Question:
How HRM Contributes To Organisational Efficiency And Effectiveness?
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 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 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 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 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.
References
Agyepong, F. D. (2010). The applicability of the Harvard and Warwick models in the development of human resource management policies of large construction companies in Ghana. Retrieved from https://dspace.lboro.ac.uk/dspace-jspui/bitstream/2134/11549/8/The%20Applicability%20of%20the%20Harvard%20and%20Warwick%20Models.pdf
Anzalone, C. (2017). Structural Contingency Theory in Human Resources. Retrieved from https://smallbusiness.chron.com/structural-contingency-theory-human-resources-38519.html
Bianca, A. (2017). The Role of Human Resource Management in Organizations. Retrieved from https://smallbusiness.chron.com/role-human-resource-management-organizations-21077.html
Groenwald, J. (2015). Human Resource Management and Organizational Effectiveness. Retrieved from https://www.simplexpayroll.com/blog/2015/12/human-resource-management-and-organizational-effectiveness-2/
IGWE, J. U. (2014). Effective Human Resource Management As Tool For Organizational Success. Retrieved from https://www.academia.edu/9978194/Effective_Human_Resource_Management_As_Tool_For_Organizational_Success
Juan, L. (n.d.). HR discretion: understanding line managers’ role in Human Resource Management. Retrieved from https://www2.warwick.ac.uk/fac/soc/wbs/research/irru/publications/recentconf/juan_-_edw_-_lest.pdf
Karunaratne, V. (2016). The Human Resources Management Practices -Models and Theories. Retrieved from https://www.linkedin.com/pulse/human-resources-management-practices-models-theories-karunaratne
Nelson, J. (2010). HR Focus Efficiency and Effectiveness. Retrieved from https://www.yourhrremedy.com/news/?p=18
Nunes, P. (2016). 5 P’s Model Concepts. Retrieved from https://knoow.net/en/economics-business/management/5-p-model/
Shafer, L. D. (1998). From Human Resource Strategy to Organizational Effectiveness: Lessons from Research on Organizational Agility. Retrieved from https://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1124&context=cahrswp
Vigneshwaran. (2008). Human Capital Management Theory. Retrieved from https://www.scribd.com/doc/15580524/Human-Capital-Management-Theory
Yusoff, H. S. (2009). HR Roles Effectiveness and HR Contributions Effectiveness: Comparing Evidence from HR and Line Managers. Retrieved from https://www.researchgate.net/publication/41890942_HR_Roles_Effectiveness_and_HR_Contributions_Effectiveness_Comparing_Evidence_from_HR_and_Line_Managers
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