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MBA Jan04
In the first few sessions some traditional approaches of Human Resource Management
are given to have a background and view to understand that how HRM is important and
how it is strategic business contributes in the overall strategies of an organization. This
highlights the main functions and Human Resource systems which directly influence the
organization structure, employee behaviors and performance, development of human
capital and also on the cost effectiveness from the traditional ways to recruit, manage and
control the behaviors of the employees to give a satisfactory and continuously improving
performance to achieve the organization goals. After this background it includes the
dynamics and reasons of innovations in business environment that how business
environment is changing globally and how Human Resource implement its techniques to
enable the organization to sustain in new markets globally. Coming on the main point of
that what are competing demands of Human Resource Management and what challenges
HRM will be facing in the future, and what are the ways to compete in new markets and
how HRM enables a HR professional to meet those competing demands strategically.
Executive Summary…………………………………………………………... 02
1.0 Introduction……………………………………………………………... 04
2.0 HRM and its Role as Strategic Business Contributor…………………... 05
3.0 Functions of HRM……………………………………………………… 07
3.1 Employee Performance Improvement…………………………….. 07
3.2 Human Capital Development……………………………………… 08
3.3 Cost Effectiveness…………………………………………………. 09
4.0 Competing Demands on HRM………..………………………………... 10
5.0 Conclusion……………………………………………………………… 16
6.0 References………………………………………………………………. 17
Appendix 1………………………………………………………………….. 18
Appendix 2………………………………………………………………….. 19
1.0 INTRODUCTION
HRM is mainly concerned with recruitment and selection of employees, their training and
development, record keeping, managing behaviors, manage workplace, being a change
change management and utilization and compensation of skills and human capital
according to different job requirements keeping the company (Legal entity) or
organization goals and objectives and business (ROI=Return on investment) or benefits
in sight.
This definition shows the direct influence of Human Resource Management in overall
strategy formulation and its implementation and it plays its role as strategic business
contributor, whereas corporate strategy is to create sustainable competitive advantage. It
is necessary to have a review of HR architecture describing the relationship between HR
functions, HR system and Employee performance. This will clearly show the importance
of HR professionals in strategies formulation and implementation.
Employee performance and his awareness about his duties and organizational goals is the
key factor of any organizations business profit as well as loss. HRM as a strategic
business contributor is always responsible to make strategies to calculate the performance
of employees according to business objectives and their job specification and
requirements, and also to improve their performance to increase the quality and profits of
a business. There are some key strategies which always being implemented by Human
These all costs are the key costs of human resource department to manage, maintain and
control the behaviors of employees and to develop human capital of an irganization.
“HR is the process by which the guiding members of an organization envision its future
and develop the necessary procedures and operations to achieve that future.” (Godstein,
Nolan, Pfieffer, 19920)
“Its been rather easy for us to decide where we wanted to go. The hard part is to get the
organization to act on the new priorities.” (Floyd and Woolridge, 1992)
HRM can be said as an agency working for the organization which benefits organization
by using its techniques and activities to achieve business from full utilization of human
skills. But as for as HRM is concerned with people as Human Resource author Dave
Ulrich said that “the HR activities appear to be- and often are- disconnected from the
real work of the organization”. This meant that HR activities are to make the expectations
and to make the employees enable to meet these expectations but as a proactive part of
organization and should also be empathically drive its employees to achieve their goals.
Human Resource as a strategic business contributor acts like a navigator, capability
builder, internal consultant, business partner and also as relationship manager of the
organization to motivate the employees towards achievement of business goals and
managing their behaviors as per organization expectations from the employees as an
individual as well as in team. HRM itself must work to achieve some competencies or
competing demands. These competencies can be divided into three main levels as given
below;
1. Core Competencies
• Personal Attributes: - These are the competencies from a single employee which
focuses to improve skills and motivate him for organization goals and make him
• First Level Manager Competencies: - First level managers or leaders are the key
personnel or an organization structure that are responsible for strategies
formulation. These competing demands make them able to focus on individual or
team effectiveness and willpower of goals within a short period of time.
The world markets are facing many other challenges also and future Human Resource
professionals also have to face and make strategies for many global changes in the
business environments like;
HR professionals use some techniques to calculate and examine their own performance as
well which shows their working output and as well as make them able to analyze and
enhance the gaps in the organization strategies, individual and team performances and
“Unless you know how you are doing as you move along, you will never know when
you’re done, or if you have succeeded.” (Crosby, 1979)
Human resource techniques to calculate these competing demands used to analyze the
competencies and improve them as per need of organization objectives are mainly
dependant on competencies drivers.
Human Resource scorecard is one of the basic tools that many organizations have
implemented and found helpful in working with Human resource strategies. This HR
scorecard was introduced by Robert Kaplan, a Harvard business school professor in one
of his article Harvard business review and David Norton in 1992. Kaplan and Norton’s
scorecard looks on the competencies, its drivers and then strategy implementation. This
scorecard is a protocol developed for CEOs and top level managers to incorporate
financial and nonfinancial measures in organization action plans with measureable results
of business strategy. This scorecard emphasizes on four main perspectives;
“What we are looking at is balancing outcomes, like financial success and customer
success, with drivers. The drivers are internal processes, the people, the organization, the
learning, and the growth profile.” ( Norton explained, 1992)
1.0 CONCLUSION
7.0 REFERENCES
• Hussey, D.E. (1996): Business Driven Human Resource Management, New York:
John Wiley & Sons.
• Ulrich, D. (1997): Human Resource Champions: The Next Agenda for Adding
Value
and Delivering Results,
• Wright, P.M. and Gardner, T.M. (2000): Theoretical and Empirical Challenges in
Studying the HRM Practice
APPENDIX 2
Awards Can be
1. Money
2. Involvement in Artistic activities
3. Health and Medical facilities
4. Job security
5. Involvement in decision making
6. Motivations on better performance
7. Opportunities of growth and promotions
8. Interesting and challenging jobs