The importance of HRM
Why Human Resource Management (HRM) is important for organizations today to make their Human Resource into a competitive advantage
Mr. CHUOP Theot Therith (2009), MBA, BIT, DPA
1. INTRODUCTION Day-to-day Human Resource Management is very important for the organization to get more powerful and develop its self to be the standard and success one. So, even nowadays economic recession but it’s not very effected to all companies in the world only seriously in the USA and EU. However, they do not cut all staffs but is still remain the professional, main staffs for running the companies. So now for the individual assignment of HRM in MBA program – BBU is requires spreading out one topic “Why HRM is important for organizations today to make their human resources into a competitive advantage and how it can contribute to doing this?” The purpose of this essay is to research and more understand the academic literature on the contributions of HRM in terms of its strategic roles and competencies required today in distributing to the business needs and the strategic objectives of a firm through its people in order to gain competitive advantage. The methods to tackle the main issues asked are: (i). try to understand well what the topic means, its terms and must be clearly in structuring of assignment. (ii). Need to read academic literature, the lecture notes, and supplementary reading from others references book/documents. (iii). Do further research within Internet and library, (iv). Do thorough review the literature of the topic and (v). Make good discussion and properly conclusion. HRM plays an important role in assuring employee satisfaction, improving performance and productivity. This can further an organization's competitive advantage, and directly contribute to the
organization's success. When any organization start to vision their business, their first priority is to hire competent work force means right person on the right job after that this man power decide about other tangible and intangible resources, where to get? How to get? How to manage efficiently? What modification required? Essentially, other resources depend on human resource without which they are worthless because if there would be no human then who will plan, organize, or monitor the other resources. The manager is recognized as a holder of organization by his knowledge and art.
2. DISCUSSION ON WHY HRM IS IMPORTANT FOR ORGANIZATIONS TODAY TO MAKE THEIR HR INTO A COMPETITIVE ADVANTAGE 1
2.1. Why HRM is important for Organization today to make their HR into a competitive advantage. The three competitive challenges are the challenge of sustainability, the global challenge, and the technology challenge. (i). the Challenge of Sustainability There are many different type of companies/organization to operated in the world and also competed each other to gain competitive advantage and also sustainable so they try to implement many strategic for develop their HR. Among them sustainability is the main part that can be influence and encourage to reach organizational goal. Anyway they also take action immediately to introduce, orientate, prepare guideline, provide high quality products and services and especially use the right person in the right position and on job training many time to gain staff capacity. There are many ways that can bring the organizations to reach goal are: - A learning organization: This embraces a culture of lifelong learning, enabling all employees to continually acquire & share knowledge. - The Balanced Scorecard: The balanced scorecard gives managers an indication of the perspective for company to satisfy internal and external customers, employees and shareholders & it should link HRM activities to the company’s business strategy. This include being customer-focused, improve quality, emphasizing teamwork and managing for long time. Using the balance scorecard to manage the human resources by communicating...