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This results effective staffing decisions and processes which leads to better performance of the employees. The overall purpose of developing HR policies is to ensure that organization is efficiently able to achieve short term as well as long term goals through its employees rather than technology advancement. Many organizations believe that concentrating on the development of technology is more beneficial for the productivity of the organization rather to concentrate on the effective employee management.
But effective use of technology is more important than adopting the same and it needs recruitment and selection of efficient people for the organization (Armstrong, 2006, p.9). Management of human capital is done through five different stages. Human resource policies is effectively designed so that implementation of the policies in these five stages of human management can be efficiently to better performance of the employees as well as for the better productivity of the organization. These stages are planning, organizing, staffing, leading and controlling.
Planning is the first stage of human capital management and it develop the organizational structure and find valuable sources from where the organization can get efficient people through a cost effective process of recruitment (Barney & Wright, 1997, p.4). Effective design and application of policies in HR planning, recruitment and selections and their contributions towards effective staffing decisions and organizational effectiveness and decisions making- Critical Evaluation HR planning and systems can have a wide variety of implications in organizations and organizational effectiveness.
In the modern society planning and efficiency accounts for some of the prerequisites for organizational effectiveness and performance. In fact all of the HR activities in an organization depend largely on HR planning which subsequently reflects through organizational performance and productivity. Researchers have provided with data and information with regards to the correlation between recruitment and selection procedure and candidates’ competence in organizations which leads to greater creative works, greater collaboration of activities and performance progress in the organization.
Research scholars have out forth the fact that through the application of appropriate HR planning systems organizations can effectively influence the actions and contributions of employees and generate their social capital as the potential source of competitive advantage (Mossholder, Richardson & Settoon, 2011, p.34). However, HR systems have largely been restricted to their connections with organizational outcomes and not with individual level behaviors. That is why researchers have increasingly called for the need for understanding HR planning and its influence on employees, inter-relationships between them and performance (Mossholder, Richardson & Settoon, 2011, p.34). Researchers have specifically focused on the role of HR planning on a firm’s competitive advantage.
According to the views of Barney (1995), three basic resources can provide competitive advan
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