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HRM and Effectiveness Essay

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Below is an essay on "HRM and Effectiveness" from Anti Essays, your source for research papers, essays, and term paper examples.

In recent years we have observed increasing attention on the contributions of human resource systems and functions to organizational performance effectiveness and competitive advantage. Developing Human resource management theories and practices have transformed HRM from a reactive function that focused on administrative issues to a proactive function focusing on integration and becoming more involved in organizations strategic planning. Now, Human resource management is directly linked to business strategy and the achievement of organizational competitive advantage (Alcazar, Fernandez, & Gardey, 2005; Ferris Hochwarter, Buckley, Harrel-cook, & Frink, 1999; Purcell, 1999).
Organizational success in today’s flux and competitive markets relies less on advantages associated with technology, access to capital and economies of scale and more on adaptability, innovation and speed (pfeffer 1994,1998).   Pfeffer   (1994, 1998) also argues that competitive advantage linked to innovation, speed and flexibility are primarily derived from firms’ human resources. Therefore, there is a robust connection between the success of an organization and its effective human resource management practices.
But which human resource management practices are most strongly associated to improving organizational performance, and gaining competitive advantage? Pfeffer (1994,1998) promoted a list of fourteen separate HR practices, which was later reduced to seven that contribute to success of the organization. But other research suggests that benefits of organizational success and performance cannot be identified through implementation and practice of one or two HR management practices in isolation (Butler et al., 2004). It’s the bundling of practices and functions that leads to higher performance and enables organizations to gain competitive advantage. Internal fit/alignment reinforces this idea, it also suggest that for human resource practices to be effective they have to be complementary and...

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