Critically assess whether strategic HRM leads to 'high performance Essay

Critically assess whether strategical HRM leads to high effect - Essay Example because to survive in such a globally competitive environment organizations emphasize on attaining a competitive edge. An aligned strategy with HRM is a ancestry to successful competitive edge businesses can achieve that focuses more on phoners resources than its costs. This is the reason that the role of HRM has been under the limelight recently as it serves as a competitive advantage to the companies it also has to deal with the challenging changes (Armstrong 2011). Unlike personnel management human resource management is linked to strategic level planning of the organization and execution of those plans in order to improve the organizations overall performance. Human Resource Management is cerebrate to companys vision, philosophies, forms, and policies that ar influencing the management of people in a company. Strategic HR means aligning HR function with the companys strategies and then formulate s and implements those strategies accordingly with the assist of HR activities such as recruiting, selecting, training and rewarding personnel. (Armstrong 2011 Reilly 2012) There are few theoretical perspectives to the Strategic Human Resources Management. First get is the Universalist approach .This approach refers to one best way of dealing human resource to improve business performance only. It is also known as the best practice human resource management. This approach states that there is only one way people can be managed in order to improve the performance of the organization. unheeding of differences amongst different organizations, differences like size of the organization, to which sector it belongs, all organizations can be managed in same way by identifying a set of best HRM practices, committing to them in spite of the practical difficulties and applying and implementing them. This approach also measures organizational success in terms of financial performance. Resul ts from past experimentations reveals that this approach leads to high performance and it is becoming common to host or combine HR practices in order to create more coherent explanations of the HRM-performance link. (Gooderham, Cranfield, Ringdal, 2008 pg 7) Second theory is the Configurational theory that proposes that the relationship between HRM and performance involves complex interactions between bundles of HRM activities and outcomes. Once these complementary practices are bundled they produce high performance results and outputs than individual HRM practices. Firms have realized that rather than altering individual policies, their combinations are a better determinant and should be altered and worked upon to achieve better productivity. (Gooderham, Cranfield, Ringdal, 2008) There is a drawback of this approach as this approach has this assumption that HRM bundles and combinations are perfect and will give the same effective result under all circumstances. Secondly both univ ersalistic approach and cofigurational approach are closely related approaches and it is problematic to differentiate between these two approaches at times. Groups of HR practices combined additively may clearly be universalistic but the identification of a configurational approach is sometimes problematic. (Gooderham, Cranfield, Ringdal,2008) Second, approach is the Contingency approach. Contingency approach is to create a positive impact on businesses by aligning HR