Human Resources: The Importance Of Human Resource Management

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In a highly competitive business world, the importance of Human Resource arises, as it is the most important asset for any organization in order to achieve its competitive advantage. Thus, to be different in the market; the organization must develop ideas an innovative approaches through its human resources, the DNA of the organization, and therefore an effective HRM system is essential for economic survival (Lazarou-Kitteni, 2012), (Swathi, 2014). 2.2.1 Human Resource Management (HRM) Taking into consideration that managing people (Human Resource) is more challenging than managing technology or capital, since people have the ability to convert other four resources (financial, information, raw material and technology) to valuable products…show more content…
HR Planning ensures that the talented and ambitions employees are always assigned to the right position in the organization. Conservation of human resources; include employee motivation, compensation, and performance appraisal (Maalej, 2014). Motivation Internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, making an effort to attain a goal, recognizing this intention in actual behavior and better personal skills. An employee will stay motivated when he realizes that his efforts are being recognized and are getting positive and attractive results (Maalej, 2014). Participation in decision making is a great motivation tool. As stated in (Hosain, 2015); organizations that adopt methods of HR management encouraging employees’ involvement in decision making have the lower turnover rates. Employees with a sense of belongingness to an organization are more committed to it and thus are more efficient, driven, and prone to communicating their innovative and entrepreneurial…show more content…
Performance appraisal Also referred to as performance evaluation, is the act of examining and evaluating an employee’s performance during a certain period, in order to support managers’ decisions regarding promotions or further employee training and development (Dal Zotto,2007) (Lazarou-Kitteni, 2012), (Demo2012). Performing fair and adequate performance appraisals are necessary in an organization, employees consciousness about a fair and reliable organization and appraisal methods contributes to the overall feeling of a family-like organization creating a friendly environment, open to new and innovative ideas (Hosain, 2015). Training and Development of human resource A vital part of an organization’s growth and evolution; Training and Development enhance employees’ capabilities, capacities, and competencies, and then stimulate their development. Training and development must both be continuous processes that are engaged with the shifting and ever-changing competitive environment (Lazarou-Kitteni, 2012), (Maalej, 2014), (Demo,
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