How Can Effective Hrm Contribute to the Profits of an Organization?

How Can Effective Hrm Contribute to the Profits of an Organization?

1. Overview of HRM

Human Resource Management (HRM) is the function within an organization that focuses on recruitment, motivation, retention and providing direction for the people who work in the organization so that they can work effectively as a group to achieve the objectives of the organization.

The role of Human Resource Management is seen to be actively involved in five areas. The first role of HR starts when recruitment takes place. In recruitment, sourcing for the correct people with the right set of Knowledge Skills Ability and Other attributes (K.S.A.O) takes place through job analysis, so as to determine the type of people required for the job and planning for the human resources in accordance to the organization business plan.

The second role is, compensation and benefit, where a salary and benefit package will be defined for the prospective candidates. Once the candidate agrees on the package that was offered by the organization, a contract of employment commences.

Upon reporting for duty of the new hires, the other three Human Resource activities will then take place simultaneously. Training and development will be planned for the new hires to orientate the trainees such that they could get up to speed in contributing to the organization, as well as for their own career development.

Ensuring a healthy work force will up-keep the high productivity, coupled with building safety in culture of the organization is one of the key in sustaining the moral of the employees.

The fifth role of Human Resource Management is Employee Relations. In an organization, it is important that a bridge between the employee and the management is built, providing an avenue for employees to raise any grievances so that it can be resolved. This strengthens the corporate communication and culture, which bring about productivity improvement and reduces turnover.

In undertaking the above-mentioned 5 roles, HRM becomes a cost center. Hence doing thing...

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