Why impacts of HRM are important on company growth Essay

Why impacts of HRM are important on company growth - Essay Example It includes activities related to staffing, training and development, performance review and evaluation as well as compensation,† (Jackson et al 2001:242). It can be noted that people are the most important resource in the production of goods and services and are capable of setting pace of company growth or otherwise. The human resource approach is more ideal as far as company growth is concerned. This is a twofold approach through which the organisation benefits in two ways where it seeks to increase its effectiveness as well as increasing the satisfaction of the workers. This approach posits that, rather than addressing organisational goals and employee needs as separate and exclusive, these are mutual and compatible: one set need not be gained at the expense of the other (Carell et al 1995). As noted already, the human resource is the major driver of the organisation and its development hence measures should be put in place that are meant to ensure that the need for the organisation to achieve its goals as well as satisfying the needs of the employees are balanced which can be a long term guarantee of organisational growth. Against this background, the study seeks to investigate why impacts of HRM are important on company growth. To a greater degree, the effectiveness of an organisation depends on the effectiveness of its employees. Thus, the main objective of this study is to investigate why the HRM function is pivotal in the effectiveness of the organisation. The hypothesis is meant to test the assertion that HRM is important on company growth. This will further investigate how company growth can be directly influenced by the performance of the human resource. Recruitment can be loosely defined as a process used by companies to select appropriate job candidates to fill vacant positions (Pfeffer 1989). Thus, recruitment efforts seek to fulfill the needs of both the applicant as well as those of the