What Is the Value of Human Resource Management (hrm) Within Organizations?

What is the Value of Human Resource Management (HRM) within Organizations?

by

Olympia A. Williams

MBA, University of Phoenix, 2008

BS, Jackson State University, 2004

Draft Doctoral Study Proposal

Doctoral Study Submitted in Partial Fulfillment

of the Requirements for the Degree of

Doctor of Business Administration

Walden University

June 2017

Background

Human Resources (HR) is a business function that leads, manages, facilitates and provides tools for the human capital management in an organization.  HR sets strategic processes and procedures, recruits and retains the valued employee, and maintains a talent management campaign to attract the best talents for the job market. Human resource management (HRM) practices are regarded as the most typical way to foster organizational creativity (Cabrera & Cabrera, 2005; De Dreu, 2010). Previous theory and researches that examined the link between strategy, HRM and performance have concluded that human and social capital is a potential resource of competitive advantage (Park, et.al., 2015). Since the 18th century, HR has been proven to be one of the most needed functions within a successful and thriving organization. From the first rapid development dealing with large factories and creating a new industrial approach, to the 20th century in which the second rapid development began. This development introduced the “personnel departments.” After World War II, this very significant change was implemented into the military as well as the private sector and became a well-respected profession.

CEOs of organizations make it very clear that HR is relevant to the success of the organization, but Ralevic, (2015) states that the mechanism on how human resources impact organizational performance is not clearly understood. Previous HRM researchers have insisted that organizations can achieve their original objectives when their HRM practices are highly distinctive, consistent, and based on a general consensus (Bowen & Ostroff, 2004;Park, 2015). This research will focus on exploring the reasons why HR is significant to any organization as well as identifying its measurable value.  This paper will present the experiences and opinions of seasoned HR directors, generalists, specialists, and technicians identifying current practices and their overall role within the organization.

Problem Statement

Over the past ten years, business human resources departments have been identified as one of the main sources of competitive advantage in today's economy (BruceTracy, 2014). Ralevic, et.al, (2015) states that many organizations use only 20% capacity of human resources, which means, there is 80% of the formal potential, (cost burden on business), who are inactive or insufficiently active in the realization of strategic goals, implying that there is room for improvement of human resource management.