The Significance of HRM in Business Success: An Overview

This essay examines the critical role of Human Resource Management (HRM) in achieving business success, with a specific focus on the banking sector. It highlights how effective HRM practices, such as employee training, motivation, and talent management, contribute to improved workforce performance and organizational goals. The essay discusses the evolution of HRM from basic employment processes to a more strategic function that emphasizes employee commitment and satisfaction. It analyzes the challenges faced by the financial industry, such as fluctuating demographics and intense global competition, and emphasizes the importance of HRM in addressing these issues by building a skilled and motivated workforce. The essay uses the example of ABC bank to illustrate how HRM strategies are essential for maintaining a competitive edge and ensuring operational efficiency in the banking sector, ultimately driving overall business success and client satisfaction.

Running Head: IMPROTANCE OF HUMAN RESOURCE MANGEMENT TO BUSINESS SUCCESS
Importance of human resource management to business success
Name of the student
Name of the University
Author’s note

1IMPORTANCE OF HUMAN RESOURCE MANAGEMENT TO BUSINESS SUCCESS
Human resource management is the process of achieving supreme workforce growth, productive
working environment and improved connection between the company and the personnel. Achievement of
an organization is influenced by the appropriateness and the capability of the employees. Therefore,
human resource management functions on the norm that labour management relation cannot function
alone in achieving the target. This focuses on many changes like quality control, customer relation, profit,
productivity and more (Armstrong & Taylor, 2020). HRM helps in institutionalizing the change and
enhancing group performance and more. The human resource has radically progressed from the out-dated
process of employing and firing and emphasis more on worker commitment (Tabatabaei et al., 2017).
Human resource motivates and encourages employees and assist them in achieving short as well as long
term goals of the organization (Bartram, Cavanagh & Hoye, 2017).
The policy of ABC bank is to deliver amazing facility to the clients and to guarantee that each
and every division has individuals with proficiency and ability so that it can be a leader in the banking
business. ABC gives service to around 2700 people from Asia Pacific region and also involved in
assisting about 4.75 million customers. Therefore, for handling so huge varied workforce, the bank must
rely on the human resource practices for cultivating healthy operative relations and performance
(Madanat & Khasawneh, 2017). The financial transactions industry is entirely serviced constructed, so the
bank for commercialising with its customers’ require a management for handling personnel in the
business. HRM will enhance the performance of the bank by providing all the obligatory teaching that
will assist in governing the commercial communications and even financial risks faced by the bank.
Therefore, talented and operational personnel management system in the bank will be able in handling
economic challenges of the bank regularly (Hauff, Alewell & Hansen, 2017).
As the ABC bank is a sector that provides services, the bank has to handle monetary risks on
daily basis so to run these operations smoothly, the personnel who deals with the day-to-day activities
must possess the skills of persuading the customer as well as look after the requirements of client
contentment. The staffs who work at the anterior of the bank reflects the image of the organization, thus,
the bank would be assured that the appointed personnel receives appropriate training so that he/she
become expert in the fundamental banking skills and consumer association management (Figueiredo et
al., 2016).
The ABC bank requires skilled human resource management in the premises so that the human
resource can deal with the requirements of the banking sector and also handles the scarcity of manpower
source in the organization professionally. There are numerous trials confronted by the bank such as
fluctuating employee’s demographic, strong rivalry in the international economy, talent difference and

2IMPORTANCE OF HUMAN RESOURCE MANAGEMENT TO BUSINESS SUCCESS
gap among the staffs, budget- cutting concerns, unifications and acquirements, changing of laws and more
(Sparrow, Brewster & Chung, 2016). Hence, the foremost challenge for finance sector is sustaining its
workforce and grow the group infrastructure which will be able to produce wealth for the business.
Therefore, the bank must put into practise of human resource to increase the efficiency of the industry.

3IMPORTANCE OF HUMAN RESOURCE MANAGEMENT TO BUSINESS SUCCESS
References
Armstrong, M., & Taylor, S. (2020). Armstrong's handbook of human resource management practice.
Kogan Page Publishers.
Bartram, T., Cavanagh, J., & Hoye, R. (2017). The growing importance of human resource management
in the NGO, volunteer and not-for-profit sectors.
Figueiredo, E., Pais, L., Monteiro, S., & Mónico, L. (2016). Human resource management impact on
knowledge management. Journal of Service Theory and Practice.
Hauff, S., Alewell, D., & Katrin Hansen, N. (2017). HRM system strength and HRM target achievement
—toward a broader understanding of HRM processes. Human Resource Management, 56(5), 715-
729.
Madanat, H. G., & Khasawneh, A. S. (2017). Impact Of Total Quality Management Implementation On
Effectiveness Of Human Resource Management In The Jordanian Banking Sector From
Employees' Perspective. Academy of Strategic Management Journal.
Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management. Routledge.
Tabatabaei, S. A. N., Omran, E. S., Hashemi, S., & Sedaghat, M. (2017). Presenting Sustainable HRM
Model Based on Balanced Scorecard in Knowledge-based ICT Companies (The Case of
Iran). Economics & Sociology, 10(2), 107.

4IMPORTANCE OF HUMAN RESOURCE MANAGEMENT TO BUSINESS SUCCESS
Bibliography
Madanat, H. G., & Khasawneh, A. S. (2018). Level of Effectiveness of Human Resource Management
Practices and Its Impact on Employees' Satisfaction in the Banking Sector of Jordan. Journal of
Organizational Culture, Communications and Conflict.
Masum, A. K. M., Azad, M. A. K., & Beh, L. S. (2016). The role of human resource management
practices in bank performance. Total Quality Management & Business Excellence, 27(3-4), 382-
397.