementation of new technology then it can firstly determine old techniques and stop the use of them. Then implement new or providing training to employees about the utilisation of them and then start the use of them in business operations and activities. This change theory is favoured by others for its uncanny ability to uncover and patterns or unseen issues and its fresh approach to new thinking. M3 Justifications of change model and how it supports Human Resource strategy The change model that can be adopted by company is Kotter's 8 step model. This model states how changes can be handle and how to motivate employees to adopt changes. Along with this, it states that managers of ALDI can focuses on improvements rather than getting failed on bringing change in company. Moreover, this model supports Human Resource strategy in a positive manner as it helps an organisation to stick with the changes and raise their level of efficiency as well as productivity. D3 Critically Evaluate change management model and strategies Change management models & strategies assist company to deal with the changes and decline the level of problems arises in future. Along with this, the benefit of using change model is it increases the efficiency of employees due to which the overall productivity of company increases. The disadvantage of change model is it consumes a lot of time of managers which distract them due to which sometimes projects is not completed on time. TASK 4 P5 How Human Resource outcomes can be measured and monitored with an example Sustainablegrowth:Itisreferasraiseinsalespercentagewhichisconsistent. Organisations achieve this by developing effective strategies and plans that helps companies to sustain in market for longer time period.It has two basic mean in context of business and
economy. It has meant the realistically accessible development that a firm or economy could maintain without operating in to issues. Sustainable economic growth is finical development that attempts to fulfil the needs of individuals but in manner that sustain natural resources and the environment for future generations. HRM support sustainable business performance and growth: Human resource manager of an organisation focuses on maintaining good relationship with employees which help company to retain staff members for longer time period. In addition to this, HR manger motivate employees that raise performance and productivity of employees which directly leads to increase in profits of company.The explanation of performance measurement tools are as under: Bench marking: It is a type of business process that is helpful fort companies in comparing performance with other similar organizations. This tool is very helpful n determination of actual performance so that it can measured with set standards. Aldi iscomparingitsperformancewithotherbigcompetitorsthatarehelpingin understanding of deviation in their performance level(Zikic, 2015). KPI: Key Performance Indicatorshelp various business in making a detailed evaluation of their performance with comparison to external market. It will be very helpful in making improvements on certain areas that determine key aspects of performance for a organization. Some of key performance indicators can be market share, customer satisfaction level etc. 10-C: It is that model which h is used in HRM practices where firm can measure the output of human resources in organtional and maintain the environment. This method includes ten points which are connect, carrier, clarity, convey, congratulate, control, contribute, and collaborate, creditability and confidence. These all are the basic points which can help ALDI in maintains of its employee’s output in specific manager this will also leads in securing the collection. Here firm have to first connect with its employees than it have to make sure there carrier advancement by clearing their roles and convey them with good facilities. Than it have to coagulated them for their good performance. Best fit:this is the method which is developed by Harvard, Michigan and York that’s why this model is also called “matching models” in HRM. Here, in this method HRM polices are been focused more for development of human resources
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output. This can be impalement be ALDI on the management by improving their polices and process which help firm in getting more and more output from TheHRoutcomeismeasuredbyanalysingperformanceofstaffmembers,their productivity and efficiency level and to identify their ability of complete project on time. Along with this, it can be monitored if company attain objectives within the budget and on time period. It assists company to save their cost and generate higher profits within short span of time. The positive outcome of Human Resources assist company to build effective strategies and brings improvement in the efficiency and productivity of company. In relation to ALDI, outcome of HR can be measure by identifying employee performance, employee relation, profit level, revenue generation and many more(Yong and Mohd-Yusoff, 2016). Along with this, it can be measure bycheckingtheperformanceofemployeeswiththeexpectedperformance.Moreover, Monitoring of Human Resource strategies assist company to identify their weaknesses and then make improvements that help company to implement business activities in an effective manner. Moreover, the higher authorities of ALDI can measure HR outcomes by analysing the profit of past years with the current years or by identifying the efficiency level of staff members with their past performances. For example, if conflicts arise in ALDI among the employees and how it is handle by the HR of company is Assist Company to measure their outcomes. P6 Evaluation of effective HR management and development which can support sustainable performance HR management & development is helpful in organizations for recruiting skilled and talented employees that can work according to organization's overall requirements. Human resource department in every organization has the responsibility to increase level of performance so that overall competitive position can be maintained and ta same time there is higher level of performance.For example, if the management of the company set an objective of optimum utilization of resources. In context of it, the management of Aldi can use bench marketing tool to determine the execution of employees that employees are able to accomplish the set target or not. If the employees are not performing well then company provide training and development program to them so that they can effectively complete their work by using more required resources so that they can fulfill the task in effective manner or attain set objective of the work in granted time duration.
Suitable development can be achieved in ADLI by following the concept which are maintained above this will help in identifying the needs of employee and act according to them for instance. Best fit method can be used by ADLI in its operation where it can develop polices which will maintain employees and help them to perform better this will increase the chances of sustainable development of human resources in firm. It can also use benchmarking which will help it in measuring the performance of employees which will lead to development of their skills and ultimately tends toward the sustainable development. M4 Suggestion for Human Resource development techniques It is suggested that company can make use of performance appraisal technique which help in evaluating the efficiency of employees in an effective manner. This will also help company to make improvements that further assist company to sustain in market for longer time period and to achieve higher growth. D4 Evaluation of how monitoring & evaluating techniques contribute towards growth and sustainable performance of company Performance appraisal technique help company to enhance the productivity level of employees. Along with this, it also helps company to encourage staff members so that they can puteffortstoachieveorganisationalobjectives(DeleryandRoumpi,2017).Moreover, achievement of goals on time frame will help an organisation to remain in market for longer time frame and gain higher growth effectively. CONCLUSION From the report above it is concluded that strategic management of resource sin a organization especially human resources is very helpful in improvement of overall performance of organization. With the analysis of present market trends there are various human resource strategies that organization formulate for purpose of achievement of set goals. Different theories havebeenformulatedanddevelopedthatassisthumanresourcemanagersineffective management of human resources in an organization. This is most critical function in effective and smooth functioning of all functional departments in each organization. Further, human resource strategies are also very useful in achievement of goals in the specified time frame.
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