BM4004 HR Report and In Class Finance Assessment Sample
Introduction
Human resource management (HRM) in an organisation has a crucial role to play in the success of the business in the long run. An understanding of the key functions of the HRM of a firm clearly indicates the fact that the overall area of human resource is dependent on the same. This forms the most important resource group, which allows an organisation to attain higher levels of competitive advantage. The study here has focused on understanding the scope of HRM and its purpose in the current times. The fact that HRM is essential for success in business of current times has been critically evaluated and presented using various HRM functions.
Scope and purpose of HRM
The human resource management aspect associated with any business is responsible for the facilitation of a large number of functions. In the words of Azizi et al. (2021), all the functions that can be associated with the HRM of a business are related to the human resources and functions associated with the same. The scope associated with the HRM of a business involves a wide range of activities, ranging from recruitment and selection to training and performance enhancements. Recruitment, selection, hiring, and onboarding of employees, as well as managing their performance, development, and overall well-being are all the scope of the functions of the overall HRM processes of a business.
An understanding of all the above functions clearly indicates the importance of the overall HRM of a business in the current context. As per the ideas of Hamouche (2023), facilitating an appropriate HRM function can be an extremely helpful area, as it can help in generating the desired workforce in a firm. It is the purpose of the HRM of an organisation to ensure that the most appropriate skills are acquired, nurtured and retained for the best performance of the organisation. Besides, motivating the workforce and creating an appropriate workforce that is aligned to the goals of a business is also done by the HRM of the organisation. In this regard, the HRM of a firm has an extremely important function, which determines the performance of the firm and allows it to gain an upper hand in the markets of operations.
Impact of HRM on business operations and success
Recruitment and selection
The first important function that is generally noted in the case of the HRM of an organisation is to ensure recruitment and selection of employees. As per the ideas of Strohmeier (2020), the extremely important task that is generally associated with the function of human resource management is recruitment. Appropriate recruitment in an organisation is essential for coming up with the most effective skills and competencies that drive the operations of the business. The ability of an organisation to recruit the most desirable talents is one of the key areas that can help the organisation to generate a greater advantage in the market. Therefore, the human resource management aspect associated with the business can be one of the most important functions that drive the success of the business by ensuring appropriate performance in all other departments like finance, marketing and operations. It is largely due to the ability of the function to come up with an appropriate human resource or work force which helps the organisation to ensure constant success by meeting the objectives that have been set by the business (Anwar and Abdullah, 2021). It is essential for an organisation to establish an appropriately skilled employee base which can generate better results.
The aspect of recruitment and selection of the most suitable candidates is largely responsible for the smooth functioning of the business. As per the opinions of Vrontis et al. (2022), the human resource or the workforce of an organisation is the most important resource that an organisation has. It is one of the key areas that allows an organisation to come up with a greater performance and generate higher competitive advantage in any market. Apart from that, appropriate selection of the most desirable candidates can help the organisation to facilitate the required skill set that the organisation needs. Besides, it allows the organisation to select employees that are totally aligned to the goals of the business. In this regard, the function that is played by the HRM of an organisation is extremely crucial for ensuring appropriate selection and recruitment processes which in the long run allow the business to attain a greater competitive advantage over its competitors (Collings et al. 2021). It is therefore important for the success of the business in the long run that the organisation must come up with an appropriate HRM. The HRM of an organisation allows it to ensure that the best candidates for working in the business are selected and appropriately nurtured.
Employee motivation and retention
Another critical area that can be associated with the overall HRM functions associated with the business is the aspect of motivation. In the ideas of Collins (2021), one of the primary functions that the HRM of an organisation plays is to motivate the employees. The HRM of an organisation comes up with the most appropriate strategies that can help in engaging the employees of the business. Along with that, the needs and wants of the employees are directly assessed by the HRM and based on the same, appropriate strategies are set. An organisation that does not have a dedicated HRM function might face difficulties in motivating its employees. As per the Maslow’s hierarchy of needs theory there are certain basic human requirements that are essential for motivating the workforce of the business (Ngoc Su et al. 2021). This allows the organisation to ensure retention of most suitable candidates of finance, marketing and operations and engender better performance. This allows the business to ensure better results and faster the desired outcomes in the long run as well. Therefore, it is a critical function that allows a business to engender better performance through the application of the correct strategies.
Figure 1: Maslow’s hierarchy of needs
(Source: Ngoc Su et al. 2021)
Apart from motivation, the HRM of a business is also responsible for retaining the workforce of the business. As per the ideas of Ahammad et al. (2020), employee retention can play a crucial role in facilitating both better performance and cost savings for any business. The employees of a business from an extremely important resource group and stakeholder group which fosters better performance and ensures better competitive advantage. All organisations tend to invest in each employee that is recruited into the business. Under such scenarios, if there is a high turnover rate associated with the employees of a business that the organisation will incur losses. Therefore, employee retention is an essential area that can help the organisations to save cost and maintain performance. The HRM of any business is responsible for understanding the needs of the employees and facilitating the same (Mousa and Othman, 2020). This allows the HRM of the business to keep the workforce motivated and dedicated to the organisation and ensures a higher rate of retention. It is also responsible for the creation of the best possible work culture and work environment. Thus, it allows the business to maintain its performance or even facilitate betterment and create a higher competitive advantage ensuring the success of the business.
Talent management
Talent management is an essential element of the success of the business in the long run. In the words of Amrutha and Geetha (2020), talent management encompasses all the activities that are undertaken by any business to acquire, nurture and retain the workforce of the business. It includes the functions like on boarding of employees, motivating the employees and keeping them happy and productive and ensuring a continuous development of their skills and competencies overtime. It allows the business to secure the most appropriate candidates that have the most suitable skills for the functions like marketing, finance and operations to drive better results. Highly motivated workforce is an essential requirement for the facilitation of the desired performance standards and this can help the business to meet the goals that it has set for itself as well. Overall, the use of appropriate talent management is one of the key areas that drives the competence of the business and ensures that appropriate working is being facilitated (Carnevale and Hatak, 2020). The human resource management of any business is responsible for ensuring appropriate talent management within the organisation and helping the employees of the business to nurture their talents.
An essential area that must be considered here is the fact that without appropriate talent management in an organisation, it cannot facilitate the desired changes within the business. As per the ideas of Ngoc Su et al. (2021), the prevailing business scenarios associated with any business are largely filled with uncertainties. There is a need for businesses to come up with appropriate changes from time to time to ensure that it stays competitive and relevant in the current times. In this regard, the use of appropriate changes in the strategy and the operations of the business is an essential requirement and can foster the desired outcomes. However, if there is a lack of skills among the employees to implement the changes it can lead to a decline in the overall performance of the business. It is the function of the HRM of the organisation through appropriate talent management programs to ensure that the required skills and competencies that are required for managing the change are generated within the workforce (Strohmeier, 2020). The organisations can come up with effective training programs that can help in bringing about changes in the workforce and ensuring better skill generation. This will allow the business to easily adapt to any kind of change that is taking place and can facilitate the required outcomes for the business in the long run and ensure its success.
Challenges and opportunities
An understanding of the current trends in the aspect of human resource management has clearly indicated the need to adapt with the changes in the current times. As Collins (2021) suggests, the prevailing business environment is filled with uncertainties and therefore, businesses must be able to ensure appropriate changes to cope with such uncertain events. In such scenarios, one recommendation that must be provided for the betterment of the human resource management aspect is to make greater use of technological advancements in the same. Technology has become one of the most important requirements for success in the case of businesses. Appropriate use of technology can allow business to understand the needs better and ensure incorporation of the most suitable strategies. In this regard the use of technology has been one of the key areas that has helped in enhancing the overall human resource functions associated with the business.
Another major recommendation that can be given in this direction is to facilitate a digital ready culture within the organisation. This can be extremely beneficial in fostering the desired levels of support for the implementation of new technologies. Along with that, it can also help in facilitating a business environment, which is largely dependent on digital tools and can be benefited from the same (Hamouche, 2023). This can create better uses of digital technology in the aspect of human resource management, which can enhance the overall outcomes associated with the business in the long run as well. Therefore, creating a digital ready culture can be beneficial for the businesses and can help the businesses to manage uncertainties of the future. It helps in enhancing the overall function of HRM and can ensure better impacts of the same on the success of the business in the long run.
Conclusion
The overall process of human resource management has an extremely important purpose in any organisation. Even though it is generally associated with the recruitment and selection of employees there are multiple other important tasks that are fulfilled by this department of any business. Apart from recruitment and selection, other major functions of human resource management include motivation and retention of employees and talent management. All these areas together allow the business to perform better and ensure appropriate results in the long run. Therefore, it is essential for any business to come up with the most appropriate HRM functions.
Reference list
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Amrutha, V.N. and Geetha, S.N. (2020). A systematic review on green human resource management: Implications for social sustainability. Journal of Cleaner production, 247, p.119131.
Anwar, G. and Abdullah, N.N. (2021). The impact of Human resource management practice on Organizational performance. International journal of Engineering, Business and Management (IJEBM), 5.
Azizi, M.R., Atlasi, R., Ziapour, A., Abbas, J. and Naemi, R. (2021). Innovative human resource management strategies during the COVID-19 pandemic: A systematic narrative review approach. Heliyon, 7(6).
Carnevale, J.B. and Hatak, I. (2020). Employee adjustment and well-being in the era of COVID-19: Implications for human resource management. Journal of business research, 116, pp.183-187.
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Collins, C.J. (2021). Expanding the resource based view model of strategic human resource management. The International Journal of Human Resource Management, 32(2), pp.331-358.
Hamouche, S. (2023). Human resource management and the COVID-19 crisis: Implications, challenges, opportunities, and future organizational directions. Journal of Management & Organization, 29(5), pp.799-814.
Mousa, S.K. and Othman, M. (2020). The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework. Journal of cleaner production, 243, p.118595.
Ngoc Su, D., Luc Tra, D., Thi Huynh, H.M., Nguyen, H.H.T. and O’Mahony, B. (2021). Enhancing resilience in the Covid-19 crisis: lessons from human resource management practices in Vietnam. Current Issues in Tourism, 24(22), pp.3189-3205.
Strohmeier, S. (2020). Digital human resource management: A conceptual clarification. German Journal of Human Resource Management, 34(3), pp.345-365.
Vrontis, D., Christofi, M., Pereira, V., Tarba, S., Makrides, A. and Trichina, E. (2022). Artificial intelligence, robotics, advanced technologies and human resource management: a systematic review. The International Journal of Human Resource Management, 33(6), pp.1237-1266.
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