‘Dynamic resource allocation.’ Perhaps too wordy, the phrase encompasses a very simple meaning: placing talent, capital, and management attention to where it will deliver the most value in a company.
As a practice, businesses rely on three key resources in particular. The set comprises physical resources, such as equipment and material; financial resources, like credit and cash; and people. Among the group, people play one of the most crucial roles in the growth of a company.
Human Resource Management (HRM), often referred simply as Human Resource (HR), is employee management with an emphasis on employees or the people as assets of the business. The strategic approach deals with improving and enhancing the organisation while maintaining a healthy workplace culture and environment.
Often called the heart and soul of a business, without Human Resources Management, companies will not be able to effectively manage people in a company to help their business gain a competitive advantage. In fact, decades of research have shown that robust human resource management practices lead to higher business growth rates. Therefore, an efficient and constructive HR strategy forms the very substructure of a successful company.
Likewise, managing the workforce by ensuring proper skills will gradually construct a sturdy organisational structure. Similar to the ripple effect, the robust organisational structure will, in turn, empower the workforce and promote healthy communication between the management and employees. Besides, building productive Human Resource Management will pave the way for future development by creating a reservoir of talent that is capable of filling leadership roles. As a result, businesses will successfully meet their current and future demands while maintaining optimal balance.
Recently, several companies across the globe have started incorporating web-based technologies along with robust HRM structures to ensure uniform growth. Referred to as Electronic Human Resource Management (E-HRM), these structures are transforming labour-intensive and manual tasks into a more competent and streamlined manner. For instance, E-HRM allows the chief human-resources officers (CHRO) and HR Staffs to collect all the data from one place and make the analysis and decisions on the personnel more effectually.
In addition to that, E-HRM also equips the employees with the ability to access information and increase connectivity on all parts of the company and its external organisations. With this enhanced system, line managers can easily use technology to conduct appraisals, plan training, evaluate staff costs, and examine indicators for turnover and absenteeism. Through these fast-response activities, companies will be able to anticipate and profit from environmental shifts effortlessly.
Apart from that, CHRO and HR Staffs are frequently bombarded with numerous other competitive challenges ranging from technology, retaining human capital, managing change to employee rights, responding to market forces, and cost containment. Thus, to usher the organisation into a successful future, CHROs and other leaders must craft talent acquisition techniques using enhanced technologies to build durable pipelines for future hiring needs while making the process convenient for themselves.
It is needless to say that without the people; all resources are valueless. Yet, the human factor is often overshadowed by sales, marketing, and the bottom line. Growing companies often undervalue the importance of making decisions in support of employees. This is why it is imperative to create sustainable employment management services that offer 360-degree care for the well-being of the workforce— in both their professional and personal lives. Moreover, companies and leaders must start mastering technology to improve standard HR processes and develop insights through E-HRM.
Many of these developments are new, and they have yet to permeate the mindsets of most companies. Following these advanced systems, one step at a time, will eliminate the manual process and ensure promising future possibilities and company growth.
Human resource management and the people play a significant role in achieving a company’s mission to attract, develop, and retain exceptional people. Managing resources efficiently in a dynamic environment is without a doubt the key to long-term company success. Thus, business leaders, CHROs, and HR Staffs must assign and manage assets in a manner that supports a company’s strategic goals. The key to company success and continuous growth lies in dynamic resource allocation while putting significance greatly to the people.
The writer is Chief Human Resource Officer (CHRO), Daraz Bangladesh Limited