The impact of effective HRM practices on the organizational goals

 

As per Amstrong (2006) The Term & the concept used as “Personal Management” in the earlier stage of Industrial era has been changed with the time to “Human Resource Management” (HRM) where the employees have been recognized as “resource” to the company rather than a “Cost”. HRM has identified as a strategic approach of managing the employees, who are recognized as organization’s most valued asset which motivates them to collectively take part in organizational performances.

According to Iain Henderson (2011), HRM may be described as “All the management decisions and actions that directly affected or influence people as members of the organization rather than job-holder”

 

How HR makes an impact (Amstrong, 2006, p. 23)

As per the depicted flowchart, it is clearly indicating the effectiveness of the combination of business & HRM strategies towards the Financial performance of the organization.

An effective set of HRM practices includes a decent combination of Business & HRM strategies which will support to manage the work force to achieve the institutional goals in a most effective manner. Ultimately this will increase the product quality & the productivity.

Further, as per the WERS survey done on 2004 among 300 working firms in UK, they have observed “High Performance Work Practices” (HPWP) which reveals the inter relationship between effective HRM vs organizational performances covering the areas such as,

·         High Employee Involvement -

·         HR Practices – Eg:-Sophisticated recruitment process, performance appraisal, work design & mentoring 

·         Reward & Commitment Practices – Eg:-Financial Rewards, Family Friendly Policies, Job Rotations & Flexi Hours

Out of same, 100 companies were listed as Best companies to work for 2004 which complies the above strategies in the best way. High Level of adoption of HPWP is impacted positively on the organizational outcomes. Handerson CIPD (2011).

 

Effective HRM practices will positively impacted on the organizational performances

 

References

Michael Armstrong (2006), A Hand Book of Human Resource Management Practice

Iain Henderson (2011), Human Resources Management

Comments

  1. Nadun RupasingheOctober 29, 2020 at 7:18 PM

    Good initiative and excellent illustration of how effective HRM practices on the achivement of organization's ulimate goals with the examples ..
    Nadun Rupasinghe..30.10.2020

    ReplyDelete
  2. Lakshan GanegodaOctober 29, 2020 at 10:28 PM

    Good explanation of the topic. Suggest if you could drill down to details and relate the same to your experience and compare the outcome.

    ReplyDelete
  3. Pasan WijesekaraOctober 30, 2020 at 9:20 AM

    Importance of HR practices described in a understandable manne. I suggest you that the article will be more value added if you give some important HR activities in a point form.
    Anyway it is great

    ReplyDelete
  4. Shiyam October 30, 2020 at 11:22 AM

    Looks informative

    ReplyDelete
  5. Hemanthi Maheshika AbeysekaraOctober 30, 2020 at 11:53 AM

    The main difference between 'personal Management' and 'Human Resource Management' is employees have been recognized as an 'asset ' or a 'capital' to the organization. Nowdayas, employees calls as 'Human capital' of the company. HRM given a value to employees of the company.effective HRM strategies can lead the company to better performances and high profits.

    ReplyDelete
  6. NafeesNovember 4, 2020 at 12:17 AM

    Good Research based write up.

    ReplyDelete
  7. M. R. M NishakNovember 4, 2020 at 10:16 AM

    Great write-up, superb flow. All the best

    ReplyDelete
  8. TharangaNNovember 6, 2020 at 6:12 PM

    Best HRM practice always support to achieve organization financial performance. Properly described. Good one.

    ReplyDelete
  9. upulblogDecember 8, 2020 at 12:18 AM

    well researched but i think at least 3 references must required

    ReplyDelete
  10. ChanakajaDecember 11, 2020 at 10:29 AM

    Functions of HRM practices include enhancement of the employees' skills, commitment and effort, with a view to enhance, in turn, organizational performance. HRM practices influence immaterial satisfaction, which, in turn, positively impacts the performance of the organization. In order to achieve organizational financial efficiency, best HRM practice still helps. Defined properly and nice one.

    ReplyDelete

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