The Impact of HRM Practices on Employee Satisfaction and Development

This essay explores the pivotal role of Human Resource Management (HRM) practices in fostering employee satisfaction, promoting development, and ultimately enhancing organizational performance. It highlights that employees are the most valuable and costly asset of any organization, making their satisfaction crucial for success. The essay delves into various HRM functions, including recruitment, training, motivation, and performance appraisal, emphasizing their impact on job satisfaction and overall productivity. It further elaborates on the importance of well-defined HRM policies and practices in attracting and retaining talent, adapting to organizational changes, and aligning individual goals with strategic objectives. By focusing on employee development, motivation, and commitment, HRM practices contribute significantly to a positive work environment, increased innovation, and improved organizational performance. The essay concludes that effective HRM practices are essential for ensuring employee well-being and driving organizational success.

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IMPORTANCE OF HRM
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1IMPORTANCE OF HRM
In the modern business environment, majority of the business entities have a nicely
developed human resource departments in the primary organization structure. As every
company is made of people, developing their knowledge and skills, enhancing their talents,
acquiring their services, motivating them so that they can give high level of performance as
well as making sure that they are maintaining their commitments is very important in order to
accomplish the goals and objectives of the organizations. It helps the organization to achieve
success in its business (Patel, Messersmith and Lepak 2013). In this way, the team HRM
plays its important role in every business environment. This paper seeks to elaborate on the
role of HRM practices in improving employee satisfaction and development. It will also shed
light on how effective HRM practices helps to increase the organizational performances.
Functions of the HRM play a crucial part in enhancing the productivity and
performance of the business and at the same time in assuring employee satisfaction. This in
turn can provide the company with a clear insight view of the competitive edges as well as it
openly contributes to the overall success of the organization in general. Effective HRM
policies and practices enable the organizations to effectively deal with the HR related issues
in a strategic manner (Brester 2017). This further allows the workforce to provide services
which are high in quality, regardless of the external and internal challenges to the company.
Sufficient HRM policies facilitate the business entities to give utmost importance to their
complete business strategies. The HR department of an organization also makes it easy for it
to attract new, talented and practical workforce as well as to retain competent and high
performing employees (Cania 2014). It helps to supports the managers and the several
different groups of employees while they are adapting to the change in the organization as
well as enables the use of skills and knowledge for deciding how the work is going to get
done.

2IMPORTANCE OF HRM
Although there are companies which still do not consider the HRM as an important
function of the management, but it is undeniable that the human resource team does play a
great pant by helping and contributing immensely to the notable success of many
corporations today. The employees undoubtedly represents the most essential asset of the
organization as the employees are well involves in the operations of the business and with the
same, enables the process of decision-making to occur (Porter and Kramer 2019). In addition
to this, it can also be said that the employees are the top most costly asset of an organization
as because of the fact that around 70% of the total budget of the company is allocated to its
labor force (Koski and Pajarinen 2013). Hence, it can be said that employees are indeed a
valuable asset that can make any business developed and profitable. This makes it important
to look after the fact that whether they are satisfied with their job and work. Therefore, it is
very important to identify proper HR practices and policies on which the employees can
depend in a bit so that to put up its success in the very industry.
Job satisfaction is one of the major prominent correlates of the innovative Human
Resource practices (Renwick, Redman and Maguire 2013). It is a sense of being fulfilled by
the demand that an employee might have in terms of both psychological and physiological
esteem and it inculcates in the employees a positive state of mind. It is linked to both the job
design and motivation as these factors helps in determining the level of satisfaction of the
employees at their job place. The employees are usually regarded as the most fragile element
of an organization in context to satisfaction and hence, taking care of their satisfaction level
falls under the responsibilities of the HR department of the companies (Sutton 2014). HR
department are bound to manage the employees by implementing different methods and
techniques of training, hiring, motivating, and all the other plans that are related to the
workforce. They play a major part in the organizational success as job satisfaction is
determines by the policies and practices of the human resource. Human Resource team plays

3IMPORTANCE OF HRM
a crucial role in the overall organizational success as the level of job satisfaction is
determined by the policies and practices of the Human resources management department.
The job design, job enrichment, job rotation, organizational citizenship behavior, employee
appraisal and compensation plans are all some of the most dominated issues for the
employees inside an organization.
Most of the companies employ a well-written document that is entitles with the HRM
policies and practices that the HRM department is expected to follow lawfully for the
betterment of the organization. Such practices and policies are significantly consisting of the
recruitment and selection processes, human resource planning, total rewards and training and
development of the employees (Dries 2013). These practices are basically planned for
allowing the complete success of the company. Therefore, there is high need to care for the
human resources and regard them as the strategic associated of the company. They must be
involved in all the functional level of the management, which signifies that they must be
assessing the employee performances at diverse levels in order to identify the individual
performances of each employee working in the organization and their effect on the overall
productivity of the company. For the low performing workers, the HRM department could
advise and make the necessary improvements so that to enhance their performances (Bos-
Nehles, Van Riemsdijk and Kees Looise 2013). Moreover, the human resource team must
focus and male use of the time and efforts in order to support the business while planning,
implementing and the controlling process.
The Human resources activities like that of recruiting the talented and skilled
candidates within the workforce, developing the candidates during the time they are working
for the company and finally retaining them influences positively the basic performance of the
organization by relating the individuals to the business, operational as well as strategic
aspirations of the company (Jafari, Akhavan and Nourizadeh 2013). It also helps the

4IMPORTANCE OF HRM
organization by providing improvement, retention of the skilled workforce and possession
that could bring in high level of productivity, innovation and flexibility as well as retaining
such individuals who fit the organizational culture and the much planned requirements of the
organization.
Furthermore, the training, education and development process could also have a
positive impact on the business performance of the entities by enlarging and enhancing their
proficiency foundation and developing the competence essential levels among the employees
(Nicolaescu, Alpopi and Zaharia 2015). Such processes also encourage flexible learning
which takes place when the employees dynamically want to achieve the skills and knowledge
which can further support the organizational goals and helps in mounting the learning climate
within the company. It opens up a medium of growth in which, along with training and
mentoring, thrives the self-managed learning as well. Increase in motivation and commitment
could have a positive effect on the performance of the organization through ensuring that the
employees are paying attention in their respective working activities, are constructive and at
the same time, it also ensures that they are happy in working for the company. Along with
this, it also ensures that the employees are decisive for accomplishing the objectives and
goals of the organization.
Moreover, the recruitment and the selection process also help in increasing the
production of the organization. Recruitment is the process of identifying that the organization
seeks to employ someone until the time when the request form for the position or designation
has reached at the organization (Perkins and Arvinen-Muondo 2013). There are mainly two
kinds of recruitments, namely, internal recruitment and external recruitment. The internal
recruitment signifies that the company is targeted towards fulfilling the job posts that are
unoccupied from within the very company. The external recruitment, on the other hand,
implies that the company is looking to fill up the vacancy from any candidate who is suitable,

5IMPORTANCE OF HRM
belonging outside the organization. Efficient recruitment policies and practices help the
company to know- which is the appropriate source of recruiting in order to fill the vacant job
placement (Basak and Khanna 2017). Through this company can mentor as well as train the
new labor force so that to sustain the position of the very company and to teach them
regarding the future motives, plans, objectives and directions of the company.
Hence, from the above discussion it is clear that Human Resource Management is
basically concerned with the process of ensuring that the tasks of proper policies and
practices by the people within the organization, recruitment and selection procedures,
employee loyalty, training and development of the employees, performance appraisal,
employee motivation, the rewards and compensations are also put in place. In other words, it
is concerned with the dimension of the people in the management. Hence, the HRM
practices, when done effectively, do have the potential to improve the level of development
and satisfaction of the employees and with the same, it also helps in improving the
organizational performance.

6IMPORTANCE OF HRM
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7IMPORTANCE OF HRM
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