Term Paper: Changing and Competitive Workplace

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[. . .] In order to respond to different situations and conditions organizations have to change and modify themselves. The biggest challenge for the organizations in the process of change is the resistance on the part of employees. Strong and effective human resource practices results in creating better adaptability among the employees for the organization change. If the organization is able to communicate the change and its advantages to the employees properly and answer all their considerations then the employees are ready to adapt to the new situation and this is only possible with the help of well planned and controlled human resource practices. These practices encourage the employees to adopt and acquire new practices and methods designed to reduce the wastages and contribute towards improving the image of the organization.

Organizations are composed of different and diverse workforce and it is a challenging task to manage this workforce. Human resource department is able to understand and manage the diversity and composition of the workforce and is able to allocate tasks and works according to the skills of the employees. Apart from this the human resource department effectively works and coordinates with the employees in order to fulfill the goals and objectives of the organization. It is the duty and responsibility of the human resource department to communicate and inform employees about the tasks which have to be performed by them and the objectives which they have to achieve. Human resource practices facilitate in setting clear paths and directions for the employees which help them in better understanding their role and its importance in the process of achieving organizational targets and goals. With the help of these practices and policies the staff and employees are provided with the required skills and confidence for being innovative and are guided and motivated to come up with new and different ideas and deliver better service.

The influence or effect of human resource on different aspects of organization can be categorized as:

Influence of Human Resource Policies on Organizational Strategies:

Human resource policies have strong influence on the different strategies adopted by the organization, for example:

Human resource planning and analysis of the job: The human resource department devotes a special team for planning of different needs and requirements of the human resource and what is required to fulfill these needs and requirements. This in turn helps the organization in the process of planning future strategies for growth and development (Kramar, Mcgrew, & Schuler, 1997).

Recruitment and selection: Human resource department uses all possible media and sources to find and hire the qualified and competent employees according to the requirements of the organization. The selection strategy mostly consists of test and interviews in order to ensure that selected candidates will support the strategies and help in achieving the goals of the organization (Compton, & Nankervis, 1998).

Training and Development: Human resource practices ensure productive training and development sessions of employees. These sessions train employees according to the changing needs of the organization. The strategy for training and development of the employees is aligned with the strategies for growth and development of the organization.

Performance Management: The evaluation of the employees' performance facilitates the organization in mproving the performance of the overall organization and achieving the targets and goals.

Influence of Human Resource Policies on the People of Organization:

The basic aim or goal of the human resources is to develop strategic capability or competency with the help of providing organization with the highly skilled and professional employees who are devoted, dedicated, and motivated. This enables the organization in achieving persistent competitive edge (Kramar, Mcgrew, & Schuler, 1997).

The human resource policies and practices are directed towards the development and achievement of the long-term vision of the organization along with the corporate targets and objectives. For this reason the human resources invest and focus on the development of employees and leaders who will work for the long-term success of the organization. The human resource department ensures that the leaders have the required skills and knowledge to fulfill the duties and responsibilities assigned to them and are able to motivate and encourage other employees to work collectively for the success and growth of the organization.

As human resource is the strategic business partner of the whole organization it does not only influence the leaders but all employees and whole staff of the organization. The human resource policies practices and policies ensure that each and every employee has equal chance and opportunity for the training and development. This not only provides the necessary and required skills and knowledge to the workforce but also encourages and motivates them to work effectively and efficiently (Kleiner, Block, Roomkin, & Salzburg, 1987).


Although human resource practices are very much important and crucial for the development and growth of the organizations but at the same time if not planned and executed will these practices can have negative impact on the performance of the organization. It is not easy to have and manage a human resource department of any organization. Organization should have carefully design and plan the human resource practices.

The most important thing which should be kept in mind while formulating different human resource practices is the cost associated with them. The organization should do the cost and benefit analysis of each and every human resource practice in order to achieve better results. Training and development for instance on one hand can improve the productivity of the employees and can increase the performance and profits of the organization but on the other hand it is costly and expensive to arrange training and development sessions for the employees. Furthermore the training and development should be of high quality in order to increase the possibility of the desired outcomes and results.

Another important issue in human resource practices is of retaining employees. It is highly important for organization to manage and control the employee turnover rate. There is high possibility that the trained and competent employees may leave the organization for more beneficial opportunity. In order to stop this, the human resource department should follow the practice performance analysis and appraisal and should reward employees. But there rewards often create jealously and in turn reduces the productivity of the employees. Apart from this the studies have also shown the organizations which have more controlled human resource practices results in increasing the turnover rate and poorer performance (Arthur, 1992).


In response to different challenges and changing business landscape, human resources have become an important part of the organizations. The main responsibility of the human resource department is to develop such practices and policies which support the goals and objectives of the organization and contribute towards improving the productivity and performance of the organization. It is the human resource department which is responsible for analyzing and assessing the needs and requirements of the employees and to assess their performance on regular basis. All these practices contribute towards improving the motivation and satisfaction level of the employees and ultimately the increasing the productivity level.

The performance of the firm is clearly influenced by the human resource practices and policies. As these practices and policies impact the performance and productivity of the employees and ultimately of the whole organization. Effective human resource practices facilitate organizations in the process of satisfying the employees as well as the customers.

On the other hand it is not easy to manage human resource department and it requires serious efforts to devise and design effective and efficient human resource practices and policies. It is a challenge for the organizations to come up with such strategies which have more long lasting effects and benefits on the performance of the employees and organization within the limited budget. Also the ineffective and more controlled human resource practices can result in high turnover of employees and discouraging them to the limit that they are not able to deliver high performance and productivity (Arthur, 1994).

Organizations which are able to design effective human resource practices and policies are able to create a competitive edge because of having control over most precious and crucial asset i.e. 'human resource'.


Arthur, J. (1992). The link between business strategy and industrial relations systems in American steel mini mills. Industrial and Labor Relations Review, 45, 488-506.

Arthur, J. (1994). Effects of human resource systems on manufacturing performance and turnover. Academy of Management Journal, 37, 670-687.

Compton, F., & Nankervis, A. (1998). Effective Recruitment & Selection Practices. Australian Print Group: Australia.

Huselid, M. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38, 635-672.

Kleiner, M., Block, R., Roomkin, M., & Salzburg, S. (1987). Human resources and the performance of the firm. Madison, WI: University of Wisconsin. Level measures of performance. Personnel Psychology, 46, 27-48.

MacDuffie, J. (1995). Human resource bundles and manufacturing performance: Organizational logic and flexible… [END OF PREVIEW]

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