The Importance of Human Resource Management

1057 Words3 Pages
bulb-icon

Recommended: Managing people and performance in HR

Human resource management governs the most important asset of any organization: the employees. Human resources, or the employees of an organization, ‘both as labor and as a business function, has traditionally been viewed as a cost to be minimized and a potential source of efficiency gains’ (Becker and Gerhart, 1996, pp. 780). Organizations tend to overlook the fact that human resources is the backbone of any organization.

Every one of us has our own personal skill sets, knowledge and experiences. We come from different backgrounds and different aspects of life. This attributes contributes greatly to the success and failure of an organization (Turban and Greening, 1997, pp. 658--672). A company may benefit in terms of upcoming productivity based on the employees that they hire. They may be replaced by another, but their abilities might differ. One may be systematic and hardworking but if he or she is replaced with another, who is hardworking but has no creativity, the company might suffer in the long run.

Physical assets, or capitals of a company are equally important. Things such as tools, machines, property, materials and money are considered as important as human capital (Schultz, 1961, pp. 1--17). I might agree to this to a certain extent. Human capital, the employees, are the ones that keeps the engine going, despite the physical capital. They are the one running day to day activities, undertaking the goals and objectives set by the company to boost its productivity and successes. Without the people, the above mentioned would not exist, it would not progress. Having the right people in the right job will boast the company’s capabilities and also enable the company to have a competitive edge in the market or industry....

... middle of paper ...

... Industrial Relations: A Journal of Economy and Society, 23 (1), pp. 16-39. [Accessed: 1 Nov 2013].

Noe, R. 2009. Human resource management. New York: McGraw-Hill Higher Education.

Becker, 1964; Tsang, Rumberger, & Levine, 1991

Schultz, Theodore. 1961. "Investment in Human Capital." American Economic Re-

view 51 (March): 1-17

(Lado, A. A., & Wilson, M. C. 1994. Human resource systems and sustained competitive advan-

tages: A competency-based perspective. Academy of Management Review, 19: 699-727.)

(Creating Commitment, Michael O'Malley, John Wiley & Sons, 8 May, 2000 - Business & Economics - 259 pages)

Schabracq, M. and Cooper, C. 2000. The changing nature of work and stress. Journal of Managerial Psychology, 15 (3), pp. 227--241.

LIEBOWITZ J. (2001) Knowledge management and its link to artificial

intelligence. Expert Systems with Applications 20, 1–6.

Show More
Related

  • The Decline in Union Membership in Australia

    1380 Words  | 3 Pages

    Deery, S. , Plowman, D. and Walsh, J. (2000), Industrial Relations, A Contemporary Analysis, McGraw Hill, Roseville.

    Read More

  • Human Resources Management at REI, Inc.

    2489 Words  | 5 Pages

    Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.

    Read More

  • Comparing and Contrasting Two of the Four Models of Stress

    1553 Words  | 4 Pages

    Lazarus, R.S. (1991). Psychological Stress in the Workplace. In P.L.Perrewe (Ed.). Handbook on job stress, Journal of Social Behavior and Personality, 6, 1-13.

    Read More

  • The Importance Of Human Resources

    774 Words  | 2 Pages

    Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)

    Read More

  • Human Resource Challenges of the 21st Century

    1350 Words  | 3 Pages

    Noe, Raymond A., John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright. Human Resource Management: Gaining a Competitive Advantage. 7th ed. Boston: McGraw-Hill Irwin, 2010. Print.

    Read More

  • Interview With a Human Resources Manger

    1933 Words  | 4 Pages

    How well a business manages its assets and resources predicates its overall success. Companies that spend financial resources foolishly are apt to find themselves in bankruptcy. Companies that work capital equipment resources beyond the machine’s capabilities or for other than intended purposes are apt to experience downtime and/or lose the equipment to failure. The same premise holds true for a company’s human assets. However, unlike other company assets, which depreciate over time, human assets appreciate over time when managed properly. The article, Importance of Human Resource Investment for Organizations and Economy: A critical Analysis, explains the importance of managing human assets as follows:

    Read More

  • The Importance of an Employee Stress Management Program

    2748 Words  | 6 Pages

    In Murphy and Shoeborn’s paper, Stress Management in Work Settings, practical information in presented regarding the application of a stress management program within the workplace, along with guidance for creating a “comprehensive stress management program which encourages each individual to become more self-responsible and self-determining, and suggests that the overall program must focus on dynamics within the organization as well as within the individual” (Murphy & Shoenborn, 1987). In addition, Murphy and Shoenborn state that to develop an effective stress management program; several steps as indicated in must be applied as outlined in Figure 3

    Read More

  • Human Resource Management

    1222 Words  | 3 Pages

    An organizational human resources department utilizes the hiring and firing process to meet the organization’s personnel needs. Organizational human resource departments are charged with the oversight of an organizations administration department. The practice of hiring and firing people is a process employer’s conducts on a daily basis. This process has to be done in a proper manner and not in haste. The implication that can occur from the improper hiring and firing process could and can have a positive or negative impact on an organization. Therefore, employers must carefully evaluate their decision to hire/fire individuals and its impact on the organizations’ workplace environment and others employees. Human Resource Management is important for an effective organization. In today’s organization, HRM is valuable to the organization because of increase legal complexities and its known for improvement in productivity. However, management should realize that poor human resource management could result in an outburst of hiring process followed by firing or layoffs. According to (Satterlee 2013, p. 194), “Hiring the best candidate who is also a good fit for the organization is crucial for the success of an organization, because a poor hiring decision will have repercussions across the entire organization”. Satterlee made a valid point because poor hiring could have an impact on the bottom line performance of the firm. In other words, HRM is the contributing factor to the success of the organization including motivating and maintain the staffs. The purpose to the motivation is to ensure that all employees grow to a full potential. According to (Sims 2006, p. 5), “HRM efforts are planned, systematic approaches to increasing organizati...

    Read More

  • Leadership Style

    993 Words  | 2 Pages

    Boone, L. E., & Kurtz, D. L. (2009). Contemporary Business (13 ed.). New York, NY: Wiley.

    Read More

  • Human Resource Management In The Workplace

    796 Words  | 2 Pages

    Human resource is the most valuable and unique asset of an organization. The successful management of an organization’s human resource is an exciting, dynamic and challenging task , especially at a time when the world has become a global village and economies are in a state of flux. The lack of talented resource and the growing expectation of the modern day employee has further increased the difficulty of the human resource function.

    Read More

  • History Of Human Resource Management

    1379 Words  | 3 Pages

    Human resource management is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. (1)

    Read More

  • Organizational Change and Stress Management

    1309 Words  | 3 Pages

    ...change and stress by soliciting input from managers and employees making it more likely to produce comprehensive stress management strategies that can target the organization as well as the individual for change (Murphy, 1995). The issues of individual resistance to change, the potential sources of stress and consequences of change and stress on an organization have been addressed in this paper. For all that has been written about change and the effects of change, there is still so much more to be learned (Longenecker & Fink, 2001; Washington & Hacker, 2005). Future studies would profit from the use of additional measures to cross-validate findings of the relationships among workplace stress and organizational change (Vakola & Nikolaou, 2005). One can only hope that future questions about organizational change and stress management can continued to be answered.

    Read More

  • Stress In The Workplace Essay

    2939 Words  | 6 Pages

    Since people are always dealing with certain changes in their lives, they are always dealing with some type of stress. One of the biggest growing issues with stress is stress in the workplace. According to Northwestern National Life, one-fourth of employees view their jobs as the number one stressor in their lives (“Stress at Work,” 1999).... ... middle of paper ...

    Read More

  • Competitive Advantage In Human Resource Management

    970 Words  | 2 Pages

    Human resource competencies are for example important in facilitating efficiency in performance of organizations’ operations towards competitive advantage. Business knowledge, change management, and human resource distributions are examples of human resource competencies that contribute to organizations’ competitive advantage. Such initiatives are however, undermined by institutional factors such as business ‘short termism’, cost centered strategies, as well as professional factors such as lack of business skills, inefficiency in measuring and evaluating success, attitude, and organizational

    Read More

  • The Importance of the Human Resource Function

    5236 Words  | 11 Pages

    The Importance of the Human Resource Function Human resources are the backbone of any business. It deals with the most important resource in the business – people. For any business to achieve its objectives they must plan their resources and one of their key resource is people. They need to get the right people and develop. them well in order to meet the organisation’s aims successfully.

    Read More

More about The Importance of Human Resource Management

Open Document