Essay on HRM's Contribution to Organizational Efficiency

This essay delves into the significant contributions of Human Resource Management (HRM) towards enhancing organizational efficiency and effectiveness. It emphasizes that HRM is crucial for managing human resources and achieving organizational goals. The essay explores various HRM practices, including workforce planning, recruitment and selection, job analysis and design, performance management, training and development, and reward systems, highlighting how each contributes to improved performance and productivity. Furthermore, it discusses the role of HRM strategies in supporting other strategic objectives and creating a positive working environment. The essay also examines the importance of adapting to changes in the employment market and employee relations to ensure continued organizational success. By effectively managing human capital, HRM plays a vital role in satisfying stakeholders, fostering employee engagement, and driving overall organizational success. The essay concludes by reiterating the significance of these practices and strategies in achieving long-term organizational objectives.

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Essay on Contribution of HRM towards organizational efficiency and effectiveness
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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
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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).

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5. Training & development – HR play an important role in providing training and
development to their employees. So, it will help the organization to increase the
performance and productivity of their employees, increasing knowledge and skills of
workers towards their work and development of their employees towards achieving
their goals and objectives. So, by conducting various training and development
programs for their employees, HRM can also contribute to the organizational
efficiency and effectiveness (Laird, Naquin, & Holton, 2010).
6. Reward system – HR manager has to encourage or motivate to their employees by
giving rewards, compensation and other benefits to them as per their performance
towards the organization, so it will help in increasing the performance and
productivity of employees and reducing operation cost of organization, so it
automatically contribute to the efficiency and effectiveness of the organization (Alfes,
Shantz, Truss, & Soane, 2013).
So, the above HR practices helps in improving organizational efficiency and
effectiveness. These practices also help in satisfying the needs of stakeholders of the
organization. Stakeholders include stockholders who want to reap on investment, customers
who want high quality product, employees who want interesting job in their organization with
various rewards and benefits and community who want that company has to participate and
contribute in various activities related environmental issues, so HRM helps in satisfying the
needs of customers, community, stockholders and employees and if their needs has fulfilled
then organizational effectiveness will also improve. HRM also helps in creating effective
working environment within the organization; maintain effective relationship with their
employees and eliminating communication breakdowns (Schuler & Jackson, 2014).
The strategies which are used by human resource also play important role in enhancing
organization efficiency and effectiveness and achieving the overall objectives of the
organization. HR strategies also supports in achieving other strategic objectives of the
marketing, operational, financial and technology department. HR strategy aims are to achieve
organizational objectives through its human resources and achieve its goals in the medium
term to long term. HRM has to ensure that right people should be place at right place and at
right position, employees have specific skills as per requirement of job positions, employees
display right behaviour and attitudes towards the organization and employees are developed
in a best possible manner. So, by following the above strategies, human resource

Essay on Contribution of HRM towards organizational efficiency and effectiveness
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management contribute to the efficiency and effectiveness of the organization (Obeidat,
2016).
They also identified which strategies or plans are fundamental so that there must be clear
plan or strategies which are set by the human resource management before organization can
achieve its goals and objectives. These plans or strategies include workforce planning, issues
related to planning of employees, succession planning, plans related to skills of workforce for
a particular job position, employment equity plans, initiatives related to economic
empowerment, motivation and fair plans and its related issues, designing of pay scale for
their employees to retain, recruit and motivate them for increasing effectiveness of the
organization as well as increasing their performance and productivity, manage employment
issues which may impact on the recruitment, retention and motivation to the employees,
remuneration system for the employees, consistent framework related to performance
management of their employees which can meet the needs of all department of the
organization, career development framework which ensure the development of employees as
well as overall organization and they also made policies to ensure issues related to humans
development has to addressed systematically (Seidel, What Are HRM Strategies?, 2019).
Human resource management can also add value to the organizational effectiveness and
efficiency by adopting some other plans or strategies such as changes in the employment
market at demographic as well as remuneration levels, cultural changes which may impact on
future employment, changes in the climate related to employee relations and changes in the
framework of employment (Lawler, 2014).
Hence, human resource management plays an important role in improving efficiency of
the organization, its effectiveness. Human resource management refers as managing
workforce of the organization effectively and efficiently by adopting various practices such
as workforce planning, recruitment & selection, job analysis & design, performance
management, training & development and reward system. Workforce planning helps the
organization managing the overall workforce for achieving its goals; it includes how many
employees are required, what is the employee turnover and what is the retention ratio of their
employees. Job analysis and design helps in designing the skills, qualifications will be
required for a particular job position in their organization, so it helps in placing right people
at right place, so it automatically contribute to the organizational effectiveness. Performance
management helps in measuring the performance of each employee as per target

Essay on Contribution of HRM towards organizational efficiency and effectiveness
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performance, so it helps the organization in increasing performance of their employees and
organization. Training and development also helps in increasing performance of the
organization and development of the organization and reward system helps in increasing
performance as well as productivity of the organization, so these HRM practices helps in
increasing organizational efficiency and effectiveness.
References
Alfes, K., Shantz, A., Truss, C., & Soane, E. (2013). The link between perceived human
resource management practices, engagement and employee behaviour: a moderated
mediation model. The international journal of human resource management, 24(2),
330-351.
Bach, S., & Edwards, M. (2013). Managing Human Resources: Human Resource
Management in Transition. United Kingdom: Wiley & Sons Ltd.
Bingham, C. (2016). Employment Relations: Fairness & Trust in the Workplace. Great
Britain: Ashford Colour Press Ltd.
Compton, R., Morrissey, W., & Nankervis, A. (2011). Effective Recruitment and Selection
Practices. Sydney: CCH Australia Limited.
Guest, D. (2011). Human Resource Management and Performance: still searching for some
answer. Human Resource Management Journal, 21(1), 3-13.
Laird, D., Naquin, S., & Holton, E. (2010). Approaches to training and development.
Cambridge: Perseus Books Group.
Lawler, E. (2014). HR Should Own Organizational Effectiveness. Retrieved May 2, 2019,
from Forbe: https://www.forbes.com/sites/edwardlawler/2014/02/11/hr-should-own-
organizational-effectiveness/#56dfad171e46
Obeidat, S. (2016). The link between e-HRM use and HRM effectiveness: an empirical study.
Personnel Review, 45(6), 1281-1301.
Rowland, C., & Hall, R. (2013). Perceived unfairness in appraisal: engagement and
sustainable organizational performance. EuroMed Journal of Business, 8(3), 195-208.
Sanghi, S. (2014). Human Resource Management. Noida: Vikas Publishing House Pvt Ltd.

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Schuler, R., & Jackson, S. (2014). Human resource management and organizational
effectiveness: yesterday and today. Journal of Organizational Effectiveness: People
and Performance, 1(1), 35-55.
Seidel, M. (2019). Functions & Practices of Human Resource Management. Retrieved May
2, 2019, from Chron: https://smallbusiness.chron.com/functions-practices-human-
resource-management-59787.html
Seidel, M. (2019). What Are HRM Strategies? Retrieved May 2, 2019, from Chron:
https://smallbusiness.chron.com/hrm-strategies-59260.html
Vanhala, M., & Ritala, P. (2016). HRM practices, impersonal trust and organizational
innovativeness. Journal of Managerial Psychology, 31(1), 95-109.