Analyzing the Positive Effects of HRM Investment on Performance

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This essay delves into the crucial relationship between investment in Human Resource Management (HRM) and its positive impact on organizational performance. It begins by highlighting the significance of HRM in enhancing employee capabilities and driving sustainable business growth. The essay examines the HRM strategies and policies of IMSPEOPLE, focusing on their recruitment processes, which emphasize integrity, innovation, and other key values. It explores the differences between hard and soft HRM models and how these models influence employee development and organizational outcomes. Furthermore, the essay discusses the importance of employee commitment, training, and empowerment in achieving organizational goals. It references various studies that link HRM practices to organizational performance, including effective decision-making, employee training, and team self-management. The essay also examines the impact of HRM policies in hospitals, emphasizing how these policies affect employee performance, safety, and retention, ultimately contributing to improved organizational effectiveness and financial outcomes. Finally, the essay highlights the significance of performance appraisals, employee security, and internal recruitment in enhancing overall organizational success.
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Running head: INVESTMENT IN HRM LEADING TO POSITIVE EFFECTS ON ORGANISATIONAL PERFORMANCE
INVESTMENT IN HRM LEADING TO POSITIVE EFFECTS ON ORGANISATIONAL
PERFORMANCE
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1INVESTMENT IN HRM LEADING TO POSITIVE EFFECTS ON ORGANISATIONAL PERFORMANCE
Introduction
The significant goal of any organization is to perform in an enhanced manner thus achieving
good results that will significantly increase their profit. The department of Human Resource within an
organization is identified as a noteworthy sector that deals with the enhancement of the employees thus
leading the organization to a sustainable growth and advancement in business. The prominent
methodologies used by the relevant human resource department of significant organization are depicted
to be done by carrying out effective analysis that tends to amplify the growth of the organization. The
strategies adhered by the organization or the strategic policies are said to be effective in respect to the
organization’s performance (Sheehan et al., 2016). This paper will deal with the overall analysis of the
HRM policies or strategies that are adhered by the organization of IMSPEOPLE. This main function of
this organization is to deal with the offshore recruitment in regards to the various organizations as well as
supports these organizations with relevant administrative services.
Body
The important criteria that are being adhered by the organization to carry out the recruitment for
the associated organizations are stated to be the fact of integrity and innovation, accountability and
ambition, care and commitment, equality and enthusiasm as well as respect and responsibility. These are
adhered by the organization for recruiting effective employees that may carry out the overall
functionalities of the selected organization (Singh et al., 2017). This will help the organization to deal
with the stated scope as well as goals that are implied by the organization. The recruitment procedure that
is adhered by the organization will help of the associated organizations to run their businesses effectively.
Moreover, there are also certain strategies as well as policies that are implied by the organization while
carrying out recruitment. In respect to these strategies it can be well depicted that the organizations will
be helpful thus amplifying their businesses.
The management theory of human resources is significantly identified in regards to the concept
of managing the personnels. However, there persists a great deal of various differences in regards to the
management of the employees. This also includes the significant involvement of the line managers as
well as there are significant alignment related to the strategic management of the employees present
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2INVESTMENT IN HRM LEADING TO POSITIVE EFFECTS ON ORGANISATIONAL PERFORMANCE
within the environment of an organization (Pavlov et al., 2017). The practices related with the
management of human resources made a distinction in respect to the field of the hard and soft models of
practices related with the human resource management. The hard model represents the instrumented view
of the employees associated with the organization. This mainly puts a significant emphasis on the
maximum utilisation of the employees’ potential with the enhancement of the employees. The soft
model, on the other hand is related with the significant development of the employees in regards to the
potential of the employees as well as their resources for the enhancement of both the employees and the
employer of the depicted organization (Saridakis, Lai & Cooper, 2017). The significant emphasis on
the potential development of the employees associated with the organisation leads the management of the
organization to be effectively dependant on the HRM policies thus leading to the enhancement of the
organizational performance. The employees of the organization are significantly chosen in regards to
their skills as well as their potential knowledge that will increase the profit of the organization thus
gaining a great level of profit.
The Management of Human Resource is significantly depicted as a noteworthy methodology
towards the personnel management that deals with the overall management employees. This management
of the employees’ deals with the fact of providing the employees with proper training and significant
knowledge that will help the organization to cope with their strategic set scope as well as goals (Van De
Voorde, Veld & Van Veldhoven, 2016). The concept of HRM also deals with the methodology of
commitment in respect to the effort of the ties of the employees with the organization. This commitment
is provided through important training modules as well as the primary emphasis is provided to the
employee’s development, competitive static pay as well as empowerment of the employees so that they
can effectively perform in their working field.
Several studies had put focus in respect to the linkage of the organizational performance as well
as management of human resources. The Universalistic methodology depicts the fact that organizational
performance is highly related with the fact of the management of human resource concept thus
emphasising within the constrains of effective decision-making, self-management of the teams
(Taamneh, Alsaad & Elrehail, 2018). Moreover, they also comprise of the fact that the human
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3INVESTMENT IN HRM LEADING TO POSITIVE EFFECTS ON ORGANISATIONAL PERFORMANCE
resource management will also comprises of the effective as well as advanced training modules in respect
to the employees, which can amplify the overall performance of the organization.
The organization IMSPEOPLE that deals with the recruitment for the employees in respect to the
associated organization puts a significant emphasis on the employee’s skills that will imply a noteworthy
character in regards to the performance of the company. The integrity and innovation methodology that is
focused by the organization while recruiting persons for the associated organization is depicted to be
amplify the employee skills in certain sectors (Guest et al., 2017). This comprises of the fact in regards
to the tolerance of risk taking decisions, integrating the disciplines associated with the organization as
well as identifying the problems as quickly providing resolution to the problems so that the performance
of the organization is not hampered. This will help the associated organization to put a clear reflection on
the importance of the projects as well as the overall environment of the workplace will be enhanced. This
will further lead the organization to achieve significant growth thus achieving the stated scope and goals
of the specified companies.
The next significant sector that is focused by the organization of IMSPEOPLE is the care and
commitment within the employees that are being recruited. The recruitment panel in regards to the
factors judges the commitment factor of the employees to depict the employees’ potential to complete a
certain job within the assigned timeline (Wood, 2018). The commitment is one of the significant factor
associated with the recruitment of the employees as this identifies an employee’s regularity as well as
sincerity towards work. This will increase the potential of the employees thus amplifying the business of
the organization. This emphasises the role of the employees to provide extra care to the jobs associated
with the organization.
Moreover, the organization also emphasises on the ambition of the employees, which critically
reflects the willingness of the employees to perform a project within the organization. This will put a
significant importance on the delivery of the project as well as tends to put a positive impact on the
overall organizational performance (Van De Voorde & Beijer, 2015). In addition to this the
accountability of the skills and knowledge of the employees are also critically assessed by the department
of human resource thus analysing the lacks present within the employees. This analysis will help the
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4INVESTMENT IN HRM LEADING TO POSITIVE EFFECTS ON ORGANISATIONAL PERFORMANCE
HRM to emphasis on the skills as well as knowledge that are to be provided by the organization to the
employees thus gaining a significant advantage to the functionalities of the organization.
The human resource department also puts a significant emphasis on the employees respect and
responsibility towards the job that they are hired for. This is analysed by the recruiters so that the projects
adhered by the organization can be significantly carried out in an effective manner. The responsibility
factor will help the employees of the organization to perform effectively thus helping with the
enhancement in respect to the organization (Masum, Azad & Beh, 2016). The significant usage of the
strategic management tools will help the organizations to identify the potential characteristics within the
employees. Responsibility towards work will potentially increase the effective growth of the company
thus maintaining the organization’s performance.
In addition to this, the identified area where the human resource department of an organization
puts a significant emphasis is depicted as the enthusiasm of the employees. This is observed as one of the
significant criterion that is depicted to be useful for the analysis of the overall performance of the
organization (Jalloh & Jalloh, 2016). The significant emphasis on the enthusiasm of the employees are
important to gain focus on the performance of the organization. This factor tends to judge the willingness
of the employees to work with a potential organization thus adhering the overall growth in the
organization’s performance.
The usage of the potential policies as well as strategies to amplify the organization’s performance
is also implied in the sectors of hospitals. This significant sector is depicted to be very useful as well as
important to increase the organizational performance (Kaufman, 2015). Thus the potential HRM
policies and the practices adhered by the department of human resource within the industrial sectors of
hospitals that puts a positive impact on the multiple measures in respect to the effectiveness of the
organization which includes the potential outcomes of the department thus adhering the financial
outcomes related with the organization (Kowalski & Loretto, 2017). This emphasizes on the fact of the
turnover, productivity, the quality of services as well as the market value of the organization.
The noteworthy HRM policies or strategies that are identified in respect to the organizational
performance is depicted to be the performance appraisal or management of the employees associated
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5INVESTMENT IN HRM LEADING TO POSITIVE EFFECTS ON ORGANISATIONAL PERFORMANCE
with the significant organizations. The evaluation of the performance in respect to the employees
associated with the organization is depicted to be an analysis that predicts whether the employees are
skilful or knowledge for carrying out the job provided to them (Glaister et al., 2018). This will help the
organization to identify the employees that may perform well with the help of significant training
modules. In addition to this will also help the employees to increase their area of expertise thus
enhancing the organization to take a leap in most of the sectors, which in turn will amplify the
organization’s performance.
The security of the employees is also an important sector that is focused by the depicted
department. This is because the employees will perform effectively if the organization assures safety of
the employees. Moreover, the employee security enhances the overall standard of work culture within the
environment of the organization. This will amplify the employee’s trust in accordance to the organization
thus emphasising on the fact of the performance with respect to the areas associated with the organization
(Lin & Sanders, 2017). The security facilities provided by the organization to their employees’ deals a
significant role in attaining the attraction of the staffs to join the organization thus enhancing the growth
of the organization.
Many recruitment are carried out by the organization for different posts from the employees
associated with the organization itself. This is due to the fact that the employees already associated with
the organization is identified to be familiar with the overall working mechanisms better thus enhancing
the execution procedure (Gabutti & Morandi, 2019). This amplifies the growth of the organization as
this minimises the jealous or inappropriate behaviour that is expected to arise in case of a new recruit.
Thus, this procedure is depicted to be important or significant in regards to the enhancement of the
performance associated with the organization.
The significant framework that is associated with the management of human resources and its
connection with the staff performance may be stated with the provided figure below. This figure
significantly depicts the four important sectors of the Management of Human Resource that puts a
positive effect in the potential increase of employee performance that will further lead to the overall
increase in the performance of the staff.
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6INVESTMENT IN HRM LEADING TO POSITIVE EFFECTS ON ORGANISATIONAL PERFORMANCE
(Image: Theoretical framework for the connection of HRM and Organizational Performance)
The above stated framework states that the four sectors will efficiently be useful in respect to the
fact that the performance of the organization will be enhanced if these areas are focused. Moreover, the
Human Resource Management of any organization implies these factors to enhance their employees
which further put a significant enhancement in respect to the organizational performance. The usage of
the correct methodologies in respect to the respect to the employee recruitment is the initial step adhered
by the HRM of an organization. The next factor that is efficiently adhered by the organization’s HRM
department is the identification of the effective training that will tend to enhance the organizational
performance. The HRM department that focuses on the organizational performance also duly maintains
the implication of the strategic and attractive compensation as well as rewards for the employees. The
appraisal of the employees are also depicted to be useful in respect to the enhancement of the employee
performance as well as tend to increase the organizational performance.
The significant usage of the AMO theory is taken into consideration, which significantly depicts
the employee characteristics thus contributing towards the success of the organization. This theory
generally suggests that there are three components related to the systems of independent work that tends
to emphasize on the organizational performance. The three factors that are significantly considered in
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7INVESTMENT IN HRM LEADING TO POSITIVE EFFECTS ON ORGANISATIONAL PERFORMANCE
respect to the improvement of the employee performance is depicted as motivation, ability as well as
opportunity. These sectors will put a significant emphasis on the employee performance. If any one of
these factors are likely to be missed then the organization performance is depicted to be inhibited,
whereas the presence of all the three factors depicts the performance to be enhanced. Thus, this theory is
duly necessary for the maintenance of the organizational performance in respect to an organization by the
HR team of an organisation.
(Image: AMO Theory factors)
Conclusion
Thus, the overall analysis of the significant factors stated above it is depicted that the
management of the human resources is importantly related in respect to the organizational performance.
The overall factors or sectors that are highlighted are very important in respect to the organizational
performance and the human resource management of modern day organization puts a significant
emphasis on these. Thus, it is significantly concluded that the effective role of the human resource
department of an organization is significant for the amplification of performance of the overall
organization. Thus, every organization must effectively invest in the human resource department to
achieve significant performance that will emphasize the overall profit as well as increase the business of
the organization associated in every industrial fields.
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8INVESTMENT IN HRM LEADING TO POSITIVE EFFECTS ON ORGANISATIONAL PERFORMANCE
References
Gabutti, I., & Morandi, F. (2019). HRM practices and organizational change: Evidence from
Italian clinical directorates. Health services management research, 32(2), 78-88.
Glaister, A. J., Karacay, G., Demirbag, M., & Tatoglu, E. (2018). HRM and performance—The
role of talent management as a transmission mechanism in an emerging market context.
Human Resource Management Journal, 28(1), 148-166.
Guest, D. E. (2017). Human resource management and employee well‐being: Towards a new
analytic framework. Human Resource Management Journal, 27(1), 22-38.
Jalloh, A., & Jalloh, A. (2016). The Effects of Motivation on Employee Performance: A
Strategic Human Resource Management Approach. International Journal of
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9INVESTMENT IN HRM LEADING TO POSITIVE EFFECTS ON ORGANISATIONAL PERFORMANCE
Saridakis, G., Lai, Y., & Cooper, C. L. (2017). Exploring the relationship between HRM and
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