Importance of Human Resource Management in Organization

Importance of Human Resource Management in

Organization?

P.C. PAUL

Prepared By: Paul, Prakash Chandra

               ID: 13-23388-1

       Section: E

Abstract

Human Resource Management is deals with the process of managing people in organizations through hiring people, training and development, compensation, retention of people and through other human resource activities. Changing competitiveness in the global markets has created new challenges for business organizations as well as individuals. To cope with this changing environment, human resource management (HRM) practices are expected to play a more vital role in firm performance improvement. To sustain the high level of competitive advantage a firm requires talented and skilled workers

has found that organizational productivity and high performance depends on the selection of the right person, which is also a pathway to reduced turnover. HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. The role of human resource decisions in creating and sustaining organizational performance and competitive advantage. The standpoint of this study emphasizes the important role of innovation performance and environmental performance when addressing the link between human resource management and organizational performance.

Acknowledgement

I would like to thank those students who support me for helping the research report and dedicated his valuable time for the survey. Also I would like to express my deepest appreciation to all those who provided me the possibility to complete this survey. Finally I would also like to thank our honorable faculty Dr. Md. Faruque Hossain sir for guiding me to complete the whole research paper.

                                                                 Table of Content

1. Introduction

1. Background:  Human Resources management is critical in creating effective and efficient organizations. The activities of managing human resources it means that human resource practices.  Human Resource Management is the concern about the employees of an organization. Human Resource Management is deals with the process of managing people in organizations through hiring people, training and development, compensation, retention of people and through other human resource activities. The changing global market competitiveness has created new challenges for organizations as well as individuals.

1. Justification: The purpose of the study is achieving organization goal how Human Resource Management helps organization. Many researchers say that individual HR practices and decentralization of HR practices can indeed directly influence organizational performance (Youndt et al., 1996). Current industry HRM practices are that they are not strategic or integrated, and the core HRM issues of today do not always (Fitzgerald and Mills, 2012). The integration of human resources with the appropriate strategy can generate a sustained competitive advantage for the firm (Wei, 2006).

1. Literature Review: New modern era global business rapidly changing economic environment this changing are happens because of globalization, changing customer and investor demand,  deregulation of markets and market competition, has become the norm for most organizations (Becker and Gerhart, 1996). HRM practices conclude that does can help to create a source of sustained competitive advantage especially when they are aligned with a firm's competitive strategy (Huselid, 1995). An effective HRM strategy should balance the cost of replacing of employees, reduce employee turnover, employee highly productive, good performer stay longer and encouraging the weaker performer (Sheridan, 1992). A firm will be challenged to acquire or create the optimal package of human resources necessary for its strategy and to enhance its overall performance (Wei, 2006).  HRM is frequently practiced in firms to act as for formation of human capital which will lead to competitive organizational performance (Wong et al, 2013).

1. Hypothesis: Research focusing on the firm-level impact of HRM practices has become popular in recent years (Delaney and Huselid, 1996).  Relationship between HRM policies and practices that reflect the more traditional or technical, personnel perspective (Huselid et al., 1997) and increase the capabilities of hire good employee set up a company good vision and company driving force. HRM practices comprise the many activities through which firm create human capital that meets organization conditions.

1. Objective: The study wants to know contribution of HRM in organization development, positive attitude among worker toward organization, reducing wastage and making maximum use of resources, motivation of employee, maintain good human relation within the organization.

Note: HRM = Human Resource management.