IMPORTANCE OF HRM
Importance
of HRM
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.
The Evolving Business Paradigm
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.
Strategic Management and HRM
As discussed in the articles on modern day HRM practices,
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.
Importance of HRM for Organizational
Success
The practice of HRM must be viewed through the prism of
overall strategic goals for the organization instead of a standalone tint that
takes a unit based or a micro approach. The idea here is to adopt a holistic
perspective towards HRM that ensures that there are no piecemeal strategies and
the HRM policy enmeshes itself fully with those of the organizational goals.
For instance, if the training needs of the employees are simply met with
perfunctory trainings on omnibus topics, the firm stands to lose not only from
the time that the employees spend in training but also a loss of direction.
Hence, the organization that takes its HRM policies seriously will ensure that
training is based on focused and topical methods.
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.
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