HUMAN RESOURCE MANAGEMENT 6 HUMAN RESOURCE MANAGEMENT Name of the Student Name

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HUMAN RESOURCE MANAGEMENT
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1HUMAN RESOURCE MANAGEMENT
Human resource management (HRM) is described as the practice of deploying, hiring,
recruiting and managing the employees of a company or an organisation (Noe et al, 2015).
Human resource management is often referred as human resources (HR). The HR department of
a company is mainly responsible for introducing new policies, implementing and monitoring
those polices that governs the workers and also the relationship between the employees and the
organization. HRM can be also termed as employee management with focus on employees as the
assets of the company or business (Gorman et al, 2017). The goal or the target of human resource
management is to efficiently use the talent and skills of the employees, maximizing the return on
investment (ROI) and also lowering the risk level in an organisation. Albrecht et al, (2015)
opines the effective management of human resources help in facilitating the organisational
performance and helps the company acquire competitive advantage in the market. This paper is
going to focus on the impact of human resource management on the organisational performance.
Human resource management has become vital and essential in every organisation thus every
organisation these days have a structured and systematic human resource department that help in making
strategic plans that help in enhancing the performance of the employees as well as helps in boosting the
image of the company in the market. There are several areas where the HR enhances the experience of the
employees in an organisation while continuously strengthening the operations of an organisation or a
business. According to scholars, one of the primary functions of the human resource department is to
ensure the employees are motivated to produce quality work in an organisation (Mostafa, Gould‐Williams
& Bottomley, 2015). In order to facilitate positive performance in organisations, the human resource
department creates policies and performs activities to motivate the employees and ensure employee
retention in the workforce.
One of the paramount duties of the human resource department is to develop concrete
compensation structures that help in setting the wages of an organisation that are competitive with other

2HUMAN RESOURCE MANAGEMENT
organisations or businesses operating in the same industry. The human resource department conducts
surveys in terms of the salaries and wages in order to maintain the compensation costs aligning the
existing financial status of the organisation and the projected revenue. Kuppuswamy et al, (2017) states
that the salary structure is one of the key elements that motivates employees to work efficiently in an
organisation. When the wages and salaries suffice the needs of the employees, the employees are
automatically motivated to work. However, scholars there have been arguments that providing wages
based on the industry standards do not always motivate workers or employees in an organisation
especially when the organisation is big and has the capacity to pay more to the employees (Cheng, Hong
& Scheinkman, 2015).
The human resource department in many organisations have incorporated rewards and
recognition in their company policy where employees are provided with incentives for their extra effort
and also gain a positive reputation in the company or organisation. Olafsen et al, (2015) opines money is
a motivational factor that helps in motivating the employees to work with full conviction and dedication
for the organisation which contributes to the performance of the organisation. Tantalo & Priem, (2016)
states employees are considered to be the most important and essential stakeholders in a company thus it
is important to satisfy the needs of the employees to achieve the desired outcome in an organisation.
However, money and rewards are not only factors that help employees to be motivated there are other
physiological and psychological needs that help in motivating employees to work efficiently and enrich
the performance of the organisation.
According to the theory, Maslow’s hierarchy of needs, there are some needs that are important
which help in motivation. Aligning this theory with the human resource, it can be seen that employees
have some basic needs that needs to be fulfilled which is fulfilled by the human resource department. The
first one is the physiological needs which are the basic needs that is essential for survival of the human
beings (Jonas, 2016). The human resource department provides the employees with safe and comfortable
working conditions, essential breaks to have a meal or use the washroom.