HR vs. IHR
Main responsibilities of HRM managers: staffing, setting policies, compensation, and benefits, retention, training, employment laws, and worker protection.
Innovative HR practices include
free-market selection and recruitment, incentive rewards, performance
evaluation and promotion, training and development, and worker participation in
the decision-making process that is closely associated with human resource outcomes
and firm performance.
Strategic flexibility and HR Practices
I think organizations’ emphasis on strategic flexibility affects their adoption of innovative human resource management practices. In addition, we find that strategic flexibility is a very important context for examining the impact of human resource management practices. In particular, we find that innovative human resource management practices are effective in mediating the relationship between strategic flexibility and employee productivity. Strategic flexibility is “the capability of the firm to pro-act or respond quickly to changing competitive conditions and, thereby, develop and/or maintain competitive advantage.
Organizations with a strategy to
promote their flexibility and responsiveness to environmental changes would
benefit from adopting innovative HR practices that include selective hiring,
extensive and well-designed training, self-managed teams, and decentralization of
decision making, information sharing throughout the organization, comparatively
high compensation, and compensation contingent on organizational performance.
Innovative HR Practices
The key feature of innovative HR practices is to develop employee skills and behavioural repertoires that can provide a firm with sustainable competitive advantages. In pursuit of strategic flexibility, organizations seek flexibility in HR by adopting innovative HR practices To adapt to changes in the environment, organizations need their employees to be able to learn new tasks quickly (skill), to accomplish diverse tasks and assume responsibility for tasks from other jobs (functional flexibility), and to adjust their behaviour in different circumstances (behavioural flexibility). Organizations’ emphasis on strategic flexibility promotes firms to adopt training and staffing activities oriented toward personal growth that enable organizations to “have the right numbers of the right types of people to the right places at the right times” and identify and eliminate barriers to performance improvement. These are innovative HR practices.
References:
- Laursen K, Foss NJ. New human resource management practices, complementarities, and the impact on innovation performance. Cambridge J Econ. 2003.
- Chowhan J. Unpacking the black box: understanding the relationship between strategy, HRM practices, innovation, and organizational performance. Hum Resour Manage J. 2016.
- Seeck H, Diehl M-R. A literature review on HRM and innovation–taking stock and future directions. Int J Hum Resour Manage. 2017.
Market is so competitive, specially in banking sector and it is constantly changing. As the time goes by we have to adapt with market innovation, advance technology, better and effective banking procedures and superb customer service than ever. Nonetheless every bank has same products and services comparatively each other, all are trying to create delighted service environment to his customers. Since apart from traditional HR practices and monotonous line of actions, new initiatives should be taken to approach innovative HR strategies in the global context.
ReplyDeleteYou have elaborated what are HR practices and Innovative HR practices. It is good for an organization to follow Innovative HR practices. However, my opinion is HR practices and Innovation HR practices should be aligned with the contingency and universal approach. Though there are HR practices, sometimes it will not be the best fit according to company strategies and vice versa.
ReplyDeleteAn eight-to-five work schedule, with two weeks off a year, and a corner desk were once considered perks to a job, creating satisfaction and loyalty.
DeleteNot anymore.
potential employees are searching for more of a work/life integration, and a greater sense of fulfillment from their jobs. The structure of work has broken down and shifted, and Human Resource professionals must take note of a new, progressive environment, or risk missing great talent.
So that's why I'm talking about Innovative HR Practices, Companies must accept that and I think IHR will be critical with this new world.
Exactly I am not denying that organizations should not follow IHR practices. What I meant was IHR practices should be aligned with organizational goals. Otherwise giving more day offs and less working hours will impact on achieving organizational goals. That's why HRD should implement a strategic process balance everything.
DeleteHRM strategies always pursue the achievement of the organization’s goals and objectives. It cooperates with senior management in developing corporate strategies and in the proper management of its personnel. its functions also include recruitment, planning, training, performance appraisal, and compensation. Unlike it, however, IHRM functions involve cross-cultural training such as orienting employees with different cultural, ethical, and religious values.
ReplyDeleteevery Organization should have a HRM. please see below for more advantages;
ReplyDeleteHuman Resource Planning-
Human Resource Management(HRM) helps in estimating the right number of people required for carrying out the necessary activities of an organization. It analyses different work positions within a business for identifying the skill sets needed for such positions. Proper information regarding job designations helps in acquiring the right peoples.
Hiring Workforce:
It enables business in hiring skilled and qualified workforce by creating a large pool of competent peoples. Human Resource Management conducts whole recruitment process of an organization in accordance with the requirements of job positions.
Retaining Employees:
Human Resource Management plays an efficient role in retaining skilled employees for a longer term within an organization. It monitors working environment provided to workers and ensures that they get hygienic working place, better remuneration, extra benefits and facilities. This leads to long term associations of workers with organization.
Enhance Organization Effectiveness:
Human Resource Management influences the overall productivity and profitability of a business organization. It is the one which monitors the allocation of all resources and ensures that they are full utilized with minimum wastage. Human Resource Management matches right person with right job which improves the effectiveness of an organization.
Handles Disputes And Queries:
It handle disputes and resolves all queries of workforce from time to time. Human Resource Management leads to smooth functioning of an organization by redressing all problems of employees in a better manner.
Motivating Employees:
Motivation of employees towards their roles is must for achieving the desired goals and objectives. Human Resource Management motivates workforce by rewarding them as per their performance and providing welfare facilities. It examines their output level for deciding their incentives which boost the overall morale of workers.
Latest trends and facts unearthed globally are enumerated below for the benefit of all HR personnel in Sri Lanka and abroad.
ReplyDelete1. The HR function is increasing its strategic role in all forms of working environments. Clear distinctions are emerging between the HR function and line management in meeting the responsibilities for HRM policy decisions coupled with reliance on technology based systems.
2. The use of part-time work is escalating while tele-working and shift-work are on the rise
3. Appraisal processes frequently require the input of employees themselves, often leading to recommendations for future training and career development needs, as well as remuneration decisions.
4. Number of training days are increasing globally with the advent and introduction of e-learning systems and specific requirements of on the job training
5. Some global corporate entities have distinctive pay systems. The practice of offering employee benefits that exceed statutory requirements is on the decline marginally, except for health care insurance sector.
6. Trade union action is likely to rise as global trade patterns and market shares are influenced. There could be pressure on remuneration & perks of executives and directors due to this reason.
7. Downward communication is taking place through electronic means while the upward communication takes place commonly through supervisors.
8. References go a long way in recruitment of middle managers and staff at lower levels. Past experience, performances, remuneration/benefits, achievements and corporate standing will be the concerns for top executives
9. GDP levels and per capital income of the country will also determine the remuneration levels.
10. Some corporate entities have resorted to the methods of combined remuneration in the form of salaries, statutory benefits, profit and incentives in a combined package forcing the employees to work for targets of the company.
According to my view, for optimal utilization of limited resources HR should motivate employees of different departments to innovate new methods or processes so that efficiency of the employees can be enhanced and finally giving the desired output within less time. HR should initiate innovative methods in every process of the organization which has limited resources.
ReplyDelete