Integrated Business Management: HRM's Impact on Performance

This report delves into the crucial role of Human Resource Management (HRM) within business organizations, emphasizing its strategic importance in achieving competitive advantage. It examines how HRM practices, including employee selection, training, performance management, and compensation, directly influence organizational performance, employee motivation, and overall business success. The report highlights the positive correlation between effective HRM and enhanced employee skills, knowledge, and retention, ultimately leading to increased productivity and profitability. It also explores various models and frameworks that illustrate the impact of HRM on organizational outcomes, such as the human capital base, employee commitment, and adaptability. The analysis underscores that innovative and creative HRM practices are essential for tapping into the dedication and determination of the workforce, ultimately contributing to improved economic performance. The report draws upon various research studies and scholarly articles to support its findings, underscoring the significance of HRM as a vital component of integrated business management. This report is available on Desklib, a platform offering past papers and solved assignments for students.

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Integrated Business Management
Human Resource is considered as an essential resource of a business organization and
human resource management plays an empirical role for the business entity in gaining
competitive advantage. A few examinations have demonstrated that (HR) operations and
activities affect the performance level and competitive strategies of a business corporation.
Considering that human resource management (HRM) plays a strategic role for an entity
(Managementstudyguide 2017). It is an operation within a business entity which is focused on
selecting, overseeing and coordinating individuals who work in it. This idea oversees issues
related to pay, execution organization, and advancement of an association, security, wellbeing,
benefits, worker inspiration, preparing, and others. HRM has a key influence in managing people
and the workplace culture and working conditions. If practical, the idea is equipped for
contributing fundamentally to the association heading and the accomplishment of its destinations
and objectives.
The demonstration of HRM must be seen through the crystal of key goals for the business
as opposed to a independent tint that takes a unit in light of a littler scale approach (Armstrong
and Taylor, 2014). The idea here is to get a far reaching point of view towards HRM that
provides a surety, that there are no piecemeal procedures and the HRM approach traps itself
totally with those of the authoritative objectives. For instance, if the training requirements of the
representatives are fundamentally met with last minute preparing on omnibus focuses, the firm
stands to lose not simply from the time that the specialists spend in preparing yet, what's more,
lost heading. Subsequently, the business corporation that considers its HRM approaches
significantly will guarantee that training is based and focused on topical techniques.
According to Therith, (2009), it has been cited that HRM is the primary division which
pushes the association to meet the objective since it works with line manager, has a decent
communication with all division in an association, know clear about association's objective and
target. So HRM has been considered as critical to for gaining success.
Moreover, Din et al., (2014), observed that numerous scientists have discovered a
positive connection between executions of the business entity and HRM activities. An increase in
the pressure has been observed in the corporate sector to embrace the HRM operations to
upgrade execution and aggressiveness of business operations which utilizes many individuals.
An employee's execution can be expanded contingent upon the treatment distributed to them by
the organization. Returns of the HRM rehearses are noteworthy if speculation is made toward
this path. It can have a positive effect in diminishing turnover and expanding the profitability and
productivity of the organization. The author also stated that HRM practices decidedly affect the
aptitudes, abilities, knowledge improvement, and inspiration and raise the maintenance of skilled
workers (Rees and Smith, 2017). Additionally, the weak performers are expected to leave the
business corporation. Performance appraisal, internal promotion frameworks, and motivation
remuneration framework are known to inspire workers to enhance performance level and make
strides the overall execution of the firm. Numerous specialists have called attention to that HRM
practices can be utilized to pick up upper hand over their rivals and enhance the execution of

Integrated Business Management
firms which incorporates arranging procedure, training and advancement program, enrollment
and selection programs, performance evaluation framework, compensation policy etc.
As per the overview executed by Brown et al., (2009), analysts proposed a three-angled
part by which the impact of these mechanisms (i.e., high-consideration, unrivaled work
structures, and various leveled obligation) on authoritative execution is guessed to happen and
moreover the sorts of HR rehearses that would add to this segment. At first are the "human
capital base", which is a get-together of HR available to the business company, for instance,
capability of workforce, information, and potential. The organization’s enrollment, choice,
preparing, and improvement process are proposed to explicitly impact the human capital data.
Second is the affiliation's capability to move their HR, which gets influenced by varied strategies
including prize and work systems. The last base is representative commitment, work
configuration; work frameworks and so forth are prescribed to impact how much labors have the
opportunity to contribute.
Furthermore, the author also noted that a model has been proposed in which three
mediating factors would direct the impact of HRM Operations on the performance of a business
organization (Ahmad, Zaman and Shah, 2015). Initially, he recommended that expertise and
capacity (quality) would be influenced by recruitment, training and advancement, and nature of
improvements events. Second, exertion/inspiration would be influenced by single status,
professional stability, internal appraisal, and individualized incentive frameworks. At last, he
proposed that part of framework and discernment (adaptability) would be influenced by
interacting, employee engagement and contribution, team performance, job configuration, as
well as adaptable job details.
Moreover, arguments have been made by others that effective and creative HRM
operations and activities will be tapping the dedication and determination of the workforce
within the business corporation (Veloso, Tzafrir and Enosh, 2015). For instance, "Innovative and
creative human resource activities and functionalities are probably going to add to economic
performance after when the followed situations are met: when workforce have learning and
aptitudes that managers need; when workforce are inspired to apply this expertise and learning
through optional exertion; and when the company's business or manufacturing strategy must be
accomplished when workforce contribute such optional exertion.
In the limelight of the above-executed analysis, it has been reviewed that Human resource
management is the vital concept which plays a crucial role in enhancing the productivity of an
organization.

Integrated Business Management
References
Managementstudyguide, 2017, Importance of HRM for organizational success, Assessed on 2ND
September 2017, http://managementstudyguide.com/importance-of-hrm.htm.
Therith, C.T, 2009, HRM, Assessed on 2nd September 2017,
https://therith.files.wordpress.com/2011/05/the-importance-of-hrm-for-organizatioin.pdf.
Din, S., Bibi, Z., Karim, J. and Bano, A., 2014. HRM Practices Can Do the Miracles: A Case
Study of Pharmaceutical Companies. Pakistan Journal of Social Sciences (PJSS), 34(2).
Brown, J. Elliott, S. Hughes, J. Lyons, S. Mann, S. and Zdaniuk, A, 2009, Using Human
Resource Management (HRM) Practices to Improve Productivity in the Canadian Tourism
Sector, Assessed on 2nd September 2017,
http://cthrc.ca/~/media/Files/CTHRC/Home/research_publications/productivity/
HRM_Practices_Improve_ProductivitySept_EN.ashx.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Veloso, A., Tzafrir, S. and Enosh, G., 2015. How employees perceive HRM practices:
Differences between public and private organizations. Human resource management challenges
and changes, pp.19-36.
Ahmad, W., Zaman, N. and Shah, S.H., 2015. The role of HRM practices on employee’s
commitment to organization in private sector Banks of Pakistan. A case study of District
Abbottabad. International Journal of Research, 2(2), pp.1288-1304.
Rees, G. and Smith, P. eds., 2017. Strategic human resource management: An international
perspective. Sage.