The impact of human resource management practices on turnover, productivity, and corporate financial performance
Discuss about the Cross Cultural Management for European Review.
The main aim of this paper is to study different readings in regards to the cross cultural management as well as the diversity issues which contributes to the human resource management. This paper shall elaborate on review writing of five different journal articles related to the topic of cultural and corporate strategy. It shall be reviewing both conceptual and empirical studies.
The objective of the article by Huselid (2015), “The impact of human resource management practices on turnover, productivity and corporate financial performance” is to examine and identify the relation in between the firm performance and the High Performance work practices. Furthermore, the main aim of the article- “Corporate strategy, planning and performance evaluation: A survey of literature” by Babafemi (2015) is to establish a relationship in between firm performance and strategic planning as well as to show how crucial corporate strategic planning, management and corporate culture are. The main objective of “Board composition and corporate social responsibility: The role of diversity, gender, strategy and decision making” by Rao & Carol (2016) is to find out the relation in between the corporate governance with special reference to board diversity and the CSR (Corporate Social Responsibility). The research conducted by Jamali, Dirani & Harwood (2014) on “Exploring human resource management roles in corporate social responsibility: the CSR-HRM co-creation model” has been elaborated with an aim of exploring the roles of human resource management in the CSR. The main objective of the article “The integration of human resource management and corporate strategy” by Brewster (2017) is focused on the agenda of the Vice President of the organisation of Human Resources in order to bring innovation by a systematic program of professional development, cultural analysis, human resource specialists, the development of the line managers as well as the creation of partnership in between human resource managers and the line managers.
The study conducted by Huselind is conceptual based study as because of the fact that he has assessed the national samples of about thousand different companies that were already present. The article by Babafemi is conceptual as it is based on the survey of different available literature studies. Also, the article presented by Rao and Carol too is conceptual as it has critically review the prevailing literatures to meet its objectives. The study by Jamali, Dirani and Harwood (2014) is based on conceptual data analysis. It has drawn on a very systematic review of the relevant GRM and strategic CSR literatures. The research study by Brewster (2017) is an empirical study. It is based on investigation and the results and conclusion are drawn from collected evidences.
Corporate strategy, planning and performance evaluation: A survey of literature
The concept of strategic planning has been embraced across different sectors due to its perceived contribution to the organizational effectiveness. At present, the organizations belonging from both private and public areas have taken this issue of strategic planning quite seriously as a tool which could be utilized for tracking their performances (Bolisani & Bratianu, 2017). It is to note that strategic planning is very important element in strategic management. All these research studies have contributed to a great extent in this context of cultural and corporate strategy planning. As per Parmenter (2015), the organisational culture is very subjective of different factors that influence its development, growth and performance. The internal factors include the organisational values, structure and the leadership style, while the external factors include the various laws and policies, technology and the business relationships. Values in an organisation is basically determined by the inner culture of the employees. With the same, the leadership style and the managerial focus has known as the major contributors of shaping up of an organisational culture because they can preserve creative and innovative culture within an organisation. A good organisational structure comprise of the expectations, policies and procedures that make possible for each and every employee to get motivated, efficient and creative which could in turn influence the organisational culture. As per Naranjo-Valencia, Jimenez-Jimenez and Sanz-Valle (2016), business relationships has a great impact on the behaviours of the employee and the organisational culture. Due to the advancement in today’s science and technology, there is a notable change in the organisational culture particularly with an increasing and significant interaction in between the machine and the human beings (Posada et al., 2015). With the same, the technologies is also creating a competitive organisational culture because it decreases the face to face interaction in between the human beings. Moreover, the policies, external work and organisational regulations related to work acts as a significant influencer of organisational culture. For instance, the employees who work in an organisation that perform a very strict policy of work to rule, the employees there exhibit the characteristics like doing the things as they are been told to do and they are less passionate about their job role, duties, responsibilities and they refuse to be creative. Hence, this in turn directly changes the workplace culture and have a significant impact on the interpersonal relations.
According to the research paper conducted by Huselid (2015), the impact that high performance work practices on the corporate monetary performance has is basically because of the impact of employee productivity and turnover. Corporate strategy plays a major part in this regard. As per Chris Brewster, organisational culture is the key of carrying out strategic implementation. He has argued that the corporate financial returns that are linked with the investments in progressive Human Resource Management practices are basically substantial. Furthermore, Babafemi in his study has established the fact that effective corporate strategic planning has a very constructive and positive impact on the overall employee and organisational performance. Also, according to him corporate strategic planning and culture is very important for ensuring a continuous high quality corporate performance as that only the companies that practice some or the other form of strategic planning are likely to survive. Also, as per the study that Rao & Tilt Carol have organised, both the CSR as well as the CSRR are the outcomes of the decisions of the boards. It has identified the importance of the studies relating the process of CSR decision making and gender diversity. This issue is very rare in the prevailing literatures. The study has also highlighted the importance of qualitative methods and of the longitudinal studies for the growth and development of understanding of the relationship between diversity and corporate social responsibility. Moreover, according to the study conducted by Jamali, Dirani and Harwood, the functions of HRM could significantly play a very important part in supporting the organisations for addressing the ongoing challenges of translating and formulating of the CSR strategy for most of the organisations. According to them, HRM could provide an interesting and significant support to the design of CSR strategy and its implementation and delivery. It has highlighted the important interfaces in between the HRM and the CSR and has ultimately developed a conceptual model. Lastly, in the study conducted by Brewster (2017), he has described about the initial stages of endeavour for bringing an integration of the human resource and strategic management in significant manufacturing organisation. He argued that the organisational corporate strategy as well as culture are the key to carry out effective strategic management within an organisation.
The article by Huselid suggests that the human resource practices have a statistically and economically notable impact on both the intermediate outcomes as well as on the short term and long term measures of the corporate monetary performance. The main findings of the study conducted by Babafemi suggests that corporate strategic planning and corporate culture leads to more effective company performance. According to the study conducted by Rao and Carol organisational culture fosters diversity in an organisation. The study conducted by. Jamali, Dirani & Harwood has argued that HRM provides a dynamic support to the Corporate Strategy design along with the process of implementation and delivery. Brewster (2017) has concluded that organisational culture is the corner stone for carrying out strategic management.
References:
Babafemi, I. D. (2015). Corporate strategy, planning and performance evaluation: A survey of literature. Journal of Management, 3(1), 43-49.
Bolisani, E., & Bratianu, C. (2017). Knowledge strategy planning: an integrated approach to manage uncertainty, turbulence, and dynamics. Journal of Knowledge Management, 21(2), 233-253.
Brewster, C. (2017). The integration of human resource management and corporate strategy. In Policy and practice in European human resource management (pp. 22-35).
Huselid, M. A. (2015). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of management journal, 38(3), 635-672.
Jamali, D. R., El Dirani, A. M., & Harwood, I. A. (2015). Exploring human resource management roles in corporate social responsibility: the CSR?HRM co?creation model. Business Ethics: A European Review, 24(2), 125-143.
Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana de Psicología, 48(1), 30-41.
Parmenter, D. (2015). Key performance indicators: developing, implementing, and using winning KPIs. John Wiley & Sons.
Posada, J., Toro, C., Barandiaran, I., Oyarzun, D., Stricker, D., De Amicis, R., … & Vallarino, I. (2015). Visual computing as a key enabling technology for industrie 4.0 and industrial internet. IEEE computer graphics and applications, 35(2), 26-40.
Rao, K., & Tilt, C. (2016). Board composition and corporate social responsibility: The role of diversity, gender, strategy and decision making. Journal of Business Ethics, 138(2), 327-347.
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