Question One (3 Marks) : Bsmh5023 Strategic Human Resource Management
Question One (3 Marks) : Bsmh5023 Strategic Human Resource Management
Refer to Reading #3, entitled “Filling up the HRM ‘Black Box’; do creativity and management
philosophy matter?” and answer the question below.
List down NINE (9) other variables (factors) that may influence organizational performance.
1. The factor that may influence organizational performance is lacuna in the direct
relationship between HR architectures and performance, which is also known as
“black box”
2. Creativity has become necessary in this globalization period in which it is expected that
economic competition will continue to intensify.
3. The creativity also can induced by motivation which leads to employees engage in creative
process which would consequently result in creative output
5. Creativity and innovativeness culminated in producing new products and services, the firms
have consistently recorded financial boom for more than three years.
6. Moreover, going by Baron and Kenny’s (1986) supposition, creativity is logically and
empirically fit to be the mechanism (mediator) through which the identified lacunas will be
resolved. Baron and Kenny’s (1986) portended that there is possibility of having a particular
construct to be a mediator if there is nexus between the construct, independent variable, and
dependent variable, and there is nexus between the independent variable and dependent
variable. As mentioned above, substantial set of studies have established relationships among
HPWS, employee creativity, and organizational performance. Going by this, it can be
proposed that creativity can play the role of mediator in HPWS-performance link, as research
has established the links between variables
7. The strategic orientations of firms also have bearing on the application of HR practices and its
effect on the firm’s performance
8. Furthermore, it has been indicated previously that relationship between HR practices (as
independent variable) and performance (as dependent variable) is contingent upon the effect
of a third variable called contingent variable. Such variables have effects on the HPWS-
Performance nexus (Martin-Alcazar et al., 2005). Management philosophy, company size,
company age, technology, degree of unionization, industrial sector, ownership are examples
of the contingent variables. These are also referred to as moderating variables (Paauwe,
2004).
9. It has been suggested that SMEs should focus more on their human resources and design
their firm strategies, organizational policies, industry business practices, and human resource
management in such a way that will reflect, enable and enhance highly-motivated, highly
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IN CLASS CASE ANALYSIS 15%
4 NOVEMBER 2018 (DC181 UUM KUALA LUMPUR)
(3 marks)
Discuss THREE (3) of the listed variables (factors) above that your group think Human
Resource Practitioners should focus in helping the organization to further improve its
financial and non-financial performance.
Based on the listed variable, I believe that by improving employee creativity by top
management will help the organization improve in term of financial and non-financial
performance. It will become a stimuli for change and helps the company grows in term of
performance as the globalization comes into the picture.
Creativity as a motivation among employee will also help develop loyalty and commitment
towards the employee and organization. When there is commitment given to the company,
they will have a power to drive the company performance to achieve their objective, in the
same time increase their productivity and efficiency.
An organization performance also must have blend of financial and non-financial measures
to the extended on emphasize in other factors such as economics, strategy, finance and
accounting.
It was observed by Malina and Selto (2004) that substantial research evidence has
demonstrated that both the financial benchmark and non-financial benchmark have been
adopted as indicators of organizational performance in the large organizations but only
financial measures are favored by the organizations. However, many studies (e.g. Chadwick
et al., 2013; Faems et al., 2005; Georgiadis & Patelis, 2012; Messersmith & Guthrie, 2010;
Michie, Zubanov, & Sheehan, 2008; Ogunyomi & Bruning, 2015) have indicated that both the
financial benchmarks and non-financial benchmarks are adopted and favored in small
businesses.
In sum, it can be claimed theoretically that HPWS would stimulate SMEs’ high performance,
although it has been stated previously that research on HPWS-SME’s performance is scanty.
(12 marks)
END OF QUESTIONS