The 4Cs of Leadership Styles for Leadership in the Digital Age
The 4Cs of Leadership Styles and Why Leadership Traits Reflect a Continuum As the world transitions from the Industrial Age to the Digital Age, there are some essential leadership styles which leaders can follow for the present times. These are Commander, Communicator, Collaborator, and Co-Creator. These four leadership styles are relevant in firms in the […]
How Should Inflation Be Measured?
In the previous few articles, a series of arguments has been made as to why the current way we use to measure inflation is not appropriate. A lot of the criticisms have received rebuttals from current economists. However, for a lot of criticisms, they do not have an answer at all. The usual reply received […]
How Loss Aversion Affects Investment Decisions
Behavioral financial analysts have conducted a significant amount of research in order to understand how investors process loss. In the process, they have found out that most investors have an innate aversion to losses. This causes them to make wrong decisions while investing. In this article, we will have a closer look at what loss […]
Disadvantages of Non-Interest Income
In the previous article, we learned about the non-interest income at various commercial banks. We have also understood what these sources of non-interest income are and why they are preferred by many banks. It is true that there are several advantages to having sources of non-interest income. However, it is equally true that advantages are […]
Evaluation of Reward Processes
Need to Evaluate Reward Processes It is one thing for organizations to institute reward processes and it is another thing for them to evaluate whether the reward processes are being effective. In other words, organizations need to constantly evaluate whether their reward processes are serving the purpose for which they were instituted. For instance, despite […]
We have discussed the basic concept of HRM and the ways in which it helps the organization meet its goals. In this article, we discuss the reasons for organizations to have a HRM strategy as well as the business drivers that make the strategy imperative for organizational success.
It is a fact that to thrive in the chaotic and turbulent business environment, firms need to constantly innovate and be “ahead of the curve” in terms of business practices and strategies. It is from this motivation to be at the top of the pack that HRM becomes a valuable tool for management to ensure success.
One of the factors behind organizations giving a lot of attention to their people is the nature of the firms in the current business environment.
Given the fact that there has been a steady movement towards an economy based on services, it becomes important for firms engaged in the service sector to keep their employees motivated and productive.
Even in the manufacturing and the traditional sectors, the need to remain competitive has meant that firms in these sectors deploy strategies that make effective use of their resources. This changed business landscape has come about as a result of a paradigm shift in the way businesses and firms view their employees as more than just resources and instead adopt a “people first” approach.
As discussed in the articles on modern day HRM practices, there is a need to align organizational goals with that of the HR strategy to ensure that there is alignment of the people policies with that of the management objectives. This means that the HR department can no longer be viewed as an appendage of the firm but instead is a vital organ in ensuring organizational success.
The aims of strategic management are to provide the organization with a sense of direction and a feeling of purpose. The days when the HR manager was concerned with administrative duties is over and the current HRM practices in many industries are taken as seriously as say, the marketing and production functions.
The practice of HRM must be viewed through the prism of overall strategic goals for the organization instead of a standalone tint that takes a unit based or a micro approach.
The idea here is to adopt a holistic perspective towards HRM that ensures that there are no piecemeal strategies and the HRM policy enmeshes itself fully with those of the organizational goals.
For instance, if the training needs of the employees are simply met with perfunctory trainings on omnibus topics, the firm stands to lose not only from the time that the employees spend in training but also a loss of direction. Hence, the organization that takes its HRM policies seriously will ensure that training is based on focused and topical methods.
In conclusion, the practice of HRM needs to be integrated with the overall strategy to ensure effective use of people and provide better returns to the organizations in terms of ROI (Return on Investment) for every dollar or rupee spent on them. Unless the HRM practice is designed in this way, the firms stand to lose from not utilizing people fully. And this does not bode well for the success of the organization.
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Current Employment Trends and Their Implications for Business, Society, and Individuals
February 12, 2025
