Explain why
human resource management (HRM) is important to organizational success.
Answer:
HRM is an
important task that involves having the right number of the right people in the
right place at the right time.
A major HRM
challenge for managers is ensuring that their company has a high-quality
workforce. Getting and keeping competent and talented employees is critical to
the success of every organization.
HRM is
important for three main reasons.
First,
various studies have concluded that an organization's human resources can be a
significant source of competitive advantage. The Human Capital Index, a
comprehensive study of over 2,000 global firms has concluded that
people-oriented HR gives an organization an edge by creating superior
shareholder value.
Second, HRM
is an important part of organizational strategies. In order to achieve
competitive success through people, managers must change the way they think
about their employees and also the way they view the work relationship.
Managers must stop treating people as costs to be minimized or avoided. Rather,
they should treat them as partners.
Finally, it
has been found that the way organizations treat their people significantly
impacts the organizational performance. For instance, one study reported that
significantly improving an organization's HRM practices could increase its
market value by as much as 30 percent.
Source: Management, 11e
(Robbins/Coulter)
Thank you sir for uploading this, means a lot. -yemima hutapea-
ReplyDeleteBoth corporate and portfolio managers should clearly allocate their scarce resources in the best investemnts with good returns .Its therefore a call for the managers to use the BCG Matrix to as a corporate tool to analyse the nature of their investment returns and employ the best strategies in order to maximize shareholder's value and enhance organizatonal stability.
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