Human resource management and its importance to an organization as well as to its employees

Essay by ellen_c81University, Bachelor's July 2008

download word file, 3 pages 3.0

Management refers to an act or skill of directing and organizing the work of a company or organization. Human Resource Management (HRM) is to succeed in dealing the abilities and skills of employees effectively for the organization by recruiting, training and motivating through performance appraisal and compensations.

HRM comprises of the policies and systems that influence employees' mind-set, performance and aptitude that have an effect on the operation of an organization. This is referred as "people practices". 30 (Noe et al. 2004, p. 2)A group of qualified candidates are selected under the professionalism of HRM with the reasonable compensations (wage, benefits, trainings, career development, etc). Ensuring with the necessary incentives, employees will be motivated to excel further and perform expeditiously and productively. In other words, the company benefits a committed and competent workforce, meets the objectives strategically and effectively, promotes growths and expansions in many areas and eventually leads to a requirement in getting a larger workforce.

74 (Wright & Ferris 2006, p. 17)Besides people management, HRM plays an important role to achieve strategic business objectives of a successful organization. By focusing on strategic issues, it generates outstanding organizational performance and results a group of capable and dedicated workforce. The ability of executing the HR strategies effectively leads to victorious businesses in the competitive markets - better customer satisfaction, higher growth in profitability gains, share prices, sales, export growth and lower employment turnover rate. 70 (Stone 2005, p. 4-5)Based on new business strategies, employees are progressed to the next level or given new roles through reviewing their performance appraisals, new workforce is crucial to continue the contribution of company's regular or additional functions and operations. Thus, timely reactions and efforts are expected from the HRM to source for the right personnel, and make necessary arrangements and adjustments to manage individuals...