Analyzing HRM's Impact on Organizational Efficiency and Effectiveness

This essay delves into the crucial role of Human Resource Management (HRM) in enhancing organizational efficiency and effectiveness. It defines HRM as a structured process for managing people within organizations, covering key areas such as staffing, payroll, and performance management. The essay explores how HRM supports managerial functions and aligns with organizational procedures, emphasizing the shift from reactive to proactive HR practices. It discusses strategic HRM, its alignment with business strategies, and the application of theories like the General Systems Theory and Contingency Theory. The essay highlights the importance of HRM in fostering competitive advantage, the significance of the 5P's model (Principle, Purpose, People, Process, Performance), and the role of HRM in stakeholder satisfaction. It concludes by underscoring the contribution of HRM to organizational success by effectively placing employees, motivating them, and ensuring a positive work environment.

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TOPIC: How HRM contributes to organisational efficiency and effectiveness
INTRODUCTION
Human resource management is often related to employee relation and personnel
management by industry experts. Whenever such terms are described, people take it as an
image of efficient managers who works for bringing effectiveness in work for organisations.
HRM can be defined as a process in which people are managed in organisations to perform
work in structured and well built manner (CANIA, 2014). HRM performs tasks in many
fields that are related to each other like staffing, payroll setting, retention of employees,
performance management and change management (Bianca, 2017). While the work is
performed, HR managers take care of company’s activities and objectives. The role of HRM
encompasses management of humans from a macro perspective way in organisation and
manages people by building relation between employees and managers. Some MNC’s and
big companies call HRM as people managers and people enablers who practice people
management. The actual role of HR manager’s are not limited to manage people only but to
ensure fulfilment of employee and realisation of organisational objectives (Management
Study Guide, 2017).
The HRM function is taken as a critical factor in organisations as they support
managerial functions and adhere to organisational procedures and policies. For example, HR
department in companies perform jobs relating people that combine various elements for
enhancing work efficiency. The jobs that are mostly performed by HR professionals are
mentoring employees, providing support at the time of appraisals; training, hiring, grading
and making pay structures (Human Resource Excellence, 2017). There are people who have
misconceptions about HRM who think that HR managers are required only during the time of

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employee’s complaints or at the time of appraisals. But the actual function of HR managers
has emerged as a chief function in which HR professionals are cynical and proactive in
nature. That means at the time when the need for crisis management is predicted, HR
managers are anticipated to take actions immediately instead of waiting for crisis to take
place and resolve only after effect of it is recognised. Therefore by considering issues in
impulsive stage, the HRM retains work efficiency in organisations. Earlier factories and
workplaces observed lockouts and strikes in their manufacturing and services sectors as not
much evolvement of HR practices were given importance in day to day work practices. With
the evolvement of HR practices and HR theories, the professionals have become cultured and
transformed themselves from thoughtless mode to positive mode. By understanding the
grievances and feedback of staffs, the HRM’s focuses on preventing crisis taking place in
both internal and external related work function of organisation. This element of HR, which
has increased in recent times, shows the increase in amount of effectiveness in work culture
among people (Itika, 2011).
Strategic human resource management aligns business strategies with HR practices in
order to achieve organisational goals. The objective behind HRM professionals is to confirm
that HR strategies meet all the objectives behind its formation and acquire the core objective
i.e. bringing work efficiency in employees (CANIA, 2014). In order to retain such quality
various theories are been inculcated in HRM so that their work is carried in more systematic
manner. One of the most recognised theories in HRM is General systems theory that consists
of basic organisation’s function i.e. interacting with internal and external environment. No
organisation can stay alive without making interaction as they provide with inputs and
outputs at the time of progression. Customers generally gives feedback after using products
or services and thus organisations can make corrections on the part where negative feedback
is obtained. The general systems theory helps management understanding the components of

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organisation’s systems and other departments like accounting, marketing, staffing, etc. For
any organisation to develop in growth oriented way they have to remain competitive and each
department shall support each other. For example, in organisation if recruitment department
makes error, it can affect whole company’s performance as wrong people will get
accommodated at wrong positions. In the same way if HRM are not contacted at processing
stage or is not utilised in effective manner, the quality of production and service decrease
which reflects through feedback mechanisms (Ibrahim, 2014).
With growing IT and service sectors, HRM is been recognised as a foundation of
competitive advantage in organisations (Human Resource Management as Competetive
Advantage). It must be considered in the same manner in which technology and capital is
treated. Since HRM contribute towards organisational objectives and promotes basic business
functions, it cannot be overseen by firms. As they are specialist in managing people, the
organisations depends highly on HRM teams to foster managing feature in their function. If
real world examples are taken into account, it can be seen that organisations are dedicating
their “people managers” function solely to strategic human resource departments who enables
the maximum utilisation of available resources (IGWE, 2014). Contingency theory in HRM
was introduced by Evan’s Martin that states that in order to adopt specific strategy for
gaining maximum gains, managers has to stipulate their knowledge since organisations has to
operate in complex environments and risks. According to Martin no one theory can prove to
be the best for managing people in organisation (Anzalone, 2017). The strategies adopted by
corporate depends on other environmental factors and policies which are closely studied and
undertaken by HR professionals to make ultimate strategies for each function. HR
professional on the other hand needs to possess qualities like supportive, directive,
participative and goal achieving. This theory helps HR managers to determine their
participating style and the amount of components required to fit in each function. To increase

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effectiveness, HR professionals motivate and boost the morale of employees while suggesting
organisations about methods for improving work culture. While the work efficiency is
increased, the result can be seen from employee’s satisfaction and then the goal of the
company is also seemed to be achieved. The HRM teams are thus selected by organisations
so that that could guide the present and recruit desired people for better tomorrow
(Karunaratne, 2016).
Modern HRM practices align organisation’s goals with HR strategies for making sure
that there is a direct relation between management objectives and employee policy. It can
also be said that HRM departments are nowadays not treated as adjuncts only but instead
taken as a vital part for ensuring success in organisation (Sims). With the help of theories and
models, HR professionals have evolved from the times when managers were responsible only
for setting labour and staff problems along with taking care of pay systems only. Today’s
HR’s have learned to deal with disputes such as requirements of regulations those are
different from each other across the world depending on their location. Managing dispersed
workforce is been the primary concern of HRM and to interface the intersections among
localization and globalisation. This means that local or merging modes of involvement and
norms and taken considerably by HR teams and processed according to the primary rules of
organisation. Thus the role of HRM shall be integrated with the strategic formulation so that
effectiveness is seen for long term in organisation. While the people are managed by
reinvesting in them through training and nurturing, the overall work efficiency is ensured. If
the HRM is designed in a sort out and critical manner, the firms tends to utilise people
completely and with it the obstructions behind success is eliminated (Bradley, 2017).
The basic tools required while managing a HR team are staffing, training and
maintaining work performance with which managements give shape to function of
organisation’s activity and satisfy the necessities of stakeholders. Stakeholders are the ones

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who satisfy their needs from organisations. Stakeholders related to firm can be in the form of
employees, customers, owners, government and masses. While customers demand for good
quality service and product, government will demand companies to adhere to regulations and
country’s laws. Owners or shareholders will always demand for high returns while employees
will always prefer to work under favourable work conditions. Whatever the case may be, the
ultimate goal behind building a HR team is bring co ordination between all the fundamentals
and get effective results through organisation’s elements (Carthy, 2015). This combining is
possible only if professionals follow developed communication process within and with
outside people and to bring teamwork in organisation, HRM is always anticipated. The
enhanced relationship those are created between people eliminates obstruction between
organisational goal and a constructive environment is built in workplace.
In HRM theories, HR managers follow the 5P’s model mostly that enhances their
work quality. According to the authors of the model, Milded golden, Chris J. White and
Leslie, this model enables five elements in structure of organisation which are the core of any
business (Nunes, 2016). The elements described in the model are principal, purpose, people,
process and performance. The principle component is taken into consideration for
implementing basic guidelines and ethics required to maintain at the workplace as well as
with outside people. Purpose determines vision and mission of the company along with
stating ultimate target behind formation of the company. People element deals with the
employees who work for the company to achieve objectives and goals for it after following
procedures and guidelines laid by the management. Process function represents the structure
of the management and reveals the processes through which the product or service of the
company is formed. After considering other four elements, performance factor is enabled in
which the result of 5P’s model implementation is verified. The verification process can be
completed by making metrics or graphs which helps the managers to decide upon the areas

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that require more concentration. The structured process of this model is the reason why it is
used most commonly by the HRM of organisations. A proficient HR manager does not
summarises the needs of the company only but makes effort in enhancing work efficiency by
installing effective procedures and healthy work environment.
CONCLUSION
In the above essay various theories have been discussed those are utilised by HR professional
in today’s management systems. The HRM are taken as a vital component in organisation’s
rather than treating them as mediators only. Organisations needs to take utmost care while
deciding upon their HR managers as all the critical function are performed by them. A sound
management system will always reflect and show its effectiveness through company’s
improvement and HRM can be accredited for it as they are the ones who help in making
formation of strategy for administrations of organisations (Shafer, 1998). Task performed by
HR’s are often taken as consultation process and thus they are also considered as
organisational consultants and advisories that are approached whenever any new strategy is
required or any issue is observed. The placement and payroll setting procedure carried by HR
professional’s makes employees depend much on them which is why they consult the HR
teams during the times of problem rather than approaching to head of the companies. The
role of HR managers enables them to make placements of employees which are done by them
in effective manner as they specialise in making judgements about their expertise and
knowledge of people (Mote, 2017). Thus companies rely greatly on HRM so that placing
right people at right place is enabled and without human intrusion, work efficiency is
increased. The process of designating tasks to people are made by HR professionals after
considering employees interests and thus employees feel motivated to work competently. It
also brings motivation in them to work more in order to surpass others. The effectiveness in
administrative centre is observed if the employees or people are satisfied with the

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organisation’s environment and to confirm satisfaction, HRM is expected to take actions
(CANIA, 2014). Therefore is can be rightfully said that HRM contributes completely for
bringing efficiency and effectiveness in organisations.

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