Role of Theory in Human Resource Management Strategy Analysis Essay

Role of Theory in Human Resource Management Strategy Analysis - Essay Example The researcher states that the dynamic world is changing quickly. Thus, human resource management (as a part of organisation) needs to be prepared to deal with the impacts of the dynamic world. To formulate HR strategy, there is need to understand the consequence of globalisation, employee diversity, changing talent necessities, corporate rationalizing, total quality management, reengineering, the dependent personnel, regionalized work places, and employee participation. Developing and applying a comprehensive strategy is needed to remain competitive in this dynamic environment. A human resource strategy can help to strengthen the employee base of any organisation. Theory is a methodical combination of interdependent thoughts and philosophies which provides an outline about an important base of knowledge. Only scattered data is not helpful for analysing the human resource strategy, the observer must have knowledge regarding theory that can explain the relationship between variables. In the deepest form, theory can be regarded as a set of rules, a particle cabinet in which truths with respect to human resource strategy can be gathered. Management theory had evolved through the World War II and had been studied comprehensively later on. The industrial revolution had generated high demand of mass production, product specialisation and thus organisations started to look towards the employees as critical resources. There is need for strategic planning for managing the human resources for high productivity. ... There is need for strategic planning for managing the human resources for high productivity (Olum, 2004). The role of theory is vital for analysing the human resources. Theories are essential facts, and it elucidates the correlation among variables, usually independent and dependent variables. Theory has the capability to anticipate future difficulties which may occur in the organisation. In contrast to theory, techniques are the method of performing jobs. The techniques replicate the theories and these are the means of assisting managers to commence activities most efficiently. In the area of human resource management strategy, the role of theory is to deliver an understanding of organising significant and relevant management knowledge. For example, in devising strategy for effective culture in organisation, there are several theories which are interconnected and have an analytical worth for managers. The importance of theory in analysis of human resource management strategy can be gauged from the following: Theory can provide criteria about what is appropriate for employees in any organisation In human resource strategy, theory can enable to communicate effectively and therefore change into more difficult association Theory can help to learn about the fundamental concept of developing strategy and thus make easy to analyze them (Olum, 2004) Theories assist in understanding the dynamic nature of contemporary organizational environments. The HR strategy is made on the basis of theories. Human resource strategy is all about how an organisation can manage their human capital. This provides a basis for formulating strategy and developing packages for analysis. The human resource strategy is the