Why HRM Is Vital for Business Performance - Essay Example

The Way People are Managed is Vital for the Performance if Any Organization Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: The Way People are Managed is Vital for the Performance if Any Organization Introduction Human resources have often been referred to as an organization’s greatest asset. Evaluating their role in the success of an organization affirms this argument. Basically, the way people are managed is vital to the performance of any organizations. There is a relationship which exists between the management of human resources and the performance of an organization. This essay will discuss several studies which indicate that there is a direct relationship between the management of people and the performance of an organization. There are some other studies which refute this argument and propose that there is no relationship between the performance of an organization and its performance. This essay will discuss studies which indicate that the management of people is directly related to the performance of an organization and also give the contrary argument where critics indicate that that the performance of an organization is not dependent on the management of people. Definitions On this point it is important to give the definition of some of the terms which will be used in this essay. One of them is the management of people. Within the context of the essay, the management of people will entail the management if human resources in an organizational context. The other one is culture which is a set f beliefs, values, traditions and behaviors which are upheld in a specific society. In supporting the argument that the management of people influences the performance of an organization, the essay will look at several studies done on some aspects of the broader human resource management. Recruitment and Selection One of the elements in human resource management which influences the performance of an organization by a large extent is recruitment and selection. The aim of recruitment and staffing is to ensure that an organization is able to get the most qualified people in the market to work for it (Kumari 2012, p.35). On this point, it should be acknowledged that an organization which has the right people working at the right positions often has a competitive advantage in the market due to the fact that it is able to implement its strategies if it has the appropriate people to do it. A competent workforce is a combination of skills, knowledge and experience (Chanda, Bansal & Chanda 2010, p.2). Once an organization is able to get people with such qualities, it is halfway towards being successful. Collins and Kehoe argue that organizations should always try to ensure that they have the most convenient recruitment and selection strategies so as to ensure ha they reap benefits of having competent work forces (Collins & Kehoe 2009, p.220). One of the moves which organizations have made towards ensuring that this is possible is by integrating the use of E-human resource in their organizations. E-recruitment has been adopted by many organizations owing to its ability of enabling an organization tap into the world labor market, hence increasing its chances of getting the right people. Employee Development Another important area in human resource management where studies have shown that is directly related to the performance of an organization is employee development and empowerment (Hameed & Waheed 2011, p.225). On this point, it is important to note that the modern business world is dynamic. With every day dawn, there are new ways of doing things. What was considered as the most effective practice is may become irrelevant in a few months time. Therefore, business organizations are obliged to cope with the standards in the market. In order for them to compete effectively in the market, they must have a workforce which is equal to the demands in the market. This gives the need for a human resource management which ensures that the employees are empowered to work in the modern business situation. Moreover, the empowerment is meant to ensure that the employees are able to offer their best in their work. This ensures that the productivity of an organization is improved. Studies on this aspect indicate that employee development and empowerment equips an employee with the knowledge and skills which are required with the changing market demands (Hameed & Waheed 2011, p.226). Owing to the fact that an organization has to cope with the changes in market conditions, technology, business process amongst other business practices, it is important that it has a workforce which is equipped with the technical and theoretical knowhow in managing in the changed market conditions. Employee Motivation Human resource management is also responsible for boosting the morale of an employee. Ideally, an organization should have the best human resource strategies which are aimed at ensuring that its employees are happy. Nurpur & Sharma point out that motivating an employee is vital to increasing their performance hence an organization’s performance (Nurpur & Sharma 2012, p.29). On this point, it is important to note that just as the old saying goes ‘a happy employee translates to a happy organization’. Happiness to an organization is associated with success. If an organization’s performance is good, then the organization is undoubtedly happy. There are various ways in which an organization can make its employees happy. The fundamental thing is providing them with a good working environment. A good working environment is one which maximizes on the productivity of an employee and at the same time ensuring that the employee is at home with his/ her work. Efficient human resource management should also consider the adoption of an appropriate employee benefits program. Such a program ensures that employees are motivated to work. The basic element in an employee benefits scheme is remuneration. Many studies cite money as a key motivator to employees. Ideally, work of a specific degree should be compensated by an equal amount of remuneration and equally so is knowledge and experience which should also be compensated appropriately. Other employee motivation strategies includes introducing reward schemes and also introducing performance based pay which motivate people to work hard (Scott & McMullen 2010, p.1). Cultural Competencies in HR Studies also indicate that the adoption of cultural competencies in human resource management influences the performance of an organization (Lee 2006, p.95). On this point, it is important to acknowledge the fact that with the increased globalization, organizations are finding themselves exposed more to the global market. In addition to this, organizations are venturing into international markets, leading to what is now referred to as global markets. On the verge of globalization human resources have turned out to be a vital factor which dictates the performance of any organization. This explains the rise in the number of expatriates who are professionals who work in the oversees business ventures of their employers. In an international market, an organization is faced with the task of performing well and reaping maximum profits. Equally so, an organization is faced with the task of ensuring that is stay in the global limelight is sustainable. This can only be possible if the management of people is done strategically and effectively. In an international market, an organization is faced with the daunting task of getting the right mix of people to work for it. It must be appreciated that an organization is faced with several cultural dimensions as pointed out by Hofetede which it must factor in its human resource management so as to ensure that it gets the right mix of people working at the appropriate conditions hence translating to productivity (Lee 2006, p.95). It can also be appreciated that if the organization does not have the appropriate mix of human resources, it will not be successful in its business operations. Therefore, there is a need for an appropriate management of people which takes into consideration the cultural differences between the various people organization from different cultures which an organization has to employ. Therefore it is appropriate to conclude that the appropriate management of people influences the performance if an organization positively. Counter Arguments Other studies indicate that there are other things which are vital to an organizations performance apart from managing of people. One of the elements which are considered vital to an organization’s performance is its culture. An organization culture is a set of values, behaviors and beliefs which an organization upholds (Small 2006, p588). Studies indicate that a good organizational culture translate to a good performance and vice versa. Other studies indicate that knowledge is the most important element in an organization’s performance owing to its ability to transform an organization (Pei 2008, p.1). Other studies indicate that technology is the most vital element in dictating an organization’s success (Robertson, Sorbello & Unsworth 2008, p.1). All in all, it should be noted that every element which is identified narrows down to a competent human resource; thus making the management of people vital to an organization’s performance. Conclusion In conclusion, it can be seen from this essay that the management of people is vital to an organization’s performance. The essay has described that the management of people entails the management of human resources in an organization. In the discussion, it has been seen that human resources are an organization’s most valuable asset as sit gives it a competitive edge in the market in addition to enabling its meet its goals and objectives. The essay has discusses about several HR aspects which have discussed in many studies around the world. The aspects which have been discussed are recruitment and selection, employee development, employee motivation and the adoption of cultural competencies in HR. over the discussion in the four points, it has been seen that efficiency management of people ensures that an organization is able to have the right people working for it in the right working environment and in the right working mindset, hence resulting to increased productivity. It has been pointed that appropriate HRM leads to a happy employee and ultimately to a happy organization. Contrary to the above argument, it has been seen that some studies show that the management of people is not vital to an organization’s performances. The studies show that information, organizational culture and technology are some of the tings which some scholars hold vital to an organization’s performance. Summing up, it is appropriate to conclude from this essay that management of people is vital to an organization’s performance. References Chanda, A., Bansal, T. & Chanda, R. 2010. Strategic Integration of Recruitment Practices and Its Impact on Performance in Indian Enterprises, Research and Practice in Human Resource Management, Vol.18, no.1, pp. 1-15. Collins, C., & Kehoe, R., 2009. Recruitment and Selection, In J. Storey, P. M.Wright, & D. Ulrich (Eds.), The Routledge companion to strategic human resource management Routledge, New York. pp. 209-223. Hameed, A., & Waheed, A., 2011. Employee Development and Its Affect on Employee Performance A Conceptual Framework, International Journal of Business and Social Science, Vol.2, no.13, pp. 225-229. Kumari, N., 2012. A Study of the Recruitment and Selection process: SMC Global, Industrial Engineering Letters, Vol. 2, no.1, pp. 35-46. Nurpur, C., &Sharma, B., 2012. Impact of Employee Motivation on Performance (Productivity) In Private Organization, International Journal of Business Trends and Technology- Vol.2,no.4, pp 29-35. Lee, H., 2006. International Human Resource Management can be Achieved Through Cultural Studies and Relevant Training, The Business Review, Vol. 5, no.2, pp. 95-100. Pei, S., 2008. Enhancing Knowledge Creation in Organizations, Communications of the IBIMA, Vol. 3, no.1, pp 1-6. Robertson, J., Sorbello, T., & Unsworth, K., 2008. Innovation Implementation: The Role Of Technology Diffusion Agencies, J.Technol. Manag. Innov. 2008,Vol. 3, no. 3, pp. 1-10. Scott, D., & McMullen, T., 2010. The Impact of Rewards Programs on Employee Engagement, WorldatWork, pp. 1-10. Small, M., 2006.Management Development: Developing Ethical Corporate Culture In Three Organizations, Journal of Management Development, Vol. 25, No. 6 , pp. 588 – 600. Read More