HRM IMPACT ON ORGANAIZATIONAL PERFORMANCE

Human resource is the most powerful asset in an organization and it becomes a challenge to create a positive bond between the employees and the organization in terms of job satisfaction, job security and financially well being etc.,

DEFINITION OF HRM

“According to Byars & Rue 2006 Human resource Management is defined as a system of activities and strategies that focus on successfully managing employees at all levels of an organization to achieve organizational goals. It is the philosophy, policies, procedures, and practices related to the management of people within the organization.

HISTORY OF HRM

During 1920, jobs which carries tittles as ‘Labor Manager’ or ‘Employment Manager’ were introduced where there were large factories, the role involved handling absence, recruitment dismissal and queries over bonuses. And during 1945 employment management and welfare work had become integrated under the broad term “Personal Management” where the role consists of implementing the rules demanded by large scale. And this also lead to the result of developing poor industrial relations. Around the mid – 80s, the term ‘Human Resources Management “arrived from the USA, it seemed to suggest that employees were an asset and at the same time HR also appeared to emphasize employee commitment and motivation.

HRM IMPACT ON ORGANIZATIONAL PERFORMANCE

At present HRM is not limited to manage and positively exploit human intellect it also focuses on managing physical and emotional capital of employees. Satisfied employees can do immense contribution in terms of enhancing the productivity, efficiency which will pave  the way to high performance of the organization. So the HRM must play a major role and should be more proactive in activities such as recruit more talented and skilled individuals and develop their skills through proper training and emphasize the ultimate retention by ensuring their financial well being through proper compensation methodology and appraisal towards the performances. This would create a brilliant workforce who will fit the company cooperate culture and bring the higher productivity, innovation and flexibility to the organization which will lead to establish higher profit margin.

Training, Development and education can have a positive influence on the performance of business entity by enlarging the proficiency foundation and develop the levels of competence essential in the employees, encouraging flexible leaning that takes place when people dynamically seek to gain the knowledge and skills that support the goals of the company and mounting a climate of learning, a growth medium in which self- managed learning in addition to training and mentoring thrive.

(Armstrong,2009).

Creating a ‘happy to work’ environment within the organization will increase the motivation and commitment of people and create a positive impact on performance of the organization which ensure that people are aggressively pay attention to their expected KPIS and they are decisive to accomplish organizational objectives.

References

https://www.uniassignment.com/essay-samples/business/the-impact-of-hrm-on-organizational-performance-business-essay.php

http://consensushr.com/the-history-of-human-resource-management-hrm/

http://samples.jbpub.com/9781449653293/27829_CH01_003_032.pdf

https://www.managementstudyguide.com/importance-of-hrm.htm