HRM Adds Value to the Firm

An effective Human Resource Management ensures that the business conducts its business affairs free from any obstacles. The organizations therefore needs to constantly evaluate their external and internal environment that may in one way or another interfere with the running of the business and hindering the business from achieving its goals and objectives. An effective HRM ensures that the organization remains competitive in the market and is subsequently able to sustain its growth (Dreher, & Dougherty, 2001).

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The HRM can ensure that there is continuous addition of value. This is possible through the use and upgrading of technologies that will ensure that the business remains at par in terms of its competitive edge. The HRM can also ensure that there is a change in the continuous workforce demography’s and at the same time establishing non bureaucratic structures in the organizations that ensures that there is a flow of communication from the bottom-top, top-bottom between the management and the employees (Dreher, & Dougherty, 2001).

To ensure that the HRM creates value and ensures there is a delivery of result, the HRM should focus on determining the objectives and goals of the organization. With this in mind, the organization will be aiming to maximize the profitability of the organization, improve the quality of work performed by the organization and in the process increase the business revenues. The HRM should aim to increase the marginal utility of the organization. Increase in marginal utilities refers to the aiming to increase the satisfaction of the consumers towards attaining a specific need.

The HRM also adds value to the firm by making strategic planning. Strategic planning involves analyzing how a business will compete effectively with the rest of the organizations that offer the same goods and services. With strategic planning the HRM will determine the type of product that will be profitable for the company and mode of sale of the product to ensure that it reaches the majority of the target market (Dreher, & Dougherty, 2001).

Reference

Dreher, G. & Dougherty, T. (2001). Human resource strategy: a behavioral perspective for the general manager. McGraw-Hill/Irwin

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