Organizational and Managerial Functions †MyAssignmenthelp.com

Question: Discuss about the Organizational and Managerial Functions. Answer: Introduction Human resource management is a concept that has emerged in the past few decades in the business world and has become one of the most important managerial functions. Management of human resources is aimed at maximising the performance of individuals by establishing better relations between employers and employees and by improving the work conditions for the employees Invalid source specified.. To achieve its objectives, human resource management uses a number of core and non-core functions, such as recruitment and selection, performance management, career development, training and development, motivation, retention and attraction, etc. With the rapid increase in market competition, the reliability of business organisations on human resources, in order to achieve market competencies, has increased even further. Where all other resources and processes can be replicated over a period of time, human resources cannot be replicated and a talented pool of employees is always a plus point for any business. Thus, human resource management is considered to be important from a business point of view and also because of its ability to add value for the stakeholders Invalid source specified.. In this report, we will discuss the way in which human resource management can create a sustainable value for the stakeholders. Human resource management in creating a long term value for stakeholders The recent developments in the field of human resource management has changed the way in which most business organisations perceive it. Most of the business organisations have shifted their focus from human resource management to strategic human resource management, which further aims at aligning the human resource management practices of a company with its organisational strategies in order to become more efficient and productive. To understand the way in which human resource management systems can help in creating a long term value for the stakeholders, it is important to identify the stakeholders involved. The most important stakeholders involved in the process are employees, employers, investors and the customers. Human resource management systems can definitely prove to be beneficial for all stakeholders and can also help in creating a long term value for them in the following ways: First of all, for the employees, human resource management systems can add value because of their ability to shift the focus of an organisation towards the training and development of its employees. Human resource management systems aim at increasing the skills, knowledge and competencies of the employees as it helps business organisations in becoming more competitive and in outperforming their competitors Invalid source specified.. Training and development programs add value for the employees because of their ability to help the employees in developing their careers and achieving higher positions in the organisational hierarchy. Further, human resource management systems also aim at improving the work conditions for the employees and to keep them motivated, which depicts the importance that an organisation attaches to its employees. Secondly, for the employers, human resource management systems are of a great importance because they add maximum value for them in the long run. Effective human resource management systems can help employers in maintaining strong and peaceful relations with the employees, which can help in optimising the overall performance of an organisation. Human resource management systems also aim at implementing strategies that can help the employers in retaining their skilled workforce and attracting fresh talent in the market. Implementing strategies to attract, retain and motivate the employees can help the employers in establishing a strong image in the market as an employer Invalid source specified., which is beneficial because the fresh talent in the market is always eager to work with such organisations Invalid source specified.. Further, human resource management systems can also add value for the employers by introducing performance management systems in the organisation. Performance management systems are aimed at setting up performance goals, measuring the performance, performance appraisals and identifying the gap in performance levels of individuals, teams and of the organisation on the whole. Performance management systems can foster a performance oriented environment in the workplace, which can ultimately help an organisation in outperforming its competitors. Human resource management systems also aim at dealing with problems that can increase the employee turnover rate in an organisation, which in turn can prove to be a burden on the resources of a company. Using human resource management systems to deal with high labour turnover rates can also help a business organisation in bringing down its attrition rates and reducing its operational costs. Last, but not the least, human resource management systems help business organisations in make their recruitment and selection programs more efficient and cost effective. Having efficient recruitment and selection programs can help employers in identifying the right fit for a right job at the right point of time, which saves the employers from wastage of efforts and money that is spend in carrying out recruitment and selection process over and over again. Thus, human resource management systems add a great deal of long term value for the employers. Fourthly, for the customers, effective human resource management systems can add a lot of value in the long run. A company that uses efficient human resource management practices will always be able to ensure high job satisfaction levels amongst its employees, which keeps the employees motivated to serve their customers in the best possible manner Invalid source specified.. A well-managed workforce will always demonstrate exceptional performance levels and will be able to develop innovative and creative products that will be able to satisfy the demand of the customers in the market. Human resource management systems can help business organisations in establishing a strong market reputation and being associated with such companies is perceived as a thing of high value by the customers. Lastly, for the investors or the shareholders, effective human resource management systems can add value by minimising the operational costs and maximising the share value by increasing the overall profitability of a company. Effective human resource management systems can assist business organisations in designing appropriate compensation and benefit plans for the employees, which do not act as a burden on the resources of a company but are also able to keep the employees motivated and engaged in their jobs Invalid source specified.. An engaged and motivated workforce can be really helpful in serving the customers in a better way and developing products and services that are better than those of the competitors. Thus, the overall profitability of the company is increases, which in turn will result in an increase in the values of the shares held by the investors. Further, effective human resource management systems can help business organisations in becoming more efficient and in pre forming better, which establishes a strong reputation of a company in the market. Stakeholders or the investors attach a high value when they are attached to an organisation that has a strong market reputation. Thus, effective human resource management systems can also add a long term sustainable value for the investors or the stakeholders as well. Conclusion From the above information, it is evident that human resource management systems are not just important for achieving better results but can also be helpful in adding long term sustainable value for all stakeholders that are related with the business of a company. Therefore, business organisations should shift their focus towards strategic management of their human resources in order to outperform their competitors and to ensure high satisfaction levels amongst the stakeholders. References Barrett, M., 2016. Value adds for employers of choice: talent-retention. HR Future 1, 1 January.p. 46. Boxall, P. Purcell, J., 2011. Strategy and Human Resource Management: Third Edition. s.l.:Palgrave Macmillan. Brewster, C., 2017. The integration of human resource management and corporate strategy. In: In Policy and practice in European human resource management. s.l.:s.n., pp. 22-35. Lengnick-Halla, M. L., Lengnick-Hall, C. A., Andrade, L. S. Drake, B., 2009. Strategic human resource management: The evolution of the field. Human Resource Management Review , June, 19(2), pp. 64-85. Meijerink, J. G., Bondarouk, T. Lepak, D. P., 2015. Employees as Active Consumers of HRM: Linking Employees HRM Competences with Their Perceptions of HRM Service Value. Human Resource Management, 9 April.55(2). Rees, G. Smith, P., 2017. Strategic Human Resource Management: An International Perspective. s.l.:Sage. Vermeeren, B. et al., 2014. HRM and its effect on employee, organizational and financial outcomes in health care organizations. Hum Resour Health, 17 June.Volume 12.