Perspective

An organization’s economic growth depends on its productivity. If an organization’s productivity increases day by day, the company will run smoothly and attain the highest possible level of productivity to ensure sustainability of the organization. In addition to this ,there is the challenge of globalization or open market competition. Given this situation, the success of an organization depends heavily on effective Human Resource Management practices and the competency of its human resources. Excellent companies recognize that human resources are their number one asset. This is all the more true in the dynamic organization or industry. Therefore, employees must be adequately trained and retrained to ensure that their knowledge, skill and competency remain relevant and useful. It is a fact that the primary concern of an organization is its variability and hence its efficiency. Any organization’s employees should learn to perform their jobs at a satisfactory level of efficiency and the organization should provide opportunities for the continued development and training of employees. The organization should also train them for other jobs for which they might be considered. Training is the best key to develop the employee’s attitude, motivation, and knowledge of all levels of employees. This is the systematic process of increasing or achieving the highest level of productivity and to fulfill the organization’s goals. This work should be performed by the human resource management department. Human resource management is a very crucial and sensitive function of an organization. It is proven that human resource management directly relates to all managers, line, staff, facilitated and supported by a lean and competent human resource department. An organization must have the various types of employees who should be managed in a way that would be able to achieve their personal and organizational objectives simultaneously.

Effective HRM practices assume that appropriate HRM practice taps the motivation of employees and generates employee’s commitment. The way to do this is through management philosophy which assumes that eliciting worker discretionary effort of enhancing motivation and generating employee commitment will lead to improved organizational performance. Essentially to create a competitive advantage, an organization must implement a strategy that creates positive value. The implementation of effective HRM practice can create a source of competitive advantage as the practices are added and thus work together to generate positive value for the organization. Specifically this positive value is created by means of influencing the discretionary effort of employees. The performance level of each individual is limited by their capacity effort. So any organizational attempts made to elicit discretionary effort from employees are likely to generate excessive costs. Thus utilizing a set of practices that are explicitly humanistic in orientation can help to create positive value by –

Firstly – increasing employees discretionary effort
Secondly – exceeding the true cost of investment through the use of superior HRM practice.

According to the resource based theory of the organization, the effective management of human resource is valued not only for its role implementing a given competitive scenario but also for its higher productivity of organization. In this circumstance effective HRM practice has the potential to create organizations that are more intelligent and flexible than their competitors through the use of policies and practices that focus on hiring, developing talented staff and synergizing their contribution within the resource bundle of the organization. This can lay the basis for sustained competitive advantage because HR policies and practices are socially complex and competitors may not be able to replicate their diversity and depth. Moreover, the Human Resource is historically sensitive. Therefore, it takes time to develop a workforce that is embedded in the operational systems of an organization so that it can enhance the organization’s capability and productivity.

Productivity refers to a ratio of output to input. Input may include labor hours or costs, production costs and equipment costs. Output may consist of sales, earning and market share. Many firms now assume or have shown that productivity is affected by employee’s knowledge, skills, attitude, motivation and behaviors. The improvement program starts with this assumption and proceeds with different intervention strategies. Productivity as the relationship between the output generated by a production or service and the input provided to create this output. Productivity improvement refers to the deliberation effort of an organization to increase in value or excellence. In the other words, the enhancement or betterment of a company’s performance, for example, increase in a company’s share turnover from year to year, gaining the company’s share of the market or a continuous research and development activities of a company’s. It is an intended plan of action to guide the activities of a business organization. It is all the concerned efforts of an organization to gain a competitive advantage over its competition to accomplish the organization’s mission at a low enough cost. Better training and development programs have been shown to improve the performance of current employees while certain incentive and compensation systems translate into higher productivity and performance.

Effective HRM practice can make client satisfaction. This is very critical for an organization to satisfy his client. Many organizations are tracking their success by measuring customer satisfaction or soliciting input on client complaints and attitudes. Stockholders are another important portion of client satisfaction. Stakeholders, who include with external and internal clients, are those people who can influence or must interact with the HR department. External clients of HR are candidates for position, suppliers of HR services such as technology, and government regulators. Internal clients are employees grouped by occupation, union leaders and managers. Managers are turning to client or stakeholder perception of the HR departments for input about the effectiveness of HR performance. This approach stems from earlier efforts in Total Quality Management (TQM) and attempts to reconcile the gaps between client expectations and levels of satisfaction.

Finally, an organization can get higher productivity from the employees by using or practicing effective HRM practice. The HRM practice should be very innovative, realistic as well as based on competency so that an organization can run smoothly and can compete with its internal and external competitor in this globalization era or open world market.

Writer: Md. Monirul Islam (Nixon)