Can Effective Human Resource Management Practice Make a Valid Contribution to Competitiveness in Today’s Economic Context

2434 Words10 Pages
Introduction “The overall purpose of HRM is to ensure that the organisation is able to achieve success through the people” (Armstrong, 2009, page 3). It is thought that “an organisation’s workforce represents one of its most potent and valuable resources “(Gunnigle, Heraty, J.Morley, 2011, page 1). Effective human resource management is a very important aspect of a company because it is believed that to achieve improvements in organisational performance it is critical to have effective management and development of people. Some of the roles of HR are recruitment, motivation, training, and rewards. In today’s economic climate it is very important to have costs at a minimum and for profits to be high. “Companies should anticipate and profit from environmental shifts to create a much needed competitive advantage, HR should be efficient and have a fast response so “(R.Olivas-Lujan, Ramirez, Zapata-Cantu, 2007). Today there is pressure on the HR budget in an organisation because of the recession. HR needs to prioritise where they spend their money especially when it comes to training and development. There is now a greater pool of workers to fill a vacant position so HR have to decide if ifs more costly to hire externally or internally. An organisation is constantly seeking its highest possible rate of return. HR must maintain good cost control and gain more competitive product markets. Competitive advantage is very important in today’s economic climate as there is a constant battle between firms to say in business. As we will see further on people are a firms most important asset and a firm must do certain things to insure that it has a competitive advantage and HR has control over most of the aspects that affects a firm’s competitiveness. I believe that a firm’s competitive advantage can be affected by its HRM practices. Recruitment/Selection One of the

More about Can Effective Human Resource Management Practice Make a Valid Contribution to Competitiveness in Today’s Economic Context

Open Document