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HRM Policies Human Resources Play An Integral Essay

HRM Policies Human resources play an integral role in any organization. The allocation of human capital is critical to the overall success of the organization. Depending on the particular industry, talent and its subsequent retention is directly correlated to the overall profitability of the firm. In many instances, as is the case in our current economic cycle, improper human resource activity can have a profound effect on our overall society. Not only are jobs being lost at a rapid rate with unemployment at 9%, but also many jobs are being outsourced to low cost countries. Combine this with the fact that many businesses are reluctant to hire, and human capital retention becomes a major conundrum. By employing and retaining the correct individuals for the corresponding position, both the business and society benefit. For example, the most creative individuals will be placed in the positions that utilize their talent most effectively. This talent will thus be cultivated in the position allowing the individual to grow and develop. This development allows the individual to create products or solutions that another individual with less talent may overlook. This is primarily how Microsoft, Google, Intel, and IBM continue to generate new and innovate products decade after decade. They simply have the right people in the right places through the use of HRM. Through this paper I will juxtapose various forms of HRM practices within the United States and abroad with the merits of contrasting practices.

To begin, strategic HRM practices often entail many forms of models. These models have various strengths and weaknesses depending primarily on their application in various scenarios. One model in particular that will be discussed is that of the matching model. This concept is both simplistic and rudimentary in nature. However, it does...

The textbook definition of the matching principle is as follows, 'An organization's HRM policies and practices must fit with its strategy in its competitive environment and with the immediate business conditions that it faces' (1). This concept of integration can be further broken down into the following three aspects of strategic matching-
1) the linking of HR policies and practices with the strategic management process of the organization

2) the internalization of the importance of HR on the part of line managers

3) The integration of the workforce into the organization to foster commitment or an 'identity of interest' with the strategic goals. (1)

Point 3 above is of particular interest in the case of HRM. For one, many U.S. businesses are outsourcing work abroad. As geographic boundaries are dissipating, it is becoming increasing difficult to provide a workforce that is integrated. In regards to HRM integration within the matching model is important because a business wants to be consistent. American business wants a homogenous mix of workers who can acquiesce to the methods of that particular business. If this does not occur, the entire business will suffer due to a lack of consistency. Can you imagine how Wal-Mart would fair in our business environment if one store had very high prices while a store in the same town had low prices? It would send an inconsistent message to Wal-Mart's customers and ultimately the business would suffer. This is the exact same problem HRM managers face as they continue to outsource human capital abroad. With the matching principle however, HRM managers must foster commitment within the workforce by identifying common interests. In our global economy this will be difficult for a number…

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