The Importance Of HRM And Organizational Performance

889 Words2 Pages

Biljana Dordevic (2004) also agrees that constant efficiency improvement depends on the organization’s human resource (the skills, knowledge, competencies and attitudes that reside in the individual employee of the enterprise) and its social capital (faith and self-assurance, communication, cooperative working dynamics and contact, partnership, shared values, collaboration, etc.).
Fulfilling the needs of internal customers (employees), the organizations will strengthen their human capital and will be improved to be situated in meeting the needs of their external customers (Berry, 1981). These shows how important are the employees to the organizations. Lings (2002) states employee should be treated as the customers of the organization and the jobs of the employees should be treated as the products …show more content…

Engaged employees will benefit the organization by accelerating the productivity, profitability and customer royalty. So, it is clearly indicated the employee engagement is closely related with the organizational performance. Organizations with highly engaged employees will be able to reduce turnover rates, retain outstanding employees, produce profit and get customer satisfaction. On the other hand, organizations that earn less commitment and engagement from the employees will have high turnover rates, less productivity, operation margins and profit margins.
The importance of job satisfaction also discussed in this literature review and the practices of HRM such as training, selection, performance appraisals, compensation and rewards are closely related with the employee job satisfaction. Employee satisfaction is often collided by compensation packages, career growth, job designs and management styles, and thus HRM practices should be implemented according to sustain an outstanding work force for the

Open Document