HRM Report on HR Matrix, Challenges, Solutions and Practices Analysis

This report delves into the core functions of Human Resource Management (HRM), emphasizing its role in employee recruitment, training, and compensation. It examines the significance of the HR matrix as a tool for evaluating the effectiveness of HR initiatives, including metrics like employee turnover, labor costs, and return on human capital. The report identifies key challenges faced by HR, such as compliance with regulations, providing effective training, managing compensation, and retaining employees in a competitive job market. It proposes solutions, including fostering a positive work environment, promoting employees, and aligning with regulatory requirements. The report also explores HRM theory and practices, including the resource-based theory, emphasizing the importance of valuable and rare employees for achieving competitive advantage. Recommendations are provided to leverage HRM theory for providing effective services.

Running Head: HRM
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19-20SEM2AASHR007-1
3/13/2020

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Contents
Introduction......................................................................................................................................2
The role of HR matrix......................................................................................................................2
Issues and challenges which the HR faces......................................................................................2
How to resolve those HR issues and challenges..............................................................................3
HRM theory and practices...............................................................................................................3
Conclusion and recommendation for change..................................................................................4
References........................................................................................................................................5

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Introduction
The report is based in HRM whose major purpose in any organization is to recruit the
employees, provide training to them, give the designation of work and also provide
compensation and benefits. The productivity of the organization can be enhanced by selecting an
effective employee so the main purpose of the HRM is to recruit the right person for the right
job. There are several objectives of HRM such as functional, personal, societal and
organizational. The major objectives are to choose the willing and competent workforce and
ensure their availability in the organization. In this report, the role of the HR matrix and how the
issues and the challenges of HR will be resolved will be stated (Bamberger, et al., 2014).
The role of HR matrix
It is a measurement tool that is used to evaluate the effectiveness and value of the HR initiatives
and includes several things such as training, turnover of the employees, cost of the labor and
expenses per employee, return on human capital, etc. Several other HR metrics are important
such as overtime percentage, Absenteeism, profit per employee, revenue per employee, etc.
(Mitchell, et al., 2013). The role of the HR matrix is to determine how human capital can be
utilized in the organization so that the goal of the organization can be reached. HR matrix also
plays a role in addressing how efficient the HR practices are and their impact on the
organization.
HR matrix has several roles such as they have to evaluate the time to hire between the openings
up position to the signing the candidate for the job contract. The role of the HR matrix is also to
evaluate that by hiring the new employees how much cost the company is paying for per hire.
HR matric also evaluates why the top employees leave the company and time since the last
promotion, the revenues brought into the company shows the amount for per employee. The role
of the HR matrix is also to evaluate the cost of HR per employee and tracks the company's
attrition rate (Noe, et al., 2015).

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Issues and challenges which the HR faces
While recruiting and selecting the employees there were several challenges which the HR faces
in the company such as they have to comply with the laws and regulations of the company and
teach those rules and regulations to the new employees also. They have to provide effective
training and development to the employees so the issues arise that they need the proper trainer
otherwise the challenges have to be faced in the working of the employees. It also requires time
and cost which is the major issue. HR has to provide compensation so it becomes quite
challenging for HR to give them certain benefits and compensation as per their working (Huo, et
al., 2015). The major challenges which the HR faces are the retention of the employees in the
company as there were many job opportunities in the market which is offering high salary so
employees switch to other companies. The strategic issues are also faced by HR and also face the
challenges of the motivation and leadership development in the company.
How to resolve those HR issues and challenges
HR issues and challenges can be resolved by providing them an effective environment of
working and flexibility at the working place. The employees are retained in the company when
they are being promoted and get hire hike in the company. So the employees who are great at
work should be promoted and apprised by HR so the issues of retention of the employees can be
declined (Ellinger and Kim, 2014). The strategic issues can be resolved by compliance with the
regulatory requirements and by following the federal labor laws in the company. The
management change is the basic issue so it can resolve by HR through communicating the
benefits of change to everyone. The HR can resolve the issue of training by recruiting the senior
managers to monitor the employees so that effective training can be provided and costing can
also be saved (Ozolina-Ozola, 2014).
HRM theory and practices
The major outcomes of the HRM theory and practices are that they motivate the employees and
provide effective training and performance. The functional activities of human resource
management are studied through the theory and practices of the HRM. As per the theory of the
HRM, the growth, productivity, and development of the company enhanced when people desire
to be a part of the supportive team (Andreassi, et al., 2014).

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The resource-based theory is the theory of the HRM which explains the success of the firm
regarding the features of the industrial sector. As per this theory, HRM should provide effective
training and performance to the employees so that competitive advantage can be gained. The
employees in the company should be valuable as they are unchallengeable and rare resources. As
per this theory, the company can lead to higher growth when the HR practitioner mainly focuses
on the valuable employees so that the capabilities of the firm can be developed and superior
performance can be leading (Kramar, 2014).
Conclusion and recommendation for change
From the above report, it is evaluated that HRM plays an essential role in the company as its
main function is to recruit and select the best employees for the company. Their purpose in the
company is to choose the willing and competent workforce and ensure their availability in the
organization. In this report, the role of the HR metric is stated and from that, it is evaluated that it
is used to determine the effectiveness and value of the HR initiatives. There were several issues
that HR faced such as training, motivation compensation so how it can resolve is also stated
above. The resource-based theory is the HRM theory which helps in focuses on the valuable
employees so that the capabilities of the firm can be developed. It is recommended that the HRM
theory has to be used by HR so that effective services can be provided by them.

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References
Andreassi, J.K., Lawter, L., Brockerhoff, M. and Rutigliano, P.J., 2014. Cultural impact of
human resource practices on job satisfaction. Cross cultural management.
Bamberger, P.A., Biron, M. and Meshoulam, I., 2014. Human resource strategy: Formulation,
implementation, and impact. Routledge.
Ellinger, A.D. and Kim, S., 2014. Coaching and human resource development: Examining
relevant theories, coaching genres, and scales to advance research and practice. Advances in
Developing Human Resources, 16(2), pp.127-138.
Huo, B., Han, Z., Chen, H. and Zhao, X., 2015. The effect of high-involvement human resource
management practices on supply chain integration. International Journal of Physical
Distribution & Logistics Management.
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human resource
management the next approach?. The International Journal of Human Resource
Management, 25(8), pp.1069-1089.
Mitchell, R., Obeidat, S. and Bray, M., 2013. The effect of strategic human resource
management on organizational performance: The mediating role of high‐performance human
resource practices. Human Resource Management, 52(6), pp.899-921.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2015. Human resource
management. Gaining a Competitive.
Ozolina-Ozola, I., 2014. The impact of human resource management practices on employee
turnover. Procedia-Social and Behavioral Sciences, 156(11), pp.223-226.