Importance Of Hr In Businesses Development Commerce Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

HR is the centre or the heart of an organisation, and the success of an organisation depends on the HR strategy , and the alignment between the HR strategy and the goals and objectives of the organisation is very important for an organisation to gain success in this dynamic and complex business environment of today.

Fast , flexible ,enthusiastic , motivated , creative and fully trained HR are the asset of an organisation and it can be a core competency of the organisation that can give it a competitive advantage over its competitors that distinguishes an organization from its competitors, because every resource being used in the organisation can be replaced easily but this is the only resource that can not be replicated or replaced easily.


HR is the term used for the personnel, and its purpose is to maximize the productivity of the organization, so we can say that the basic purpose is of utilizing the human capital , keeping costs under control, and increase the performance of the employees

As all organisation 's have diverse mixture of working force with mixture of diverse cultural backgrounds, genders , ages and lifestyles , an organisation can take advantage if it has the ability to manage a diverse body of talent , that can give creativity ,innovative ideas ,perspective and views to their work.

If HR strategy is aligned with the business strategy of the organisation then it will be very easy for the management to prevent or eliminate distraction, every one in the organisation will be more focused, turn over will be reduced and the retention will increase.

As in YAHOO case study we have come to know that the problems it is facing are strategic , we can also say it lacks HR strategy as well, or if it has it , its not functioning properly, becaused they lack ownership and accountability, their organisational structure has become bureaucratic, and the responsibilities of the employee's are over lapping , this is the reason why they have slow down and YAHOO has unnecessary cost burdens.


(B) Write a short memo to the CEO of YAHOO! Proposing HR strategies you would recommend to YAHOO! At this stage of their development ?

ANS:- In my opinion ,i will recommend or propose the following points in the memo to the YAHOO 's CEO.

01:- vision / focus

" you got to be careful if youdon't know where you are going , because

you might not get there."


The first and the foremost thing that i will propose or recomend is to be focused , determined, if the top management knows the aims and the objectives very clearly then it can guide and show the path way to the organisation that which way we are headed and why? Because to stay focused is the pilar to success, and all the other activities will be based on this , like allocation of resources etc.

As we know that Yahoo exists in many cultures and environments,it is not prescribley paying attention or focusing in one direction.

The organisation must know , where they are , where they want to be , how to get there? These are the main question that they must be clear of.

YAHOO is lacking this point , and this point must be the first and foremost to pay attention on.

02:- clarity of ownership & accountability

The second and the most important point that i will propose to the CEO will be the clarity of ownership and accountability,because it is the key point for success of your project ,you must be clear about your roles and responsibilities ,in this way the rest of the team will know that what is expected from them , they will have a goal to achieve and clear accountability for meeting their deadlines. As in YAHOO the employees are unaware of their roles and responsibilities , there is over lapping duties ,many employees are doing the same job ,thats why headcount has increased.

03:- implementation of foundamental structure

This is the third and the important point because the culture and the structure of the organisation plays a vital role in the success of any project. The struture and the culture of an organisation must be very facilitating to the vision and the objectives of the organisation.

04:- routine measures

In YAHOO case study i have noticed there is no routine measurement ,or check up routines or any techniques to judge and see weather we are on the track or not.

So in my memo this will be included as well to have frequent , regular measurements by using different techniques and methods.

These routine measures can be done on

Daily basis

Weekly basis

Monthly basis

Quarterly basis

In 6 months times or annually basis

To judge ARE WE GETTING THERE? ARE WE ON THE TRACK OR NOT? If there is wheel- spinning or a drift how to over come it.

05:- progress

If we are making a progress then we must share this information through out the organisation that yes! We are getting there. This will increase motivation and enthusiesm in the employees, they will know that they are on the track.they will work hard ,be more energetic. The ones who progressed they must be rewarded , and the ones who need more training and improvement programmes ,their names must also be recorded.Line manegement must be formed for guideline and correction.

C:- How would you assess the effectiveness of your proposed HR strategy and its eventual impact on overall corporate strategy?


As discussed several times before that strategy is the path way or the course of direction in achieving desired goals,and the HR strategy of an organisation must be and is aligned with all the other strategies of the organisation like the corporate level ,business level and operational or functional level.

But among all them HR strategy is the key to success. In my opinion the HR strategy is not functioning well in the YAHOO case study thats why i prescribed a memo for the CEO of YAHOO, and i explained in which areas he needs to pay attention .

HR strategy plays a very vital role in an organisation , it help's an organisation in accomplishing its tasks, goals and objectives, and by providing it with the trained , fast , enthusiastic, flexiable , motivated ,human capital to achieve its mission.

HR strategy means !

" Providing the right people , for the right job, at the right time."

In proposed HR strategies, their effectiveness can be assessed in several ways , first thing is that the line management or the administration must be aware of the mission ,vision and tasks ,goals , objectives of the company,then the management will be able to compliance the workforce towards attaining the desired results. We can assess the effectiveness like running appropriate training programmes, and by having weekly , monthly , quarterly ,annually performance measurements. Appraisal reward programes and incentive programes helps in retention and improvement of quality and potential employees of the company. The senior managers must have clearity of their roles and responsibilities and the basic duties so that they can be more focused and be result oriented. This will help all around the organisation to achieve assigned goals ,this will stop excess of staff , lobbying , de-motivation and politics in the organisation.

(D) Critically review the necessity of setting up a performance appraisal and reward management system including performance appraisal to recognise contribution and achievement at YAHOO?

ANS:- performance appraisal and reward management systems play a very vital role in the contribution and achievement of desired goals and objectives of an organisation. It is an important tool that maximises the effectiveness of all aspects of an organisation. It also helps in motivation and organisational planning purposes. It helps an organisation in setting goals for its employees, promotion ,salary increase ,training , job design and most of all it helps in productivity of the organisation and self development.

These are the characteristics that tell us the necessity of performance appraisal system in the organisation.

FEEDBACK:- through performance appraisal system format it will be easy for the management and employee to know his strengths and opportunities,that will help us in knowing how to achieve organisational goals and individual needs. It will also tell us how talented is the employee and where we can use his intelligence and where to maximise the productivity of the organisation.

MOTIVATION:- Through performance appraisal system an employee becomes aware of his strengths and opportunities, through this system he becomes more motivated and enthusiastic and tries to perform at the superior level, it provokes the employees to learn more.

SETTING GOALS AND OBJECTIVES:- managements role is to accomplish desired goals and objectives , the management makes sure that every employee as being part of the organisation achieves its desired set goals.

COUNSELLING:- Every employee of the organisation is not a good worker and does not meet the organisation's standard,so by performance appraisal system it becomes easy for the management to confront them.

COMPENSATIONS:- We work and earn our salary or wages , this means that the organisation pays us on behalf of our service, if there is no instrument of measurement how will they judge our performance. Through performance appraisal system they can see who worked hard can earn more money or can receive more salary.


COACHING & MENTORING:- Managers are the role model ,mentors and guider's. Through these performance appraisals system managers will become aware in which areas the employees are weak and they need to be mentored ,coached or to provide guide line in which particular aspects .

MANPOWER PLANNING:- Trained skilled man power is the key to success or can be the competitive advantage ,as HR is the unreplicable resource so the organisation must know where ,in which department or area they have the most talented employees. Through these performance appraisal systems the organisation will be able to identify if they have the enough intellectual horse power required for the future.


As organisations the individuals also have some individual development plan for his future, so through performane appraisal system it will be easy to determine the skills and competencies that he / she needs to acquire for the contribution in the organisation.