This essay examines and analyses the concept of Human Resource Management (HRM) and innovation. Various lessons from the world’ s most innovative firms are used in support of the study. The HRM practices have had several aspects in the definition. They involve systems that are concerned with the attraction, development, motivating and retaining employees in such a manner that ensures that the organisation and the members have effective implementation and survival. The human capital is the focus in HRM practices in meeting the objectives of the business through internally consistent practices and policies.
The sustenance of the competitive advantage is linked to the ability of the organisation to harness the human resources to have a developed level of competence. The organisation innovation is primarily concerned with the creation of new behaviour and new ideas that benefits the organisation. The designing, development and execution of innovation arise the need for significant transformation. The achievement of this is hereby linked to HRM. The HRM is revealed as taking innovation into the core of the organisation design. Every person is mandated to be involved in innovation activity.
The place to start is that of breaking down of the present barriers and mindsets that form barriers towards the establishment of a favourable framework for innovation within an organisation. HRM must, therefore, develop a deliberate design for knowledge and experiences, leadership development and skills definition. This helps HRM to become central in capitalising, mobilising and cultivating innovation. The executives, founders or individual employees may give rise to innovation at its various categories whether directly or indirectly. (Zoghi, Mohr and Meyer 2010, p. 627) The stimulation of innovation as linked to the HRM practices emanates from multiple mechanisms.
These include employee communication networks; motivational mechanisms like rewards; Organisational practices like upgrading, deployment and sourcing of human capital; and the managerial styles. The HRM practices, however, are most relevant to the performance of innovation when they have integrated as a system of mutually reinforcing practices. This is a strategic move in allowing the organisation to appropriately respond to the competitive business environment. This is especially needed now in the face of the rapid development in communication, information and other technologies that call for new solutions, ideas and experimentation that address the particular needs of the involved groups in the most efficient way (Zhou, Dekker and Kleinknecht 2011, p. 951).
The organisation innovation relates to the HRM practices in platforms of best practice in various categories recruitment, training, reward system, career management and performance appraisal. There are multiple and dynamic dimensions that relate to innovation in an organisation. The depth of innovation relates to factors like the effect on long term profitability, the degree of influence and the importance. The breadth of innovation relates to factors like services, products, processes, administrative, systems and policies.
Administrative innovation and technological innovation are the two fundamental distinctive types that the organisation innovation has been categorised into. The technological innovation relates to process innovation and product innovation. New products are developed and commercialised in the creation of value and meeting of the needs of the market or the external user through product innovation. It involves a work process that is systematic in the production of new prototypes, devices, products and materials. The improvement of new processes or creation of new ones is achieved through process innovation.
The administrative innovation concerns itself with the management issues related to basic work activities that are in the organisation, reward and information system, and the organisation structure changes and administrative processes. (Truss, Mankin & Kelliher 2012)
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