Social Media and Employer Brand Awareness
April 5, 2023Importance of HRM for Organizational Success
We have discussed the basic concept of HRM and the ways in which it helps the organization meet its goals. In this article, we discuss the reasons for organizations to have a HRM strategy as well as the business drivers that make the strategy imperative for organizational success.
It is a fact that to thrive in the chaotic and turbulent business environment, firms need to constantly innovate and be “ahead of the curve” in terms of business practices and strategies. It is from this motivation to be at the top of the pack that HRM becomes a valuable tool for management to ensure success.
The Evolving Business Paradigm
One of the factors why companies pay attention to their employees is the nature of the companies in terms of the current business environment. Given the fact that the steady movement towards a service-based economy imposes on companies operating in the service sector the necessity to keep their employees motivated and increase their productivity.
Even in the manufacturing and traditional sectors, the need for firms to remain competitive means that firms in these sectors deploy strategies that make efficient use of their resources. This changing business landscape has arisen as a result of a paradigm shift in the way companies view their employees as more than mere resources and instead adopt a "people first" approach.
Strategic Management and HRM
As discussed in the articles on modern-day HRM practices, there is a need to align organizational goals with that of the HR strategy to ensure that there is the alignment of the people policies with that of the management objectives. This means that the HR department can no longer be viewed as an appendage of the firm but instead is a vital organ in ensuring organizational success.
