Question

The fact that effective Human Resource Management (HRM) means that “a company has the right number of employees and that these employees are qualified to do their jobs.” Tap into your knowledge from management about HRM activities to explain how a company ensures that these two requirements are met.

Answer 1

HRM activities are explained below:

1. A Workforce Management aspect of strategic human resource management supports the business to understand the manpower needs like how many head counts have been recruited, how many are yet to be recruited according to the allocated budget and how many have exited. This helps the business to take decisions on production and avoid losses which is the major strategy of human resource management.

2. A performance review tool helps business to understand how each employee is performing in line with the assigned key responsibilities like who are the top performer, which employees are not performing and in turn how it affects the company’s profit and loss. This helps to bring in new strategies in order to beat competition.

3. Employee development tool in strategic human resource management helps employee to know his current career level in the organization and how far he could move up in the organization. This being a transparent tool increases the morale of employees and attracts good talents in order to work competitively.

4. Leadership development tool helps the business to measure and train their important leaders so that they in turn look after their team member’s well which would again increase the profitability and overcome competition.

5. A succession planning tool would help business to plan their successors properly for each role so that there is no discontinuity in services which would hinder the business