Contribution of HRM towards organizational efficiency and effectiveness

Running Head: Human Resource Management
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Essay on Contribution of HRM towards organizational efficiency and effectiveness
1
Human resource management refers as developing and implementing policies or
programs which are made for increase the effectiveness of an organization and creating,
managing and maintain employer and effective relationship with the employees. In other
words, human resource management is a strategic approach for managing the people
effectively in an organization, so it helps the organization in various ways such as to gain
competitive advantages, enhancing performance and productivity of the organization,
improving employee performance, increasing sales and revenue and increasing efficiency and
effectiveness of the organization, so it automatically help the organization in achieving their
overall goals and objectives (Sanghi, 2014). Humans are essential for every organization,
without humans no organization can survive and achieve their goals and profits. Human
resource aim is to ensure that organizations are able to achieve their goals through humans.
HR manages the all activities related to the workforce and implement policies and procedure
or system for managing their employees. HR can manage their employees by recruiting best
employee as per the requirement, motivating the employees through rewards & recognition,
giving training to the new employees for increasing their performance, measuring the
performance of every employee, keeping all information regarding employees in case of
shortage of employees, maintain good relation with them, focus on reducing employee
turnover, maintain healthy working environment, build engagement and trust with their
employees, provide flexible working hours and try to giving better employment services
(Guest, 2011). Purpose of human resource management is to manage human effectively and
efficiently within the organization for increasing organization effectiveness as well as
efficiency and for achieving the goals and objectives of the organization (Bach & Edwards,
2013).
Contribution of HRM towards organizational efficiency and effectiveness
Human resource management plays an important role in improving organizational
efficiency and effectiveness, enhancing performance of the organization and achieving
organizational overall goals and objectives because humans are essential for every
organization and HRM helps the organization in managing human resources within the
organization. There are various practices of HRM which helps the organization in increasing
their efficiency and effectiveness such as workforce planning, recruitment & selection,
performance management, training & development and reward system. So, HRM contribute

Essay on Contribution of HRM towards organizational efficiency and effectiveness
2
to the organizational efficiency and effectiveness by the managing various practices
(Bingham, 2016). These are:
1. Workforce planning - is one of the important practices which is manage by human
resource management. It refers to the effective planning for managing the employees
of the organization. If human resource management help the organization in managing
their workforce, so it helps in increasing their performance effectively and efficiently
(Vanhala & Ritala, 2016).
2. Recruitment & selection - Effectiveness and efficiency of the organization depend on
the having qualified and right employee at right place and at right job position for
meeting the needs and requirements of continuously changing environment within the
organization. So, right employee can be obtained by the recruitment & selection
practice, which is performed by the human resource management (Compton,
Morrissey, & Nankervis, 2011).
3. Job analysis & design – HR also analyses and designs the nature of job which is
required in the organization for achieving its future goals and objectives. It includes
qualification, skills needed of the candidates, whether work experience will require or
not for a particular job position, duties and proper job description of the available job
vacancy in the organization. So, this helps the organization in placing right people at
right place, so it help in increasing the performance and productivity of the
organization and improve efficiency and effectiveness of the organization (Seidel,
2019).
4. Performance management - It is another important practice of human resource
management which is performed by them. HR has to evaluate or measure the
performance of their employees and after evaluation of employee performance then
HR has to appraise them for their good performance by various methods such as
traditional as well as modern method. Traditional methods are paired comparison,
ranking method, grading, forced choice method, graphic scale method and
confidential report. Modern methods include cost accounting method, management by
objectives and 360- degree appraisal. Performance appraisal is also important
component of human resource management and it has two purposes as evaluative and
developmental. So, performance management also contribute to the organizational
efficiency and effectiveness (Rowland & Hall, 2013).