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H8CIHRM Contemporary Issues In HRM

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H8CIHRM Contemporary Issues In HRM

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Course Code: H8CIHRM
University: National College Of Ireland

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Country: Ireland

Question:

What are the theoretical principles that link HRM, organisational performance and culture?
Does the HRM add value to the organisation? Does the HRM affect the culture of the organisation?

Answer:

Introduction 
The notion of the Human Resource Management (HRM), since the formulation of the first HRM theory, namely, Harvard Analytic Framework (1980) by the Harvard School to the present times has undergone a substantial amount of change (Collings, Wood and Szamosi 2018). Bratton and Gold (2017) are of the viewpoint that the current theories and practices of HRM had not only leads to the effective management of the human capital of the organizations but at the same time had improved the performance of these individuals and also organizations. As opined by Marchington et al. (2016), because of the plethora of the job roles as well as the activities that the contemporary HRM teams and HR professionals perform within the spectrum of the modern organizations they have become an indispensible part of the business world. This report will highlight the link between the HRM practices, organizational culture and performance in the particular context of the company Coca-Cola.
Link HRM, organizational performance and culture
Albrecht et al. (2015) are of the viewpoint that the organizations in which the various HRM practices are interlinked with the objectives or the goals of the organizations as well as the personal goals of the employees have a far greater chance of attaining success than the ones in which there is no correlation. In this regard, the company Coca-Cola is an important one since it is seen that the organization actively takes the help of the Strategic Human Resource Management (SHRM) theory for the effective management of the human capital. As opined by Jackson, Schuler and Jiang (2014), the effective utilization of the theory of SHRM not only enables the HRM teams to strategically align the employees and the organization but at the same time contributes in a substantial manner towards the enhancement of the performance of the employees and thereby the organization. Furthermore, it is seen that the effective utilization of this theory at the same time enables the organizations to reduce the disputes between the employees and the organization and thereby create the kind of work culture within the organization wherein the employees would be able to perform in an effective manner (Johnson and Szamosi 2018). The HR professionals of the organization Coca-Cola taking the help of this theory try to create the kind of work culture wherein the goals of the employees would be strategically aligned with that of the organization. This has not only helped the HR professionals to create the kind of work culture wherein the employees would be able to perform as per their maximum potential but at the same time would contribute towards the growth of the concerned organization (Jackson, Schuler and Jiang 2014). Thus, it can be said that through the effective usage of the theory of SHRM the organization has been able to create an effective work culture and also enhance the organizational performance as well.
HRM and its value 
The HRM team of the company Coca-Cola through the effective usage of the various HRM practices as well as theories has been able to add significant amount of value to the organization. For example, it is seen that the HRM team of the concerned organization through the effective usage of the concept of SHRM has been able to not only improve the work culture but at the same time overall productivity of the organization as well (Bratton and Gold 2017). This in turn has reduced the annual employee turnover of the organization and has at the same time increased job satisfaction of the employees as well (Collings, Wood and Szamosi 2018). Albrecht et al. (2015) are of the viewpoint that the entity of job satisfaction is important from the perspective of the organization since it is seen that this not only improves the individual productivity of the employees but at the same time reduces the turnover rate of the concerned organization as well. This is perhaps one of the major reasons for the unprecedented success that the company Coca-Cola has been able to achieve over the years.
HRM and the organizational culture 
Marchington et al. (2016) argue that one of the major job roles of the HR professionals within the cannon of the modern organizations is to create the kind of organizations wherein the employees would not only be satisfied but at the same time would be able to perform as per their maximum potential. In the particular context of the company Coca-Cola it is seen that the HR professionals take active initiatives to enhance the engagement level among the different employees, conduct regular recreational activities and others to create the kind of work culture wherein the employees do not feel over-pressurized and stress (Jackson, Schuler and Jiang 2014). In addition to this, the effective utilization of the notion of SHRM has at the same time enabled the organization to reduce the number of disputes between the management team and the employees (Johnson and Szamosi 2018). It is the cumulative effect of all these factors that the company Coca-Cola boasts of one of the positive work cultures within the contemporary business world.
Conclusion 
To conclude, the HRM teams are increasingly playing an active role within the framework of the contemporary business world. Furthermore, they are not only imbued with the responsibility of the recruitment and selection but at the same time the improvement of the organizational culture and performance is also considered to be their essential job roles. Thus, the HR professionals often resort to the use of different kinds of theories as well as practices like SHRM and others which can help them in the performance of their job roles. The effective HRM practices as well as the theories used by the company Coca-Cola becomes an important one to note in this regard. The HR professionals of the company Coca-Cola through the effective use of HRM practices have not only been able to create an effective as well as congenial work culture but at the same time have contributed in a positive towards the improvement in the organizational performance.    
References 
Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1), pp.7-35.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Collings, D.G., Wood, G.T. and Szamosi, L.T., 2018. Human resource management: A critical approach. In Human Resource Management (pp. 1-23). Routledge.
Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), pp.1-56.
Johnson, P. and Szamosi, L.T., 2018. HRM in changing organizational contexts. In Human resource management (pp. 27-48). Routledge.
Marchington, M., Wilkinson, A., Donnelly, R. and Kynighou, A., 2016. Human resource management at work. Kogan Page Publishers.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals). Routledge.

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