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Introduction
The following essay will discuss how human resource management (HRM) can add
value to an organisation. The essay will first define HRM and outline the goal and
objectives that HRM and its policies aims to achieve. The main body will discuss how
value can be added through strategies in the functions of HRM. The essay will
conclude to affirm the notion that HRM does indeed add value to organisations from
the studies done in relation.
Human Resource Management
Human resource management (HRM) was defined as “all those activities associated
with the management of employment relationships in the firm” by Boxall and Purcell
(2003:1). M. Armstrong (2011:6) described the functions of HRM, “HRM covers
activities such as human capital management, knowledge management, organisation
design and development, resourcing (workforce planning, recruitment and selection,
and talent management), performance management, learning and development,
reward management, employee relations and employee well-being.” Boxall and
Purcell also described HRM as “an inevitable process that accompanies the growth of
organisations” (2010:29).
As mentioned by Lawler and Boudreau (2009: 2) the HR activities can add value by
adopting a control-and–audit role. Lawler (1995) further developed this line of thought
by describing three roles that HR can take on to add greater value. The first being the
human resources management role, the second through the role of a business partner
and the third through the role of a strategic partner. The main body of essay will
discuss in the main body how policies and practices in the HRM role can add value to
the organisation.
Goal and objectives of HRM
The goal of HRM as suggested by M. Armstrong (2011: 13) is to ensure that the
organisation can achieve success through people. The policy goals for HRM identified
by Caldwell (2001) included managing people as assets that are fundamental to the
competitive advantage of the organisation, aligning HRM policies with business
policies and corporate strategy and developing a close fit of HRM policies, procedures,
and systems with one another.
As mentioned by Lawler and Boudreau (2009: 2) the HR functions can add value by
adopting a control-and-audit role. Lawler (1995) further developed this line of thought
by describing three roles that HR can take on to add greater value. The first being the
human resources management role, the second through the role of a business partner
and the third through the role of a strategic partner. The following is a discussion of
how strategies in the functions of HRM can add value to the organisation.
Recruitment
Recruitment or staffing is one of the core functions of HRM. As per Ulrich & Brockbank
