Case Study

4. HRM practices in SME - Dr Chandrakant Varma

Organization comprises of many resources and human resource is one of them, but it is unique and inimitable. HRM policies are put in place to take care of this valuable resource. HRM is effective and efficient utilization and management of organization workforce. HRM is an approach to employ and deploy people in the organization. HRM plays the vital role in the organization as it helps to motivate and satisfy employee expectation by framing policies and practices which facilitate planning and achieving individual as well as organizational goals. Organization tries to optimize their outcome by utilizing employee potentials. Organization strives to develop skills, abilities and tries to motivate their employees to enhance their performance and remain committed towards organizational objective.

The aim of the core principles and values of HRM is to generate an environment for creating, working and direct communication, thus stimulating personal initiative (Dutta 2009).

In an organization HR plays an important role in creating an edge over the competition. Human resource contribution cannot be denied as people from the vital part of any organization. They are capable of creating a sustainable competitive edge. Organizations human resource depends not only on the organization but also on the external environment such as society, politics, economic condition and various systems prevailing (Kazlauskait & Ilona Bučiūnien , 2008).

The organization is valued in terms of the talent possessed by them, because the innovation and creativity as well as the uniqueness fetched to the organization is by its human resource. This helps organization create a long term competitive advantage. This established link further increases the interest of researches in the given subject (Katherine McKenzie, 2010).

It is evident that human resource management practices can impact organizational performance and help create a competitive edge by supporting growth and development of employee capability. SHRM intends to align the organizational strategic objectives to the to various processes and functions related to human resource management (Caliskan, 2010). Organizations operate with many resources but the resource which cannot be duplicated is the one which can provide sustainable competitive edge. Organizations can acquire such resources and also develop them within. One of these resources which cannot be imitated is human resource and a viable source of competitive edge. Human resource is one resource which appreciates with time and experience and not become outdated (Pablos & Lytras, 2008).

More Details: Thakur Institute of Management Studies & Research