Contribution of Human Resource Management on Organizational Effectiveness and Efficiency

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
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1HUMAN RESOURCE MANAGEMENT
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).