Why Is Hrm Important

INTRODUCTION

Take a look at the current human resource management and its impact on the success of organisations today. These organisations are constantly striving for new business strategies, technologies, marketing ideas and ways to improve customers’ satisfaction to remain on the competitive edge. Another aspect which will greatly affect the performance, culture and more importantly, the future of the organisation is the war for talent, or human resource. The author states that an organisation generally consist of two elements. First is the money which is injected into the company in the initial phase and subsequently through its earnings and profits. These funds are used for the day to day expenses which can range from purchasing new machines, paying for rental to paying employees’ salaries. The second and the more important element is the human beings which are employed by the company to drive the organisational systems. The quality and ability of the company’s human resource can determine the success or failure of the organisation.

HIRING THE RIGHT PEOPLE

In a country like Singapore where talent is scarce, human resource departments are tasked with the arduous task of attracting the best talents in the industry. Organisations understand that the essence for its success will ultimately depend on the skills, knowledge, expertise and experience of their employees. Particularly if they can establish a set of core competencies that can distinguish themselves from their rivals, they will gain the important advantage over them. With the country’s unemployment rate at a low 2.1% (http://stats.mom.gov.sg, 2014), companies are appointing head-hunters to scout for their human capital.

Top students from universities are offered jobs even before graduation with a promise of a good career path, generous remunerations and benefits. Large organisations are also bringing in foreign talents to beef up their human capitals in order to place themselves ahead in the...