Organizational Outcomes of HRM System

Organizational Outcomes of HRM System
The organizational outcomes of HRM are:
  1. Quality of work life (QWL): Quality of work life refers to the quality of relationships between employees and total working environment of the organization. It is concerned with overall climate of work for better quality of work life. There are two ways of looking at what QWL means. One way equates QWL with a set of objective organizational conditions and practices (e.g. job enrichment, democratic supervision, employee involvement, and safe working conditions). The other way equates QWL with employee’s perceptions that they are safe, relatively well satisfied, and able to grow and develop as human beings. This way relates QWL to the degree to which the full range of human needs is met.
  2. Productivity: Productivity is a measure of the output of goods and services relative to the input labor, material and equipment. The more costs are lower. Improving productivity simply means getting more out of what is put in. it does not mean production through the addition of resources, such as time, money, material or people. It is doing better with what we have improving productivity is not working harder; it is working smarter. Today’s world demands that we do more with less-fewer people, less money, less time, less space and fewer resources in general. Some of the increase in manufacturing productivity is undoubtedly due to wide spread automation in the factory.
  3. Readiness for change: Change is quite complex process. Change is a fact of life. It is a nature of human being that nobody instantly becomes ready for the change. Employee tends to resist change. The main reasons for such resistance are
    • Fear of unknown: Change may bring uncertainty creates problems. Employee like old ways and fear uncertainty.
    • Security: Employee may fear threat to job security.
    • Habit: Employee resists to change due to old habit.
    • Misunderstanding: Employee may not understand the purpose of change by management. 
    • Social factors: Employees may feel threat to existing social relationships.

Output Components of HRM

If there are good HRM systems in any organization, it will give the following employee related output. It consists of 4cs.
  1. Commitment: If there is good HR System in organization, organizational outcomes will be high commitment of staff. Employee will be more committed. Employee will be loyal, performance oriented, self worth, and involved in work. They show their potentialities with highest degree for the achievement of organizational goal. They will automatically more motivated towards their duty and always think about the interest of organization.
  2. Competences: When there is good HRM system, management can attract and keep people for long time. Finding out their weakness, training can be given to them. With training and imposition new skill, employee can be made competent, that can response to any changes inside and outside the organization high competence to adapt to changes in the environment and assumes new roles; potential for higher-level job. Competency of people can be increased through training and development and organization can proceed into a competitive market.
  3. Cost effectiveness: Cost effectiveness does not signify reducing the cost but managing the cost in a most effective way sot that output can be maximized. This can be done by effective HRM system. With good HR decision in HR activities such as recruitment, selection, training and development, performance appraisal, labor turnover can be reduced, efficiency of labor can be increased, this ultimately affects in well management in cost.
  4. Congruence: Congruence is the relationship between the interest of employee and organization. Good HR system sustains the relation between management and employee; high degree of harmony between the goals of individual and the organization; common vision in goals and working together to attain them.

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