The Importance of Human Resource Management Essay

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Armstrong (2006) defined Human Resource Management as a strategic deployment of an organisation's most valued assets; the people working there, who individually and collectively contribute to the achievements and the objectives of the business. Links between HRM and performance are predominantly focused on the following practices: sophisticated selection and recruitment methods, training, teamwork, performance-related pay and employment security (Wall, Wood, 2005). Products can be copied, methods of production can be changed and optimized, companies can move from one continent to the next trying to exploit geographical advantages however, the one inescapable truth is that a strong, talented workforce still exists as the most valuable asset …show more content…
Perry-Smith and Blum (2000) suggest that ‘bundles’ of HR practices capture ‘broader and higher-level effects’ than those captured by focusing on more exact, individual policies and are particularly appropriate for investigating firm-level effects (Cassoni and Labadie, 2013).

One of the most significant and valuable aspects of HRM is its control of the recruitment and selection of candidates. Human Resources is at the forefront of determining what kind of candidates an organisation wishes to add to its workforce, hence they are impacting organizational performance before people even step through the door. By developing recruitment strategies HR managers seek to attract the finest possible pool of applicants, encompassing the best, most talented individuals as a result of a carefully selected recruitment strategy, utilizing the concepts of person job fit (PJF) and person organization fit (POF). By hiring and selecting more talented people HRM maximizes the potential of the workforce and by association influences organizational performance. The more thorough and complex the recruitment process the higher quality the candidates. In a study of 259 Indian enterprises investigating the level at which recruitment and selection practices integrate with business strategies and its effect on organisational performance, it was found that the majority of Indian enterprises who had a high level of recruitment and