What the role does human resource management plays.

Topics: Human resource management, Human resources, Management Pages: 10 (1688 words) Published: December 1, 2014
What is the Role of Human Resource Management in Staff Retention? Analysis Its Importance for the Success of a Company.

Name: Tianyao Gui
Student No. :1402109
Brunel International Pathways and Language Centre
Pre-sessional Programme: 10 weeks
Word Count: 1707
Teacher: Amanda Steward
Date: 21/08/2014

What the role does human resource management play to keep employees? Is it really vital to a company? Nowadays with the development of the worldwide economy, there are numerous companies in many fields. And as a result of intense labor market competition, human resource management seems more and more important because it is related to staff retention. It is the key for the success of a company. This essay will first demonstrate the background about retention, and then extend to the role of human resource management in staff retention in four aspects by give some examples. In the final part, the importance of human resource management and staff retention will be explored.

A human resource information system (HRIS) “is a systematic procedure for collecting, storing, maintaining, retrieving, and validating data needed by an organization about its human resources” (Cathcart, 1999: p275-282). “Human resource systems are the organizational support struts that keep internal operations running smoothly” (Homey & Ruddle, 1998: p54). To put it simply, human resource management is about manage staff, motivate them and put them in a proper position. Employee retention means the ability of an organization or a company to keep its employees. And turnover means the rate at which employees leave a workforce and are replaced. There are two kind of turnover, one is unavoidable staff turnover while another is avoidable staff turnover. Some unavoidable factors are influencing staff turnover such as retirement, people got sick, got married, death, and pregnancy. And influencing factors of avoidable staff turnover contains relationship with manager, dissatisfaction with the salary, lack of training, work pace and stress, relationships with other colleges and hours of work. Human resource management aims to deal with these avoidable influencing factors. For example, human resource department in a company will train employees and increase the salary to motivate staff, so that the staff turnover will decrease. It will make staff retention rate increase.

A new employees is the fresh blood of the enterprise, it guarantees the company always creates new idea and keep the company lively. But if the rate of turnover is too high, it will lead the company into a circle of “hire--lose--hire”, which will affect the company seriously. There are some methods that HRM usually follows to help in staff retention.

Employee Selection
Recruiting a eligible employee is the duty of human resource department. The employee should be suitable for the job occupation rather than best in every aspect. In some cases of recruitment, companies blindly pursue excellent staff, but ignore the circumstance of the company itself. Whether the company can create a good work platform for these staff. If not, those talented people will not match the company and will leave the company at last, resulting a new employee turnover. Therefore, to guarantee staff retention, HRM will do things in a recruitment stage as follows. First, analyze the occupation and make a human resource plan, define the job qualifications. Before the recruitment, HR should communicate with every department in the enterprises to avoid blind recruitment. Then the new employee will match the position and keep staff. Second, HR should know applicants personnel quality, work ability, experience by CV and do some tests. And HR hire those whom always job-hopping should be with caution. Because they might change the job quickly. For example, “APPLE” select staff very strictly. The staff in “APPLE” should be...

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Cathcart, C. & Kovach, K. (1999). ‘Human Resource Information Systems (HRIS): Providing Business with Rapid Data Access, Information Exchange & Strategic Advantage’. Public Personnel Management. 28/2.
Farndale E & Scullion H. (2010). ‘The Role of the Corporate HR Function in Global Talent Management’. Journal of World Business. 14/2.
Homey, N. & Ruddle, I. (1998). ‘All Systems Go?’ Bank Marketing, 30/1.
Huselid, M. (1995). ‘The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance’. Academy of Management Journal, 38/3.
Jack, W. (2005). Winning: The Ultimate Business How-To Book. London: HarperCollins.
Koch, M. (1996). ‘Improving Labor Productivity: Human Resource Management Policies Do Matter’. Strategic Management Journal, 17/5.
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http://english.ckgsb.edu.cn/case_content/human-resource-management-huawei (Accessed 20/08/07)
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