Importance of HRM for Organizational Success
Importance of HRM for Organizational Success
It is a fact that to thrive in the chaotic and turbulent business environment, firms need to constantly innovate and be “ahead of the curve” in terms of business practices and strategies. It is from this motivation to be at the top of the pack that HRM becomes a valuable tool for management to ensure success.
One of the factors behind organizations giving a lot of attention to their people is the nature of the firms in the current business environment. Given the fact that there has been a steady movement towards an economy based on services, it becomes important for firms engaged in the service sector to keep their employees motivated and productive. Even in the manufacturing and the traditional sectors, the need to remain competitive has meant that firms in these sectors deploy strategies that make effective use of their resources. This changed business landscape has come about as a result of a paradigm shift in the way businesses and firms view their employees as more than just resources and instead adopt a “people first” approach.
There is a need to align organizational goals with that of the HR strategy to ensure that there is alignment of the people policies with that of the management objectives. This means that the HR department can no longer be viewed as an appendage of the firm but instead is a vital organ in ensuring organizational success.
The aims of strategic management are to provide the organization with a sense of direction and a feeling of purpose. The days when the HR manager was concerned with administrative duties is over and the current HRM practices in many industries are taken as seriously as say, the marketing and production functions.
In conclusion, the practice of HRM needs to be integrated with the overall strategy to ensure effective use of people and provide better returns to the organizations in terms of ROI (Return on Investment) for every rupee or dollar spent on them. Unless the HRM practice is designed in this way, the firms stand to lose from not utilizing people fully. And this does not bode well for the success of the organization.
References
Juneja, P., n.d. management study guide. [Online]
Available at: https://www.managementstudyguide.com/human-resource-management.htm
Do you think traditional concept of HRM are good enough for today
ReplyDeleteThe major difference between Traditional Human Resource Management and the Modern Human Resource Management is that;the Traditional Approach is the Personal Management whereas the Modern Approach is the Human Resource Management toward managing people in an enterprise.
DeleteHere a comparison of Traditional vs Modern HRM is provided;
• Type of function in Traditional is Routine and in Modern is Strategic.
• Management role in Traditional is Transactional and in Modern is Transformational.
• Basis of pay in Traditional is Job evaluation and in Modern is Performance evaluation.
• Communication in Traditional is Indirect and in Modern is Direct.
• Labour in Traditional is Collective bargaining contracts and in Modern is Individual contracts.
By examining the above,in my point of view I believe that the traditional HRM concept is not much applicable for the modern world due to the huge competition in the modern world.In order to gain the competitive advantage it is essential to followup the modern strategies.
? I highly appreciate your reply whether you are satisfied with my answer or not.........
How will be the HRM role in future for organization success.?
ReplyDeleteHuman Resource Management is the integrated use by an organization of systems,policies and management practices to recruit,develop and retain employees who will help the organization to meet its goals.HRM plays an important role in assuring employee satisfaction,improving performance and productivity.It helps to gain the competitive advantage that contributes the organization’s success.
DeleteHRM contributes to Organizational success by ensuring-
• Recruitment and selection of best qualified candidates
• Resolving increased legal complexities
• Improving productivity and
• Minimizing cost
To enhance organizational performance HRM must involve in strategic plans and decision making, participate in redesigning organization and work process, demonstrate financial accountability for results.
Are you satisfied with my answer?
What are main components of strategic management process?
ReplyDeleteStrategic management is the process of managing, planning, and analyzing in order to reach all organizational goals. Strategic management helps an organization see where it currently stands, where it will be in the future staying on the current course, and where it would like to be in the future. Strategic management takes advantage of organizational resources to create a strategy that helps get closer to or reach their goals.
DeleteThe process includes;
Goal setting
Analysis
Strategy formation
Strategy implementation
Strategy monitoring
Do you satisfy with the given answer?
Hi Lakmal, what are the key points of HRM that we can use for organizational success, but in Sri Lanka we don't use?
ReplyDeleteOnline recruiting.
DeleteParticipation of employees in decision making.
Online performance appraisal methodologies.
Online feedback methods.
Direct connections with the upper management.
Hi Lakmal,
ReplyDeleteDo you think, HRM of Organization is more focused on employees goals than Company goals....?
Mr.Eranga,in my point of view almost all the departments of an organization try to achieve the company golas with the aid of employees.Likewise the final target of the HRM is also to achieve the long term or the short term company goals by utilizing the man power..
ReplyDeleteDo you agree with me?