Impact of HRM on Organisational Performance

The value of any organisation at any economy is its employee. Human resource is the most valuable and important resource in any organization. To succeed, a business needs to be committed staffs to meet its aims and goals in determined tenures. Staff should be trained and motivated in an organisation to their needs and wants for the management to achieve their potential. It is the responsibility of the human resource department to ensure that recruits are given to correct staffs, and that staff get appropriate training to ensure that the business meets its aim. Human resource management is of key importance in almost all organizations. Human resource management has the opportunity to enable organizations to survive, grow, be competitive and profitable (Werner, 2014). According to Ahmed and Schroeder (2003), human resources are considered the most valuable and important assets of an organization, but very few organizations are able to fully understand its potentials. Today’s organizations are highly susceptible to rapid change due to globalization, which has made it mandatory for people to acquire new skills, knowledge, and ideas in order for them to remain relevance in the scheme of things in world. It is fundamental that no system can cope with the magnitude of its responsibility without making adequate outlet for its staff development.