Human resource is the most important asset of an organization.

Introduction Human resource is the most valuable assets of an organization. Human capital is an investment that cannot be depreciated. Increasing huge number of companies is recognizing the important of effective human resource management (HRM). Human resource (HR) practices should be among the priority considerations of an organization. This report covers essential tools in HR practices like staffing, training, compensation and performance management that shape organization role in satisfying need of its stakeholder.

Due to the dynamic business environment, organization is concerned on their business focus and direction to achieve sustainability and competitiveness in the global challenges.

Strategic Human Resource Management (SHRM) identifying the organizations strategic goals and capability to develop and implement strategic plans to reach the goal. For the strategies to be implemented there will be a change in planning and management. Obtaining strategies into action is not easy and hence the barrier can be met by conducting rigorous initial analysis that covers business needs, corporate culture and both internal and external environmental factors (Stoyanova, 2005).

Motivations can be tools that can emphasize the personal growth and development of the employees. The idea of the motivation is not only helping the employees to maximize their

potential and their contribution through their performance but also, improving the productivity of the company (Bruce, 2003).

Time to time, managers should make an effort in providing performance feedback to the employees. Employee performance should not be communicated only during annual appraisal. Through daily conversation, information can be conveyed for improvement. During formal and informal communication, it creates a good opportunity to listen to individuals views. With an open communication, the team understands their strengths and weaknesses. Both the manager and team are able to implement plans for improvement. Effective communication is essential for HRM to have a constructive contribution to the overall strategy, and to allow the accomplishment of the strategic objectives (Collins, 1987).

Everyone likes to be encouraged. Simple words of thanks or verbal recognition constantly improve morale and employee relationship. It a values to employee for recognizing works of excellence. A comfortable work condition enables the upper and lower management to form a trustworthy relationship with each other.

Given more autonomy, employee will feel responsible and commitment for their job. They believed their capabilities and strength has been acknowledged. With increase in selfconfident, employee will initiative and suggest constructive solutions into the organization.

Through the job satisfaction, the employee feels his importance of belongingness in the workplace as well as the importance of his work. (Wright, 2001) Motivation improved productivity and effectiveness of the organizations competitiveness. Together, the organization and their future are supported.

With respond to the changing environment, organization needs to be constantly adaptable to the change. Due to the increasing complexity of managing people, an SHRM is necessary for organizational success. Human resource strategy and corporate strategy need to be integrated so that strategic harmony is developed between HRM and the business plan. (Armstrong and Long, 1994) A fundamental mistakes made by management is the failure to allocate the right people to the right job once these changes occur. (Stone, 2002)

It is important to identify and obtain information through job analysis and evaluation. With the result, HR personnel should use emphasize on the most efficient method to convey and attract the most suitable candidates for the job. HR personnel should be precise during the selection and capable of short-listing potential applicant. The first aspect of recruiting and selecting prospective applicant is that individuals expertise should match with the requirement and needs of each specific position. The failure to select the most effective person will typically constrain a firms performance and lead, sooner or later, to its demise. (Boxall, 1996)

According to Hacker (1996), the recruiting of an employee contains hidden costs; these include advertising and the time that is employed on screening and interviewing the prospective employee. In pursuit of implementing cost effective option, high turnover of employee must be avoided to encourage lower recruitment expenditure. Retention of the current workforce is the most economic solution to an organization.

In the progressing world, training is essential in an organization to keep employee to be updated and informed regularly to increase performance. Organization must invest in training to ensure employee is job ready. It is significant to equip the workforce with indepth technological advancement for better deployment. High competency levels and competitive advantage can be achieved through high performance work system. Reformation in the external and internal environments influence strategic change, such that a static set of employee skills will often be inadequate (Butler, Ferris and Napier, 1991).

Compensation is systematic approach to providing monetary value to employees in exchange for work performed. An effective rewards and recognition system is a useful tool to motivate employees. (Byars & Rue, 2003) It is important to reward employee for their past performance while serving as a motivation tool for the future performances. Many viewed it as recognition of individual value to the organization.

In order for organization to meet its distinct business goals and keep its competitiveness in the market, they will need exceeding talented workforce that is motivated to promote high performance to achieve exceeding results while retaining them as long standing employee.

Conclusion While expectation continues to rise, human resource will have to change in many ways to support the organization success and new set of direction. Management needs to be orientated towards strategic use of human resource. Through the assistance of SHRM, organization optimizes the efficiency and gain competitiveness in the market. Providing a motivational work environment is a challenge in this competitive world.

Bibliography Armstrong, M, and Long, P. (1994): The Reality of Strategic HRM, London: IPM

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