IHRS and organization performance
With the new changes that have been occurring in the international economy, its role has also been identified by most economists to be changing in a gradual way. For instance, the emergence of multinational corporations (MNC) has posed challenges to this department that requires the restructuring of the roles played by the human resources professionals who work under this department (Ile, Chuai, and Preece, 2010, 179). The internationalization of most businesses in the world poses a threat on the competitive advantage of most organizations hence affecting their performance. The human resource management (HRM) department together with its counterpart, the international human resource management (IHRM) strives to solve this challenge by understanding how effective management of people can contribute to the performance of people (Legge, 1995, 62).
For instance, they can enhance this by acquiring the services of individuals in addition to developing their skills, motivating them and making sure that they remain devoted towards the organization (Obeidat, 2012, 192). Moreover, the department also faces multiple goals, which ranges from coming up HR systems that is cost effective towards developing social legitimacy that includes dealing with broader strategic problems like motivation, societal context and labor scarcity (Legge, 1995, 62). Hence, HRM mainly entails managing employees through establishing good relationship with them either individually or collectively in addition to meeting the established organizational strategic goals. Thus contributing to the enhancement of the organizational goals. Some of the roles played by HRM in enhancing the performance of an organization include planning, job analysis, meeting personal needs, recruitment of the right employees, orientation and training, the management of salaries and jobs, resolving disputes, providing incentives and benefits to the employees and finally enhancing communication with employees in the entire levels of the organization.
All these roles can be further classified into individual, career and organizational roles. The HRM department enhances this function by attracting employees who are more qualified to enable an organization to achieve its set goals (Obeidat, 2012, 192). The department uses the repatriation process to identify employees who are qualified enough to enable an organization to accomplish its international assignments successfully. Performance management The department plays this function by assessing the job performance of the employees to enable them to improve their performance. For instance, after the assessment, the employees are provided with a feedback that analyses the positive and negative aspects of their performance (Legge, 1995, 62). This feedback is used by the employees to improve their performance thus contributing to the success of the organization.
The department ensures that an organisation is in a position to succeed by coming up with well-planned relations with the employees to promote health and planned relations between them and their employers (Obeidat, 2012, 192). This, in turn, contributes to the increase in the performance of the organisation. Introduction to IHRM and its link to the organisational performance IHRM mainly refers to the HRM functions, issues, policies and practices that result from the multinational enterprises’ strategic activities, which influence the international goals and concerns of those enterprises (Katou, 2010, 28). The IHRM department is obliged with the goal of understanding how multinational corporations can be able to operate more effectively. This connects multinational corporations with the internationalised strategy need that can be used to direct the operation of their subsidiaries in foreign countries in addition to their home countries.
When considered from the IHRM angle, McWilliams et al. , (2000) were able to argue that ‘’the entire pool of employees presents even a greater source of competitive advantage which in turn contributes to increased organisational performance. The IHRM mainly depends on two approaches to accomplish its mission of raising the organisational performance. This includes the human capital advantage and the human resource advantage (Wright et al. HCA is a product of human capital, which refers to the ability to capture and preserve exceptional talents to enable an organisation to attain human capital advantage. In this context, two of the aforementioned IHRM strategic functions would be evaluated and expounded. The section discusses the two strategic IHRM roles - resourcing and employee relations. Resourcing involves recruitment, selection, planning and repatriation of the employees (Armstrong 2006).
On the other hand, employee relation empowers the employees to participate or contribute to the major decision making of the organisation (Shen 2004, 815). The strategic roles of the IHRM management are critically evaluated. When the employees are overworked, they tend to be much unproductive, as they feel oppressed. On the other hand, underworking of the employees’ cause misuse of the organisation’s resources, as most of the employees may be idle. Therefore, it is necessary for the IHRM department to establish a specific number and category of the human resources they tend to employ (Albrecht 2000). In planning for the human resourcing in the organisation, the IHRM department sets up the appropriate job positions to be filled. Regardless of whether the business is existing or new, the IHRM department must be keen on the number of the employees (Barney 1991, 104).
Therefore, recruitment of unqualified and unprofessional staff leads to poor performance, as the staff are incapable of accomplishing their roles appropriately (Alfes, Shantz & Alahakone 2016, 1339). To discourage the poor performance in organisations, IHRM needs to be keen on the qualifications and job delegation to the employees. Selection enables the delegation of the right roles to the right persons (Caligiuri 1995, 497). It ensures that the employees are capable and trained to perform the roles assigned to them, enabling them to be productive and effective. Lastly, resourcing builds up employer branding, as it may build or destroy organisation’s image (Backhaus 2004, 501). In promoting employees relation with the employer or the entire organisation, employee voice is appreciated as well as employee participation and involvement in business decisions (Albrecht 2000).
Moreover, employees have delegated roles and encouraged to give their views regarding various operations of the business. Various elements of the employee relation by the HR management are evaluated in the subsequent section. First, the employee engagement, involvement and participation promotes an effective employee relation (Alfes, Shantz & Alahakone 2016, 1323). Employees need to be motivated and involved in the organisation’s decision-making process, as they possess high training, skills and knowledge in their respective areas of operations. Additionally, IHRM encourages sharing of appropriate business information with the employees, encourage open communication, and encourage innovation and builds trusts with the employees (Albrecht 2000). These measures and roles maximise on employee participation in the organisation, thus promoting the job satisfaction and confidence of the employees. Therefore, such practices ultimately improve the performance of the firm, as the employees are motivated to achieve personal and organisational goals (Alfes, Shantz & Alahakone 2016, 1339).
Second, employees’ voices dictate the levels of employee relations. The IHRM has a mandate to listen to the voices of the employees and suggest to the management the manner in which such concerns need to be solved (Armstrong 2006). Such assurance makes the employees perform better, as compared to cases where the workers are worried about their safety or job security. Conclusion In conclusion, the essay expounds on the specific roles of the HRM and by what means these roles influence the organisation performance. In addition to defining the two approaches, the paper reflects on their differences. In differing between the two aspects, the essay applies the resource-based view approach. Moreover, the essay discusses how the HRM roles are integrated into a strategic whole (Armstrong 2006).
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