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Examine the impact of Human Resource Management on an Organization’s Performance

Latest posts by Mariam Peyton (see all)

    Human Resource Management is the process through which the manager of an organization recruits, selects, trains, and develops an effective employee team for the business. Human resource management involves employees’ features and performance in an organization or a business. It may also be defined as the strategic approach used in procuring, developing, and maintaining a highly skilled workforce to effectively attain an organization's goals through a distinctive set of integrated employment policies, programs, and practices. 
    Human Resource Management deals directly with the employees of an organization this is because it improves their productive contribution. According to the resource-based view, human resources contribute immensely to an organization’s sustained competitive advantage by facilitating the development of rare competencies that are only firm-specific. It is important to note that the human resource department of an organization grows with principles of commitment and competence. Human Resource Management incorporates a variety of issues such as recruitment and retention, employee development, reward schemes, and promoting good relations. The first process of human resource management is recruitment where of human resource officer employs suitable and competent employees to help to bring about the achievement of the corporate goals, in a well-organized and profitable way. It also deals with employee relations such as performance appraisal, compensation, benefits, health and safety, and legal issues among others. 
    The purpose of this paper is to examine the impact of human resource management on organizational performance. It answers questions like; how does human resource management affect organizational performance? What is the role of human resources in Organizational performance?

    HARVARD
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    Examine the impact of Human Resource Management on an Organization’s Performance
    a Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:

    • Understand what is meant by Human Resource Management, its nature and scope, and how it impacts the growth and development of an organization
    • Understand the role Human Resource Management plays in an organization, and how it contributes to organizational performance
    • Understand how to apply the various methods of Human Resource Management to any organization

     

    1.0 INTRODUCTION


    HRM is the process through which the manager of an organization recruits, selects, trains, and develops an effective employee team for the business. Human resource management involves employees’ features and performance in an organization or a business. It may also be defined as the strategic approach used in procuring, developing, and maintaining a highly skilled workforce to effectively attain an organization's goals through a distinctive set of integrated employment policies, programs, and practices. This essay is going to examine the nature and scope of Human Resource Management.

    HRM is significant to organizations because it helps them in retaining their best employees who play a part in organizational development.

    Therefore, organizations aiming to maintain their competitive advantage in the current times and in the future need manpower that is well acquainted with current skills and technologies to approach change and difficulties that might come their way. HRM has many essential functions, including job design and analysis, recruitment and selection, training and development, performance management, and many others.

    HRM is significant to organizations because it helps them in retaining their best employees who play a part in organizational development. Therefore organizations whose aim is to maintain their competitive advantage in the current times and in the future need manpower that is well acquainted with current skills and technologies to approach change and difficulties that might come their way.

    HRM can influence the organizational performance of any organization in numerous ways, such as:

    Through improving the employee skills and knowledge through training and development programs, can improve their skills and productivity hence producing high-quality products and services

    Encouraging employees to up their performance through a reward system which eventually increases their satisfaction, commitment, and loyalty to the organization.

    Encouraging employee engagement and involvement in an organization’s activities through communication, participation, and empowerment,  will develop their creativity, collaboration, and problem-solving.

    Reducing staff resignation and absenteeism through retention strategies which lowers the costs and risks of losing valuable human capital.

    Building a positive organizational culture and climate through leadership, values, and ethics, which shapes the norms and behaviors of the employees and influence their attitudes and perceptions.

    HRM is a strategic function that can contribute to the competitive advantage and long-term success of an organization. By managing its human resources effectively, an organization can achieve higher levels of performance and achieve its goals and objectives.

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