Effect of Strategic Human Resource Management on Organizational Performance
In the modern world, businesses have gradually become conscious of the significance of aligning human resource practices to company approach and performance. This new knowledge is a critical aspect in the performance of businesses. Business effectiveness is a repetitive theme observed by academicians, advisers and experts. The recurrent and inexact variations, greater competition between businesses, the necessity for constant inventions, superiority improvement and cost decrease force businesses to face the trial of improving their effectiveness and subsequently their performance. Strategic human resource practice is now an actual structure that appeals, advances, inspires, and preserves employees to guarantee the operative implementation and the endurance of the corporation and its associates.
Strategic human resource management and performance
Strategic human resource practices has turned out to be an important ground of research, this new attention on the study has enabled the growth of innovative tactics in managing businesses and human resource (Wright et al., 2017). Effecting human resource practices to organizational tactic stresses the need for human resource strategies and approaches to be framed within the framework of general organizational approaches and goals. It also requires the company to be receptive to the shifting nature of the organization’s external background (Mazur, 2014). It is a tactic which needs clarification and adaptation by specialists to guarantee the most appropriate fit amid human resource corporate approaches and strategies. Strategic human resource practices relate to precise practices, formal strategies, and viewpoints that are intended to appeal, progress, inspire, and preserve workers who guarantee the actual operational and endurance of the business (Ulrich, 2014).
It allows strategic judgments to be made that have a key and long-term influence on the conduct and accomplishment of the business. This is done by guaranteeing that the business has the capable, dedicated and well-motivated workers it requires to realize competitive lead (Wright et al., 2017). A strategic human resource practice is an effectual role that gets by with environmental fluctuations. It openly and ultimately profit companies since it alters inactiveness into inventiveness, conducts organizational objectives plainly and inspires the participation of line supervisors (Mazur, 2014). Strategic human resource practices positively sways firm performance since it causes organizational interrelation, an employee spawned interaction that pushes a corporation headlong, allowing the business to react to its environment while still continuing to grow. A good illustration of this is with Coca Cola Company, the leading soft drink company in the world which is known for its excellent human resource management. There are strategies that can be used to ensure effective human resource management for the success of an organization.
Training and education
Motivating employees is a critical element to help improve performance in an organization; this can be done through good remuneration and recognition (Mazur, 2014). Other means of motivations are also important for instance, creating a work setting build on fairness and respect. Coca Cola makes it a primacy to ensure that all workers within the organization are respected and also comfortable. The company has formed a work setting where its workers can shine and also acquire improved abilities which is what helps improve their performance. The company offers all its workers learning and advancement programs through the Coca Cola University (CCU), which offers numerous courses through online learning, lecture halls and field training (Fritz et al., 2010). The Coca Cola curriculum focuses on management, human privileges, marketing, integrities and compliance among many other important growth elements.
Coca Cola also motivates its employees to grow by offering them compensation to help them get any level of education at any accredited institution (Fritz et al., 2010). The employees are permitted to study from other online learning institutions other than CCU and they regularly take part in any external training programs as well as symposiums, which greatly helps improve their talents and aptitudes (Yadav et al., 2013). In order to interest and maintain the finest employees, Coca Cola greatly devotes in staff advancement programs with a stress on in-house talent control, management growth for supervisors and workers performance organization.
Employee commitment
Commitment of employees is a significant element that contributes to staff motivation. To guarantee that workers do not feel unsatisfied or uninvolved, it is imperative for corporations to use staff commitment programs which help the employees to feel appreciated and also involved in the evolution of the business (Boon et al., 2018). For Coca Cola, commitment of workers is a vital element which has greatly contributed to its success. The company holds regular channels of communication with its workers and also frequently form employee assessments and illustrative groups (Fritz et al., 2010). This helps the employees to communicate their views about various issues within the company and the company effectively looks into them to ensure that everything runs smoothly for its success. Coca Cola Company also uses employee exchange programs where an employee from one country is referred to a different country to acquire and derive cultural intuitions (Yadav et al., 2013). The company also offers some enticements for instance free Coca Cola drinks, flexible working schedules, discounted gym membership and many other health as well as personal welfare benefits.
Payment and rewards
One of the key elements that contribute to keeping employees happy is fair remuneration. It is very important for employees to receive equal and also fair payments in order to interest and even preserve the finest workers (Ulrich, 2014). Coca Cola has been rated to offer the most competitive pays in the beverage sector which is one of the motivating factors for its employees (Fritz et al., 2010). There are elements that should always be reflected on to help come up with sufficient packages for workers. Other than the financial compensation, it is important for companies to consider offering retirement income, medical and holidays allowances which are also imperative elements of worker reimbursement. Coca Cola guarantees that there is regular benchmarking of its reward programs conducted by a group of nobles who are the key players in both native and international markets (Yadav et al., 2013).
Performance management
One of the key areas that require focus in a company is performance management, in order to ensure that employees execute at their finest. Debates and responses are very significant in the management of employee performance, this is what helps to guarantee that workers are conscious of their work objectives and that their individual and structural objectives are affiliated (Ulrich, 2014). Management of performance also aids in identifying any breaches in talents which are later on filled in through proper training. Coca Cola Company has its performance review system, which includes the mid-year and end year job debates between the workers and the organization (Fritz et al., 2010). It offers the employees and chance to evaluate their yearly performance in contrast to the set aims and purposes. These debates are important because they give the management and the employees a chance to discuss matters relating to training and development. It allows for the chance to sketch a proposal for training and improvement of the employees based on the reviews of the discussions (Fritz et al., 2010). This is an effective system that ensures consistent cycle of discussion and feedback and it helps the company to identify any types of breaches and permits their fulfilment through training.
Diversity and inclusion
Diversity is a key motivator of growth most especially in the contemporary fiercely competitive universal market. The corporations that want success in the universal market must support diversity in the manner that they act, reason and even revolutionize (Wright et al., 2017). Coca Cola believes in diversity which is one of its global missions. It has recognised the importance of diversity and uses it to grow its business (Yadav et al., 2013). It is this diversity that has fostered success for the company because people with different aptitudes help to generate different concepts which help beat competition. Coca Cola is a company that has remained dedicated to the formation of a work setting where every employee feels involved and is also offered equivalent chance of advancement and expansion.
Human resource management is a dominant component to outstanding performance for businesses. The more capable and well controlled a business’s human resource is, the easier it is for that business to accomplish resilient performance as well as output. Coca Cola is a good example of a company that has effectively used the power of human resource management to become the most successful companies in the beverage business around the globe. Offering its employees a chance to grow through frequent training, a chance to increase their education, fair payments and rewards, engagement and inclusion has greatly contributed to its continued growth.
References
Boon, C, Eckardt, R, Lepak, DP & Boselie, P 2018, ‘Integrating strategic human capital and
strategic human resource management’, International Journal of Human Resource Management, vol. 29, no. 1, pp. 34–67, viewed 27 June 2019, <http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=128358334&site=ehost-live>.
Fritz, K., Kaestner, M. and Bergmann, M. (2010) ‘Coca-Cola Enterprises invests in on-
boarding at the front lines to benefit the bottom line’, Global Business & Organizational Excellence, 29(4), pp. 15–22. doi: 10.1002/joe.20325.
Mazur, B 2014, ‘Sustainable Human Resource Management in theory and practice’,
Economics & Management / Ekonomia i Zarzadzanie, vol. 6, no. 1, pp. 158–170, viewed 27 June 2019, <http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=96714070&site=ehost-live>.
Ulrich, D. (2014, August 1). A New Mandate for Human Resources. Retrieved June 27,
2019, from https://hbr.org/1998/01/a-new-mandate-for-human-resources
Wright, C.F., Wailes, N., Bamber, G.J. et al. Employ Respons Rights J (2017) 29: 247.
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Yadav, P., Stapleton, O., & Van Wassenhove, L. (2013). Learning from Coca-
Cola. Stanford Social Innovation Review, 11(1), 50–55. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=84369882&site=ehost-live
