Importance of HRM to Companies in the Modern Era

 

Importance of HRM to Companies in the Modern Era


HRM as a practice provides important support and advice to an organization's line management. Human resource management must assure the acquisition, retention, loyalty, and development of highly profiled people/workforce in order to deliver the competitive edge required for the organization's existence and success. According to the statement of (McCoy, 1999), he states that “The image of an organization, which develops the goodwill, is largely dependent on how well its human resources are managed”.

Human resource policies and procedures assist firms in achieving their business goals and objectives by enhancing employee knowledge and skills, or the 'human capital pool.' An organization's ability to adapt to changes, which defines its competitiveness, is influenced by the quality of its human resource.

In this model, the soft approach to HRM, also known as development, emphasizes the human side, skill development, collaboration, and a place for unions. Employees are also "resourceful" and a major source of competitive advantage through the use of human relations, which entails overly appealing performance through the use of communication, incentive, and leadership to increase commitment and loyalty. The soft approach emphasizes increased management satisfaction.

In its efforts, the practice successfully tries to preserve a 'fit' between the personnel and the organization's overall strategic direction. People have a spirit, aspirations, feelings, and emotions, unlike technology and processes. As a result, viewing people as an asset does not imply viewing them as commodities. In order to manage people, a manager needs use disciplines such as psychology, sociology, labor relations, industrial engineering, and economics. It is feasible to adapt the technology used to achieve an organization's goals by boosting production speed and decreasing machine downtime. It is difficult to change the functioning pace and length of a person who has a soul, the ability to understand, and behave in response. Human resource management that is done correctly results in a motivated staff, increased loyalty, and the organization's survival and prosperity.

To attract highly skilled applicants, it is critical to establish an effective recruitment strategy. Recruiting candidates with insufficient abilities, according to (Boxall P, Purcell J, 2003), might stifle or halt company progress. Selection techniques look at a candidate's strengths and deficiencies, whereas recruiting strategy tries to attract highly-skilled people by advertising the business as a wonderful place to work. Henry Davis York appears to be aware of this tactic and makes an attempt to be recognized on university campuses. Rather than hiring experienced executives from other law firms, its "developing its own" strategy aims to recruit young professionals who will grow with the company and understand its goals. Given that this technique garnered Henry Davis York an award for Best Attraction and Retention Strategy at the 2003 Australian Human Resource Awards, it's possible that the recruitment strategy played a role in their 90% retention percentage (Donaldson C, 2003).

Employee development programs, according to Dyer and Shafer, should "increase the firm's adaptability over time" (cited in Boxallet at. 2003:144). The 'Dynamic Resourcing Strategy' of Main Roads WA appears to be an attempt to ensure that organizational changes are carried out efficiently (Donaldson, 2004). After 70 years, the focus appears to be on "rejuvenating the organization." Its strategy includes a training and development program to guarantee that all employees, including management, have the necessary skills for the company's new directions. The company claims to place a premium on training new employees so that they are prepared to take over when older employees leave. Their training program includes both official and informal elements such as regional e-learning, mentoring, and additional studies. The program looks to have been a success, with a more competent and productive workforce as a result. However, one could argue that the most significant consequence is "mindset change," which has given older staff members more confidence in their younger colleagues, allowing them to contribute and perform (Donaldson, 2004).

Finally, in the present era, HRM is in charge of managing change implementation. Process, organizational structure, systems, and culture are all examples of change. Changes are the unavoidable bends that occur in an organization's typical and well-established courses.

References

Boxall P , Purcell J, 2003. Strategy and human resource management. In: New York: Palgrave Macmillan.

Bratton, J. & Gold, J., 2012. Human Resource Management Theory and Practice. 5th edition ed. s.l.:Palgrave Macmillan.

Donaldson C, 2003. The law of attraction and retention. [Online]
Available at: http://www.humanresourcemagazine.com.au/articles/89/0C01
[Accessed August 2016].

Donaldson, C., 2004. Main Roads W A: dynamic HR HR Magazine. [Online]
Available at: http://www.humanresourcemagazine.com.au/articles/B0/01FD
[Accessed August 2016].

 

Comments

  1. Nishantha RathnayakeMay 7, 2022 at 11:59 AM

    As discussed above employee safety, health, and satisfaction are also the responsibility of a human resource department. Workplace policies are kept up to date with essential protective measures and implementation by competent HR management. Good article

    ReplyDelete

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