Contribution of Human Resource Management on Organizational Effectiveness and Efficiency

This report provides an overview of the contribution of Human Resource Management (HRM) on the organizational effectiveness and efficiency. It discusses the factors contributing to the organizational effectiveness and efficiency, focusing on talent management, performance management, knowledge management, and attitude and cultural fit in the selection process.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
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Introduction:
The report aims at providing an overview of the contribution of Human Resource
Management (HRM) on the organizational effectiveness and efficiency. HRM play a vital in
enhancing the employee performance within the organization. Efficiency in HRM policies are
designed within the organization for enhancing maximum performance level. In other words,
human resource management (HRM) acts as the means of linking the functions of the human
resource with strategic objectives of an organization for improving the level of performance.
Thus, HRM plays a key role in determining the effectiveness and efficiency of an
organization.
Discussion:
Factors Contributing to the Organizational Effectiveness and Efficiency
The vital aspect of the business focus of an organization and its direction in the
achievement of higher level of competitiveness and competency depends upon the practices
of human resource management in contributing effectively towards the profitability and
quality that remains aligned with mission and vision of a company (Bratton and Gold 2017).
Focusing on Talent Management
The key for organizational success depends on attracting, managing and retaining the
best people. Companies consider the ability of effective management of talents as strategic
priority (Davis et al. 2016). Hence, there has been a higher degree of superiority amongst the
companies related to this activity. Most of the companies have internal system for the
identification of the individuals with higher potentials through the usage of the clearly
defined leadership competencies and assessment instruments. Such individuals are assigned
various developmental activities ranging from mentoring, coaching, international assignments

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and projects. Companies however adopt numerous approaches in retaining the valued talent.
This includes personal career plans, financial incentives, flexible arrangements of working,
mentorship programs with an emphasis on not only diversity but also the work-life balance
for competing with the best talent and thereby retaining the higher potential employees
(Bryant and Allen 2013).
Focusing on Performance Management
Performance management and the participative setting of goal along with the
developmental and work goals defined in terms of the initiatives put forward by the balanced
scorecard method have a direct link with the strategic objectives (Kearney 2018). Nowadays,
the multiple inputs of the appraisal and the most of the 360-degree approaches mostly
managed online have become common for the mid level managers. There is also bi-annual
formal review along with a continuous informal feedback on a day-to-day basis for ensuring
that the project/workload remains on the track along with appropriate allocation of resources.
The HRM ensures a developmental focus on appraisal(Cohen 2015). The pay and the
developmental reviews remains split in all the cases with the rewards being clear in most of
the firms through usage of potential or performance matrices.
Performance Appraisal (PA) represents one of the key components in the systematic
and the rational process of the human resource management (Farndale and Kelliher 2013).
The information obtained through the process of performance appraisal puts forward the
foundation for the recruitment and the selection of the new hires, development and training of
the existing staffs and the maintenance and motivation of a workforce through rewarding
their performance in proper and adequate manner. In absence of a dependable performance
appraisal system, the human resource management will fall apart thereby resulting in a
complete wastage of the valuable assets of a company (Cheng 2014).

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Focusing on the Knowledge Management:
Most firms of today associates its information systems with the knowledge
management (Dalkir 2013). When a firm has good process and system for retrieving and
entering electronic information, it is argued to have better system of knowledge management.
Although linked but certainly vital to the effective management of knowledge, information
system represents nothing without a proper structure of incentive, personal relationships,
development programs of the people, personal relationships and shared goals or vision.
Within HMR function, the effective knowledge management of systems and practices acts as
the key to the value proposition related to the delivery of the HRM systems and practices that
are locally sensitive, globally integrated and relatively innovative(Hislop, Bosua and Helms
2018).
Emphasizing on the Attitude and Cultural Fit in Selection Process
Traditionally most of the companies have focused on the academic credentials and
skills for determining their selection process while there are many that focused on the
definition of the right people at the right place for determining the cultural fit as the criterion
for selection. These companies ensures accessing the values and personality of the applicant
for determine their fitness towards corporate culture. It is based on the assumption that the
formal qualification does not always act as the accurate forecaster of the job performance
since the skills can undergo a change with proper training unlike the attitudes, values and the
personality traits.
Thus, human resource strategy plays a key role in achieving the strategic objectives of
the organization as a whole and illustrates the fact that functions of human resource
completely supports and understands the direction of movement of the organization (Bolman

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and Deal 2017). A comprehensive strategy of HRM helps in supporting other strategic
objectives taken up by the financial, operational, technology and marketing department.
Nevertheless, HRM strategy should focus on capturing ‘the people element’ that implies what
it is hoping for achieving in the medium and the long term. Therefore, the HRM should
ensure that an organization has the right kind of people at the right place along with the
appropriate mix of the skills. The HRM strategy also ensures that the employee should also
display the right behaviour and attitudes and developed in the right manner.
An HRM strategy will add some value to the organization if it is able to articulate the
common themes clearly (Kehoe and Wright 2013). These themes include the achievement of
the strategies and plans not identified before. It also helps in identification of the fundamental
issues that needed to be addressed by the business or the organization provided the people
undertaking separate operation required commitment and motivation. The HRM strategy
related to the articulation of the common themes entails careful consideration of the existing
or developing strategies and plans for identification and drawing attention to the common
themes that did not have an explicit exposure. The second strategy of HRM related to the
identification of the issues helps in identifying the most fundamental strategies and the plans
that requires clearance before an organization moves forward in achieving the goals. Some of
the fundamental issues to be addressed by HRM include issues related to workforce planning
and succession planning, planning the workforce skills, and determining equity plans for
employment. It also includes empowerment initiatives of a black economy, issues related to
fair treatment and motivation, determining pay levels for recruiting, retaining and motivating
people and encourage the coordination of the approaches of grading and payment across
organization for the creation of the alignment and claims related to unequal pay. HRM should
also ensure a framework for consistency in performance management designed for meeting
the needs of every organizational sector including the people. There should also be

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frameworks for career development that looks at the development within organization by
equipping the employees with the required employability such that they possess the capacity
of coping with the frequent changes of the employment and the employer patterns. For
addressing the fundamental issue the HRM should design frameworks and policies for
ensuring systemic addressing of the development issues of the people, self managed learning
and the competence frameworks.
The HRM strategy thus needs to undertake careful planning for dealing with people
issues thereby making it substantially easier for organization in achieving the wider
operational and the strategic goals (Stredwick 2013). Besides, the HR strategy also adds some
value since it takes into account the other plans of the organization that bringing about
changes in wider environment causing wider organizational impact. These changes in
includes an overall change in the employment market including the remuneration and the
demographic changes and the cultural changes that impacts the future patterns of the
employment. Changes might be in the employment relations and the legal framework
revolving the employment. The changes might bring about through implementation of
flexibility in the work practice.
Therefore, finding the appropriate opportunity in presenting a case for the
development of the HRM strategy remains critical in warranting that there will be a support
for such an initiative with the preliminary value recognized by concerned organization.
Putting forward a stronger incline to the proposed strategy will help in gaining acceptance for
concentrating on a better management practice. It is also vital for building strategy that would
ensure a quicker win. Various opportunities help in presenting an ideal moment for
encouraging the development of HRM strategy. These might include a newer internal
initiative that could put forward the right kind of opportunity that would act as a push for the

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accompanying HR strategy that includes corporate acquisition, restructuring exercise, merger
or a joint venture exercise. Opportunities can also take the form of an external initiative that
helps in generating the accurate climate for a newer HRM strategy related to the
empowerment initiatives of the black economy. However, there might be instances when any
negative news might act as the appropriate moment for the expression of employee
dissatisfaction undertaken through climate survey.
Conclusion:
On a concluding note, one can say that the HRM strategies are introduced for the
convenience of the organizational operation. HRM also contributes to creating a value
addition by ensuring that availability of the people with the necessary skills and motivation
levels thereby helping in the creation of an environment that stimulated quality performance.

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References:
Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry, choice, and
leadership. John Wiley & Sons.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Bryant, P.C. and Allen, D.G., 2013. Compensation, benefits and employee turnover: HR
strategies for retaining top talent. Compensation & Benefits Review, 45(3), pp.171-175.
Cheng, S.Y., 2014. The mediating role of organizational justice on the relationship between
administrative performance appraisal practices and organizational commitment. The
International Journal of Human Resource Management, 25(8), pp.1131-1148.
Cohen, D.J., 2015. HR past, present and future: A call for consistent practices and a focus on
competencies. Human Resource Management Review, 25(2), pp.205-215.
Dalkir, K., 2013. Knowledge management in theory and practice. Routledge.
Davis, T., Cutt, M., Flynn, N. and Mowl, P., 2016. Talent assessment: A new strategy for
talent management. Routledge.
Farndale, E. and Kelliher, C., 2013. Implementing performance appraisal: Exploring the
employee experience. Human Resource Management, 52(6), pp.879-897.
Hislop, D., Bosua, R. and Helms, R., 2018. Knowledge management in organizations: A
critical introduction. Oxford University Press.
Kearney, R., 2018. Public sector performance: management, motivation, and measurement.
Routledge.

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Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management, 39(2), pp.366-391.
Stredwick, J., 2013. An introduction to human resource management. Routledge.