Hrm: Employees Are Our Most Important Asset
“Our people are our most important asset!”
Critically assess this statement demonstrating your understanding of HRM strategy and operations and HRM’s interconnectedness to other management functions and corporate goals.
Employees are an organisations most important asset as they ultimately determine organisational success or failure. The management of employees therefore forms a crucial component in an organisation’s strategy. Throughout the last few decades the awareness of employee importance has grown with a shift from personnel management to a more individually focused human resource management. In this time it was realised that optimal employee performance can be achieved through an integrated strategy that establishes and maintains an employment relationship. Human resources management (HRM) shares, as a result, an interconnection with corporate strategy and mission because the function will help determine the level of an organisation’s success. This is further extended to all management functions such as marketing, finance, IT etc as employee management will have significant influence over the way in which managers work towards goals within their own department. Due to the nature of their interconnectedness, alignment of HRM strategy and corporate strategy will thus be crucial in achieving the organisation’s mission. By analysing HRM strategy and operations this point can be explored and will emphasise both the importance of employees as well as their management to the objectives and success of an organisation. Finally it is important to consider corporate culture in the implementation of HRM strategy and frequent HRM evaluation, as the field is constantly changing through employment legislation and new generations taking the place of others in the workforce. Organisations will thus need to be flexible and adapt in order to plan and implement a strategy that maintains a good employment relationship, whilst working towards achieving corporate goals
Critically assess this statement demonstrating your understanding of HRM strategy and operations and HRM’s interconnectedness to other management functions and corporate goals.
Employees are an organisations most important asset as they ultimately determine organisational success or failure. The management of employees therefore forms a crucial component in an organisation’s strategy. Throughout the last few decades the awareness of employee importance has grown with a shift from personnel management to a more individually focused human resource management. In this time it was realised that optimal employee performance can be achieved through an integrated strategy that establishes and maintains an employment relationship. Human resources management (HRM) shares, as a result, an interconnection with corporate strategy and mission because the function will help determine the level of an organisation’s success. This is further extended to all management functions such as marketing, finance, IT etc as employee management will have significant influence over the way in which managers work towards goals within their own department. Due to the nature of their interconnectedness, alignment of HRM strategy and corporate strategy will thus be crucial in achieving the organisation’s mission. By analysing HRM strategy and operations this point can be explored and will emphasise both the importance of employees as well as their management to the objectives and success of an organisation. Finally it is important to consider corporate culture in the implementation of HRM strategy and frequent HRM evaluation, as the field is constantly changing through employment legislation and new generations taking the place of others in the workforce. Organisations will thus need to be flexible and adapt in order to plan and implement a strategy that maintains a good employment relationship, whilst working towards achieving corporate goals
Bibliography: Case Study Inc, ‘Case Study on FedEx – HR Practices’ <http://www.casestudyinc.com/case-study-fedex-hr-practices> February 22, 2010 Fowler Nankervis A, R Compton, M Baird & J Coffey, Human Resource Management: Strategy and Practice, (Cengage Learning: Sydney, 2011) NCETA,‘Recruitment and Selection’ <http://www.nceta.flinders.edu.au/pdf/TIPS/10-Recruit_and_Sel.pdf> 2005 [ 2 ]. Case Study Inc, ‘Case Study on FedEx – HR Practices’ February 22, 2010 [ 3 ] [ 9 ]. Accenture, ‘Harley-Davidson Motor Company: Strategic HR Function’ June 6, 2005 [ 10 ] [ 14 ]. Shamim Rafeek, ‘Our Employees - " The Most Valuable Intangible Assets "’ April 2, 2009 April 2, 2009 [ 17 ]