HRM a strategy not concurrently being implemented by any


















     HRM Best Practices

resources management is the most or definitely one of the most important departments
within an organization. It’s responsible for wide-ranging of roles and objectives
and has significant impact on the success and performance of a business.

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and Jackson (1987) defined HRM practices as a system that attracts, develops,
motivates, and retains employees to ensure the effective implementation and the
survival of the organization and its members.The scope of HRM practices is very
wide.  It includes but not limited to
recruitments, selection, policies and procedures, training and development,
performance appraisal, strategic human resources management, compensations, employment
security, productivity improvement programs, workplace justice, safety and health
decentralization and self-managed team, promotion and human resources planning.
These practices can affect positively or negatively the performance of a
company which affirms the importance of this department. Human resources
management practices are the main resources by which companies can influence
the skills and performances of individual people to do their works and accordingly
achieve organizational goals (Collins & Smith, 2006; Chen & Huang,
2009). According to Price, a philosophy of people management is based on
the belief that an organization gains competitive advantage by using its people
effectively and efficiently (Price, 2004). However,
according to Barney, competitive advantage is achieved when a firm implements a
value creating a strategy not concurrently being implemented by any other
competitor (Barney, 1991).”When a firm earns a higher rate of economic profit
than the average rate of economic profit of other firms com – petting within
the same market, the firm has a competitive advantage in that market” (Besanko
et al., 2000). Characteristics of competitive advantage include better quality,
price and new products. For example, two airlines companies sell same ticket
with same services at different prices. 
The one who sells it at a lower price has competitive advantage over the
other one.


Firstly, referring to one of those practices which is the
staffing that includes job advertising, selecting and recruiting. For example,
when the company has an experienced and proficient HRM process for selecting
and recruiting needed staff, and when the selection is based on clear and
objective criteria and performed after tests and interviews, the company will
hire the qualified employee who will contribute to its success.In addition, the
person-organization fit becomes very important during the employement process. This
theory means existing of harmony between the potential employee and the
organization as far as goals (Valentine, 2000.) The person-organization fit or
the P-O fit is very important since it ensures the retention and satisfaction
of employee and boosts the company performance. For that reason, the HR within
an organizations must hires and selects employees whose principles are well-matched
with the organization’s principles in order to be more productive, and reducing
the employee turnover rate resulting  organizations to achieve competitive advantage.
Hiring the wrong employee will affect negatively on the performance of the
organization. Huge part for achieving a competitive advantage for an
organization depends greatly on human resources and how these people differentiate
themselves from others employees working in another company. In addition, the organization needs to be clear about what are the needed skills and qualifications in its applicant’s
pool. Recruiters need to be as precise as possible about the exact skills they
are seeking to fit the job position, and this matter must be done in coordination
with the direct line manager responsible of the department where the job
vacancy is open. For example, this can be done by performing test and role job
playing and by asking questions related to these criteria such as give an
example of working with a difficult co-worker. How did you handle it?  How do you handle an angry customer? Other
things to consider while recruiting are the skills and capabilities employed
need to be carefully considered with the job requirements. It is not only about
hiring the brightest candidate or who holds the highest degree.  For example, it’s not always right decision to
hire a candidate for its MBA degree and disregarding a candidate’s curriculum
vitae that only holds a BA degree. Employees must be hired principally for
their skills and personality and for their willingness to provide the best for
their potential company and not for their academic performance. In relation to
this subject, lots of research has shown that the success in the work environment
is not related to academic performance of GPA.


Another significant HRM practice is the training and
development. HRM must provide the firms’ employees with the right and adequate
training and development which will ensure they are doing their jobs and tasks
the right way. According to Ellinger, have positively associated training with
employee satisfaction and enhanced work-related performance. (Ellinger et al.
2005). Additionally, assert training and development enable employees to
improve and grow professionally which improve their performance ( Hunt, J.M.
and Weintraub, J.R. 2002).  Furthermore,
and according to Willis and Guest (2003), training is perceived as an efficient
skills development tactic which positively impacts organizations and aligns
employees with organizational goals. When employees are trained well they are
capable to do their tasks in the right way and in an accurate time. However,
when employees obtain the suitable knowledge related to their tasks and develop
the right skills, they will feel more self-confident to propose creative and
innovative ideas which will contribute to the enhancement of organizational
performance and provide the company with the competitive advantage features (Chen
and Kaufmann, 2008).  Giving your employees
training and developments programs will enhance their performances and prove
the companies interest and attentions towards its employees. However,
organization must prepare annual training plan for all its employees according  to their needs.

In addition to the above, performance appraisal is a great
incentive for employees and helps them ameliorate their performance. It’s not
only about advantages such as bonus but it highlights on their weak areas. A
good example is when a firm provides benefits to its workers for improving
their motivational level in order for them to do better work and making their
company successful, matter helping it to achieve competitive advantage.
However, a company must adopt a subjective appraisal performance program with
right documentation in order to avoid any employee dissatisfaction.  Rewards have high effect on employees’
performance since they shows the company interests in their employees who
appreciate such things. Rewards can be cash, promotions or both. Organization must
evaluate staff performance continuously and without any exception.

Furthermore, another important practice is developing a
strategic HRM plan in line with the business plan. Strategic HRM focuses on
actions that differentiate the firm from its competitors and therefore giving
it a competitive advantage (Purcell, 1999). Strategic HRM has a clear focus on
implementing strategic change and expending the skill base of the organization
to ensure that the organization can compete effectively in the future
(Holbeche, 2004). HRM strategy is very important since it generates benefits
for both employees and company. When employees understand what are the objectives
and goal of their company, this will provide them with clear idea on how their
work can contribute to achieve these objectives and goal. In addition, a proper
HRM planning helps to identify the appropriate number and kind of employees
needed to achieve the company strategy.


In addition, Compensation comes under all forms of financial
profits and benefits that employees receive as part of their employment (Milkovich
and Newman 1999). An effective set of choices about compensation systems plays
a major role in determining firm performance (Dreher and Dougherty 2005).However,
organizations must adopt compensation and motivations systems are that clear
and specific to the employees in order for them to determine the way they can
benefit from these systems. Furthermore, some organizations use ethical and
moral incentives methods to award employees who deserve. On the other hand,
salaries and bonuses system in the organizations should be equal with the amount
of effort exerted by the staff during a specific period of time. These systems
must be cleared by the human resources department whenever they hire employees.
A pay-for competence program improves efficiency and product value, and decreases
absenteeism, turnover, and accident rates (Jyothi and Venkatesh 2006).


One of the best human resources management that has a big impact
on the performance of the employees is promotion. Companies can use a clear and
promotion system that is based on clear criteria which allows employees to work
toward getting promoted. Promoting employees within the same organization makes
them appreciate the opportunity to advance their careers without moving to
another company. Therefore, workers enjoy greater job security knowing that
their efforts will be recognized and rewarded matter that motivates them. In
addition, current workers have already demonstrated that they are loyal to your
company’s objectives and strategy. Therefore, it’s better to promote from
within the firms’ staff instead of taking risk and hire new employee. Nowadays,
loyalty is a valuable and very important ethical asset for any company. By
promoting internal employees, the company shows how it’s loyal as well to its hard
working staff.  Promoting from within the
company can be great for business and employees as well.

 According to Jeffrey Pfeffer, most researches
show that decentralization and self-managed team increased job satisfaction and
productivity. Whereas, low- level employee has the right to do things that can
enhance his jobs and tasks. On the other hand, and according to Jeffrey
Pfeffer, a study of the implementation of teams in one regional telephone
operating company found that self-directed groups in customer services reported
higher customer service quality and had 15.4% higher monthly sales revenues. In
the case of network technicians, the implementation of self-directed work teams
saved an average of $52,000 in indirect labor costs for each self-directed team
initiated. Moreover, membership in self-directed work teams positively affected
employee job satisfaction, with other factors that might also affect satisfaction
statistically controlled. More than 75% of surveyed workers who are currently
in traditional work groups say they would volunteer for teams if given the
opportunity. By difference, less than 10% who are now in teams say they would
like to return to traditional supervision (Jeffrey Pfeffer, 1994).In
addition, when employee is permitted to provide and pool his ideas, he will be
more creative and come up with more solutions to solve different problems. The concept
is like group’s brainstorming, when different people pool their ideas in order
for at least one member of them to provide the better solution or better idea to
address a specific problem. Another benefit, and perhaps most importantly for
the competitive advantage concept, the removal of hierarchy control’s layer,  such as employees who perform administrative tasks,
will reduce the high costs  of having
people whose job it is to watch other people do the work. Administrative
overhead is always expensive since management is normally well-paid.  Removing these layers of management by introducing
self-managing teams saves money. Furthermore, Self-managed teams can handle
critical decision since they are closer to the relevant information or job. A
problem can raises and the question that might be asked by organization is how they
can move to self-managed teams, and eliminate 
the layers of administration, and especially if the organizations apply
the practice of employment security. Eliminating these layers or positions need
not to include the elimination of the people working in these positions instead
those workers can be redistributed to other tasks that add more value to the
organization.  For example, in a company
staff that did market research and planning can be moved to positions where
they had a more direct effect on operations. Usually many tasks, such as the setting
out a new products and new markets, require long time and strategic managers,
and these activities and decisions add much more value to the organization by
using the knowledge and capabilities of the people and lead to competitive
advantage. Thus, a move to self-managed teams is reliable with maintaining
employment by finding more important tasks for supervisors and managers to
perform. Even in the organizations for which working in formal teams is not applicable
or possible, they can also benefit from the concept of self-managed team or
decentralization by providing decentralization of decision making to front-line
people, who have the knowledge and ability to take effective decision. (Jeffrey Pfeffer, 1994). For
example, in a service company, such as hotel, where satisfying guests is number
one priority, they can allow employees to do whatever was required to make the
guests happy since different problem and situations can occur there.

Nowadays, employment security is very essential for any all
level of employees. Worker will not spend all his power for its firm unless he
feels that his secure and he will not be laid off for lack of work. This
practice shows the company’s logn-term commitment and generates employee’s
loyalty and enthusiasm to spend his effort on his work. Countless additional
benefits result from this practice besides workers’ free contribution of
knowledge and their efforts to improve efficiency and productivity. This
practice also includes advantage to the firms saving it from lay off employees
during downturns. In the absence of this practice, firms may lay off employees
too quickly and too freely at the first sign of financial difficulty. This constitutes
a cost for firms that have trained and developed their employees and done a
good job hiring. Downsizings and loosing trained and experienced employee is a
good opportunity for the competitors to employ them and steal those important
assets for the competitive advantage.


           In a
world of globalization and frequent changes, in order to survive and achieve
competitive advantage, organizations must adopt innovative and new human
resources management practices.