Congruence between an organisation s strategy structure and hrm practices

Generational differences in workplace motivation. Abstract Despite increasing age diversity in the workforce, organisations still know relatively little about how potentially diverging motivational needs of the various generations might influence motivational strategies and organisational performance. To explore the relationship between multigenerational workforces and employee motivation within a South African workplace setting from a self-determination theory perspective. The pursuit of performance excellence requires an understanding of the enablers of optimal performance.

Congruence between an organisation s strategy structure and hrm practices

Rodgers Svovah November 3, Lecturer: Dr Andrew Michael Word count: This view has been adopted by many organisations; manifested in way they treat their employees, making them the prime drivers of corporate success.

Congruence between an organisation s strategy structure and hrm practices

Indeed people, not machines, not systems, not other assets, are in a special position to helping organisation attain their objectives as people are needed to make use of machines and other assets in productive ways.

Many companies are now convinced that their people are the most important assets and clearly state this in their mission statements.

To this end many companies are adopting and implementing a strategic human resource management approach as part of the overall organisational strategy. I strongly believe that this definition captures the core of strategic human resources. Indeed increased integration between human resource management and business strategy is one of the most important demands that are placed upon modern strategic human resource management.

Human resource HR strategies are generally integrated vertically with the business strategy and horizontally with one another. Strategic HRM may, therefore, be regarded as an approach to the management of human resources that provides a strategic framework to support long-term business goals and outcomes [11].

This approach is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need [1]. Making HR Strategic Strategic HRM addresses broad organisational issues relating to organisational effectiveness and performance, changes in structure and culture, matching resources to future requirements, the development of distinctive capabilities, knowledge management and the management of change.

I will attempt to outline these various approaches and how they fit with the view that strategic HRM is a set of processes and activities which provide an outcome.

Stewart and Brown called these approaches universalistic and contingency while Armstrong called them best practice and best fit approaches. The universalistic approach seeks to identify a set of human resource practices that is beneficial for all organisations, the goal being to find one best way of managing human resources.

It places an emphasis on communication, teamwork, and the utilisation of individual talents. However what works well in one organisation might not work so well in another organisation as it might not fit its strategy, culture and management style.

I would also question the value of this approach in the modern dynamic business world, especially as a global downturn possesses many threats for organisations large and small. The contingency approach seeks to match human resource practices with competitive business strategies.

In this view, the human resource practices work differently for organisations pursuing different strategies. In my view the contingency approach is more important than the universalistic approach although benchmarking can still be used as a means of identifying areas for innovation or development that are practised in other organisations.

Organisational Success through Strategic HRM Although strategic approach to human resource management is relatively new, preliminary research generally supports the notion that organisations are most successful when they take a strategic approach to managing people; when their human resource strategies fit their competitive strategies [2].

An organisation is more productive when its employees are chosen for characteristics that help the organisation achieve its competitive strategies. A case in point is Arsenal Football Club. Arsenal holds the record for the longest uninterrupted period in the English top flight and would be placed first in an aggregated league of the entire 20th century [15].

It is the second side to complete an English top flight season unbeaten in the —04 seasonand the only one to do it across 38 matches.

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According to Stewart and Brown organisational success is achieved from two perspectives; the life-cycle model and the stakeholder perspective. The later refers to a series of stages through which an organisation moves during its lifetime, from the time it was founded known as the Entrepreneurial Stage when it is concerned with survival, through communal stage which is marked by expansion, innovation, and cooperation, then formalisation stage marked by stability and development of clear practices and procedures of doing work, to elaboration stage that is characterised by adaptation and renewal.

In all these stages effective and good human resource practice is critical for success. It becomes imperative that before strategic HRM formulation organisations should have an appreciation of the stages they are in.

Stakeholder Perspective states that organisations are successful to the extent that they meet the needs of their stakeholders, defined as individuals or groups of people who can affect or who are affected by an organisation; that is employees, customers, owners and society at large.

Successful firms must meet the needs of each group of stakeholders, and these needs vary from group to group. It also sponsors Kwik Cricket for kids. Common Competitive Business Strategies There are two main strategies in business which are corporate-level strategy in which decisions relate to business type; and business-level strategy which concerns how the organization will compete with other companies that provide similar goods and services.

At business-level strategy two generic business-level strategies capture the main ways in which business units compete; which are cost leadership and differentiation. Organisations that pursue cost leadership strategy seek to become low-cost producers of goods and services; their main goal being to develop efficient production methods that enable them to sell at a lower price than their competitors.

Organisations with a differentiation strategy aim to produce goods and services that are superior to the goods and services produced by competitors; their goal being to create unique value for which customers are willing to pay a higher price3.This article by Jean-Marie Hiltrop, considers some of the models which have studied the link between HRM and organisational performance.

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As yet, there is little real evidence, but it is growing and indicates that corporate HRM policies and practices - including ‘best’ practices - are associated with high (financial) performance, and can encourage employee behaviour and attitudes towards. Path analytic tests supported the findings that employee commitment (EC) moderated the fully mediated relationship between differentiation strategy and firm performance through HPHR practices.

Apr 24,  · First, the mission and strategy must be considered because these are an organisation’s reason for being. Second, the organisation’s structure, personnel requirements, and tasks, must be formally laid out, including systems of .

The best-fit (or contingency) school of SHRM explores the close link between strategic management and HRM, by assessing the extent to which there is vertical integration between an organisation’s business strategy and its HRM policies and practices.

HRM that aligns to business strategies controls work activities and direct employees back on track for the organisation to stay competitive.

Congruence between an organisation s strategy structure and hrm practices

Ennen & Richter, , through empirical research concludes that congruence practices, policies, strategy and organisational structure would give firms a competitive advantage over the organisations lacking such fit.

Congruence Between An Organisation S Strategy Structure And Hrm Practices. of fit between HR strategy and Business leslutinsduphoenix.comt of ‘fit’ in strategic HRM Nadler and Tushman () defined congruence or fit as "the degree to which the needs demands, goals, objectives and/or structure of one component are consistent with the needs, demands, goals, objectives, and/or structure .

Human Resource Management (HRM) - duties, benefits