What is human resource management and should it be an important part of organisational strategy?

What is human resource management and should it be an important part of organisational strategy?

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Human Resources managers are the most important features of any business especially in an economy where there is an increasing shift towards service based industry. Price (1997) for example argues that HRM account for a great proportion of many business costs and it is the people that drive business. Through the key components of HRM such as recruitment and selection, training and developments, the essay will argue on the importance of HRM in organizations and how it contribute to organizational strategy. According to Beardwell (2007), in the previous years, there have been increasingly rapid advances in the field of HRM. The management of people within organizations has moved from the sideline to central stage. This has enabled organizations to increase performance and effectiveness. The writer added that much of these changes have been linked to changes to environment, flexibility, responsiveness, quality and the need for all function of the business to demonstrate their contribution to organization needs. Based on the writer’s argument, it is noticeable that HRM is critical in today’s environment. More important as highlighted by Armstrong (2002) the main function for HRM in an organisation is to foster the performance of an organisation in achieving competitiveness. Human resource management is concerned with matching the organizational demand for quantity and quality of employees.

As argue by Marchington and Wilkinson (2005) HRM is significant in any organisation in terms of improving workforce performance and productivity. Previous studies have reported that Human resources are responsible for how applicants are treated in organizations, bringing applicants into the organization, helping them to perform their work, com...

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