Discuss the various ways in which human resources 'add value' to the organization

Topics: Human resource management, Human resources, Management Pages: 8 (2135 words) Published: March 21, 2004
In today's rapidly changing and highly competitive environment, the human resource function plays an increasingly important role in an organization's ultimate success or failure. Where success was once dependent upon an organization's ability to discover and manage natural resources, success today goes to the organizations that most effectively discover and manage their human resources.

Though organizations widely recognize the need to attract, manage and develop people, today HR professionals must strive to do much more. They must enable their organization to build global HR networks in order to expand and prosper in the international arena. They must also develop human resources that continually build competitive advantage in an ever-changing environment. And, they must add value to their organization's distinctive competencies

Let us analyze how human resources "add value" to the organization through the followings main HRM functions:

1/Human Resource Planning

Human Resource Planning is the key link between a firm's strategic plan and its overall human resource management function. It is the sum total of the plan formulated for the recruiting, screening, compensation, training, job structure, promotion, and work rules of an organization's human resources. It is a process designed to translate the corporate plan and objectives into future quantitative and qualitative employment requirements, together with plans to fulfill those requirements over both the shorter and longer terms, through human resource utilization, human resource development, employment and recruiting and the use of information systems.

To perform its add value function, the human resource planning should be fully integrated with overall organization strategic plan, especially the firm's growth objectives. Outside influences of economic conditions, technology, the labor market, and so on should be given adequate consideration when developing the human resource plan. Changes in job design should be explicitly recognized in the plan. It should be kept flexible and adaptable so it can change as conditions change.

With HR planning, the firm can ensure that sufficient numbers of properly trained staff are available at all times to carry out the firm's operations efficiently and effectively.


Staffing is the process of hiring people to perform work for the organization. It comprises two major activities: recruitment and selection. Recruitment is the set of activities an organization uses to attract job candidates who have the abilities and attitudes needed to help the organization achieves its objectives. Selection is the process of choosing individuals who have the necessary qualifications to perform a particular job well. These two activities are key human resource activities in every organization. And these are continuous processes in organizational life.

According to Dawis, 1991; Heneman, Henaman, and Judge 1997, Staffing is a mutual matching process: organizations seek individuals who will help them achieve goals such as profitability, growth, and in some cases survival; individuals seek organizational that will help them achieve goals such as fulfilling needs and obtaining rewards. HR must achieve both types of fit in order to be maximally effective. A better job of recruiting and matching employees to jobs will mean lower employee turnover and greater employee satisfaction and organizational effectiveness.

Moreover, HR should pay attention to align their recruitment and selection practices with their business strategy(ies) and organizations must have the human capabilities that enable them to effectively implement their chosen strategy(ies). Some organizations even consider their human resource talents as a source for competitive advantage and adapt business strategies to fit those organizational capabilities.

With the anticipated shortage in new entrants to the labor force in the next decade, staffing will be a...
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