A lecture review on Human Resource Management’s Effects on Firm-Level Relative Efficiency

I am always interested in Human Resource Management, due to it is a quite important and useful tool for a job in the future. So I chose a relative title, it is about management. Through read, can find Human resource management is a very vital department in a firm. And after reading, some ideas were produced at the same time.

Human Resource Management just as its name implies, it means to manage workforce and human resource in an organization. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labor laws. And workers often desire to be authorized to hold a collective bargaining agreement, this moment, Human Resource Management become a crucial department and liaison.

First of all, HRM is not only like a pilot, but also has strategic character. So it is a pivotal role to an enterprise. At the same time, it is an underpinning of a firm. Especially to some small and medium sized enterprises, because they always have no clear target and development scheme, so HRM also often has no explicit sense of direction. From the lecture, we can know using stochastic frontier production functions methodology with data from 1579 private-sector establishments, we demonstrate that HR practices are significantly associated with differences in relative firm-level efficiency. And this supplemental analysis was different form the common method to evaluate the relationship between HRM and firm-level labor productivity.

Secondary, if a firm was during their rise period or expanding period, they always set foot in different business areas. Even something are emerging industries, however, these industries were not mature enough and with less experiences. So HR would become a vital department, if HR recruited or invited some suitable or expert employers, could help enterprise to develop faster.

There is another example to explain Human Resource Management’s Effects is very important to a firm. Labor shortage could make a big effect to a labor-intensive enterprise, while HR should forecast it and design a solution plan before this kind of circumstance happening, and put it into effect. Thus can explain why HRM was an important program to a firm.

Enterprise should design an elastic human resources planning, which is based on the enterprise core competitive ability, can according to the constant change of the market, to evaluate timely and adjust enterprise human resource planning, ensure enterprise core competitive advantage conditions, timely meet demand of human resource because of the external business environment changes. Quick response is also a key factor to development.

Human resource planning is the enterprise strategic management is an important form of the enterprise strategic management. Enterprise's overall development strategy determines the content of the human resources planning, and the content and to establish human resources management system, the researchers add, formulate specific plan, researchers used plan, personnel to replace and promotion plan, education training plan, compensation and incentive plan, labor relations program, provides the direction. Small and medium-sized enterprise is often difficult to consider from the strategy to think about human resource management work. They all deem simply HRM is a management to invite workers and train employers, do not realize relationship between HR and strategic development absolutely.

If enterprise did HRM not well, there will be a