Research Review
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How a Firm’s Human Resources Influence Organizational Performance.
Moghaddam (2015) discusses how human resource persons always look forward to making profits and encountering least challenges in the organization. In other words, human resource management and the organization performance shows a positive relationship. Companies in all states in the United States have been striving to obtain the best results and successes. Human resource managers are coined to be the contributors of all these performances. Hamid, (2017) discusses how perfect and hardworking workers are retained in a company. Most of the show much concern to getting a success more them a failure. Therefore, they make use of their skills and abilities. On the other hand, the human resource manager in conjunction with other stakeholders takes their time in functions such as training, motivating and developing the employees. Training and promotion in most of the companies are the key factors to success. As a result, the organization gains mobility in its effectiveness and efficiency.
Mohan (2016) discusses that every Human Resource Managers need to utilize effective strategies that will guarantee them success. The article emphasizes the need for the Human Resource Managers with the organizations to always analyze past business trends to make proper decisions on what to do in the future. For instance, the managers that have been having poor recruitment systems needs to change the way they do their recruitment. The article reveals that the use of Monte Carlo Simulation approach will enable company’s organization and the human resource management to choose cost-effective approaches to be successful though the proper handling of workers. For example, the article looks into the need for an organization to ensure proper movement of goods and services though a legal panel of workers. Through this, they can be in a position to take control of their markets. The Monte Carlo simulation approach requires the stakeholders of the organization, the human resource included, to weigh two or more options before arriving at any conclusion. The fact that the approach needs the business persons to identify and discuss the merits and demerits of any choice before using it makes it essential and helpful. However, the key challenge with this approach is that the approach requires ample time for consideration of options. The approach thus requires no rush in that any hasty move would lead to poor decisions. The article advises business persons against making improper decisions that can hurt the business. The decision-making process never happens in an instant. Instead, it involves consideration of options and discussions among stakeholders. When stakeholders have discussed and agreed on an option, it is good to implement that option. The implementation process is then followed by an evaluation process meant to ascertain the strategy’s effectiveness. Therefore, human resource management is the ones to receive reports from employees through a good communication channel. There are four approaches in which communication can be done. These include democracy, laissez-faire, autocracy, and co-determination.
According to the research conducted in 2017, human resource managers are the people to organize compensation for the employees. These compensations can be in form of wages, rewards, and benefits, among others (Hamid, 2017). However, those employees who work satisfactorily are well paid or promoted to a different job group. Other workers would get encouraged to work and be awarded as well just like those who were awarded. The organization growth will eventually flourish indirectly. However, innovations due to the creativity of the employees improve the performance of the organization. Many researchers term the merits that arise from the employees increases their salary and eventually improvement of the performance of the organization (Hamid, 2017).
The use of real options analysis is the only way for a human resource person to get and use best strategies that assure them success. The considerations of all available options before making any decision on what to do is important. First, it ensures that there is no hasty decision making in an organization. The human resource managers should consider the risks or the market trends and the resources they have to make viable decisions. The right decisions in business are important and thus the need for real options analysis. The key factor influencing the use of real options analysis is the need to choose the best alternative options to ensure that the organization attains success. However, the need for human resource persons to never leave anything to chance. They should discuss every possible avenue through which the organization can get successful with other stakeholders (Hamid, 2017). The proper discussion on available choices forms the basis for the overall organization’s success. The article is thus informative on the steps to follow when undertaking real options analysis. The use of real options analysis is especially important when there are many risks facing a business. As a result, this article shows how human resource persons are important in ensuring that they avoid risks and remain strong in their respective positions.
Hamid, (2017) emphasizes that it is important to realize that the environment, employees, and employers are key in the performance of any organization. It is important to make the employees have the right mindset in order to deliver their tasks satisfactorily. The behavior of the employees, therefore, is influenced by the environment. This is agreed upon by the researchers that working conditions ought to be conducive. Additionally, the addition of the social work environment in the overall performance increases greatly.
Hamid, M., Maheen, S., Cheem, A. & Yaseen, R. (2017). Impact of Human Resource Management on Organizational Performance. Journal of Accounting and Marketing 6, 213.
Moghaddam, K.S (2015). Supplier Selection and Order Allocation in Closed Supply Chain Systems using Hybrid Monte Carlo Simulation and Goal Programming. International Journal of Production Research, 53(20), 6320-6338.
Mohan, A.K. (2016). Managing Influence of Inventory Bullwhip Effect on Profit Maximisation in Rural Retailing Using Monte Carlo Simulation. Journal of Contemporary Management Research, 10(2), 24-33.