Influence of HRM on performance Essay
At the same time, many specialists (Rose & Kumar, 2006) argue that HRM in modern corporations is very important because it has a considerable impact on organizational performance. In this regard, corporations are similar to public organizations, where the role of HRM is also significant in terms of the organizational performance. In case of corporations, their internal development has been linked to a number of desirable organizational effects, including greater stability and predictability of a firm’s stock of HR, higher commitment to an organization, and better coordination and control. Despite these advantages, certain organizations may still choose an acquisition strategy. Internalization may incur significant costs, and buying or externalization may have significant advantages, including cost reduction and numerical flexibility enhancement regarding employment (Rose & Kumar, 2006). The optimization of HRM can save costs and improve organizational performance of corporations.
In this regard, specialists (Rose & Kumar, 2006) distinguish two successful “generic” business strategies to achieve sustainable competitive advantage over other firms in the industry are the cost leadership strategy and the differentiation strategy. Again, the implications of managing people pursuing this differentiation strategy call for high-involvement HRM strategies that involve selecting highly skilled individuals, giving employees more discretion, using minimal controls, making a greater investment in HR, providing more resources for experimentation, allowing and even rewarding occasional failure, and appraising performance for long-run implications (Rose & Kumar, 2006). In fact, the development of HRM contributes to consistent improvement of organizational performance, if corporations are capable to meet needs of employees and to improve their performance. At this point, specialists (Rose & Kumar, 2006) argue that the organizational performance is dependent on the performance of each employee. Therefore, corporations should pay a lot of attention to each employee because it is through the improvement of his or her performance corporations can improve their organizational performance.
In actuality, the contribution of human resources to the improvement of the organizational performance is particularly significant because of the technological progress and consistent socioeconomic changes that have occurred in the society within recent decades. To put it more precisely, the progress of technologies made human resources an important marketing asset of modern organizations because the ability of employees to use new technologies define the effectiveness of their performance. Therefore, organizations are interested in the development of the professional level of their employees and employment of professionals, who are capable to use new technologies successfully. On the other hand, corporations can accelerate their business development, if they introduce innovations. Innovations are generated by human resources. Therefore, if corporations employ professionals capable to generate new knowledge and to develop and introduce innovations, then they can hold the leading position in their industries and to reach a tremendous success in their business development through the consistent improvement of their organizational performance due to innovations.
