HRM: Organizational Effectiveness and Efficiency

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How HRM Contributes to Organizational Effectiveness and Efficiency?

Human Resource Management (HRM) is predominantly appreciated in the business domain. The

ultimate purpose of human resource management is to prepare a team of people that leads a

union or a business towards finally success. It is so because organizational performance is

improved through maintaining an efficient and proficient workforce. The activities of human

resource are aligned with strategic objectives of organization. The process of human resource

management involve the recruitment, training and development as well as assessment of the

employees [ CITATION Edw12 \l 1033 ].

Human Resource Management accept a basic part in the updating the execution of execution of

delegates in the affiliation. The capable HRM systems are being formed in a relationship to

overhaul the execution level to its generally outrageous. Human Resource Management (HRM)

is the route toward interfacing the human resource limits with the key goals of the affiliation

remembering the ultimate objective to upgrade execution. Human resource organization holds

the central live blood part in any affiliation. The contribution of HRM towards the organizational

triumphs is certainly meaningful. Now question is, how can Human Resource Management

(HRM) contribute to the tremendous performance of the organization?

Effectiveness and efficiency are two diverse parameters those are used to measure the level of

performance of an organization. Both terms are mistakenly used in the same sense, while they

have different meanings in the business domain. There is no comprehensive definition of

organizational effectiveness. It is a broader concept. The effectiveness is meaning for

accomplishment of intended purpose, conversely the efficiency stands for optimal utilization of

scarce resource with least wastage of time and energies. The difference between effectiveness
and efficiency is based on two concepts; “doing the right things” and “doing the things right”.

Effectiveness is about to do right things. On the other hand efficiency is about to do the things

right [ CITATION Gar13 \l 1033 ]

Hierarchical HR capacities do a blend of key and value-based exercises related with successfully

overseeing and benefitting as much as possible from individuals. It is imperative for

organizations to utilize the HR work as a key business accomplice, with an objective of

guaranteeing individuals are lined up with key destinations.

Several performance management tools are used to measure the success of an organization, but

the level of organizational effectiveness and extent of organizational efficiency regulate the

success of an organization. Human Resource Management is playing crucial role in enhancing

the organizational effectiveness and efficiency by several means. The involvement of HRM in

the success of an organization can be appraised by having deep insight over organizational

hierarchy and operations. The role of Human Resource is more closely to administration rather

than of strategic player [ CITATION Jes10 \l 1033 ]

The most important and foremost function of human resource management is the recruitment of

employees. The process of HRM initiates with function of recruitment. The human resource

department is responsible for hiring capable and productive staff. The recruitment of the right

persons for the right jobs contributes to the organizational efficiency.

The primary function of human resource management is to distribute the functions to the

concerned person that clarifies everything to an employee regarding its duties and the

expectations from him or her. Moreover, it makes simple the functioning of an organization.

Human resource management is also arrange different training and development sessions of
employees those equipped the employees with modern and required skills. Trained and skilled

workforce perform more proficiently and boost up the earning of the firm. Different training

sessions enhances the capabilities, skills and efficiency of employees that ultimately influenced

the organizational effectiveness and efficiency.

Today, organizations have to face the dilemma of scarce resources. The organizations are

involved in number of projects at the same time, that’s why the constraint of limited resources

have to face. Similarly, organizations also have to deal with limited human resource. It is the

responsibility of human resource department to allocate the human resource on the basis of need

and urgency that ensure the competitive advantage and contributes to the organizational

efficiency.

The success of an organization or firm is highly depend upon the motivation level of its

employees. The highly motivated workers give better results or outcomes as compared to the

discontented and grumpy employees. Different tactics are used in the organization to boost up

the motivation level of employees by adopting the techniques of human resource management,

for instance, employee’s assessment, performance appraisals bonuses and compensation plans

etc.

Every organizations have some goals and objectives. These objectives are achieved through

active and positive participation of human resource. The chief function of human resource

management is to make the organizational goals of the individuals work in the organization. The

personal goals of employees are kept aligned with the organizational strategic objectives. The

sincere and momentous efforts of employees towards the achievement of objectives ensure the

success of the organization. The accomplishment of organizational goals and objectives ensure

the organizational effectiveness.

promoting the culture of innovation. The present world is changing with every passing minute

that is gravely attributed to the advance and evolving technology. It is very significant for an

organization to be innovative and to respond to the changing demands. Rapidly changing

markets and ever increasing competition in market is demanding for bring innovation in the

organizations. The team leaders and managers are trained to pull the innovation within the

organizations. Through trainings, the team leaders are taught how to drive innovation in the

organization.

The organizational effectiveness and efficiency achieved through human resource management

can be evaluated on the basis of commitment, congruency, competency and cost effectiveness

[ CITATION Bus11 \l 1033 ]. The participation of human resource management can also be

witnessed to the development and implementation of the business policy and strategy. The HRM

assists in choosing the most suitable strategic opportunity and also facilitating in implementation

of that strategic option. The commitment of employees with the organization depends upon the

loyalty and motivation level of the employees. The motivated employees are more committed to

their companies. The employee’s hard work enables the companies to take the competitive

advantage over their rivals. The commitment is a tool to measure the seriousness of the attitude

of the employees towards their assigned work and duties.

Human Resource Management makes the workforce more competent and skilled through

training and development programs as enlightened above. Employees are capable of performing

multiple tasks and use the advance machinery. Thus, the overall performance of the organization

increased. Human resource management also ensures the congruency which means that

employees have same goals as organizations have. The last but not least tool to evaluate is cost
effectiveness that is concerned about operational activities. Human Resource policies can be

evaluated in term of wages, benefits, strikes and absenteeism etc [ CITATION Bus11 \l 1033 ] .

Hence, cost is determined through human resource management for organizations.

Strategic human resource management (SHRM) hypothesis is predicated on the suspicion that

powerful HRM procedures have the ability to contribute fundamentally to authoritative

adequacy, communicated as far as efficiency, adaptability, viability, proficiency, quantifiable

profit, intensity, and at last, gainfulness. Prior research considers have investigated the general

esteem including capability of HRM procedures in general. Few have concentrated on the

connections between vital HRM, execution administration frameworks and authoritative

viability, and even less have analyzed these connections in Southeast Asia. This paper addresses

this crevice in the writing by looking at the view of a split specimen of senior administrators in

Singapore. It uncovers an intriguing crevice between their talk and the substances of their

execution administration frameworks, and recommends future research bearings.

Human Resource Management concentrates on securing, keeping up, and using a viable work

drive. It includes a different exercises, for example, evaluating human asset gauges for the

association, screening of imminent representatives, enrollment prepare, surveying preparing

requirements of the workers, building up a legitimate of remuneration frameworks, and

characterize strategies as per nearby law and necessities. Both effectiveness and efficiency are

mandatory for HR division or association to offer some incentive. Similarly imperative, is seeing

how to make this esteem "genuine" in your association, as both sides of this coin will

conceivably require diverse activities. The final product is HR association in a venture with the

circumstances that the organization administrators swing to counsel, direction and vital basic

leadership.
References

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