Essay on Human Resources Management Contribution

1490 Words Mar 13th, 2010 6 Pages
“How can Human Resource Management contribute to the success of an engineering business?”

Although there is no widely acknowledged definition for the term Human Resource Management, as far as I can understand it Human Resource Management is an approach to personnel management that sees people as the key resource of a company. In short it is a system that believes it is important to communicate well with employees and include them in what is going on with the organization, to increase the commitment and help them to identify with the organization.

HRM specifically is a body of functions and policies that shape the work environment and control the relationship with employees. Some functions contain alternative methods or practices
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From here a mission statement can be developed that relates to the people side of the business, establishing what they contribute. Analysing the organization (Culture, Organization, People, HR systems) and the external business and market environment will determine potential performance, skill issues etc. and highlight opportunities/threats. For each critical issue options can be generated considering the consequences of possible actions. From this a set of broad objectives can be created that can be split into specific HR areas, for example, Management, training/development, communication etc.

The choice of strategy will have a big effect on the company’s success. Smaller companies will have to choose different objectives, for example, it is more expensive for a smaller company to offer effective training to their workforce, so a better option would be to select and recruit the correct staff. This is illustrated by Small to medium sized companies in China, which were found to have focused their HR efforts on selection and recruitment, performance-based remuneration and employee involvement in decision-making. This may be working well for these SME’s but for future success it would be a good idea to develop effective training/development programmes in order to further develop their employee’s skills. The problem here is that in order to compete with other companies there
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