As an HR professional for more than 25 years, I know that effective Human Resource Management ensures that your business has the right employees at the right time and in the right place. By aligning your workforce strategy with your company’s mission and values, you can ensure that you make the right decisions to support your business. The three-pronged objectives of HRM involve ensuring maximum productivity, effectiveness and efficiency.
- Productivity – Everyone cares about creating revenue and profit for the company. You can accomplish this by improving how well people work. Most organizations measure productivity as the amount of output produced by the workers in a specified amount of time. To be competitive, your business needs to produce as much as it can with the fewest resources. Improving productivity typically involves analyzing work, identifying the skills and knowledge required by workers and making changes to optimize workflow.
- Effectiveness – Effective management involves do the right things to succeed. All work needs to be relevant. Therefore, your main objective is to align workers with your company’s strategic goals. All work needs to link up with what your company seeks to achieve. By establishing your core competencies, it’s clear what people need to work on. If you don’t have the resources to do something well, hire temporary workers or outsource the activity. For example, to offer quality training courses, hire contract workers to design, develop and deliver workshops or seminars. They tend to be more effective that distracting your employees from taking on this specialized task.
- Efficiency – An efficient organization uses the exact number of employees to get the job done, no more and no less. When people have nothing to do, it’s a waste of your payroll budget. When people have too much to do, errors and burn out occurs. Inefficiency results in cost overruns and other problems as well. By introducing new tools, techniques and processes, you can ensure that all employees in your company operate at maximum efficiency. By establishing key performance indicators and monitoring activity, you can measure results and make adjustments as needed.
To maintain the optimum workforce, HRM also involves measuring employee job satisfaction, attrition and absenteeism. Because recruiting, interviewing, hiring and training new employees costs money, minimizing turnover makes good business sense. To do this, monitor job satisfaction by conducting annual surveys and addressing employee concerns. HRM’s objective is to create conditions where employees want to come to work and support your products, services and customers with energy and enthusiasm.