The role of HRM plays within the strategic direction of an organization.

Introduction

Human resource management greatly determines how an organisation is able to continue operations in a constantly changing world. Organisations have to adapt to dynamic socio-economic environments characterised by globalisation, free markets, customer needs, market competition and many more challenges. Decisions made by human resource management teams have an effect that determines an organisation’s overall efficiency and growth. Human resource management involves two major aspects in an organisation, internal labour relations and as an organisational operations function. Human resource management is therefore critical to enhancing the success of every organisation.

In recent years, the trend in most organisations has been to achieve cost-cutting measures through minimising expenses in human resource management. This is due to the fact that labour costs are big consumers of collected revenue.

Human resource management

Appropriate human resource management strategies are paramount to both enhancing and determining the outcome of an organisation’s approved strategies. As a strategic corner stone in every organisation, human resource management encompasses ideals in various disciplines from psychology to finance to economics to strategic management. Human resource management therefore involves an interdisciplinary perspective.

Human resource management decisions have a direct impact on an organisation’s performance in that quality, profitability, stocks performance, productivity and organisational survival can be enhanced through proper HRM practices.

Today’s organisational environments are very dynamic and as such, a company is only able to achieve the required knowledge and skill with respect to an organisation’s strategies. Considering that each organisation is unique in its own right, the human resource management team has to project the objectives and strategies of an organisation to the employees and attract employees with the desired qualities.

However, human resource is an area whose potential can be to enhance the value of an organisation’s objectives. In line with every organisation’s strategies, decisions affecting the management of human resource determine the outcome with reference to value creation and more so overall operational performance. An organisation with the right employees and with the right motivation has a comparative advantage over other organisations. In that, it can be competitive, innovative and profitable through effective human resource management. An organisation’s success is thus predetermined by the inclination towards instituting human resource policies, which competitors cannot easily integrate in their organisations.

Strategic investments and assets are those which the closest competitor cannot imitate or trade, are scarce and also specialised. Therefore, human resource can be considered as an intangible asset that influences an organisation’s financial performance, future and operational abilities.

Recent years have seen HRM diversify in the forms of administration and continuous development of strategies has led to adoption of socially intricate issues such as the embodiment of cultural and interpersonal liaisons. Such policies have been developed over time and organisations that have been able to incorporate these new findings have enjoyed an upper hand in an ever-dynamic business environment.

An organisation’s growth, prosperity and progress is determined by the capability to achieve and possess a comparative advantage. http://www.professorfontaine.com/files/TheImpactOfHRMonOrgnaizationalPerformance.pdf                      http://personal.cityu.edu.hk/~mghempel/HNA/Competitive-Strategies-and-HRM.pdf