Analyzing How HR Strategy Boosts Overall Organizational Success

This essay delves into the critical role of human resource (HR) strategy in enhancing organizational success. It begins by defining HRM and its evolution, highlighting the shift of HR professionals to business partners. The essay emphasizes the importance of integrating HR strategy with business strategy to gain a competitive advantage, maximize human capital, and reduce inefficiencies. It discusses how HR fosters a culture that supports strategic implementation, and the financial benefits of aligning HR with business goals. The essay explores how HR practices, such as performance-based pay, impact employee commitment and organizational performance. It examines the resource-based view of the organization and the significance of developing employees' skills and capabilities. Furthermore, it addresses the impact of HR on employee motivation through psychological contracts and the implementation of successful HR strategies by companies like Bread Talk Group Limited and DBS Bank, highlighting the importance of digitization and unified HR platforms.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
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Human Resource Management (HRM) refers to formal systems that are devised for
managing the people in a company. It helps in maximising productivity of organization by
the optimization of effectiveness of the employees. It helps in acquiring and developing the
talent in a company and helps in aligning workforce with the business. It is indicative of
strategic approach that can help a business in gaining the competitive advantage (Boxall and
Purcell 2016). It focuses on the policies along with the systems that can improve the
effectiveness of the employees. It helps in balancing the organizational practices with the
requirements that arise from the collective bargaining and the laws of the government. It
ensures that a company can attain the success with the help of its people. The human
resources department manages human capital of a company and it lays focus on the
implementation of the policies along with the process. This essay discusses regarding the
ways the human resources strategy of a company can improve the overall success of an
organization.
Role of the human resources has undergone a lot of change in the present age. The
HR professionals are perceived to be the business partners in the present era. They can
contribute to that of business strategy with the help of the domain expertise. Integration of the
Human Resources (HR) strategy into that of the business strategy can help in providing the
basis that enables HR function in the implementation of the strategic plan that can help a
company in achieving the competitive advantage (Agrawal, Schaefer and Funke 2018). It
helps in maximising the human capital and brings about a reduction of the inefficient labour
along with the financial investment in a company. The business community in the present age
is moving into the knowledge-based culture and hence understanding about the competencies
that can help a company in becoming successful is of utmost importance (Huselid 1995). The
HR manager in an organization should assume role of the strategic partner with the top
executives in a company in a proactive manner that can help in ensuring that there is

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alignment of business goal with that of HR initiatives. The human resources helps in
fostering the culture that is necessary for the implementation of the strategies in an effective
manner. It has been found that the organizations which align the HR with the business
strategies earns more profits in the modern age. The human resources helps in taking care of
the fact that the people practices helps in delivering business strategy throughout a company.
The HR function is thought of to be an integral part of leadership team that helps in
influencing the business of a company (Pfeffer 1998). The HR managers should spend time
in understanding the competitors, customers along with the technologies which can help an
organization in gaining the competitive advantage. The HR practices design the activities
which can align with needs of business which helps a company in becoming more focussed
on the needs of the customers. The successful organizations align the HR by changing
paradigm with the help of which they view HR function. The human resources can provide a
company with the resources that can help in the development of a company.
The employees who work in the successful firms employ the performance-based pay
helps in boosting the performance of the employees. An employee conceives of the HR
strategy in forms of the returns in relation to the career growth along with the financial
fulfilment. The main objective of the business strategy is maximising the returns on the
business inputs. It can be made possible with the help of optimum utilization of commitment
along with the skill sets of the right workforce (Noe et al. 2017). The employee commitment
is dependent upon the perception of the employees towards organization. The HR strategies
should be practiced in a manner which can help in the achieving of the business objectives by
the generation of the mutual trust. The perception of the employee towards the HR strategy
can influence employee perception towards the entire organization. It can have an influence
on performance of a company in the long run. It can help in governing performance
parameters at the individual along with the organizational level (Cascio 2015).

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The human resources can be said to be an important means which can help an
organization in the area of sustainable competitive advantage. The effective managing of the
human capital beyond the managing of physical capital can act as ultimate determinant in
relation to the organizational performance. It has been found that there exists positive link in
between the organizational outcome and that of the high performance work practice
(Sparrow, Brewster and Chung 2016). The HR practices in a company like the training,
compensation along with the job design can have effect on speed of the delivery, return on
the assets along with the profits of a company. It can have an impact on the market value
along with the price-cost margin of a company.
The idea of the resource-based view of the organization has made the implementing
of the strategic HR initiatives gain the prominence in the present era. Human capital
comprises of the people who work within a company and the success of an organization is
dependent on the human capital. The unique contribution that is made by the people in a
company can help in ensuring the competitive advantage for a company. The organizations
that wish to succeed in the dynamic environment of present age should focus on the arena of
development of employees (Cascio 2015). It can help them in possessing the better skills
along with the capabilities which can provide them with a competitive edge above
competitors. It can create the way for the creation of human capital pool that is valuable
which can help a company in attaining the success. The developing of interconnected HR
practices can help a company in producing the superior results that can help the company in
earning revenues. Adam’s Equity theory talks about the fact that the employees being de-
motivated can make the employees reduce the effort that can decrease the performance of a
company (Apenko 2017). The employees in the event of getting the job satisfaction helps the
company in getting the positive returns.

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The improved performance in a company can be achieved in the event of the
employees being equipped with the better skills along with the attitudes. The human
resources has an impact on the human capital which in turn has an effect on performance of a
company. The HRM outcomes in terms of the skills and the attitudes can be said to be
positively mediate relationship in between the HRM and the performance. The researchers
have found there is a strong co-relation in between the skills of the employees and the
performance of a company (Olson et al. 2018). The relationship that exists between the
employer and the employee can affect the performance of a company. The researchers focus
on that of less codified elements in relationship in between the employer and the employee
(Sparrow, Brewster and Chung 2016). This kind of relationship is referred to as
psychological contract that is indicative of system of belief of an individual which is shaped
by a company. The psychological contracts are unwritten and it is dependent on dynamic
interaction in between the individuals along with organization. The transactional contracts
involves the short-term along with monetary-related beliefs like the competitive wage rate
along with performance based pay. The relational contracts on the other hand deal with the
long-term relationship that is characterised by the monetary along with the non-monetary
reward.
An important function of the HRM is the cultivation of positive psychological capital
that would pave the path for greater motivation of the employees. It can increase the
satisfaction of the workers of the modern age. The psychological contract can be said to be
the beliefs that stem from the HRM practices of a company. It can be said to be on the basis
of the notion of the reciprocity along with the social exchange (Cascio 2015). The HR
policies can influence the organizational performance owing to the factor of psychological
contract fulfilment. Nature of psychological contract can be shaped with the help of HR
policies that are in operation in a company. Initial interaction taking place in between

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organization and the potential employees can help in transmitting formal employment terms
which can communicate the beliefs of an organization (Noe et al. 2017). In the event of an
organization laying emphasis on the training along with the development an expectation
develops among the employees that they make up a part of that of permanent employment.
The demonstration of the expertise by the HR managers can result in significant uplift of that
of HR stature and it can tighten the strategy linkage of a company. The HR professionals do
not play the role of staff in the recent age but they act as the internal consultants who have the
ability of solving the problems that are faced by the line managers (Orna 2017).
Bread Talk Group Limited have introduced the HR strategies that have ensured the
success of the organization. The HR measures in the company focus on the arena of quality
control training that has helped the business in upholding the food quality standards. The
workforce of the company is concentrated in Asia along with the Middle East in the last 18
years (Breadtalk.com.sg 2019). The company has expanded to the new markets in Europe
along with America that has necessitated the company bring in the new concepts that has
increased the profitability of the company. The company has to manage a diverse workforce
across the multiple territories. The company has a unified system that has helped in ensuring
the data integrity of the company (Brewster 2017). The human resources system in the
company has helped it in managing the talent along with the resources across the different
markets. The HR system in Bread Talk has taken recourse to digitisation and the unified HR
management platform has helped the company in getting the returns on the investment. The
managers can access the reports along with the employee information easily that has helped
the company in earning a great deal of revenue. It has helped the senior managers in fostering
the greater sense of the stewardship for the staffs. The devising of the successful strategies
has helped the company in earning $ 1.7 million in the first quarter of the year 2019. The

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revenue of the company was able to rise to 6.1 % with the help of the efficiency of the HR
strategies of the company.
DMS Bank with the help of its pilot human resources program has been successful in
improving the collaboration along with the productivity of the staff members. The company
has adopted the productivity technology that is cloud based that has helped in boosting the
mobility along with the efficiency of the employees of the company (Dbs.com.sg 2019). The
customer experience has been rendered seamless with the help of the new technology that has
helped the company in making the profits. It has helped in inculcating digital mind set in the
people that has helped in enhancing the collaboration among the workers. The net profit of
DBS Bank has risen by 28 % in the year 2018 that has helped the company in earning SGD
5.63 billion. The company has been able to experience significant growth with the help of the
HR strategies of the company.
The role pertaining to human resources has underwent a lot of transformation in the
present age. HR professionals are the business partners who can contribute in a positive
manner to growth of the company. The HR function within the framework of company can
assist a company in the achieving of the competitive advantage. It can increase the
commitment of the employees that can help in the process of growth of a company. The
commitment of the employees is dependent on perception of employees towards the
company. The HRM in a company helps in cultivating the positive psychological capital
which can provide motivation to employees. It can increase employee satisfaction that can
help in increasing the overall productivity of the employees. HR policies can have impact on
performance of organization on account of the element of the fulfilling of the psychological
contract.

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