1.2 Strategic Human Resource Management and Firm Performance
According to Armstrong and Baron (2004), people and their collective skills, abilities and experience, coupled with their ability to deploy these in the interests of the employing organization, are now recognized as making a significant contribution to organizational success and as constituting a major source of competitive advantage.
The practices of SHRM such as resourcing, training and development, employee relations and reward management are concerned with how people are employed and managed in organizations so as to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce. Cole
(2004) emphasize that the HR function brings in the strategic value of people in organization by making contribution to value added and contribution to competitive advantage. The organization relies on HR as its
employees.
Effective HRM strategy systematically organizes all individual HRM measures to directly influence employee attitude and behavior in a way that leads business to achieve its competitive strategy (Huang, 2001).
In view of the fact that the goals and the necessities of each of the competitive strategy types are different, the management of HR of the firm should be aligned with the overall corporate strategy.
The firm can thus obtain a competitive advantage and thus achieve superior performance (Kelliher & Perret, 2001).
1.2 Strategic Human Resource Management and Firm Performance
According to Armstrong and Baron (2004), people and their collective skills, abilities and experience, coupled with their ability to deploy these in the interests of the employing organization, are now recognized as making a significant contribution to organizational success and as constituting a major source of competitive advantage.
The practices of SHRM such as resourcing, training and development, employee relations and reward management are concerned with how people are employed and managed in organizations so as to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce. Cole
(2004) emphasize that the HR function brings in the strategic value of people in organization by making contribution to value added and contribution to competitive advantage. The organization relies on HR as its
employees.
Effective HRM strategy systematically organizes all individual HRM measures to directly influence employee attitude and behavior in a way that leads business to achieve its competitive strategy (Huang, 2001).
In view of the fact that the goals and the necessities of each of the competitive strategy types are different, the management of HR of the firm should be aligned with the overall corporate strategy.
The firm can thus obtain a competitive advantage and thus achieve superior performance (Kelliher & Perret, 2001).
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