ADDING VALUE TO THE ORGANIZATION

Adding Value to the Organization

Adding Value to the Organization

Introduction

The HRM role is significant to optimize employees performance and bond learning with organizational objectives and goals in any company. The management of people in an organization. This term for people management is increasingly preferred to personnel management. Operationally, human resource management (HRM) has a similar focus to personnel management: recruitment and selection, payments systems, training etc. Though, HRM is often seen to be qualitatively different to personnel management. The notion of people as a resource implies a sophisticated approach to getting the most out of this factor of production. This may include the nurturing of human capital, and may therefore involve a 'people-centred' approach to management. Some critics, however, see such an approach as manipulative and 'hard-edged'. A further claim is that HRM has a closer link to business strategy than traditional personnel management, and is also more focused on achieving key business outcomes, such as profits. This paper discusses how HRM helps in adding value to the organization and how it contributes to the organizational goals.

Discussion

Being strategic - means to coordinate tasks and HR initiatives with organisational objectives and strategy. The most important task of HR is to contribute to the organisation and its goals by increasing staff productivity. Role assigned to the traditional HR-department includes the pursuit of organisational objectives and operational issues. The strategic role requires that HR is proactive and focused on the future, contributing to the formation of business strategy of the organisation and the creation of plans and programs for workforce development in line with this strategy. (Fitz-enz, 2009)

Definitions reinforce the notion that HRM practices create valuable resources within the firm that are capable of producing competitive advantage through people. Indeed, more than two decades of research has accumulated a vast body of knowledge which suggests that HRM practices that impact the motivation, knowledge, skills, and behaviours of employees lead to better employee, organisational, and financial outcomes.

How HR Adds Value

HR practices, organizations, and professionals must be transformed to succeed. The heart of this transformation is that HR must add value. Value is defined by the receiver more than the giver and comes as HR responds to a new set of criteria and demands.

The high-performance workplace over the past two decades has been driven by two titanic forces: globalization and an increasing pace of technological change. At the beginning ...