Human Resource Management Sustain in the Market

Question: Describe about the Human Resource Management for Sustain in the Market. Answer: Introduction Human resource management is an approach that has come into limelight in the past few decades. Human resource management helps business organisations in optimising the performances of their employees by establishing better employer-employee relations and by improving the work conditions for the employees. In the present day scenario of globalised business, it has become increasingly difficult for business organisations to sustain in the market as they are now competing with organisations from all over the world. Further, in such conditions, it also becomes very difficult for business organisations to achieve market competencies through processes or other resources as they can be easily replicated. In such conditions, business organisations can only rely upon the efficiency and performance of their human resources in achieving a competitive edge in the market and as a result, human resource management is looked upon as one of the main functional units in almost all business organisations (Mathis and Jackson, 2003). As we can see the importance of human resource management in the present day world, it is important that we discuss its advantages in details. Therefore, in this assignment, we will discuss the ways in which human resource management can add value to a business organisation as a result of its various functions. How Can Hrm Add Value To Business Organisations Let us now discuss the ways in which human resource management can add value to business organisations in the present day world: Human Resource Planning, Selection And Recruitment One of the most important functions of human resource management is selection and recruitment and helps business organisations a great deal in becoming more effective and efficient. Selection and recruitment is the process of announcing new job openings and hiring new candidates to fulfil the human resource demands of an organisation. Selection and recruitment is an important function for all types of business organisations as business organisations look for the right talent that can be recruited for the right tasks at the right time. Human resource management aims at designing selection and recruitment programs that can help the companies in testing the candidates or applicants based upon the psychometric or psychological qualities required for a particular job opening. Further, it is also important that business organisations have the right number of employees so that neither there is wastage of human resources nor a shortage i.e. human resource management ensures that there is maximum productivity and efficiency at any point of time (Smallbusiness.chron.com, 2016). Performance And Management one of the greatest ways in which human resource management adds value to an organisation is through its function of performance management. Performance management is an approach that allows business organisations in optimising the performance of individuals so that they can contribute more towards the achievement of organisational goals and objectives. Performance management aims at designing systems that convey expectations of the employers from the employees and also helps the employers in designing achievable and practices goals. Using performance management systems, organisations are able to foster an environment where the organisations has a greater focus towards performing better and helping the organisation in achieving its goals and objectives (Deadrick and Stone, 2014). Performance management systems are designed in such a way that they are able to analyse the performance of the employees on a regular basis and also provides the employers with a mean to either warn the under performers or consider them for planned separation. Further, performance management systems can also be clubbed with performance appraisals and potential appraisals to make them more effective and render efficient results. Compensation, Benefits And Rewards another important function in human resource management is the design of compensation, benefit and reward systems. It is important that the employees are given appropriate compensations that nether makes them feel underpaid nor overpaid and should also be according to the market standards for a particular job profile. Apart from compensation management, human resource management also helps business organisations in designing benefits and rewards system for employees who demonstrate excellent performances during a year and help their organisations in achieving their goals and objectives, which ultimately helps business organisations in keeping their employees motivated (Harvard Business Review, 2016). Retention Attracting New Employees another important way in which human resource management can help in adding value to an organisation is by helping a company in retaining its top talent and in attracting new talent. In the present times, talented employees have a lot of opportunities as they can switch easily between competitive companies if they feel like. Further, if the employee turnover ratio of a company is high, it results into wastage of a lot of important resources that are invested into the employees for their betterment, which makes it important that the talented employees of a company are retained. Using various concepts, such as employee engagement, motivation, job commitment, performance potential appraisals, promotions, rewards, benefits, etc. human resource managers are able to retain their employees as they feel that they have a lot of opportunities in their court if they continue working with the same company (Reddington, 2006). On the other hand, a company with good human resource policies and a large pool of talented employees is also able to build a good reputation in the market and new or fresh employees are more likely to look for such companies as compared to those which have high employee turnover ratios or do not take care of its employees. Training And Development training and development is a function in human resource management that helps business organisations in improving the technical proficiencies of their employees and also helps the employees to develop their skills. Training and development programs aim at making the employees more effective, efficient and competitive by bringing about an overall development in them. Training and development programs are not only able to develop the employees but are also able to help the employers in retaining the employees and become more competitive in the market as a result of increased competencies of their employees. It also ensures that an organisation can cope up with the latest market trends and can easily compete with its competitors in a global competition. Thus, it further helps in adding value to a business organisation (Today, 2016). Diversity Management workplace diversity, in simple words, is related with the differences that exist between various people working in a single workplace. Diversity can encompass race, gender, ethnic group, age, personality, gender, culture, education, background, conative styles, etc. Diversity in a workplace has been found to have a number of benefits for an organisation. It allows people from different cultural backgrounds and thinking in different manners to come together and create unique ideas to various problems, which ultimately gives rise to creativity and innovation. Even though diversity has a number of benefits for a company but it is very challenging to manage diversity in the workplace. If the human resource management of a company is efficient and is competitive enough to easily manage workplace diversity by promoting cross cultural tolerance and team work, an organisation can benefit a lot from its diverse workforce and can achieve new heights in the market (Gordon, 1995). Change Management human resource management allows employers to continuously work for the betterment of their workforces and to improve their competencies according to the latest trends in the market. It also allows the employers to establish better relations with them and improve their performance by fostering an environment that promotes regular changes in work habits and routine. It has been found that monotonous work habits and no changes in the workplace can make things boring for the employees and can also kill their creativity and innovating power. Human resource management adds a lot of value to an organisation by helping the employees in coping up with change programs and by making them more comfortable with regular changes. When organisations introduce changes in the workplace, there is a lot of resistance and unrest and most of the times, business organisations are not able to implement the desired changes at all. If the human resource management of a company is efficient and talented, it can take a lot of initiatives that can help the employees in becoming more prone to changes and accepting them as a positive move for the organisation as well as for their future (Todnem By, 2005). Conclusion Human resource is rightly regarded as one of the most important resource for any business organisation as it can help companies in achieving their long term and short term along goals along with market competencies. On the other hand, if a human resource management team of a company knows what it has to do and is able to perform its functions efficiently, it can make a lot of difference and can add a lot of value to an organisation. Thus, it is highly important that business organisations direct their attention towards managing their human resources in the best possible manner and achieving its benefits in the short as well as in the long run. Reference Deadrick, D. and Stone, D. (2014). Human resource management: Past, present, and future. Human Resource Management Review, 24(3), pp.193-195. Gordon, A. (1995). The Work of Corporate Culture: Diversity Management. Social Text, (44), p.3. arvard Business Review. (2016). Why HR Really Does Add Value. [online] Available at: https://hbr.org/2011/12/why-hr-really-does-add-value [Accessed 1 Dec. 2016]. Mathis, R. and Jackson, J. (2003). Human resource management. 1st ed. Mason, Ohio: Thomson/South-western. Reddington, M. (2006). Transforming HR: Creating Value through People. Human Resource Management International Digest, 14(6). Smallbusiness.chron.com. (2016). How Does HR Add Value to an Organization?. [online] Available at: https://smallbusiness.chron.com/hr-add-value-organization-50980.html [Accessed 1 Dec. 2016]. Today, P. (2016). How can HR prove it really adds value? - Personnel Today. [online] Personnel Today. Available at: https://www.personneltoday.com/hr/how-can-hr-prove-it-really-adds-value/ [Accessed 1 Dec. 2016]. Todnem By, R. (2005). Organisational change management: A critical review. Journal of Change Management, 5(4), pp.369-380.