Human resource management (HRM) changes its definition time to time with the change of the nature of the workplaces. Pereira and Gomes (2012 p.?) have stated that the “HR system can be defined as a complex set of communication mechanisms between the organisation and its employees”. The main purpose of HRM is to avoid workplace conflicts or reduce them to a certain limit by manag-ing the relations between the employers and employees. Various research also shows that HRM has bought many legislations which are fairly new in terms regulating work, especially in relation to equality, training and participation (Lucio & Stuart 2011, p.?). This report, through thorough research focuses on providing a clear understanding of the…show more content… Lucio & Stuart (2011, p.?) states that “HRM itself is more concerned with the relationship between firm-level strategy and the policy and practice of HRM and the differential contributions of levers of HRM to company perfor-mance”. Human resource management basically focuses on managing the rela-tionships between the employer and the employees by providing team-based job designs, flexible workforces, employee empowerment and implementation of competitive strategy for achieving operational goals (Huselid et al,1997, p.?).
Benefits of HRM
HRM provides an increase in the firms productivity. Higher levels of human capi-tal helps in increasing the productivity of the firm (Wright et al, 1994, p.?). The key aspect of increasing a firms productivity is the cognitive ability i.e. the ability to perform any given task demonstrated by its employees which increases the ability to do any task which thus increases productivity of the firm making it more advantageous.
Time and cost Efficiency
Human Resource management is a system which strengthens the collaboration in a workforce by hiring individuals that give the best performance to the firms. The strategies and the design plans that are made by the HR managers are in a way that they hire