To fully understand the relationship between human resource management and performance in

different contexts, we are in need of a synthesis between resource-based theory and new
institutionalism. We argue that differences in institutional settings (between for example countries or
branches of industry) affect the shaping of HRM. In this paper we develop a conceptual model
(human resource based theory of the firm) that will be illustrated by means of empirical evidence on
macro, meso and micro level. The model enables to analyze the interaction between industrial
relations and human resource management at different levels (international, national, branch of
industry, company-level) and how that affects the shaping of HR policies in a specific company. In this
way the paper broadens the present HRM and Performance debate by explicitly taking into account
factors that are decisive in shaping HR policies. Factors like the product-market-technology
dimension, administrative heritage, the social-cultural-legal dimension and the dominant coalition with
its degree of leeway.

Few major functions of the HR unit are:Administration Functions: Strategic planning,

organizational evaluation, County Board relations, policy recommendations, supervision of
department staffCompensation & Benefit Functions: Health insurance, dental insurance, life
insurance, disability insurance, retirement benefits, vacation, sick leave, paid holidays, section
125 plan, donor program, educational incentive, uniform allowance, salary and benefit surveys,
job evaluation, and job descriptions. Connecting HR practices to company strategy: HR practices
needs in line with the corporate strategy to successfully achieve its goals and objectives. Several
academic researches from various behavioral science disciplines began researching upon HR
and its role in originations The Hawthorne behavioral science studies explains the new role of
HR focusing on total organization and less on individuals HRM Function: As the time changes,
new laws are passed that restricted the rights of employers and employees. Other studies show
that if HR managers can evaluate their priorities and acquire new sets of professional and
personal competencies, the HR function would be able to ride the wave of business evolution
proudly with other functions in the organization (Becker & Gerhart, 1996; Ulrich, et al. The
elements of HRM (are important factors to implement strategy in organizations. As the machines
require several people, managers were forced to develop rule, regulations and procedures to
control the increasing number of workers. A study of Singaporean companies found that when
HR managers lack the necessary skills to perform their duties competently, line managers and
executives take over some of the functions of HR managers (Nee & Khatri, 1999). To develop
good strategies, SHRM requires some key characteristic factors discussed as
follows:Recognition of External Environment: the external environment presents a set of
opportunities and threats to the organization in form of social, economical, political, technological
and demographic forces. D onwards) in early 1900's major changes occurred in the work place.
Fiscal Functions: Staffing budgets, departmental budget, accounts payable, insurance
receivables, insurance fund management, total package costing. Expert administration: SHRM
requires an active role of the staff in reengineering administrative and processes effectively with
in the firm. Decision Making Focus: Approaching strategically means choosing among the best
alternatives. State, Federal family and medical leave rights, county approved leaves of absence,
rights upon return to work, light duty assignments for temporary periods. Some topics in this
essay:
Strategic HRM, Resource Management, HRM SHRM, James Walker, Traditional HRM, Theory
Barney, Management HRM, HRM Strategically, Nee Khatri, Essentials SHRM, human resource,
resource management, human resource management, strategic human resource, strategic
human, strategic hrm, competitive advantage, hr practices, human resources, strategic
management, strategic approach, corporate strategy, strategic approach hrm, approach strategic
hrm, top level management,

The term ‘Human Resource Management’ is certainly not new in the workforce, but in
recent years has been addressed in depth and with new trends there has been a shift
to focus on the staff, and thus is becoming almost ‘fashionable’. Many believe that
this open approach to HRM can increase competitive advantage for a firm. There are
beliefs that competitive advantage can best be achieved as Guest put it “by seeking
improvements in the management of people and organisational structures; in other
words, through better utilisation of human resources.”

Bearing this in mind, there are two functions that are necessary to note when
describing HRM. These are the ‘legal’ and ethical compliances within an organisational
structure that the firm, including managers and staff, must adhere to. It is essential
that HR managers have a basic understanding of the law of employment and what is
considered ‘illegal’ as opposed to ‘legal’. In any legal relationship, there are mutual
obligations for both parties, and the arena of employment is certainly no exception. It
is only when these mutual duties integrate successfully with the objectives and
mission of the company that productivity levels will supposedly improve.

There are many things that must be considered when entering into a discussion on
legal matters within HRM, ranging from contracts between certain parties, to
Occupational Health and Safety requirements which must be fulfilled as preventative
measures must be taken for health and well being of employees in any field. For
example, Ghetto shoes implement a strategy that involves using a specific type of
ladder with strong ground support when looking for boxes on high shelves, preventing
any damage that may ultimately be quite harmful to employees. Another may be
safety gear and helmets when working in a construction site where there may be
falling debris that could injure someone quite badly, and thus have implemented signs
allowing employees to realise the importance of such matters.

One major issue in the law is that of ‘awards’. These are certain contracts with
employees, set by state and federal industrial relations, outlining the minimum terms
and conditions that an employer must provide for the employee, this includes
conditions such as: rates of pay, hours of work, types of leave (holiday, sick) and
termination. Yet, it is at the employer’s discretion whether they would use these
minimums or decide to increase that standard. Note that employees may have a
specific contract designed for their specific job, which would exceed the award in
various ways, and are to be discussed confidentially between the parties involved.

Discrimination is also a huge factor in the legal aspect of HRM today. According to
Stone discrimination involves “making a distinction between individuals or groups so as
to disadvantage some and advantage others.” This may be direct or indirect. Direct
being an obvious form whereby a woman may be terminated purely on the basis of her
gender. Indirect is more when a company makes a promotion dependant upon five
years continuous service, which is discriminating against women who take time off to
handle newly born babies, therefore being unable to stay at work consecutively. A
terrific example derived from Stone was O’Neill whereby the plaintiff had undergone a
medical examination just before he received the title of ‘purchasing officer’. He was
unable to have the job, as he had an acute back condition due to gardening in his
younger years. Yet, under the Equal Opportunity Act 1984 this act was found
discriminatory as refusing to employ the man had meant he was treated less
favourably than someone who did not have a stiff back. As it is shown here, along with
millions of other similar examples, there is a fine line between what is seen as ‘fair’
and ‘unfair’.Buy research papers

This is just one of the many legal aspects within human resource management, and
certainly more legal aspects will be covered, yet the ethical factors are also extremely
important as well. These mainly include cultural differences within the workforce, and
differences in race, gender, religion, etc. Although these heavily comply with legal
aspects, it is recognisable that regardless of this, there is still that responsibility of
managers and employees alike to be ‘ethically correct’ which may involve hiring a
person of a certain race, despite their particular beliefs. Furthermore, hiring someone
that is suited for the job, with the qualifications to exceed levels expected, even
though they may have a wheelchair or a different colour skin. In the rapid movement
towards equal opportunity for all, this is an absolute must for firm’s today, and the
managers should have open minds to all, as it may actually be more effective for the
company hiring this person over another. There is limited amount of information
concerning the ethical practices of HRM, and it is found that it is more a direct
objective by the company, and the employees within that company that determine
what is ‘ethically correct'.

There are many functions within HRM that may determine structures, morale and
overall competitive advantage within the specific industry. These include; HR
planning, Job Analysis, Job Design, Recruitment, Selection Career Planning and
Training and Development. Specifically, the selection process and training and
development activities will be focused on within the retail industry in Australia. Yet,
what is selection? What is training and development?

Selection is the ‘hiring and retention of key human resources’, and strategically an
organisation’s ultimate success depends on the best applicants being selected. Jobs
and people must be matched to ensure employee satisfaction and effectiveness. Some
issues surrounding the selection policy are that of the EEO, the quality of the people,
the source of people, the manager’s roles and selection techniques implemented to
gain all the positives out of employees. The costs of poor selection are direct,
whereby an employee may not compare probationary period, and indirect, which
involves disruption of work routines, loss of investment and difference in performance
levels, all of which affect a firms’ competitive advantage. Many tests can be taken by
potential employees at a company in the selection process, which include employment
tests, where the company asses’ the match between applicants and the job’s
requirements. Interest tests, where there is a comparison in the applicant’s interest
patterns with successful people in a particular job. Aptitude tests measure special
abilities that are required in specific jobs, alongside intelligence tests, which measure
applicants IQ. Last but not least, personality tests which measure the basic aspects of
personality, all of which are reliable, yet only an indication of the persons ability, and
if done correctly can influence a firm’s competitive advantage.

Once this is assembled, one must bear in mind the question types that adhere to the
law, and are ethically correct. An interviewer must not be vague and ambiguous, too
direct, or use trick questions to ‘catch’ the interviewee out on a limb. Certain models
have been implemented to determine who is right for the job, including the most
commonly used model - the compensatory approach where the manager considers all
of the selection data for the candidates who have successfully passed the initial
screening. Thus, allowing a better overall impression of the applicant. Another model
is the Person-Job match, where the company matches the whole person with the
whole job. These models along with others can be successful, if used in the correct
manner, and will be outlined with a specific company for a more in depth analysis.

Yet, training and development is also extremely important when assessing the firm’s
competitive advantage in their specific industry. So, what is training and
development? It is the development of existing employees, the induction and
orientation of new employees, the training of existing employees to teach new
methods within and organisation and the education of employees to ensure overall
competence, and thus achieve competitive advantage. Theories have been applied
when dealing with training and development, three of which are applicable in every
situation. Firstly, the Neo Human Capital Theory, whereby the company will train to
develop worker flexibility and responsiveness. Secondly the HRM Theory, where
training is used to increase employee commitment, and thirdly, the Learning
Companies Theory. This is said to promote individual and organisational learning to
make them more adaptable to change. Benefits of these mindframes are huge for
firms. As it increases performance improves flexibility and adaptability within the
workforce, allows career development, which entails promotion, and allows the
company an all round better skilled workforce Sisson, 1994. Programs may be
implemented to gain a wide variety of training and development, which may be on the
job, such as job rotation or traineeship, or on site which may entail interactive video
training. McDonalds actually implement this for all new staff with the first shift solely
based on videos and front counter training. Off site training where employees may
attend a seminar or formal course to enhance knowledge of the industry is also
another form. Yet just like any other activity, it must have a plan, where the company
outlines objectives of training schedule, implements them, assesses them, them if
need be, adds to the already existing format.