Business Operations Are Going Global Management

Essay add: 28-10-2015, 17:59   /   Views: 133

Today when business operations are going global and where businesses are in continuous process of evolution and adopting technologies to have an edge over their competitors. Human resources are considered the most important asset of an organization to gain competitive edge (Schuler and MacMillan, 1984). Human resource management defined as "HRM as a set of distinct but interrelated activities, functions, and processes that are directed at attracted, developing, and maintaining a firm human resources"(Lado and Wilson,1994).

Traditionally management has gain more attention to service organizations than manufacturing organizations. But in today's dynamic era, operational performance effectively managing this system is equally important in both types of organizations. Manufacturing organizations need to carefully evaluate their existing HRM practices and modify them, if needed, so that employees can effectively contribute to operational performance improvement (Ahmad and Schroeder, 2003). HRM considerations maybe even more important for other aspects of modern manufacturing, such as JIT inventory control and TQM (Taylor, 1983 as cited in Snell and Dean, 1992).

Human resource practices those are innovative can boost firm level performance and national competitiveness. Innovative HR practices are often studied in a vacuum with more attention paid to isolating the effects of individual practices than to understanding how different HR practices interact to reinforce one another or how they are linked to business and functional strategies (MacDuffie, 1995).

Researchers have suggested many HRM practices that have the potential to improve and sustain organizational performance. Human resource management practices include top management commitment, Communication of goals, employee training, cross training, employee security, and high compensation contingent on organization performance (Pfeffer, 1998; Jayaram et al., 1999).

Most of the literature showed that there is a positive relationship between human resource performance and organizational performance (MacDuffie, 1995; Huselid, 1995). Although, little work is done on determine relationship between human resource management and operations management (Jayaram et al., 1999; Kathuria and Partovi, 1999; Youndt et al., 1996)

Different conceptual and empirical articles have examined the impact of human resource management on the overall competitive performance of a firm (Arthur, 1994; Huselid, 1995).

The detailed analyses of human resource management practices on certain performance measures (quality, time, flexibility and cost) have not been yet taken into account specifically in Pakistani context. The aim of this study is to empirically analyze the factors that are involved in human resource management practices and its impact on operating performance and it will help the manufacturing companies to implement such HRM practices that can enhance the productivity of the organization.

Literature review

The impact of human resource management (HRM) practices on organizational performance has been the subject of much attention between the years. Most of the previous research on the relationship between HR practices and organizational performance has concentrated on a single HR practices such as compensation, selection, etc (Gerhart and Milkovich, 1990). Growing numbers of researchers are now taking interest on complementary bundles of HR practices to enhance organizational performance (ichniokwski et al., 1993; Osterman, 1994). "Human resource practices are said to be bundled when they occur in fairly complete, mutually reinforcing or synergistic sets" (Dyer and Reeves, 1995). HRM plays a critical role in achieving superior performance in competitive priorities such as low cost, quality, delivery, flexibility and innovation (Ahmad and Schroeder, 2003).

Pfeffer (1999)

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