The Value of Human Resource Management for Organizational Performance - Example

Article Information Title: The value of human resource management for organizational performance. This particular title seems to direct the reader’s attention towards the human resource management functions in an organization. Authors: Yongmei Liu , James G. Combs ,David J. Ketchen Jr. , R. Duane Ireland. Source: Business Horizons (2007) 50 , 503– 511 Analysis information Purpose: The purpose of this article is to shed light on pertinent issues regarding Human Resource Management, and specifically values of HRM in an organization. The authors, in reaction to the negative perception and comments on human resources by some executives who claim it is a cost rather than an advantage to the organization, set out to highlight various reasons why it is crucial in an organization. As such, the authors refute this claim by answering the validity questions raised by the executives and organizations with regards to investments in human resource management. Audience: The authors have particularly written this article in sharp reactions to skepticism from executives and organizations disputing the role of human resource management. As such therefore, this particular article is directed primarily to executives and organizations with such doubts and negative perceptions. As well, this article is set to educate the readers and renew their thinking on issues regarding human resource management, including various HRM perceptions, the credibility of these perceptions, impacts of human resource management in an organization and the implications involved. Subject: The article addresses issues regarding the authenticity of investing in human resource management and its practices. The article highlights the contention existing between the human resource managers and the executives, where the human resource managers believe they play a major role in the organization while the executives contradict this. The executives actually feel that any investment made in human resource management is unworthy, unprofitable, and actually a cost. Sources: This article draws its information from a wide range of sources. This clearly indicates that the author deeply analyses this issue, taking in to account previous studies while also setting out to find the truth. Research activities have been extensively and intensely carried out to determine the impacts of human resource practices to organizational performance. Other sources that have been extensively used are books and journals. The journals are widely used, and include the academy of management journal, international human resource management journal, business horizon and human resource management journal. The book ‘the human equation: Building profits by putting people first’ by Pfeffer, J. is also fundamental here. Research Design / Method The research conducted in the article involves sampling the effectiveness and implications of a number of human resource practices in set number of organization and drawing widely generalizable conclusions based on the aggregate result derived from all the organizations’ results. This approach is effective and appropriate, hence, as indicated in the article, its validity and reliability is unquestionable since meta-analysis enables researchers to have conclusions having much confidence as compared to single studies. Primary details Thesis: This article, by taking in to consideration the available evidence, provides solution to a question that has been long-standing and controversial regarding the validity of human resource management in organizational performance. Evidence: The authors base their evidence on the data derived from research conducted on more than 90,000 organizations, books, and journals. Limits: The information in this article is limited to written materials and research studies, as there are no interviews indicated. further, the article’s focus is limited to human resource management values, enhancing practices, impacting factors, and implications Point of View: The authors justify the value of human resource management in organizations while refuting skepticism from executives by citing a number of evidences from research studies. Presentation and argument Concepts/Words: The authors have used words such as “training the industry” to denote that an organization training employees may actually end up training employee masses in the industry who are later lost to competitors in the industry. This indicates training the employees for the whole industry rather than the organization. ‘Grievance procedures’ are also used to illustrate procedures enabling employees to present complaints and requests. As well ‘Dirty Harry’, a name given to Callahan due to his sentiments of “Personnel? That's for idiots” upon being given personnel position, has been used to represent executives having skepticism. Use of Evidence: In justifying the position that human resource management is actually of value to the general organization, the author have extensively used several evidences including research studies. The evidences given have been substantiated by citations from various written materials like journals. Conclusion: The authors of this article have brought to light several pertinent issues regarding human resource management and, as is evident, have been able to justify the reasons why human resource management is important in an organization. As such therefore, it can be comfortably concluded that human resource management is significantly valuable to the performance of an organization. Implications: With confident conclusion that the human resource management is significantly valuable to the performance of an organization, the article offers recommendations mainly to managers aiming at improving the firm’s success levels. The first recommendation is that skillfully investing in HR planning, compensation level, incentive compensation, training, internal promotion, employment security, participation, selectivity, grievance procedures, or flex-time (consecutively) will increase productivity, ensure higher financial returns, and reduce employee turn-over. Second, such returns can significantly increase through effective HRM professional coordination. Third, since these incentives encourage particular behaviours, HRM professionals should ensure that every practice supports business strategy. Finally, while reviewing choices, the managers have to be careful of fitting with the organization’s features beyond the strategy Overall therefore, the article suggests that skepticism on HRM is misplaced, indicating that managers can receive much benefit from HRM if they develop an internally cohesive and comprehensive HRM system embedded in the history, the culture and the structure of the organization. Evaluation Personal Reaction: This particular article elicits mixed reactions from both sides. However, the work in this article is not scantily done and as such should warrantee praise and recognition for its outstanding thorough, detailed work highlighting pertinent HRM issues. Strength of Case: This article has successfully demystified the issues regarding human resource management perceptions and the actual truth. The article, through concrete evidence from various sources coupled with research, has strongly presented a case against skepticism and for value of human resource management. Evaluation: The outstanding nature of this particular article enables it not to be comparable to other articles, especially noting that it involves research activities (503-505) crucial in determining the practicality of information. Quality: The paper is presented in a quality, well detailed way and appropriately referenced manner. There is proper spelling, grammar, and proper use of comas, full stops, colons and semicolons. The work is also arranged in a flowing way. As such, it is a high quality paper. Other: This article is research-based and carries with it a number of proven facts on the value of human resource management. It is arguing against skepticism from executives. Read More