other words, the line managers are the owner of the recruitment and selection process along with HR playing a facilitator role. Figure 2 depicts the framework, which summarises the indicators of recruitment and selection strategic integration. Figure 2- A framework of recruitment and selection strategic integration Note: R & S is recruitment and selection2.5.5. Organisational Performance Anderson et al, 2008 define ‘Organisational Performance’ as, “a measure of how well organizations are managed and the value they deliver to customers and other stakeholders”. However, Budhwar (2000) says it is the organisation’s ability to achieve its objectives efficiently and effectively. Hussey (2010) says Organisational Performance represents the value of the organisation in terms of the total contribution made by the efficient and effective management of its human resources. In his research, Crawford (2004) strongly posits that organisational performance is composed of five major critical components as follows: Motivation Models, The Leadership, The Organizational Culture and Environment, The Work Design, and The Human Resource Management Policy. 2.6. Relationship between HRM and Organisational Performance According to Rodwell et al (2004), the traditional role of HRM in organisations was mainly to support the operations through managing people to win the employees’ organisational commitment to the goals of the organisation. In consequence, HR managers had to strictly comply with the detailed procedures of personnel administration which drove the ways in which the organisations handled their human resource activities. However, Anderson et al (2008); Hussey (2010) argue that the key HRM activities included in this regard are: recruitment, selection, performance measurement, training and development, and administration of compensation and rewards. In addition to performing these HRM activities HR managers have to create value for the organisations in which they work. Anderson et al (2008) say that today’s HRM focuses heavily on the organisation’s successful outcomes through the integration of the various HR functions but Wright et al (2005) in their study strongly suggest that human resources determine an organisation’s success in overcoming major challenges facing executives today: “globalisation, value chain for business competitiveness and HR services, change, attracting and retaining intellectual capital”. Together these major challenges require that HR practices create and add value that can be measured reliably. They conclude that today’s top performing companies pay extraordinary attention to managing effectively the HR dimensions which affect employee behaviours: “morale, motivation, attitude, commitment, etc and that each of these HR dimensions plays powerful part in determining organisational success.
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- Winter '15
- Human Resource Management, Strategic Human Resource Management, organisational performance, strategic integration