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

(Boudreau, 2012).

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 (Goh, 2013)

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 (Jessica Nelson, 2010)

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.

HR practices also contribute to the organizational effectiveness and efficiency through 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

(Business Review, 2011). 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 (Business Review, 2011). 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

Boudreau, E. E. (2012, August 1). Creating an Effective Human Capital Strategy. Retrieved from
https://www.shrm.org/hr-today/news/hr-magazine/pages/0812boudreau.aspx
Business Review. (2011, June 9). Human Resource Management: Evaluation of Human Resource
Function. Retrieved from https://athanne.wordpress.com/2011/06/09/human-resource-
management-evaluation-of-human-resource-function/
Goh, G. (2013, August 9). The Difference Between Effectiveness And Efficiency Explained.
Retrieved from http://www.insightsquared.com/2013/08/effectiveness-vs-efficiency-
whats-the-difference/
Jessica Nelson, M. P. (2010, January 12). HR Focus Efficiency and Effectiveness. Retrieved from
http://www.yourhrremedy.com/news/?p=18
Lawler, E. E. (2014, February 11). HR Should Own Organizational Effectiveness. Retrieved from
https://www.forbes.com/sites/edwardlawler/2014/02/11/hr-should-own-organizational-
effectiveness/#7148a05c1e46
Stanton, P. (2011, June 22). Linking strategic HRM, performance management and organizational
effectiveness: perceptions of managers in Singapore. Retrieved from
http://www.tandfonline.com/doi/abs/10.1080/13602381003790382?journalCode=fapb20
UKEssays. (2015, March 23). Hrm Contribute To Organization Effectiveness Management .
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organization-effectiveness-management-essay.php
Voying. (2015, June 25). How Human Resource Programs Can Boost Efficiency. Retrieved from
http://voyig.com/how-human-resource-programs-can-boost-efficiency/