The companies’ leaders can improve their business by investing in development new products or services, improvement product or service quality, and enhancement marketing and sales. Another possible investment is improving the way a company manages its people – tends to receive less attention. Human Resource Management is very important for business as it involves a variety of activities that deal with the ‘human side of organisation’ (Griffiths and Wall, 2005). Armstrong claims (1999) that “HRM can be regarded as… a strategic and cohered approach to the management of an organization’s most values assets - the people working there who individually and collectively contribute to the achievements to this goals” (in Griffiths and Wall, 2005). The low workforce motivation and poor workforce productivity can create essential problems for a company, as the human resource is not only key asset, but also the major cost taking up over 75 per cent. Thus as an asset it is very important to take possible return from these expenditure by finding the best ways to meet the needs of people in order to help them to develop themselves to the full. In these essay will be examined HRM policies, supported with theories of motivation, which are used to find possible weakness in HRM and improve workforce motivation and productivity.
Productivity
It is very important to look at different factors that impact productivity. For instance, the Ryanair air company has serious HRM problems. Ryan air is Irish low-cost airlines. Staff complained of poor wages, bad working conditions and even having to pay for their water during flights (Amble, 2005). These problems may affect productivity and motivation seriously. There are same ways to improve productivity. Firstly, trough investing in people by training and investing in equipment that employees use, for instance through purchasing more high-tech equipment, such as advanced computers, robot technology systems etc.