Why is Human Resource

Management important?
THREE
REASO
NS:

It is a significant source of
competitive advantage
It is an important part of
organizational strategies
To significantly improve
organizational performance

High-performance work practices are work practices

that lead to both high individual and high organizational
performance
Self-managed
teams

Decentralized
decision
making

Training
programs to
develop
knowledge,
skills, and
abilities

Open
communication

Performancebased
compensation

Staffing based
on personjob
and person
organization fit

Giving
employees
more control
over decision
making

Increasing
employee
access to
information

Flexible job
assignments

Extensive
employee
involvement

Functions of HRM Process

Ensuring that competent
employees are identified and
selected.
Providing employees with up-todate knowledge and skills to do
their jobs.
Ensuring that the organization
retains competent and highperforming employees.

HRM Process

External Factors That Affect the HRM

Process

Economy

Employee
labor
unions

Governme
ntal laws
and
regulations

Demograp
hic trends