HRM201 : Human Resource Management

Answer

How HRM contributes to organisational effectiveness and efficiency

Organisational effectiveness can be associated with formulation of goals and to pursue these goals, relevant tasks are performed by companies after utilising available resources. These resources can be financial, raw material and human.  When organisations are efficient, they perform things appropriately by using resources without wasting any of them. The aim of efficiency is to use resources and generate maximum output while the task is being performed. According to Talukdar (2016), “People make organizations successful not the buildings” and therefore, organisations hires specialised people in their managements who manages people in workplace environment.  In other words, Human resource management in organisations are a significant part of organisations that are responsible for managing human related sources that contributes to organisational effectiveness and efficiency.

Human resource management performs significant part in formulating organisational strategies and procedures. HRM is responsible not only for enhancing employee performance, but also brining effectiveness in work performance to achieve desired business objectives. HRM can also be defined as a business process which links human related functions with strategic goals of organisation by improving human performance. In contemporary workplaces, the majority of commercial entities possess strategic human resource department in their main organisational structure ( Batarlien?, ?iži?nien?, Vai?i?t?, Šapalait?, & Jaraš?nien?, 2017). For others, third-party company, specialised in human resource management are been hired or outsourced to get people dimension management functions performed by specialists or experts in human resource field. Since, organisations consist of people, acquiring and developing their service according to talent and skill becomes primary goal of managements. Along with it, motivation and training facilities are provided by organisations to ensure that organisational strategies and human resource management aligns with each other to bring efficiency and effectiveness in organisations.

HRM functions play a very crucial role that ensures enhanced business productivity, employee satisfaction and improved work performance. As a result, organisations are provided with clear competitive edge along with contributing to bring organisational success. Strategic HRM policies and procedures enables organisations in dealing with issues related to human resources in critical manner (Tahsildar & Shahnaei, 2015). In fact, this SHRM concept had made many organisations allow proving high quality service through labour force, irrespective of external and internal obstacles coming in the path of organisational success. HRM policies facilitates organisations by prioritising their business strategies important for organisational success. This function of HRM is vital as it makes easier for the companies in attracting fresh and talented workforce along with retaining quality and competent staff.  Supporting managers along with other employees during the time of organisational change is also one of the functions performed by HRM that enables the usage of quality knowledge in deciding how the change is needed to be performed (Talukdar, 2016). Nevertheless, there are few companies who does not regard implementing HRM in their organisational management, it can be noted that without managing human resources effectively, sustaining in this competitive world can become very difficult. Labour force represents organisation’s valuable assets as they get involved in day to day business operations as well as enabling decision making process come into action. Since employees are valuable assets, business success or failure becomes highly depended on them. Therefore, identifying appropriate human resource practices and policies among organisations becomes necessary according to which success of the firms can be measured. In other words, it can be said that human resource policies support business strategies while leading organisations to enhance its overall business operations.

Contemporary organisations employ well managed human resources practices that provides lawful and ethical benefits to the organisations. Strategic role of HRM in todays’ organisations includes performing activities related to human resource planning, training and development programs, selection and recruitment and total rewards. All these functions, if performed combinedly within human resource unit, can effectively support the objective behind implementing HRM in organisational setting along with reinforcing rapport between employee and the employer. Basically, the above-mentioned functions and policies are emerging strategic role performed by HRM to bring effectiveness and efficiency within organisations (Burma, 2014). Taking care of human resources is necessary as they can be associated with strategic development of organisations also. Human resource managers along with employees, working according to mutual agreement can support organisational aims and objectives. For bringing such decorum, human resource division of organisations need to understand every part of their business operations so that employees are allotted with duties and responsibilities according to their talent and skill (Rothacker & Hauer, 2014).  Moreover, the employees who show low morale or low productivity must be advised by HR departments to make improvements. For the same, HR personnel’s needs to focus on utilisation of efforts and time so that business is supported efficiently during the phase of planning, controlling and implementing.

In literature, organisations are considered as system in which people are manged to comprehend business goals( Kaliannan & Adjovu, 2015). Organisations consist of range of hierarchy along with complex networks which further depends upon HRM while adopting strategies to bring cost effectiveness as well as employee commitments.  Networking and networks may have diversified meanings in HRM according to the organisational needs. However, organisational HRM does not need to be present permanently and can be appointed at the times when new project is to be met or reformation within organisational culture is demanded (Rothacker & Hauer, 2014). The chief aim of HRM processes is concerned in manging human resources that can assist organisations in achieving organisational objectives along with formulating strategic business procedures. According to Alakoc (2014), the senior level managements believe that policies which contributes organisational performance will bring effective outcomes along with emerging sensible role among organisation members. However, organisational objectives may get interrupted while gaining competitive edge among organisations for which human resource related managerial actions needs to be combined with strategic aims of the organisations. Managements in large firms grows larger due to technological advancements due to which a sophisticated atmosphere can be seen in workplaces. At this juncture, qualified human resource managers are appointed who act as a key to business success by providing knowledge in every HR level, compassioning with enhanced performance (Y?lmaz & Bulut, 2015).

Although human resource management performs several functions that brings effectiveness and efficiency in organisations, the three core functions provided by it are talent, performance and knowledge management. Not only these three functions contribute in brining organisational effectiveness but also contributes in brining profitability and quality by aligning mission and vison of organisations. Talent management depends on managing and attracting fresh employees along with retaining best people in organisations. Companies review staff performance so that they can be managed strategically for which different companies uses different leadership models to validate assessment instruments ( Osborne & Hammoud, 2017). These leaders along with HRM develops further activities like training, mentoring, coaching and managing international projects. Nowadays, HRM of companies utilises different approaches for retaining their qualified employees for which various activities are undertaken by HR teams. These include; financial incentive, mentorship programs, placing flexible work environment, personalised career plans and balancing work and life so that best talent gets retained in organisation (Talukdar, 2016).

Performance management is another important function performed by HRM that involves participation of goal setting along with directing projects that links with strategic mission of the organisation. Multiple development tools like appraisals, rewards and promotions and used by the managers annually or on daily basis to keep a track whether organisation’s adequate resources are working appropriately or not (Tahsildar & Shahnaei, 2015). Information obtained from performance management function of HRM further provides foundation for recruitment and selection of staffs for hiring fresh talent or motivating and training existing ones. Many contemporary organisations are utilising information systems also for performing knowledge management role in their HRM. Within HR functions, knowledge management practices add value to the systems which are globally inherited by organisations for determining outstanding people management within organisational setting (Burma, 2014). Although HRM act as core function in organisations, there are many issues and challenges faced by human resource managers while coordinating humans’ resources, especially in multicultural workforce. Since they act as mediator between owners, employees, and other stakeholders, they are always entitled to address issues related to social, political, cultural and ethical skills ( Kaliannan & Adjovu, 2015). Human resource departments have to approach every issue individually and in orderly fashion so that challenges can be resolved without hampering organisation’s day to day activities. For the same, organisations hire top quality human resource managers who can handle and remove obstacles while managing human resources in organisations (Gopalkrishnan, 2012).

HRM impact on organisational effectiveness can go beyond usual functions related to discipline. For instance, HRM can assist companies usher much needed innovations including creative streamlining processes to boost employee’s effectiveness (Deshwal, 2015). Today’s HR teams not only looks upon present needs but also considers encouraging leaders to think about future along with creating those processes and programs that creates a culture of ‘getting along’. In this era of increasing business competitiveness, economic rationalisation, technological revolution and globalisation along with ever changing work force becomes necessary for human resource managers be able for capitalising on these challenges so that this changing environment brings positive outcomes for the organisation. Similarly, for the organisations, to remain ahead of increasing competition, human resource management must be taken as significant contributor.

References

Batarlien?, N., ?iži?nien?, K., Vai?i?t?, K., Šapalait?, I., & Jaraš?nien?, A. (2017). The Impact of Human Resource Management on the Competitiveness of Transport Companies. Department of Logistics and Transport Management, 187, 110-116.

Burma, Z. A. (2014). Human Resource Management and Its Importance for Today’s Organizations. International Journal of Education and Social Science, 01(02), 85-94.

Deshwal, P. (2015). Role of E- HRM in Organizational Effectiveness and Sustainability. International Journal of Applied Research, 01(12), 605-609.

Gopalkrishnan, G. (2012). Issues That Influences The Effectiveness and Efficiency of a Human Resource Management in an Organisation. International Journal of Economics and Management Sciences, 01(06), 65-70.

Kaliannan, M., & Adjovu, S. N. (2015). Effective employee engagement and organizational success: a case study. Global Conference on Business & Social Science, 172, 161-168. Retrieved from https://www.sciencedirect.com/science/article/pii/S1877042815003870

Osborne, S., & Hammoud, M. S. (2017). Effective Employee Engagement in the Workplace. International Journal of Applied Management and Technology, 16(01), 50-67. Retrieved from https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=1239&context=ijamt

Rothacker, A., & Hauer, G. (2014). Leadership in multinational management – A behavior-set to motivate multicultural teams. Social and Behavioral Sciences, 226-236.

Tahsildar, A., & Shahnaei, S. (2015). Enhancing Organizational Effectiveness by Performance Appraisal, Training, Employee Participation, and Job Definition. European Journal of Business and Management, 07(12), 56-64.

Talukdar, A. (2016). Human Resource Policy, Organizational Culture and Organizational Effectiveness: A Conceptual Study. The International Journal Of Business & Management, 04(10), 216-223.

Y?lmaz, R., & Bulut, F. M. (2015). Th e eff ect of human resources management on organisational performance. Academy of Management Journal, 02(44), 5-13.