We have discussed the basic concept of HRM and the styles in which it helps the organization meet its goals. In this article, we discuss the reasons why organizations have a HRM strategy as well as the business drivers that make the strategy crucial to the organization’s success.
It is a fact that to develop in the disordered and unstable business environment, firms require to usually initiate and be “ahead of the curve” in terms of business practices and strategies. It is from this motivation to be at the top of the pack that HRM becomes a beneficial tool for management to assure success.
The Evolving Business Paradigm :
One of the factors behind organizations affording a lot of consideration to their people is the nature of the firms in the current business environment. Given the fact that there has been a steady movement towards an economy based on services, it becomes essential for firms engaged in the service sector to manage their employees motivated and productive. Even in the manufacturing and the traditional sectors, the need to continue competitive has meant that firms in these sectors expand strategies that make valuable utilization of their resources. This changed business view has come about as a decision of a paradigm shift in the style businesses and firms view their employees as more than just resources and rather adopt a “people first” approach.
Strategic Management and HRM :
Modern day HRM practices, there is a required to align organizational goals with that of the HR strategy to ensure that there is an arrangement of the people policies with that of the management intentions. This means that the HR department can no longer be viewed as an attachment of the firm but instead is a vital organ in ensuring organizational success.
The focus of strategic management are to afford the organization with a sense of direction and a feeling of purpose. The days when the human resources manager was concerned with administrative service ended and today the human resources management practices in many industries are as enthusiastic as the marketing and production functions.
Importance of HRM for Organizational Success :
The practice of HRM must be seen through the prism of overall strategic targets for the organization rather than a standalone tint that takes a unit based or a micro access. The idea here is to accept a holistic aspect towards HRM that ensures that there are no piecemeal approach and the HRM policy implicate itself absolutely with those of the organizational targets. For instance, if the training requirement of the employees are easily met with perfunctory trainings on omnibus topics, the firm stands to lose not only from the time that the employees spend in training but also a loss of direction. Hence, the organization that hold its HRM policies seriously will ensure that training is based on focused and topical methods.
In conclusion, the practice of human resources management must be integrated with the general strategy to ensure an impressive use of people and allow better returns to organizations in terms of ROI for each rupee or dollar spent on them.
Unless the HRM practice is designed in this style, the firms stand to lose from not utilizing people absolutely. And this does not bode well for the success of the organization.
If you want to know more about the importance of HRM for organizational success, then HR training in Chandigarh is best for you.