The Importance Of Human Resource Management

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Recommended: Consider the impact of HRM on organisational performance and the challenges

Workforce management (most commonly known as human resource management, or HRM) as defined by Price (2015) is a philosophy of people management based on the belief that human resources are uniquely important in sustained business success. An organization gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives. HRM is aimed at recruiting capable, flexible and committed people, managing and rewarding their performance and developing key competencies (p. 28).
Workforce management has its inceptions far back in the late eighteenth and early nineteenth century around the time of the Industrial Revolution, when “time” and “motion” considers were led broadly over a …show more content…

SHRM explicitly linked people, management, policies and practices to the achievement of organisational outcomes and performance, most particularly financial and market outcomes” (p. 1). Since that time, HRM is progressively moving to SHRM. Nevertheless, Boxall and Macky (2007), reported that research has revealed that strategic human resource management has been most concerned with the impact of HR strategies on organizational performance. According to Anca-Ioana (2013), (as cited in Popescu, Marincas, and Puia, 2007), the essential objective of strategic human resource management is to develop strategic capability to guarantee that the organization has highly qualified, motivated employees to achieve competitive advantage. Reported by Deb (2006), reasons organizations are moving towards SHRM are the problems with traditional human resource management as enlisted below:
(a) Characteristics of traditional Human Resources Management – primarily staff consultative function.
(b) Human Resource Dilemma – the non-involvement of the human resource function in the business planning process of the organization.
(c) Difficulties in gaining competitive advantage through effective alignment, integration and utilization of human resources.
(d) Pressure from

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