The Contribution of HRM to Organizational Efficiency and Effectiveness

This essay delves into the pivotal role of Human Resource Management (HRM) in enhancing organizational efficiency and effectiveness. It emphasizes the importance of strategic HRM practices, including effective recruitment, employee engagement, and performance management, as crucial components for organizational success and sustained competitive advantage. The essay explores various HRM models, such as the 5P's model, the Harvard model, and contingency theory, highlighting their frameworks and applications in achieving organizational objectives. It discusses the significance of aligning HRM strategies with overall business goals, fostering a conducive work environment, and developing human capital. The essay underscores how HRM professionals act as consultants, advising management on employee-related matters, thereby contributing to the overall efficiency in workflow. It concludes by emphasizing the fundamental role of HRM in maintaining work efficiency and effectiveness, which is vital for organizations to thrive.

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HUMAN RESOURCE MANAGEMENT
INSTITUTIONAL AFFILIATION(S)
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STUDENT NAME

HUMAN RESOURCE MANAGEMENT
‘How HRM contributes to organisational efficiency and effectiveness’
INTRODUCTION
The role of human resource management for the success of any organisation and sustained
competitive advantage can be measured by the effectiveness and efficiency of HRM teams of
organisations. An effective management system in HR has proved to be a crucial component
for gaining success in business. Effective HR will always lead its employees in engagement
and commitment towards organisation while enhancing their satisfactions and work
performance (Nelson, 2010). Effective HRM are been taken as superior element in
company’s performance. Organisational efficiency depends highly on selection process for
right people along with putting them at right place in order to get maximum output from their
expertise. Effective HRM will always perform human resource function that brings efficiency
in organisational work flow. The task of HR managers does not limit to selection and
recruitment process only but to maximise the use of available resources in more strategic
manner. The role HRM can be further divided according to their tasks and their part of role in
different divisions like employee advocate, functional expert, human capital developer, HR
leader, strategic partner, etc. Every organisation has their mission and vision which can be
fulfilled by focussing and directing business towards superior level of competency. This
element can be achievable only if the human resource managers practices effectively and
efficiently through their strategic approach in organisation’s management (Groenwald, 2015).
Fundamentally, the essential tools in human resource practice are training, staffing
and performance maintaining that gives shape to organisational function in satisfying
stakeholders needs. Stakeholders are normally those who are related to the firm who wants to
achieve certain elements from organisation. For example stockholders would like to reap
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maximum outputs, customers desiring for good quality product or service, investors will
always try to get best returns and employees who desires reasonable compensation and
rewards (IGWE, 2014). HRM must follow common procedures and programmes on their
practices while developing teamwork among staff and managers. To foster enhanced
relationship, communication breakdowns need to be eliminated while emphasising on better
corporate culture. To develop constructive and conducive vocation environment, The HRM
must follow theories and model available in literature that enables sound management system
in organisations (Karunaratne, 2016).
A comprehensive HR strategy participates vitally for achieving organisation’s overall
objective and exemplifies the role human resource management completely. The direction or
the path required for poignant of the company in strategic manner require a HR policy that
supports other strategies undertaken by marketing, operational, technological and financial
departments. The requirement and aim of HR mangers should capture the “people element”
through which the organisation can hold its sustaining nature for long term. A skilled HR
manager will always develop organisational strategies in effective way rather simply
summarising the requirement. For this HRM inculcates 5P’s model into their system that was
developed by Milded Golden, Leslie and Chris J. White to enable modelling of five major
elements in organisational structure. Purpose is the first element that states organisation’s
mission and vision along with basic strategy and targets. Principal element states guidelines
or assumptions that guides business including ethics and organisational culture. Third
element is Processes that represent the internal structure and procedures used by company to
produce product or service. Next are People or team who perform work in consistent manner
abiding organisation’s rules and principles in order to achieve goals. Lastly Performance
includes metrics and measured results that provide support to the management for making
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further decisions. To bring efficiency and effectiveness, this model is highly used by HRM in
order to support and reinforce quality management in organisation (Nunes, 2016).
To form an efficient HR practice in organisation, the HR’s needs to follow certain
guidelines. The HR managers must articulate clearly about their thought and what lies behind
their strategy those have never been identified earlier. In order to identify issues, people need
to be motivated and get committed towards organisation so that they operate in effective
style. Issues regarding workforce planning along with fair treatment and motivation requires
managers to retain recruitment and motivate employees while coordinating pay and
rewarding across organisation in order to make alignment in potential pay and claims. HR
managers will always show its people the way in which organisation could sustain easily and
for that strategically performing is required to be ensured.
In effective HR management system, the managers present’s practical cases before
developing HR strategy so that critical thought out is made and initiative taken is recognised
by value it could provide organisation. If the management gives strong reason for proposed
strategies, they may gain quick acceptance from others and thus can make themselves focus
on good management performance. This strategy also brings in tendency for quick win and
proves motivational for HRM’s. On the other hand, encouraging present strategies is equally
important and also needs to be considered simultaneously. Implementation of newer
strategies generally is required during the times when companies make new acquisition or
mergers and thus require initiating opportunities for accompanying HR strategy (Yusoff,
2009). In the year 1970, Evans Martin developed contingency theory for HRM that
incorporates four basic characters in leaders. Those characteristics are participative,
supportive, achievement and directive. This theory is immensely used by HR practitioners
since this theory helps them to fit their component in business strategy while determining
their participating style. This theory also suggests managers about ways in which motivation
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and performance boosting can be done for increasing effectiveness in workplace. Since this
theory increases workers efficiency, the progress in work environment is visible and
communication process is facilitated. A skilful management system provides employees
improvement by satisfying them in their job field which is possible only if they are guided
with clued-up managers (Anzalone, 2017).
According to Harvard model in HRM, the framework that is required to consider
central activity for developing HRM policy among employee is by resolving personal
management problems. With changing demands of customer and emerging of newer
technologies, meeting stakeholders demand has become difficult to achieve. The Harvard
theoretical model has got features that keep alignment between manager’s responsibilities
and competitive strategies of organisation. Mission of HRM policy keeps human activities in
shape by giving them rewards and appraisals while recognising their work progress.
Characteristics of Harvard Model such as relationship maintenance between shareholders,
Stakeholders interest development, managing employees, adapting government regulations
and developing workforce after analysing situational factors in systematic manner helps
HRM achieve their success in tactful manner (Agyepong, 2010).
With changing time, the role of HRM have become critical as they are not considered
for managing work only but controlling human capital and process also. An efficient manager
will always look at the complexities and challenges while meeting demands of businesses
that can be in term of competition between foreign markets, emergence of technology,
inculcating scientific researches or making major organisational change (Juan). As a result,
the task of HRM becomes competent and challenging while executing business strategy and
making match with available resources and human capital. Strategic decisions made shall
consider training and development processes so that any new change of introduction is
inculcated without much difficulty. Human capital theory encourages people to develop their
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ability and skill to enhance organisational potential and significance. Employee’s skill and
knowledge will increase the economic value of organisation since efficient work of
employees will help achieving organisation’s outcomes in effective method (Vigneshwaran,
2008).
CONCLUSION
The human resource management suggests people about strategies and ways in which
business resources can be managed. There are various functions performed by HR managers
and thus HR professional are sometimes considered as consultants also. They are the
advisories of managements and at the time of issues relating people or employees, HRM
departments are approached. For example HR professionals advise management and
supervisors about the process they could assign new employees or make placements for
present employees according to their skill. Thereby HR managers help organisation adapt
with the environment successfully while conducting functions on the basis of employees
preferences (Shafer, 1998). Thus overall efficiency in workflow is enhanced by recognising
potentiality of employees. By suggesting strategies for increasing dedication of employees
toward organisation begins by recruiting or making match with right person to right job and
thus effectiveness is build. Once the employees are placed according to their capabilities and
qualifications, they feel challenging to compete and thus becomes motivated to outshine
others (Bianca, 2017). HRM teams are solely responsible for gaining effectiveness and
efficiency in organisation and to build such HRM team is not an easy task for organisation.
On concluding note it can be said that to maintain work efficiency and effectiveness is
fundamental role of HR team and to consider it has became important for organisations as
they depend highly on them.
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REFERENCES
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