Significance of Human Resource Management in Organizations: Linking Global Practices with Local Perspective

By Ali, Akbar | Researchers World, January 2013 | Go to article overview

Significance of Human Resource Management in Organizations: Linking Global Practices with Local Perspective


Ali, Akbar, Researchers World


ABSTRACT

Present study aims to link the global HRM in local context. HRM deals with the responsibilities, functions, behaviors and importance of employee. Hence the significance of HRM in organization is marvel. Previously not much attention had been given to manage employee in an organized manner, but with the passage of time need were felt to shiftto formalization. The level of HRM practices do not show the formalized structure, therefore it is found mandatory to focus our country so that a step towards the identification and filling of gaps is initiated. HRM role is supposed to be very inclined towards humanitarian factors. In Pakistan the issue of traditional management is required to be addressed to transform it to HRM conceptualization in true letter and spirit. In Pakistan context this article is being written with the confidence that it will help managers to link the global HRM practices in local context in their organizations.

Keywords: HRM, Organisation Pakistan.

INTRODUCTION:

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT:

Human resource management is the part of the organization that is concerned with the "people" dimension (DeCenzo and Robbins, 1996). It is a staff, or support, junction in the organizations. Its role is to provide assistance in HRM matters to line employees, or those directly involved in producing the organization's goods and services. Every organization is comprised of people; acquiring their services, developing their skills, motivating them to high levels of performance. And ensuring to maintain their commitment to the organization is essential to achieve organizational objectives. This is true, regardless of the type of organization; government, business, education, health, recreation, or social action. Getting and keeping good people is critical to the success of every organization. HRM is an approach consisting of four functions; staffing, training, development and motivation, and four activities; getting people, preparing them, stimulating them, and keeping them.

Today, professionals in the human resource area are vital elements in the success of any organization. Their jobs require a new level sophistication that is unprecedented in human resource management, not surprisingly; their status in the organization has also been elevated as the name has changed. Companies today recognize the importance of people in meeting their goals. For instance, at Standard Chartered Bank and Sony Music Entertainment, people are "viewed as how each employee is important toward the organization achieving its strategic goals." In return, these people have needs to be met. Consequently, when major decisions affecting the organization and its people are made by the company's executives, HR typically is present to represent the people-side of the business.

Many colleges and universities are also helping to prepare HRM professionals by offering concentrations and majors in the discipline. Additionally, there exists an accreditation process for HRM professionals. The society for Human Resource Management offers opportunities for individuals to distinguish themselves in the field by achieving a level of proficiency that has been predetermined by the Human Resource Certification Institute as necessary for successful handling of human resource management affairs.

Michie and Sheehan-Quinn (2001) surveyed over 200 manufacturing firms in the UK to investigate the relationship between corporate performance and the use of flexible work practices, human resource systems and industrial relations. They found that 'low-road' practices - including short-term contracts, lack of employer commitment to job security, low levels of training and unsophisticated human resource practices - were negatively correlated with corporate performance. In contrast, they established a positive correlation between good corporate performance and 'high-road' work practices - 'high-commitment' organizations or 'transformed' workplaces. …

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