HRM and Organizational Effectiveness

1. HRM
and
Organizational
Effectiveness
Douglas C. Claveria

2. What is HRM?
-Human resource management (HRM) is the process of employing
people, training them, compensating them, developing policies
relating to them, and developing strategies to retain them.
-Human resource management (HRM) is the practice of recruiting,
hiring, deploying and managing an organization's employees. HRM
is often referred to simply as human resources (HR).
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3. What is the importance of Human resource?

4. Importance
of HRM
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Behind production of every product or
service there is an human mind, effort
and man hours (working hours). No
product or service can be produced
without help of human being. Human
being is fundamental resource for
making or construction of anything.
Every organisation desire is to have
skilled and competent people to make
their organisation competent and
best.

5. Importance
of HRM
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Among the five Ms of Management, i.e.,
men, money, machines, materials, and
methods, HRM deals about the first M,
which is men. It is believed that in the
five Ms, "men" is not so easy to manage.
"every man is different from other" and
they are totally different from the other
Ms in the sense that men possess the
power to manipulate the other Ms.
Whereas, the other Ms are either lifeless
or abstract and as such, do not have the
power to think and decide what is good
for them.

6. Why do we call it as Human Resource
Management?
“
”

7. Human: refers to the skilled workforce in an organization.
Resource: refers to limited availability or scarce.
Management: refers how to optimize and make best use of such limited or
scarce resource so as to meet the organization goals and objectives.

8. Within the unit of each organization, the
objectives of HRM are to:
-Help the organization achieve its goals by providing and maintaining productive employees.
-Efficiently make use of the skills and abilities of each employee.
-Make sure employees have or receive the proper training.
-Build and maintain a positive employee experience with high satisfaction and quality of life, so that
employees can contribute their best efforts to their work.
-Effectively communicate relevant company policies, procedures, rules and regulations to employees.
-Maintaining ethical, legal and socially responsible policies and behaviors in the workplace.
-Effectively manage change to external factors that may affect employees within the organization.
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9. HRM and Organizational Effective
•HRM and Organizational effectiveness measures how
successful organizations are in reaching their goals.
An effective organization runs smoothly and functions
well.
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10. HRM and Organizational Effective
• Organizational effectiveness refers to how an organization has
achieved full self-awareness due in part to:
• Leaders setting well-defined goals for employees and outlining
ways to efficiently execute those goals
• Management implementing clear decision-making processes
and communication pipelines
• Engaged employees—who are carefully selected and fairly
compensated—producing work that prioritizes results
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11. 7 HRM Organizational Effectiveness
Models
Effectiveness models Organizational effectiveness means…
Goal model …accomplishing its goals
Internal process model …high-quality internal processes
Resource-based model …obtaining resources needed for high performance
Strategic constituency model
…satisfying strategic constituencies that hold sway over the
organization
Stakeholder model …satisfying stakeholders of the organization
Competing values model …the presence of simultaneous opposites
Abundance model …flourishing and virtuousness
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12. Measuring organizational effectiveness is complex. Different models offer different viewpoints to assess effectiveness.
For example, the resource-based model measures input, the internal process model measures process effectiveness,
and the goal-based model measures organizational output.
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13. How do you measure organizational
effectiveness?
• Measuring organizational effectiveness is about taking
multiple perspectives and seeing if the organization is
reaching the goals it set out to achieve, as well as its full
potential. Creating a detailed scorecard based on your
goals and KPIs (Key Performance Indicator) creates a
systematic approach that can be used regularly to re-
evaluate and track progress on how effective the
organization really is and where we can make
improvements.
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14. How HRM can contribute to
organizational effectiveness?
• First, organizational effectiveness is the main focus of
the organizational development unit, which is often part
of HR. The organizational development team runs
organizational transformations and comes up with more
specific interventions for workforce and organizational
issues. For example, high turnover may result in
interventions aimed to reduce turnover, ensure continuity
of business, and drive efficiencies.
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15. Second, HRM can contribute to organizational effectiveness through people processes and building
workforce capabilities. This is displayed in the figure below.
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16. How HRM can contribute to
organizational effectiveness?
• People practices. These are all the core HR practices,
including recruitment & selection, learning and
development, rewards & recognition, performance
management, and workforce planning. All of these practices
aim to create workforce capabilities.
• Workforce capabilities. These are the capabilities that HR is
building in the workforce. Examples include employee
engagement, employee experience, general competency
levels, superior performance, leadership, and inclusion.
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17. How HRM can contribute to
organizational effectiveness?
• Key performance drivers. You will recognize the key
performance drivers as part of organizational
effectiveness.
• Organizational objectives. This is the area where HR has
the least direct input. However, HR can still provide an
invaluable contribution to these objectives by acing its HR
practices, building workforce capabilities, and adding to
the organization’s key performance drivers.
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18. HRM and organizational effectiveness
HRM take primary responsibility for providing input, advice,
direction, and execution with respect to organization
effectiveness. Increasingly, what makes organizations
effectiveness is how they organize staff and manage their human
capital. So the role of HRM is very important to have an
organizational effectiveness that leads to successfull firms.
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19. References:
• Cappelli, P., “HR Implications of Healthcare Reform,” Human Resource Executive Online, March 29,
2010, accessed August 18, 2011, http://www.hreonline.com/HRE/story.jsp?storyId=379096509.
• Frasch, K. B., David Shadovitz, and Jared Shelly, “There’s No Whining in HR,” Human Resource
Executive Online, June 30, 2009, accessed September 24,
2010, http://www.hreonline.com/HRE/story.jsp?storyId=227738167.
• Rivenbark, L., “The 7 Hidden Reasons Why Employees Leave,” HR Magazine, May 2005, accessed
October 10, 2010, http://findarticles.com/p/articles/mi_m3495/is_5_50/ai_n13721406.
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20. Thank you DOUGLAS C. CLAVERIA