Topic > The bundling of HR practices results in…

Performance is the result of the collective effort of different phenomena in an organization. Any organization commits capital and human effort to production. But it is human capital that matters most. This is because everything in an organization is not necessarily made by automated machines but rather by real humans. Machines simply follow the commands of humans, and no matter how capital-intensive an organization may be, human contribution remains greater than capital investment. This being the case, the human resources department is responsible for ensuring that human capital achieves the organization's goals. Transformations have occurred in the discipline of human resource management. Previously, the HR department paid more attention to human capital management. The situation is very different in this century where the emphasis is on developing, rather than managing, human capital. It is in this context of events that bundling has found its position at the top of human resources management strategies. Fundamentally, clustering is about collectively developing and implementing human resource management practices that directly or indirectly support and complement each other. The purpose of these practices is to reinforce each other so that the overall performance of the organization is incredibly realized. Therefore, this article argues that clustering is the key to improving organizational performance in this century. Why and how this is happening is well outlined in the following paragraphs of this essay. Bundling is a human resource management strategy that aims to produce valuable integration within the organization. This integration is both vertical and horizontal and is commonly referred to as external and internal adaptation, respectively. One of the key objectives is the structuring and implementation of the end goals and the creation of unshakable trust among all stakeholders involved in the organization (Storey, 2007). Once this is achieved, employee motivation and confidence increase a lot and the impact translates directly into organizational performance, so performance is believed to increase. However, the challenges presented by this century make it difficult to continue using the old one-size-fits-all method to promote performance (Armstrong, 2010, Armstrong & Armstrong, 2012). There is therefore a need for a new formula that adopts an effective combination of all human resources management policies (Armstrong, 2010). This formula is nothing but grouping. Therefore, to maximize performance, bundling is an avoidable phenomenon that helps to seamlessly interconnect human resource management practices to improve organizational performance.