Critical analysis of the leadership style of Rupert Murdoch from a HRM perspectiveContribution of people to an organizationPeople in an organization refer to human resources. People contribute to an organization in terms of efforts, skills and capabilities, which enable the firm to continue existing. Studies have shown that people can offer a firm competitive advantage is they are managed strategically (Arnolds, 2005). Strategic management of people in a firm, results in a workforce that is highly committed and skilled in carrying out their duties to fulfil the goals and objectives of a firm.
Bjorkman, Fey, and Park (2007) states that to maximize the efforts of people in an organization requires proper training of workforce. It is argued that the only vital value a company has is the experience, skills, insights and innovativeness of its people. The success of a firm will thus depend on its ability to understand how human resource is related to its performance and its wealth. Therefore, a firm with the best strategies and methods for attracting, hiring, managing, developing and retaining top performing talent is the most competitive company (Baruch and Holtom, 2008).
In order to attain this, managers need to be trained on how to apply human capital management methods and principles to business strategy and performance. Firms can build a powerful human capital strategy based on solid facts, processes and measures, which help them to discern where they will get the most advantage from its people. This helps organizations to match their business models with their human capital strategies (Chen and Huang, 2009). By doing so, firms are able to visualize their human capital as value producing asset rather than of cost to be minimized.
In addition to offering firms competitive advantage, people’s quality and performance differentiates firms in the competitive market (Arnolds, 2005). Thus firms are differentiated in the strategies employed in recruitment and hiring, development and motivation, minimization of risk and cost, designing talent management, implementation of performance based compensation systems, designing mentoring and coaching programs and application of performance management technologies for available talent. People in the organization also help to drive innovation and invention dependent on how they are managed (Mobey, 2008).
Firms, which allow their employees to participate in decision-making process and some independence in how they carry out their duties, spur invention and innovation. Since innovation and invention help a firm to remain afloat and relevant to the changing business environment, such firms are bound to be much competitive. Contrary to this, Murdoch believed that success of a newspaper depends on the news content and coverage, editorial and advertising. However, one can argue that these attributes of success cannot be attained without people. One needs good people to be able to have informative and entertaining content in a newspaper (Mobey, 2008).
In addition, one needs talented people to have a wide coverage of news. Furthermore, people talented in editorial work and advertisement need to be hired to attain the attributes pointed out by Murdoch, which are essential for the success of a newspaper. This brings us to the same argument that people are the backbone of any organization. Thus, once one realizes what drives successes the way Murdoch did, he or she needs to employ human resources management practices, which attracts and retains talents at the firm.
Without such the firm may not be able to sustain its success in the end.