How HRM contributes to organizational efficiency and effectiveness

WORDS 2000

DEADLINE 17th

Assessment 3: Essay

Due dote: Week 13 Group/individual: Individual Word count/ Time provided: 1500-2000 words Weighting: 40% Unit Learning Outcomes: ULO1, UL02, UL04, UL05 Course Learning Outcomes: CL01, CLO2, CLOT, CLOG Graduate Attributes: GA8, GA11

Assessment Details:

The purpose of this assessment is to test a student's ability to assess information, formulate arguments, and critically evaluate different alternatives to HR issues or problems.

In this assessment, students must write an essay on one of the following topics: How HRM contributes to organisational efficiency and effectiveness Importance of recruitment and selection in attracting and retaining employees The role and importance of organisational training and development Strategies to manage issues associated with performance aitraisals

Solution

How HRM contributes to organizational efficiency and effectiveness

How HRM contributes to organizational efficiency and effectiveness

Introduction

To meet the ever-changing demands and needs of the organization; it is vital to have the right people at the right time for the right job. This ensures the effectiveness of the business. The task of HR management is to obtain the right people for the job. The human resource management can be defined as “A predetermined system to manage workforce capabilities to make them in-line with the goals of the company. This helps in the achievement of long-term advantages. The procedure is guided by a unique set of policies and programs" (Robbins, 2009).  This description shows that human resource management should enhance the use of human resources in a strategic manner other than performing functions like pay, recruitment, discharging, and so on. Some of the major features performed by human resource management include social capital development, employee advocacy, strategic partnership, and so on. The achievement of a higher level of competency and competitiveness relies on the HR department of the organization. The focus and direction of the business are based on HRM.  The HR department has a contribution in the quality, prosperity, and other objectives according to the vision and mission of the company (Boudreau, 2012).

Role of HRM in improving efficiency:

The strong HR department can advance the productivity and efficiency of the corporation:

The organizations with a strong HR department can have significant benefits of the programs to facilitate business grow, develop, and keep the talent to boost up the efficiency of the organization (Dessler, 2013). Following factors help increase the ability of the organization:

Recruitment, retaining and training the right people:

There is a strong relationship between robust HR programs and the effectiveness of the organization. Efficiency is the capacity of the company to utilize its assets in a useful manner to generate more profit. Among the most critical resources of the company; people are included, and HR deals with the people. HR programs are required to fulfil the need of the organization to have a productive staff, which contributes to the overall efficiency of the organization. This process of productivity starts with recruitment. The most important element in the workplace and workforce productivity is retaining and hiring employees with remarkable self-motivation and abilities. When the human resource department and management work together, this can attract and employ individuals in the workforce who are active, capable, and keep on learning. The human resource department not only hires the right people for the right job but also bring the right people for any organization and opening. For the smooth running of organizational operations, the HR hire those individuals who are in-line with the goals set by the organization. When the right individuals are employed, the next point is to help them familiarize with their role in the organization. The HR programs are designed to teach knowledge, critical skills and behaviours in the workforce. This is a long process which fosters and retains productive personnel (Schuler, 2014).

Long term effects

The central role of HRM is to train and recruit the employees, but there are more important tasks other than filling the positions. The human resource facilitates the productivity of the existing workforce and efficiency of the organization until they work with the organization. For instance, the HR uses effective performance appraisal methods to help employees identify critical areas which require improvements. A thorough and fair performance appraisal system also helps the company identify the strengths of the workforce, which can help in the retention of employees to secure the company's efficiency.

Moreover, the data gathered by the HR department usually provide in-depth knowledge about the employees and managers in the company. This data has a considerable impact on the morale and long-term performance of the workers. This data can be used by leaders to facilitate team engagement and performance improvement (Anthony Igwe, 2014).

When the business goals are well defined, it helps in the development of valid employee performance expectations, which are parallel to the goals and objectives of the organization. This helps the leaders to get insight into the actual performance of the managers, workers, and so on. The human resource department can give useful information related to the satisfaction of employees. The leaders can keep a pulse on their team when they know the satisfaction level. This helps to secure the right talent before the satisfaction level drops significantly (Robbins, 2009).

Maximizing efficiency by shaping leadership

Human resource department also helps the company locate, develop, and keep strong leaders other than influencing the employees. Leaders play a vital role in maintaining a culture in the company to create devoted, creative employees in the effective process of work. The managers and leaders play a significant role in the definition of priorities, purpose and goals of the business. The role of HRM is similar to insurance programs which help the organizations to minimize obstacles which hinder the efficiency of the organization. For instance, workforce planning is a tactic used by organizations to prevent a shortage of talent. The basic premise of workforce planning is to staff the company more efficiently in case the talent needs are predicted and compared with the actual ability available. This shows that the human resource department predicts the amount of talent needed while selecting and keeping the employees (Boudreau, 2012).

Innovations

The role of HRM has changed and goes above the traditional functions performed by the department. For instance, the HR department can create a culture of creativity in streamline processes and strengthen the effectiveness of employees. Nowadays, there is strong competition in the markets, with a rapid change to do something unique. This is very crucial that organizations facilitate innovation. The human resource department can help in the training of leaders to foster innovation in the company. This can be done by motivating employees to create, to encourage risk-taking, and to develop strong programs to promote creativity and innovation. The HR programs investigate the organization, by taking into view the opinions of both the employees and management while introducing innovations and changes (Schuler, 2014).

The HR management can equip leaders to foster a unique culture to "get along".  For efficient and productive performance, this is the foundation. The companies which strengthen the teamwork in the departments and employees grow tremendously in terms of finances as compared to organizations which give importance to competition among workers. It is essential that leaders motivate and reward trustworthiness, encourage team-mindedness and altruism, modesty and morality. A bullying culture, promotion of one's performance can be a demotivating factor.  Leaders who encourage this sort of behaviour need to be trained by HR programs. Now, the HR functions extend to select individuals who have the right attitude for the job other than competencies.  

When everything is done after thoughtful planning and execution; by the human resource department, it goes in line, with the increased efficiency of the organization. HRM functions range widely. It includes selecting eligible personnel for a specific job. It is necessary for the job to boost up team members’ probability to encourage each other and commitment to the company. The sufficient and thorough management by human resource department can help maintain a qualified and cooperative workforce (McMahon, 2013).

Role in organizational effectiveness

The business resources like an effective workforce are predicted and promoted by the human resource department. A thriving, engaged and productive workforce is selected and kept by the effective human resource programs. The HR plays an important function to manage workforce strategically. The human resource department is a strategic player. It helps in selecting the right persons for the right job, synchronizes benefits of the workforce, develops training programs, and strategies for development of employees. The tactics used by the HR department are helpful to meet the day to day requirement of organizations. The HR department has a deep insight into employees and management satisfaction and capabilities. Thus it can help companies to improve their culture, making it more comfortable and enjoyable while maintaining faster and enduring results. The HR manifest its powers in nearly all department of the organization like decision-making system, development of leadership, fostering change in the organization, and so on. 

The HR system encourages the workers to perform their best while keeping in view their performance and satisfaction level to retain them. The effectiveness of the organization is not merely a statement of profits and benefits, but it is largely related to the management of people. The HR department aligns itself with the organization to perform proactive functions like the position of the organization in the coming years. HR predicts how the company needs to change, and hire talent to accommodate innovation and competition (Boudreau, 2012).

 Discussion

The primary function of HRM is to deal with the recruitment of new employees and problems related to the existing workforce. The development of the HR department is dependent on the size of the organization. There are multiple problems and issues which can be fixed by having a well established human resource department (Anthony Igwe, 2014).  To foster an effective relationship with employees, it is important that the company has human resource management. The HR department is a sort of bridge between the company and its employees.  The HR department encourages the employees to share their views regarding management and wrongdoings in the organization (Gerhart, 1996). In case of any frustration, the employees can relate to the human resource department. Without a human resource department, it is difficult to deal with multiple employees separately. Each employee has his/her concerns. So, an HR department can effectively listen to these concerns and develop strategies to overcome certain issues (Lawler, 2014).

When employees are not satisfied with the company environment, they can leave it. Employee retention is the most important task for HR. The HRM requires the cost to spend on each worker training and development (Gerhart, 1996). This cost is a hassle if the company is small. But in the case of large companies, such as effective programs and costs associated with it can be beneficial for the organization in the long run (Klaske N. Veth à, 2017). The HRM department gives the managers a sort of relief in choosing the appropriate person for the job. The procedure of selection is carried out by the HRM to meet the needs and goals of the company (Convey, 2011). The managers perform their vital tasks while the human resource department focuses on the recruitment process, and the HR department is all about individuals (Miksen, 2019). The human factor is one of the organizational resources.  To recruit, train and keep the competent persons has a major impact on the effectiveness and efficiency of the organization (Peter Boxall, Human Resource Management: Scope, Analysis, and Significance, 2009).

Conclusion

The human resource department contributes to the quality, profitability, and other objectives according to the vision and mission if the company. Some of the major functions performed by the human resource management include human capital development, employee advocacy, strategic partnership, and so on. There is a strong relationship between solid HR programs and the efficiency of the organization. Efficiency is the capability of the company to utilize its capital in a useful manner to generate more profit. Among the most important resources of the company, people are included, and HR deals with the people. HR programs are required to fulfil the need of the organization to have a productive staff, which contributes to the overall efficiency of the organization. For the smooth running of organizational operations, the HR hire those individuals who are in-line with the goals set by the organization. The human resource facilitates the productivity of the existing workforce and efficiency of the organization until they work with the organization. The human resource department can help in the training of leaders to foster innovation in the company.  The HR functions extend to select individuals who have the right attitude for the job other than competencies. A thriving, engaged and productive workforce is selected and kept by the effective human resource programs. The HR plays an important function to manage workforce strategically.

Works Cited

Anthony Igwe, J. U. (2014). Effective Human Resource Management As a Tool For Organizational Success. European Journal of Business and Management, 210-218.

Boudreau, E. L., (2012). Effective Human Resource Management: A Global Analysis (Stanford Business Books (Paperback)) 1st Edition. Stanford University Press; 1 edition.

Brewster, C., (2016). Human resource management: the promise, the performance, the consequences. Journal of Organizational Effectiveness: People and Performance, 181-190.

Convey, D. G. (2011). The impact of HR practices, HR effectiveness and a ‘strong HR system’ on organisational outcomes: a stakeholder perspective. The international journal of human resource management, 1686-1702.

Dessler, G. (2013). Human resource management. Boston: Pearson.

Gerhart, B. B., (1996). The Impact of Human Resource Management on Organizational Performance: Progress and Prospects. The Academy of Management Journal, 779-801.

Klaske N. Veth à, H. P. (2017). Which HRM practices enhance employee outcomes at work across the life-span? The international journal of human resource management, 1-32.

Lawler, E. E., (2014). HR Should Own Organizational Effectiveness. Retrieved from Forbes: https://www.forbes.com/sites/edwardlawler/2014/02/11/hr-should-own-organizational-effectiveness/#2fddc31c1e46

McMahon, G., (2013). Performance Management: Chapter 7 in Human Resource Management. Palgrave Macmillan.

Miksen, C., (2019). Advantages & Disadvantages of Not Having Human Resources. Retrieved from Chron: https://smallbusiness.chron.com/advantages-disadvantages-not-having-human-resources-18696.html

Peter Boxall, J. P. Human Resource Management: Scope, Analysis, and Significance. Oxford Handbook.

Peter Boxall, J. P. (2009). Human Resource Management: Scope, Analysis, and Significance. Oxford Handbook Online.

Robbins, D. A., (2009). Fundamentals of Human Resource Management 10th Edition. Wiley.

Schuler, R., (2014). Human resource management and organizational effectiveness: yesterday and today. Journal of Organizational Effectiveness: People and Performance, 35-55.