HRM2000_Module 1: Why HRM matters?

HRM

An integrated set of systems, practices, and policies in an organization that focuses on the effective deployment and development of its employees

The main responsibilities of HRM

Purpose of HRM and Strategic Contribution

• Manage people to maximize performance and achieve goals.

• Align workforce with business objectives.

• Attract, retain, and develop talent.

• Shape organizational culture and engagement.

• Support change and innovation.

HRM is important to employees

• Fair treatment and opportunities

• Career growth and skill development

• Positive work environment

• Motivation and engagement

Human Capital

• Employees’ knowledge, skills, experience, and abilities.

• Drives innovation, productivity, and competitive advantage.

• Investing in human capital improves retention and growth.

Link between HRM Strategy and Business Strategy

• HRM strategy must be aligned with the business strategy

• HRM plays an important role in getting the most from employees.

  → Gain competitive advantage