Human resource is the most important asset of an organization.

Introduction Human resource is the most valuable assets of an organization. Human capital is an investment that cannot be depreciated. Increasing huge number of companies is recognizing the important of effective human resource management (HRM). Human resource (HR) practices should be among the priority considerations of an organization. This report covers essential tools in HR practices like staffing, training, compensation and performance management that shape organization role in satisfying need of its stakeholder.

Due to the dynamic business environment, organization is concerned on their business focus and direction to achieve sustainability and competitiveness in the global challenges.

Strategic Human Resource Management (SHRM) identifying the organization’s strategic goals and capability to develop and implement strategic plans to reach the goal. For the strategies to be implemented there will be a change in planning and management. Obtaining strategies into action is not easy and hence the barrier can be met by conducting rigorous initial analysis that covers business needs, corporate culture and both internal and external environmental factors (Stoyanova, 2005).

Motivations can be tools that can emphasize the personal growth and development of the employees. The idea of the motivation is not only helping the employees to maximize


With an open communication. They believed their capabilities and strength has been acknowledged. Everyone likes to be encouraged. During formal and informal communication. 1987). A comfortable work condition enables the upper and lower management to form a trustworthy relationship with each other. and to allow the accomplishment of the strategic objectives (Collins. employee will initiative and suggest constructive solutions into the organization. It a values to employee for recognizing works of excellence. Employee performance should not be communicated only during annual appraisal. 2003). Given more autonomy. the team understands their strengths and weaknesses. employee will feel responsible and commitment for their job. improving the productivity of the company (Bruce. Both the manager and team are able to implement plans for improvement. Time to time. Through daily conversation. it creates a good opportunity to listen to individual’s views.their potential and their contribution through their performance but also. 2 . Simple words of thanks or verbal recognition constantly improve morale and employee relationship. With increase in self-confident. Effective communication is essential for HRM to have a constructive contribution to the overall strategy. managers should make an effort in providing performance feedback to the employees. information can be conveyed for improvement.

(Wright.Through the job satisfaction. sooner or later. With the result. HR personnel should be precise during the selection and capable of short-listing potential applicant. The failure to select the most effective person will “typically” constrain a firm’s performance and lead. organization needs to be constantly adaptable to the change. 1996) 3 . 1994) A fundamental mistakes made by management is the failure to allocate “the right people to the right job” once these changes occur. an SHRM is necessary for organizational success. HR personnel should use emphasize on the most efficient method to convey and attract the most suitable candidates for the job. 2001) Motivation improved productivity and effectiveness of the organization’s competitiveness. the employee feels his importance of belongingness in the workplace as well as the importance of his work. to its demise. the organization and their future are supported. Due to the increasing complexity of managing people. 2002) It is important to identify and obtain information through job analysis and evaluation. (Armstrong and Long. (Stone. The first aspect of recruiting and selecting prospective applicant is that individual’s expertise should match with the requirement and needs of each specific position. Together. With respond to the changing environment. Human resource strategy and corporate strategy need to be integrated so that strategic harmony is developed between HRM and the business plan. (Boxall.

Reformation in the external and internal environments influence strategic change.According to Hacker (1996). Retention of the current workforce is the most economic solution to an organization. High competency levels and competitive advantage can be achieved through high performance work system. Ferris and Napier. such that a static set of employee skills will often be inadequate (Butler. An effective rewards and recognition system is a useful tool to motivate employees. 2003) It is important to reward employee for their past performance while serving as a motivation tool for the future performances. they will need exceeding talented workforce that is motivated to promote 4 . 1991). Compensation is systematic approach to providing monetary value to employees in exchange for work performed. Organization must invest in training to ensure employee is job ready. In the progressing world. (Byars & Rue. Many viewed it as recognition of individual value to the organization. In order for organization to meet its distinct business goals and keep its competitiveness in the market. the recruiting of an employee contains hidden costs. It is significant to equip the workforce with indepth technological advancement for better deployment. In pursuit of implementing cost effective option. high turnover of employee must be avoided to encourage lower recruitment expenditure. these include advertising and the time that is employed on screening and interviewing the prospective employee. training is essential in an organization to keep employee to be updated and informed regularly to increase performance.

high performance to achieve exceeding results while retaining them as long standing employee. Through the assistance of SHRM. Management needs to be orientated towards strategic use of human resource. Providing a motivational work environment is a challenge in this competitive world. human resource will have to change in many ways to support the organization success and new set of direction. 5 . organization optimizes the efficiency and gain competitiveness in the market. Conclusion While expectation continues to rise.

25 (3): 5-20 Hacker. 11 (4): 559-586.Bibliography Armstrong. Australia: Wiley Stoyanova. & Rue. Training Needs Analysis Wright. Human Resource Management Journal. L. Collins. Delray Beach. Ferris.E. New York: McGraw-Hills Byars. G.K (1991): Strategy and Human Resources Management. (2003): Human Resource Management. FL: St. R. J. 6 (3): 59-75. (2005): Business Review Weekly. (1994): The Reality of Strategic HRM.J. Journal of Public Administration Research and Theory. Cincinnati: South-Western Publishing Co. (2003): How to Motivate every Employee. Butler. R. 2nd ed. C. S. A. B.A. L.. Lucie Press Stone. London: IPM Bruce. 6 . (2002): Human Resource Management. P. 4th ed. (2001): ‘Public-Sector Work Motivation: A Review of the Current Literature and a Revised Conceptual Model’. (1996): The Costs of Bad Hiring Decisions & How To Avoid. and Napier.R. (1996): ‘The strategic HRM debate and the resource-based view of the firm’.. (1987): The strategic contributions of the human resource function. New York: McGraw-Hill Boxall.. P. Human Resource Management Australia. N. L. M. and Long. W.

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