Reason For The Importance Of Hrm In Organisation Business Essay

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Strategic human resource management may be observed as an address to the management of human resources that furnish a strategic framework to sustain long-term business goals and outcomes. The approach is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need.

Comparison with the Model:

Fiedler Contingency Model

Bath People and Performance Management

Leadership membership Relationship which is the most important variable in determining the situation favourable (Accept and respect by followers)

The development and successful implementation of high performance work practices, partially those concerned with job and work design, flexible work resourcing (recruitment, Selection and Talent Management), employee development (increasing skills and extending the skills base), reward and giving employees a voice;

The degree of task structure which is the second most important input into the favourableness of the situation(structured task)

The formulation and embedding of a clear vision and set of values (the big idea)

The leaders position power obtained through formal authority which is the third most important dimension of the situation.(Great deal of Authority and power are formally attributed to the leader position)

The provision of support and advice to line managers on their role in implementing HR policies and practice.

Reason for the importance of HRM in Organisation:

Human resources are great significance to organizations in 10 specific areas, to extent from strategic planning to company goodwill. HR practitioners in a small business who have well-balanced expertise equip a number of services to employees. The areas in which HR maintains control can enhance employees’ perception of HR throughout the workforce when they believe HR considers employees to be its internal customers and renders services with that in mind. There have ten importance of Human Resource Management in the organization.






Training and Development

Employee Satisfaction





HR improves the company's bottom line with its knowledge of how human capital affects organizational success. Leaders with expertise in HR strategic management participate in corporate decision-making that underlies current staffing assessments and projections for future workforce needs based on business demand.


HR compensation specialists develop realistic compensation structures that set company wages competitive with other businesses in the area, in the same industry or companies competing for employees with similar skills. They conduct extensive wage and salary surveys to maintain compensation costs in line with the organization's current financial status and projected revenue.


Benefits specialists can reduce the company’s costs associated with turnover, attrition and hiring replacement workers. They are important to the organization because they have the skills and expertise necessary to negotiate group benefit packages for employees, within the organization's budget and consistent with economic conditions. They also are familiar with employee benefits most likely to attract and retain workers. This can reduce the company’s costs associated with turnover, attrition and hiring replacement workers.


Employers have an obligation to provide safe working conditions. Workplace safety and risk management specialists from the HR area manage compliance with U.S. Occupational Safety and Health Administration regulations through maintaining accurate work logs and records, and developing programs that reduce the number of workplace injuries and fatalities. Workplace safety specialists also engage employees in promoting awareness and safe handling of dangerous equipment and hazardous chemicals.


HR employee relations specialists minimize the organization's exposure and liability related to allegations of unfair employment practices. They identify, investigate and resolve workplace issues that, left unattended, could spiral out of control and embroil the organization in legal matters pertaining to federal and state anti-discrimination and harassment laws.

Training and Development

HR training and development specialists coordinate new employee orientation, an essential step in forging a strong employer-employee relationship. The training and development area of HR also provides training that supports the company's fair employment practices and employee development to prepare aspiring leaders for supervisory and management roles.

Employee Satisfaction

Employee relations specialists in HR help the organization achieve high performance, morale and satisfaction levels throughout the workforce, by creating ways to strengthen the employer-employee relationship. They administer employee opinion surveys, conduct focus groups and seek employee input regarding job satisfaction and ways the employer can sustain good working relationships.


HR recruiters manage the employment process from screening resumes to scheduling interviews to processing new employees. Typically, they determine the most effective methods for recruiting applicants, including assessing which applicant tracking systems are best suited for the organization's needs.


HR professionals work closely with hiring managers to effect good hiring decisions, according to the organization's workforce needs. They provide guidance to managers who aren't familiar with HR or standard hiring processes to ensure that the company extends offers to suitable candidates.


HR workers ensure that the organization complies with federal state employment laws. They complete paperwork necessary for documenting that the company's employees are eligible to work in the U.S. They also monitor compliance with applicable laws for organizations that receive federal or state government contracts, through maintaining applicant flow logs, written affirmative action plans and disparate impact analyses.

Explanation and analysis of an HRM framework

Explanation of the HRM process and how strategies are developed

Human Resource Management Process

There could sub functions in the HRM Process in practice.

The key areas of HRM Process are

1) Human resource planning

2) Attraction â€" also called as recruitment

3) Selection

4) Directing

5) Training and development

6) Performance appraisal

7) Promote, demote or transfer regarding to performances

The HR Strategy development process should contain the following steps:

HR Information Gathering - The team has to complete the information about different HR Processes, their performance and their impact on the profitability of the organization. The profitability can be difficult, but the team can always make a good estimate about the impact of the process to the results of the organization.

Organizational Development Information - the information about the development of the organization in the past and its current status. Each organization has several stages in its organizational lifecycle and some trends in the organization are healthy and some trends are extremely dangerous and can impact the future profitability.

HR Workshops - when the input information are gathered the HR Team has to organize the workshops inside Human Resources, where the piece of the new HR Strategy can evolve. The teams should discuss the findings one by one and all the ideas should be gathered as they can impact the overall HR Strategy.

HR Managerial Workshops - the information from the previous HR Workshop with employees should go to the next level and the HR Managers should talk about the trends and the topics, which should be included in the HR Strategy and what is the impact on the whole organization and the HR team. The results of the HR Managerial Workshops have to be recorded and the priorities of different parts of the story have to assign.

Preparation of the HR Strategy - a dedicated HR sub-team has to prepare the story of the HR Strategy from the approved outcomes from the HR Managerial Workshops. The story has to be strong and appealing for the audience and HR employees.

HR Strategy Feedbacks - the HR Management Team has to present the pre-final version of the HR Strategy to the fellow managers in the organization and their feedback has to be appreciated and fully and honestly discussed with the managers. The same session has to be organized for the HR employees as they can say their feedback to the HR Strategy Story.

HR Strategy approval - the HR Strategy has to be approved by the top management as they are the final customers of Human Resources and they should fully agree with the way, the HR wants to operate in the organization within several years.

An Assessment of the roles In Strategic HRM

HRM is central to a firm's strategic management policies. For starters, the business cannot implement its operating strategy, however astute, without the full cooperation of its personnel. Consequently, corporate leadership makes sure to get employees' buy-in before rolling out operating tactics. HRM also enables organizations to take a peek at what rivals do and what personnel management strategies they use to trump others. Another HRM advantage is that it allows a firm to ensure regulatory compliance in its operations, which is generally a money saver and reputation builder.