HRM In Sustaining Competitiveness

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Human Resource Management (HRM) refers to the management of people in an organization. It involves the integration of Human Resource policies, activities and systems that focus on managing employees in an effective and efficient manner to achieve organization’s goal and success (Byars and Rue, 2006). The purpose of this report is to analyze the importance of HRM in sustaining competitiveness and contributing to the success of the organization. Subsequently, discuss on the main challenge of HRM in today’s rapid changing business environment. Last but not least, suggest and evaluate recommendations to overcome the challenge faced by HRM.

Importance of HRM

HRM is important to every organization as it concerns with the “people”
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When employees are not engaged or committed in their work, it is more likely for them to leave the organization for various reasons. Furthermore, this can affect the morale of other employees as they might need to cover up for the Organization have to make sure that the employees are committed, productive, and do not leave after a short period, incurring substantial turnover costs and wasting all previous training invested in them.
Therefore, HRM professionals have to continuously generate innovative strategies to attract, engage and retain these employees. Companies are well advised to search for diversity that can generate creative ideas, better productivity and a sense of equality that builds teamwork. HRM professionals need to understand what motivates company employees, and incorporate them into compensation or rewards
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Moreover, to groom a new employee, company has to invest time and money to ensure that the employee is well equipped with the adequate skills and knowledge. Therefore, according to Matthewss, Megginson and Surtees (2004), high labour turnover increases the cost for the organization and it can affect other employees in the organization. As a whole, it affects the organization’s overall performance in productivity and competitiveness in the industry.
There are several strategies that HRM professionals can adopt to overcome the employee retention challenge. However, before implementing any strategies, HRM professionals must first understand and recognize the needs and desires of the employees in order to achieve optimal results. Employees today want more than just good wage. They are constantly searching for a career package that provides comfortable working environment, career advancement opportunities, work-life balance and recognition by the organization.
Below are some effective strategies that can reduce employee
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