How can human resource management contribute to a company’s success? Human resource management consists of an organization’s “people practices” such as the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. HRM influences who works for the organization and how those people work. These human resources, if well managed, have the potential to be a source of sustainable competitive advantage, contributing to basic objectives like quality, profits, and customer satisfaction. 2.
Imagine that a small manufacturing company decides to invest in a materials resource planning (MRP) system. This is a computerized information system that improves efficiency by automating such work as planning needs for resources, ordering materials, and scheduling work on the shop floor. The company hopes that with the new MRP system, it can grow by quickly and efficiently processing small orders for a variety of products. Which of the human resource functions are likely to be affected by this change? How can human resource management help the organization carry out this change successfully? The sort of change described in the question above would most likely affect, to some degree, all nine of the functions of human resource management. The analysis and design of work would need to be considered in a decidedly different manner than it was before the newly implemented automated process, as the “job” itself would be changed under the new system. Recruitment and selection as well as training and development would require adjustment in order to secure those individuals with the necessary skills, knowledge, and abilities to perform at expected levels under the new system. Performance management, which is the process of ensuring employees’ activities and outputs match the organization’s goals, would need reevaluation due to the changes created by the new process. Compensation would require adjustment as a result of the changes caused...
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