Why HRM is important to an organization

1. The Impact of HRM
Why HRM is important to an organization.

2. HRM - a
business
function
HRM = business function (i.e. like marketing,
accounting, production, information technology, etc.)
HRM is important … but so is marketing,
accounting, production, information technology, etc.

3. Labor as a
factor of
production
Labor is a highly variable factor of
production
 Labor can be a huge percentage of total
costs
The proper management of labor allows
an organization to achieve its goals in an
efficient manner

4. Human
Behavior is
Challenging
Human Behavior is tough to
predict/control
HRM is both an art and a science

5. Competitive
Advantage
Labor can often be the key source of
competitive advantage
- Locate, Attract, and Retain the Talent
- Direct, Motivate, and Develop the Talent

6. Summary –
The Impact of
HRM
HRM is a business function (i.e. like
marketing, accounting, production, etc.)
Labor is a highly variable factor
Human Behavior is tough to
predict/control
Labor can often be the key source of
competitive advantage