Human Resource Management and Performance

Question: Discuss about the Human Resource Management and Performance. Answer: Introduction Human resource development is an important aspect for multinational companies in order to get better competitive advantage in the marketplace both in terms of productivity and in terms of maintaining best-fit organizational culture. Development of human resource management is related to the development of integrated and strategic approach towards workforce management. The study focuses the changing trend of human resource management due to the change of business environment and influence of stakeholders on formulating strategies of human resources for performance management and other benefits to the employees. The changing trends of HRM includes diversity in employment, changing migration patterns, employee relations implications, increased female participation in workplaces, training developments, etc. However, the study will discuss the importance of stakeholders in a company as well as their impact in the HR department of companies. Influence of changing environment The core aspects of human resource management of a company consists of various departments such as employment existing, employee development, reward management, employee resourcing, HR administration, talent management, employee benefits, strategy and organization, etc. The HR strategy of an organization is focused on current competencies as well as vision of the company in future. A gap analysis should be detected so that the new strategies will be more effective when compared to the previous HR strategy of the companies (Kehoe and Wright 2013). The environmental impact of the organization can be categorized into internal environmental factors, micro environmental factors, and macro environmental factors. Internal factors include employees, unions and business units. Micro factors include competitors, public, customers, suppliers, partners, intermediaries and entrants. External environment factors consist of culture, politics, education, technology, legal, regulations, economy, natu ral resources, and society. Internal environmental factors is responsible for creating an impact on organization size and structure, profile of workforce, companys values and ideology, locus of various HR strategy formulation, and established traditions and HRM practices (Jiang et al. 2012). However, to meet the factors of the external environmental factors, Porters generic strategies are also used in formulation of HR strategies that are related to the organization values and companies. This approach describes the HR strategy in terms of optimal strategy that will fit the strategy of the organization. This type of fit is known as vertical fit. The HR managers of companies must focus on the aspects of cost leadership, differentiation and focus in the perspective of employee relations, workforce profile with the selected strategy (Jackson et al. 2014). Apart from that, HR managers implement the policies of Pfeffers 7 key HRM practices in the organizational perspective. The key aspects of the theoretical implications are employment security, targeted selection, decentralization workplace teams, higher pay contingent on performance of company, employee training, diminished status differentials and sharing of business information sharing with workforce. Practice of these aspects will help in developing trust, commitment, etc. thus increasing the productivity of the employees and company as a whole (Buller and McEvoy 2012). Stakeholders analysis Stakeholder analysis is an important aspect that is important not only in strategic management department of the organization but also for the HR department of the company. Stakeholders are the group of people that are involved in various decisions of a particular company. Stakeholders consist of owners, employees, community, customers, insurance companies, managers, etc. Stakeholders in this perspective of formulation of human resource management strategies of organizations create an impact in the minds of the HR managers. Involvement of stakeholders will help in rectifying the errors of the strategy by the associated HR managers (Alfes et al. 2013). The goal of HR projects is to increase the productivity of the employees as well as employee retention. It has a direct relation to the profitability of the company and increased productivity of the company. Different kinds of employees and people from community are involved in many cases of the formulation of HR strategies. However, there are many positive aspects when stakeholders involve in the formulation of HR strategies. Different kinds of stakeholders will have different viewpoints that might be beneficial for the HR department to proceed in a particular direction (Purce 2014). In many circumstance, it can be said that HR managers overlook some issues of the organization and formulate the strategies that will not be effective in the perspective of performance management and reward management of the company. In the human resource department of multinational companies, not only employees and owners are involved in the strategy formulation part but also the customers and communit ies are involved (Renwick et al. 2013). Inclusion of community will help in maintaining sustainable HR strategies that will cope up the changing business needs. Apart from development of science and technologies, the trend of human resource is also changing day by day. However, multinational companies involve the stakeholders of the company to incorporate the changes that is happening in the internal environment of the company as well as the external environment. Incorporation of the recent trends in the HR policies is essential in order to retain the talent pool within the organization. Big multinational giants like Google, McDonalds, etc. are known for its improved HR strategies. Small medium enterprises usually try to follow the HR strategies of the big companies. Apart from that, leadership is also having an impact on the employee motivation and employee involvement in different operational department of the organization (Bratton and Gold 2012). Influence of stakeholders on HR strategies Stakeholders have a vivid role in the various operational departments of organizations. In the changing business environment, business enterprises are competing with each other not only in terms of marketing and increased sales but also in terms of various activities of human resource management. Employees are considered as the assets of organizations. Employees must have satisfaction in order to develop their skills and improved performance within the organization. There are different aspects of performance appraisal measures such as recruitment, selection, compensation management, training development and labor relations (Hendry 2012). Strategies are formulated in order to improve these HRM aspects. Stakeholders will help in minimizing the gaps that are occurred in the strategy formulation that are not identifiable by the HR managers sometimes. Apart from that, there are some ethical concerns that have to keep in mind while formulating HR strategies with respect to the current cha nges of the business environment. Companies can use 360-degree feedback in order to improve the performance of the company in order to complete the feedback process of the workers for improvement of the performance. It helps in keeping in track of the problems faced by the employees (Armstrong and Taylor 2014). It is seen that companies of Ireland are not efficient in the field of performance management activities. Various types of surveys and research are done that illustrates that the managers are not having competent skills while customization of the theoretical frameworks of the HRM strategies. Conclusion The study consists of different types of factors of environment that has created an impact not only on the strategic management aspects but also on the human resource aspects. The stakeholders of the companies are responsible for formulation of improved HR strategies that will not only increase the profitability of the organizations but also the retention of employees. The study illustrates mostly the influence of stakeholders and their impact in the improved competitive HRM functions of the companies. Instances of different companies are also provided in the study so that they can illustrate the topic at an ease. Implementations of theoretical frameworks are also illustrated in a detailed manner for coping up with the changing business environment. References Alfes, K., Shantz, A.D., Truss, C. and Soane, E.C., 2013. The link between perceived human resource management practices, engagement and employee behaviour: a moderated mediation model.The international journal of human resource management,24(2), pp.330-351. Armstrong, M. and Taylor, S., 2014.Armstrong's handbook of human resource management practice. Kogan Page Publishers. Bratton, J. and Gold, J., 2012.Human resource management: theory and practice. Palgrave Macmillan. Buller, P.F. and McEvoy, G.M., 2012. 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