Importance of HRM for small and medium sized companies

Résumé du document

At the time of globalization, organizations, which can be regarded as an entity or a social system in its own right, are being forced to adapt to business environments which involve quick responses to change, such as new laws, social trends and a new segment of customers, in order to sustain themselves. It is obvious that only a skilled workforce will be able to anticipate these changes and set up an efficient and adequate strategy.Therefore, Human Resource Management is more than ever a key factor of success for organizations. But first of all, what does the concept of HRM involve? That is why in this essay, the definition of HRM and the core roles in this activity will first be highlighted, followed by the study of the link between HRM and organizational performance, and the debates related to that issue. The term Personnel Management, originally coined in the Sixties, is still currently used, although it has now been replaced by Human Resource Management (HRM). Both of them are responsible for recruiting, improving communication within the company, payroll administration and some other basic staffing functions, but HRM also has the difficult task of answering questions including how to ensure that we do not discriminate against our employees in any way, or ensuring that our employees are committed and motivated. Perhaps it is best to regard Human Resource Management as simply a notion of how people can be managed in the interests of the organizations. Whatever the definition of Human Resource Management, four objectives represent the foundation and reasons of creation of this activity. These objectives are: staffing, performance, administration objectives and change in management.