Examine and analyse the concept of HRM and Innovation, using lessons Essay

Examine and analyse the concept of HRM and Innovation, using lessons from the worlds most innovative firms to support your study - Essay Example It is stated as a science as it requires appropriate and constant application of the theory in practices for greater efficiency (Jackson 1-20). The present era of competition and rapidly changing world, has made innovation a significant factor, which is critical for every business organization its success and sustainability. The organizations with more innovation capability are performing well in the present economy and innovation has become a benchmark on which the success of an organization is assessed. The relation between HRM and innovation has been studied from various possible approaches and it has been evaluated that the HRM has a significant relation with innovation both directly and indirectly. It is has been found that the impact of the HRM practices on employees have created immense opportunities for innovations. Toyota Motor Corporation is one such organization that takes into consideration the HRM practices and innovation for greater market share. Thus, to obtain a better understanding of the stated issue, this thesis aims to evaluate the concept of HRM and Innovation. HRM is a system, which generally comprises of specific practice that stimulates innovation. The empirical studies also have recognized that HRM influences and supports activities, which facilities innovation such as intellectual development, knowledge expansion and development of new products. It has been identified that the HRM plays a crucial role in motivating innovation in organization, as it increases individual creativity, enhances knowledge sharing between the employees and shapes their skills and behaviors for better performance and greater innovations for the success of the organization (Karlsson 1-64). The roles and objectives of HRM in an organization is indeed very vast and it comprises all the aspects of employees from the time they enter into an organization till the time