Human Resource Management And Human Resources Essay

Human Resource Management And Human Resources Essay

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Human Resources have been believed to be a cost to the organization that needs to be minimized and controlled. However, in recent years, the connection of human capital to financial performance has been well recognized. Many organizations battle not only the tough competition, but also a world financial crisis. An increasingly competitive environment, many companies turn to human resources (HR) in order to stay in business and achieve goals, and maintain profitability. “Resources are invaluable and limited sources of any organizations which cannot be easily replaced” (Zohreh, M; Napsiah, I; Zulkiflle, L; Norzima, Z., 2013). Organizations turn to strategic management of human resources to accomplish its mission.
Sustained competitive advantage of the company can be achieved through diligent human resource management (HRM).
In the environment of tough competition, Human Resource Management is defined as activities related to HR practices, factors affecting the HR decisions, the structure of human capital supply, the quality of required human resource behaviors and the effectiveness of HR decisions. Since 1990, there has been an increased interest in HRM, due to its connection to the performance of the organization, as companies are evaluated based on the effectiveness of the product or services and an influence on environment (people and economy). Therefore, it was recognized that there is a positive correlation between HRM and the performance of the organization. “Human resource management (HRM) and sustainable development are the two strategic tools contributing to the success of the organizations in today 's business transactions” (Zohreh, M; Napsiah, I; Zulkiflle, L; Norzima, Z., 2013).
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...mance” (Wright, P., and McMahan, G., 2011). Therefore, the emphasis should be placed on supporting the desired behaviors.
The extensive research on human capital as the competitive advantages of the firm, “confirms (…) an association between HRM and performance; but (…) also emphasizes that their analysis provided evidence of an association rather than causation” (Guest, D. 2011). In today’s competitive environment, human resources are seen as a vital resource in achieving sustainability driven organizational goals. Human resources’ skills, experiences, knowledge and abilities, need to be preserved through diligent management. “The risk remains that strategic HRM (…) may treat human capital as a form of capital owned and controlled by the firm” (Wright, P., and McMahan, G., 2011). Hence, the strategic HR management cannot ignore the “human” behind the human capital.

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