Strategic HRM and Organizational Agility Enable Firms to Respond Rapidly and Flexibly to the Changing Environment

Strategic HRM and Organizational Agility Enable Firms to Respond Rapidly and Flexibly to the Changing Environment

Nibedita Saha (University Institute, Tomas Bata University in Zlin, Czech Republic)
DOI: 10.4018/978-1-7998-3473-1.ch177
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Abstract

This chapter demonstrates the significant perceptions of Organizational Agility and its consequences on Strategic HRM that reflects on sustainable organization learning and development. This sub-chapter highlighted the new emerging perspectives of organizational agility and Strategic HRM that enables firms to respond promptly and flexibly to cope up with the dynamic world.. In the modern business world, the essence of organizational knowledge, nimbleness and prominence of HRM strategy is viewed as an eminent approach to face the global challenges. Hence, this sub-chapter attempts to classify how the HR competencies can really make a difference and influence on business performance? How firms can respond flexibly through manifestation of organizational learning and knowledge development? Finally, this study suggested that strategic HRM and organizational agility both the practices could be a very inspiring and demanding for the organizations of twenty first century.
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Introduction

In the era of globalization and industrialization, the most pioneering and modern organizations are under excessive strain to work in a dynamic environment that always force them for prompt and quantifiable advantage in order to survive in this international competitive market. Under these circumstances, competitiveness and innovation as well as organizational resilience, i.e. organizational agility have become a hot issue of academic, business and managerial debates with regard to be agile and be able to sense and respond to market changes quickly and smoothly to sustain their efficiency, i.e. organizational competitiveness. Where, organizational agility is accountable for high ability to adapt, the ability to recognize change in the marketplace and allocate resources to take advantage of that change. Similarly, strategic HRM play the role of a facilitator that enables an organization to utilize its existing human resources in order to achieve its strategic goals and objectives. Additionally, strategic HRM also empowers organizations to enhance its business performance; develop an appropriate organizational culture, i.e. work culture which, will boost the organizational flexibility and innovation (Alsaadat,2019); (Jackson et al, 2014); (Oppong & Nasir, 2017). Research shows that nowadays, strategic HRM along with organizational agility specially with the presence of human capital plays a crucial role in gaining competitive advantage and improving organizational performance.

This sub-chapter highlighted the significant features of strategic human resource management that endeavored for enhancing organizational learning through organizational agility and organizational capability. According to Wahyono (2018) Agility is nowadays a key aspects of organizational excellence due to its distinctive characteristics that incorporates the aptitude of an organization or firms’ to successfully respond to the ever changing environment especially when the transforming businesses is going on so firms are needed to fit for the fulfilment of the purpose in this digitally enabled world (Abraham and Perkin, 2017). Current research has explored the significant aspects or perspectives of organizational agility. However, this chapter has been organized to provide a unique integrative framework that encompasses all dimensions of organizational agility development. Hence, the purpose of this sub-chapter is to discourse this gap in order to enhance firms’ competitiveness and sustainability by presenting a conceptual and thematic model that captures various critical extents to the development of agility within firms’ or organizations. Moreover, this chapter also emphasized the linkage between SHRM practices and organizational agility that enable firms to respond rapidly and flexibly to keep pace with the changing environment. In this sub-chapter the focus has been given on how firms can develop an ability as well as capacity to respond rapidly and flexibly to the changing environment and why firms’ realize that they are capable to accept these unwanted challenges for the benefit of their organizational performance development. Finally, this subchapter highlights the important role that strategic human resource management plays in both developing organizational agility and strategic flexibility.

Accordingly, this study demonstrates that organization's capability for flexibility is developed through strategically managing human resources that enable to create competencies among the core employees at the organizational level. In addition, this flexible condition within the organization facilitate them to achieve the ability to respond and resist the unwanted shocks (Lengnick-Hall, Beck and Lengnick-Hall, 2011). Furthermore, to get the vivid description about the said topic this sub-chapter took effort to review two important elements about the possibilities of organizational capability to be flexible, i.e. organizations specific cognitive abilities (organizational agility), organizational behavioral characteristics, and contextual conditions (Strategic HRM capabilities) that enable them to respond rapidly in the dynamic environment (Saha et al, 2019). Similarly, in order to address a firms’ competitiveness, it is necessary to highlight the strategic flexibility of a firm (i.e., their ability to accept the change for the benefit of overall performance) that empower them to face the prompt changes through organizational transformation. Hence it can be said that the outcome of this study envisaged the way SHRM practices affect the flexibility dimensions of an organization that enhance the robustness of firms, especially it significantly influences organizational agility and integrity (Bouaziz and Hachicha, 2018).

Key Terms in this Chapter

Strategic Human Resource Management (SHRM): In this chapter, the term strategic HRM has been viewed as the process of organizational tactical planning that influence human resources in order to enhance individual employees’ skill and group capability as well as strengthen managerial skill.

Organizational Development: In this chapter, the term organizational development can consider as an arena for research, where it is dedicated to intensifying the organizational knowledge and organizational effectiveness through enhancing individual employees’ performance management.

Organizational Learning (OL): In this chapter, the term organizational learning has been regarded as the inquisitiveness (desire for knowledge development) of employees learning capability. It may also have regarded as a tool for organizational knowledge development process or media that encapsulate organizational performance.

Organizational Agility (OA): In this chapter the notion of organizational agility (OA) is a novel reasonable and practical approach. It is very essential for the organizations looking forward to visualize themselves in the new millennium. It can be considered as strategic approach that facilitates organizations to take challenges in a very flexible way which empowers them to reinforce their existing resources that act as an elixir to enhance organizational effectiveness.

Competitiveness: In this chapter, the term competitiveness has been considered as the capability of a firm or organization that are willing to meet the organizational requirement and sustain in long-run as well to compete globally. From the organizational development point competitiveness can be reflected as managerial and operational competency.

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