The role of human resources is constantly being refined in not only its nature, but the understanding as to the contribution that HR can make to a business. The clich?d proclamation that ?a business?s best asset is its employees? is heard often, however this statement is often not qualified by an explanation. Strategic human resource management attempts to provide quantifiable evidence to support the contribution of HR practices not only to the employees, but in creation of competitive advantage and ultimately improve the bottom line of a business?s performance. The measurement of its benefits has an elusive element that puts pressure on HR managers to prove their worth.
This has encouraged the ongoing understanding and development of HR; from the scientific management of the 1900?s where Fredrick Taylor (1911) carefully refined job descriptions to maximize productivity that lead to the employee being seen as a ?tool of the job?, then to human relations theory whereby the famous Hawthorn
studies (Mayo 1949) in the 1940?s found that a factory?s lighting can impact on performance and productivity and therefore the role of humans should be considered with greater empathy, to the traditional human resource function which sees there is some value in HR beyond cost cutting, but defines its activities to largely administrative roles of recruitment, remuneration, IR and OH&S.
Strategic HR management has been developed in conjunction with corporate strategy in the 1990?s to present. The acknowledgment of the external environment and the challenges its dynamic nature presents has lead theories by notable business school scholars devising models that seek to minimize the impact of the external environment on a business, and more specifically how a business can analyse and interpret the world and implement plans to utilize threats as opportunities and strengthen weaknesses. The first step of any these models is for a business to know itself; to understand their own business?
Source: http://nyessay.com/uncategorized/human-resources-and-competitive-advantage/
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