How Hr Impacts a Company Performance Essay

homophile Capital is the most(prenominal) important resource for an boldness to succeed. The quality of the humankind resource and the live performance directly impact an constitutions performance. Thus, human resource wariness plays an important role to ensure the cogency in an giving medications daily operations via efficient recruitment, rearing and development, and round retention. Besides, efficient human resource forethought whitethorn perform war-ridden expediency to an organisation. There are various theories explained how human resource management impacts an organisations performance.This essay foc social functions on two theories livelihood surmise and Resource-Based conjecture. 2. 0 Reinforcement Theory and the Implementation Reinforcement surmisal was proposed by BF Skinner and his associates. It focuses of shaping human behaviour by lordly the consequences of the behaviour. In reenforcement theory a combination of revenges and/or punishments is a pply to reinforce desired behaviour or extinguish unwanted behaviour. It has similar al-Qaida as law of effect where it separates that individual behaviour leads to opposite consequences.Thus if a behaviour leads to plus consequences, the individual tends to repeat the kindred behaviour in the future. On the other hand, if a behaviour leads to ban consequences, the individual will get a line to counterchange their behaviour to avoid the nasty consequences. For example, employees whitethorn obey the companys rules and regulation as they may fear of disobedience leads will lead to punishment. On the other hand, employees try to meet the target set at ready as they may be final paymented. Thus, in nightclub to change employee behavior, the consequences of the behavior must be changed.For example, an employee who is frequently advanced to guide, may be motivated to report to work on time (change of behavior) by changing the consequences of being late. Behavior alterati on consists of 4 methods 2. 0. 1Positive and Negative Reinforcement This implies to remove negative behaviour of the employees by giving positive consequences to the employees. For example, a company could establish a reward system to the sales team, when certain(prenominal) target has been touchd, sales person would find additional incentives. Both positive reinforcement and negative reinforcement assist certain behaviour to be happened or repeated.The more spontaneous the reward is prone, the greater the reinforcement value it has. 2. 0. 2 Punishment This implies to decrease the probability of undesir fitted actions by enforcing whatever punishments or negative consequences to the employees. For example, salary evidence for employees those do not report to work punctually. 2. 0. 3 Extinction The neutral of extinction is to reduce the unwanted behaviour. If an employee gets praised for the promptness of his job completion for certain period of time, but receives no praise s ubsequently, his desirable behaviours may diminish.Thus, managers set out to continue to offer positive consequences to avoid unwanted extinction of behaviour. 2. 1 Reinforcement Theory impacts on organisations performance The affection objective of Reinforcement Theory in Human Resource circumspection is to change the employees behaviour. Increase the possibility of positive behaviour and reduce the breaks of negative behaviour. Organisation performance will be boosted if there is drastic change in employees behaviour from negative to positive. Besides, it also ensures the positive behaviour to be primary(prenominal)tained as a norm in an organisation.New joiners may follow the company well norms which will past through times by generation. Below are some of the examples how Reinforcement Theory impacts an organisations performance 2. 1. 1 Attendance and punctuality improvements Positive reinforcement and punishment towards employees punctuality may improve the punctuality t o work. For example some companies provide extra allowance to employees who adheres the punctuality to work and salary deductions for those who is late to work. This may motivates employees to arrive on time.This cultivates a culture where time management is important in the organisation. Hence, the discipline of the organisation gets improved which also leads to work efficiency. Sales result improvements Positive Reinforcement for instance Incentive given to the sales department may motivate the sales persons work towards to achieve the sales target. Sales persons may change their working style by making more cold-calling, make up the efficiency in time management by visiting more customers. As a result, it may development the companys revenue.Productivity improvements Performance appraisal system underside be used in the implementation of reinforcement theory. For example, KPIs set for employees harmonise to the organisations visions and goals. This serves as the key performan ce measurement for the employees. Employees work towards the KPIs in order to receive good appraisal, and expected to receive a better rewards and compensation. Organisations performance relies on the achievement of the KPIs. If the most of the KPIs can be met from bottom to top, the organisations has higher(prenominal) chance to achieve its visions and goals.Summary of Reinforcement Theory Reinforcement theory focuses on what will the consequences happens to the individual after some actions has been taken. This theory argues that the internal state and the reasons of the actions of the individuals can be ignored as human tends to exhibit their behaviours base on the result of the behaviour. Reinforcement theory does not focus on the conditions of individuals behaviour. As a result, it may describes lack of sympathetic and less human in a sense if we ignore the cause of the behaviour of an individual.For example, if an employee always late in work, the manager could have hear the reason behind and decide whether salary deduction to be oblige for this employee. Nevertheless, in terms of organisational management, Reinforcement Theory serves as a precise direct way to control the employees behaviour by understanding the unavoidably and fears of the employees. Employees may tend to adhere to the rules and regulations as they look forward for the positive consequences (reward or praise), and avoiding negative actions as they are fearful of negative consequences (punishments).As a result, company performance will be enhanced if the employees show positive behaviour more frequent. 3. 0 Resource-Based Theory and the Implementation Resource-Based Theory argues that human resources is a subset of an organisation to enable them to achieve competitive good and business maintainability. Valuable and break resources leads to an organisations competitive advantage. Moreover, the trustworthy has to be able to protect against the resource turnover in order to su stain the competitive advantage for longer period of time.The source of Resource-Based Theory dates back to 1967, Selznick proposed the term organisations distinctive competence. Later in 1959, Penrose, puts forward the Theory of the Dynamic Growth of the Firm and defined an organisations achieve distinctive competence through the distribution and the use of resources. This concept later became the basis of resource-based theory. In 1984, Wernerfelt who lead the mainstream strategic management, proposed a resource-based idea that the internal organisational resources and the external commodity markets together form a complementary strategy.In an industry, if an organisation has the internal distinctive resource of value, rarity, inimitability and non-substitutability (Barney, 1991), it is able to increase the quality of goods and function. Which also enable the organisation to create competitive advantage and to sustain the competitive advantage. There are two main criteria in reso urce-based theory resource diversity and resource immobility (Barney, 1991). 3. 0. 1 Resource diversity This refers to the human resource expertness are niche and specialise in the market, which leads to create the competitive advantage for an organisation.This is important for organisation which the business is emphasis on innovation, consultancy, creativity and etc. For example, If an organisation is try to develop a new innovative product, it requires resources with specialise knowledge and expertise to achieve the goal. If those resources are niche in the market and other competitors cannot parallel the product easily, it creates competitive advantage to the organisation. To ensure resource diversity, important driving force requires in recruiting quality and competent employees, provide training and development to the actual employees in order to achieve resource diversity.Resource immobility This refers to how clean the resource turnover from one oganisation to another. I t is important for an organisation to retain amentaceous human resources in order to ensure the organisation operates smoothly and to sustain the competitive advantage. In order to ensure the resource immobility, it requires efficient staff retention program, clear and achievable career path, career advancement opportunity, good benefit and compensation policy. 3. 1 Resource-Based Theory impacts on organisations performance The implementation of resource-based theory is able to improve an organisations performance as belowIncrease track down Efficiency Work efficiency can be achieved if the employees are proficient in their role. It creates higher chance to prone to errors and finally it increases the companys performance in various areas. 3. 1. 2 Create Professional Image to the Organisation Employees with high competency in job creates professional image to the organisation. This is important to increase the good will and brand name of the organisation. Besides, for those busine sses mainly providing professional services to the clients requires employees with highly competency in order to create the competitive advantage among the competitors.