The Role Of Hr In Corporate Success: A Literature Review

1247 words - 5 pages

Often when someone thinks of their human resource department it is assumed that HR is there is simply to process paperwork and do the things that supervisors and other management don't want to be bothered with. Though, as the authors in this review emphasize, the HR department actually plays a very active role in structuring an organization and leading it on to success. They contend that human resource management is becoming a critical point of interest for researchers as organizations look to build employee trust and create an efficient and successful corporate environment. Different researchers have emphasized the critical importance of HR as well as encouraging HR to evaluate and improve their methods and structure. The central issue being addressed is how crucial HR is in corporate success, and how it can also be improved.In his article "The Effects of Human Resource Practices on Firm Growth," Ilias P. Vlachos provides research on the subject of the effects of the practices that human resource management establishes. He identifies the attributes of organizational culture and human resource practices required for successful on organizational performance, and analyses the implications of culture types for inter-organizational combinations (18). These findings are used to create solid ground for his arguments that HR management is the starting point for a solid organizational structure. Vlachos cites the importance of having all the necessary information when dealing with employee turnover during a merger or acquisition, and also the importance of giving special attention to management style and organizational integration in successfully managing mergers and acquisitions (20). His intention is to educate not only those interested in what HR does, but the human resource managers in particular on how crucial it is for an organization to create a solid foundation and clear HR policies.Vlachos also stresses how human resource management is needed to keep communication between themselves, employers and management open during times of transition. This article discussed how to successfully deal with a change in leadership in a company, and in some cases, those leadership changes were accompanied by other changes, such as reorganization, acquisitions or mergers. One of the ways he expresses why this is important is by determining from one study that "HR practices contributed to perceived sales growth, overall firm performance improvement, and firm growth" (30). Vlachos also claimed that it is not that difficult to get some early insights into the new leader from colleagues in the organization, especially in the human resources department, due to that department's necessary close association with the change (Vlachos 24). His claims establish a basis for HR to take the lead in helping companies transition, and show what can be gained from establishing clear policies and keeping the lines of communication open.Douglas Ready takes another approach to the...

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