Management Studies: HRM

Showing posts with label HRM. Show all posts

Elements/ Components of HRM Environment

Environment literally means the surrounding external objects, influences or circumstances under which someone or something exists. The environment of any organization is “the aggregate of all conditions, events and influences that surround and affect it”. In simple words, environment comprises all those forces which have their bearing on the functioning of various activities including human resource activities. Environment scanning helps HR (Human Resource) manager become proactive to the environment which is characterized by change and intense competition.

Human resource management is performed in two types of environments that is internal and external.

Internal Environment: These are the forces internal to an organization. Internal forces have profound influences on HR functions. The internal environment of HRM consists of unions, organizational culture and conflict, organizational objectives, policies etc.

Unions: Trade unions are formed to safeguard the interest of its members like recruitment, selection, training, compensation, industrial relations and separations are carried out in consultation with trade union leaders.
Organizational culture and conflict: As individuals have personality organizations have culture. Each organization has its own culture that distinguishes one organization from another. Culture may be understood as sharing of some core values or beliefs by the members of the organization. “Value for time” is the culture of Reliance Industries Limited. The culture of the Nepal Tourism board is “Naturally Nepal once is not enough”. HR practices need to be implemented that best fit the organizations culture. There is often conflict between organizational culture and employed attitude. Conflict usually surfaced because of qualities such as personal goal Vs organizational goal, discipline Vs autonomy, right Vs duties etc. Such conflicts have their bearings on the HR activities in an organization.

External Environment: External environment includes forces like economic, political, technological, socio-culture etc. These exert considerable influence on HRM.

Economic Environment: Economic forces include growth rate and strategy, industrial production, national and per capita incomes, money and capital markets competitions, industrial labour and globalization. All these forces have significant influence on wage and salary levels. Crowing unemployment and reservation in employment also affect the choice for recruitment and selection of employees in organizations.
Political Environment: Political environment covers the impact of political institutions on HRM practices. For example, democratic political system increases the expectations of workers for their well being. The total political environment is composed of three institutions.

Legislature: This is called parliament at the central level and assembly at the country level. A plethora of labour laws are enacted by the legislature to regulate working conditions and employment relations.
Executive: it is the government that implements the law. In other words, the legislature decides and the executive acts.
Judiciary: This is like a watch dog above the two. It ensures that both the legislature and the executive work within the confines of the constitution and also in the overall interest of the people.

Technological Environment: Technology is a systematic application of organized knowledge to practical tasks. Technological advance affect the HR functions in more than one way. First, technology makes the job more intellectual or upgraded. Second, it renders worker dislocated if they do not equip themselves to the job. Third, job becomes challenging for the employees who cope with the requirements of technology. Fourth, technology reduces human interaction at the work place. Finally, jobholders become highly professionalized and knowledgeable in the job they perform.
Socio-Cultural Environment: Socio-cultural environment differs from country to country. It mainly comprises the customs, values and demographic characteristics, often reflected in laws, rules and regulation of a country. There are four dimensions of national culture which effect employee’s work-related attitudes.

Power distance: Managers operating in such value systems feel powerful and remain distant from the subordinate employees.
Uncertainty avoidance: In countries with a low level of uncertainty avoidance, people are encouraged to take risk and to work in ambiguous situations.
Individualism-collectivism: In individualistic cultures, managers are very individualistic. They work behave from an individual perspective.

HRM System in an Organization

Human resource management deals with people dimension in organization. If focuses on management of human abilities.

To understand what human resource management is, first we should review what manager do most experts agree that there are five basic functions manager perform: planning, organizing, staffing, leading, and controlling. In total, these management process functions represent the management process. Some of the specific activities involved in each function include;

Planning: Establishing goals and standards; developing rules and procedures; developing plans and forecasting predicting or projecting some future occurrence.
Organizing: Giving each subordinate a specific task; established departments; delegating authority to subordinates; establishing channel or authority and communication; coordinating the work of subordinates.
Staffing: Deciding what type of people should be hired; recruiting prospective employees; selecting employees; setting performance standard; counseling to employees; training and development of employees.
Leading: Getting order to get the job done; maintaining morale; motivating to subordinates.
Controlling: Setting standards such as sales quotas, quality standards, or production levels; checking to see how actual performance compares with these standard; taking corrective action as needed.

Human resource management refers to the practices and policies you need to carry out the people or personnel aspects of your management job. These includes:

Conducting job analysis (determining the nature of each employee’s job)
Planning labor needs and recruiting job candidates
Orientating and training new employee
Managing wages and salaries (i.e. how to compensate employees)
Providing incentives and benefits
Performance Appraisal
Communicating (interviewing, counseling, disciplining)
Training and development
Building employee commitment
And a manager should know that about

Equal opportunity and affirmative action
Employee health and safety
Grievances and labor relations

Why are these concepts and techniques important to all managers?
Perhaps, it is easy answer by listing some of the personnel mistakes you doesn’t want to make managing. For example, you don’t want:

To hire the wrong person for the job
To experience high turnover
To find your people not doing their best
To waste time with unless interviews
To have you company taken to court because of your discriminatory actions
To commit any unfair labour practices
To have your company cited under federal occupational safety for unsafe practices
To have some of your employees think their salaries are unfair and inequitable relative to others in the organization.
To allow a lack of training to undermine your department’s effectiveness.

Line Manager’s Human Resource Management Responsibilities
According to one expert, “the direct handling of people are and always has been an integral part of every line manager’s responsibility, from president down to the lowest level supervision.” For example, one major company outlines its line supervisor’s responsibilities for effective human resource management under the following general headings.

Placing the right person on the right job
Starting new employees in the organization (orientation)
Training employees for job that are new to them
Improving job performance of each person
Gaining creative cooperation and developing smooth working condition
Interpreting the company’s policies and procedures.
Controlling labour cost
Developing the abilities to each person
Creating and maintaining departmental moral.
Protecting employee’s health and physical condition

In small organizations, line managers may carry out all these personnel duties unassisted. But as the organization grows, they need the assistance, specialized knowledge, and advice of a separate human resource staff.

Rising Interest of HRM

Today, environment is changing rapidly. Changes have made the role of HRM more crucial in changing environment. To achieve organizational goal requires committed and competent manpower. They are the outcome of effective and efficient human resource management. Since 1990s, the interest in human resource management has been rising. Specially, the following factors responsible for the rising interest in HRM are:

Work Force Diversity: Diversity means different. In the context of HRM, different regards in the sense of sex, color, age, culture, religion and language etc. today composition of work force has been quite diversified. The involvement of people from different culture, need, race, religion, sex, age are increasing day by day. All over Europe, western countries and including Nepal, environment of women in organization are sharply increasing. Different people have different need and interest. They have different perception, experience learning habits, personality etc. to understand the need of different people, to manage different people, to develop the feeling of team work, HRM plays the vital role through its activities. It is a most significant task done by HRM which other management cannot perform.
Technological change: Technology is changing rapidly. With scientific movement, new technologies were developed. Human resource in organization need to require new competencies to cope with the rapid technology change, which helps in increasing productivity. To increase productivity, an efficient utilization of technology skillful manpower is required. The need is growing for computer and information technologies are considered as friendly human resources. This all necessities have increased the interest in HRM.
Globalization: There’s no doubt that the world of work as we know, it is rapidly changing. Even as little as fifteen years ago, the time was calmer than they are today. Globalization has led to operations in several countries. The human resources in organizations have also assumed global dimensions. Globalization of markets and manufacturing has vastly increased international competition. In global competition, some firms are doing well others are failed. HRM policies and practices need to be adapted to varying socio cultural forces to carryout hot country operation. This has led to rising interest in HRM.
Increasing competitions: Today most of organizations are facing both internal and external competition. As part of an organization then, HRM must be prepared to deal with the effects of the changing world of work. For them, this means understanding the implications of globalization, technological changes, work force diversity, changing skill requirement continuous improvement initiatives, the contingent work force, decentralized work sites, and employee involvement.
Changes in nature of works: Technological and globalization trend has changed the nature of jobs and work. Technological changes including fax machine, internet, and personal computers have allowed companies to reallocate operations to location with lower wage.
Others: There are other changes also shaping human resource management. Many laws are passed to limit manager’s action and to protect the interest of workforce. Equal employment opportunity, mandated health benefit, union management relation law etc. manager has to deal frequently with the help of HRM. Due to this, the interest of almost all managers is increasing in HRM.

Benefits of strategic HRM and the rising interest of HRM

Strategic human resource management is to ensure that human resource management is fully integrated into strategic planning, that HRM policies cohere both across policy areas and cross hierarchies and that HRM policies are accepted and used by line managers as part of their every day work. Strategic management is that set of managerial decisions and actions that determine the long-term performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control.

Benefits of Strategic HRM
Fred R. David has listed the following benefits that strategic HRM brings for an organization.

Allows identification, prioritization and exploitation of opportunities.
Provides an objective view of management problems.
Represents a framework for improved coordination and control of activities.
Minimizes the effects of adverse conditions and change.
Allows major decisions to better support established objectives.
Allows more effective allocation of time and resources of time and resources to identified opportunities.
Allows fewer resources and lesser time to be devoted to correcting erroneous or adhoc decisions.
Creates a framework for internal communication among personnel.
Helps to integrate the behaviors of individuals into a total effort.
Provides a basis for the classification of individual responsibilities.
Gives encouragement to forward thinking.
Provides a co-operative, integrated and enthusiastic approach to tackling problems an opportunity.
Encourages a favorable attitude towards change.
Gives a degree of discipline and formality to the management of a business.

Strategic Roles of Human Resource Management

Strategic human resource management is to ensure that human resource management is fully integrated into strategic planning, that HRM policies cohere both across policy areas and cross hierarchies and that HRM policies are accepted and used by line managers as part of their every day work. Strategic management is that set of managerial decisions and actions that determine the long-term performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control.

Fred R. David has listed the following benefits that strategic HRM brings for an organization.

Allows identification, prioritization and exploitation of opportunities.
Provides an objective view of management problems.
Represents a framework for improved coordination and control of activities.
Minimizes the effects of adverse conditions and change.
Allows major decisions to better support established objectives.
Allows more effective allocation of time and resources of time and resources to identified opportunities.
Allows fewer resources and lesser time to be devoted to correcting erroneous or adhoc decisions.
Creates a framework for internal communication among personnel.
Helps to integrate the behaviors of individuals into a total effort.
Provides a basis for the classification of individual responsibilities.
Give encouragement to forward thinking.
Provides a co-operative, integrated and enthusiastic approach to tackling problems and opportunities.
Encourages a favorable attitude towards change.
Gives a degree of discipline and formality to the management of a business.

Strategic Role Played by

Strategies are the long-term plan of every organization. Each and every business firm is moved with strategies to achieve their goals. Strategic human resource management is concerned with the development and implementations of people strategies which are integrated are integrated with organizational strategies to attain long-term goals. Generally, business manager have three strategic decisions

Corporate strategy
Business strategy
Functional strategy

Strategy helps in balancing two sets of forces i.e. internal environment and external environment. However following factors are considered to be strategic role of HRM.

Development of quality management: It can be developed by assisting with the introduction of total quality management approaches through education and training processes and involving people in quality improvement programmes.
Development of Reward policies: Using the reward management system to define performance expectations to reward people according to their contribution.
Development of Employee relation policies: Developing a cooperative climate of employee relations, which allows direct communication to employees but, where appropriate, recognized the role union play in a pluralist organization.
Development of cultural management policies: Influencing behavior and thereby, attitudes through researching, performance management, development and reward strategies, and helping to get the mission and values of the organization designed understood, accepted and acted upon.
Performance management strategy: Introducing system, which clarify objectives at all levels in the organization and measure performance against those objectives, in order to agree improvement and development plan.

Objectives of Human Resource Management (HRM)

The primary objective of any organization is to maximize profits and wealth attribution to the owners of the firm. The main objective of human resource management is to manage the workers and employees in an enterprise in the best manner. Following are the important objectives of human resource management in an organization:

1. To increase the welfare of human resource: personnel management is to increase the welfare of workers and employees engaged in an enterprise. Best working conditions should be provided and many other welfare programmes must be launched so that employees may get the facilities of health and recreation.

2. To establish harmonious relations between labour and capital: The objective of personnel management is to establish harmonious and friendly relations between labour and capital in the enterprise. The philosophy of modern management is that the contribution of labour is not less important than that of the capital. “Managers realize that they cannot make the best of capital without co-operation of the labour. Therefore, it stresses upon the development of trust and faith between employees and employers.

3. To arrange effective communication with employees: Another very important of personnel management/ Human Resource Management is to maintain effective communication with employees so that the orders and directions of management may be passed to the employees and the problems and grievances of workers may also be communicated to the management.

4. To develop the employees: The objective of human resource management is the development of employees working in an enterprise. Employees are provided the facilities of training and education so that the efficiency and ability of the employees may be increased.

5. Other objectives: Other objectives of human resource management/ personnel management are:

To arrange for the sufficient number of efficient, capable and expressed employees in all the departments and at all the levels of management.
To motivate the employees so that the productivity of enterprise may be increased
To increase the moral of employee
To provide the best working conditions to the employees so that they may complete their work in most efficient manner.
To integrate HR policies with business plans and reinforce and an appropriate culture or as necessary, reshape an inappropriate culture.

HRM in System Prospective

Management is a system which involves interrelated activities necessary to achieve goals. Human resource management is a part of management which focuses on the workforce. It also involves a system consisting of input, processing, output and feedback. It is affected by both internal and external environment.

Human Resource Management System

1. Input: The input of human resource management includes those components necessary for organizational functioning to achieve a defined goal. The input factors of HRM include the following components:

Organizational Plan
Human Resource Plan
Organizational Strategy
Human Ability and Competency
Labor Market and Technology
Human Resource Inventory

As an input in a system, the workforce provides both administrative and technical support to the management to complete the assigned job at the proper time. Therefore, input component is most essential in human resource management system.

2. Processing: Processing involves all human resource functions necessary to convert input into output. The following are the components of human resource processing.

Acquisition: It involves the employment of the right number and kind of workforce to the right job. It includes activities of manpower planning, recruitment, selection, placement and socialization of workforce. Manpower planning involves determination of current and future workforce requirement in the organization. Recruitment involves identifying the sources of workforce and stimulating them to apply for vacant posts. Selection is the process of making choice of the right workforce. Placement is the assignment of job on the basis of skill. In socialization, employee know about organizational culture, tradition and working environment.
Development: It ensures the required competencies of the workforce to perform assigned task efficiently. On the basis of requirement of an organization, it is essential to develop working efficiency of employees. For this, the management needs to organize many efficiency development programs consisting of training, workshop, seminar, education etc. It also involves the programs necessary to develop competencies and conceptual ability among the managers.
Motivation: It is a psychological aspect and ensures the optimum utilization of human resource. It develops a sense of belonging among the workforce and encourages them to do the given job in accordance with their best ability. Employees work in the organization for the satisfaction of their needs. For this, the management needs to consider both extrinsic and intrinsic factors that satisfy and motivate them. Extrinsic factors include job design, working environment, supervision, financial incentives, promotion etc. Intrinsic factors include achievement, recognition, responsibility, advancement, growth etc.
Maintenance: It ensures retaining productive employees in the organization for a long time. It is possible only by maintain good relation with employees and providing better working environment in the organization. Therefore, it is essential to consider health, safety and comfort of employees. It helps to satisfy employees and makes them committed towards their job.

3. Output: The output component of human resource management includes goal achievement, quality of work life, productivity, commitment, efficiency, readiness for change etc. The effectiveness of human resource management is measured on the basis of its output. We can only say that the system developed in human resource

management is appropriate only when output is achieved effectively.

Human resource management is a continuous process and lasts till the existence of the organization. As such, it is essential to evaluate the feedback of the system. The implementation of HRM system is affected by environmental changes; therefore, if the present system is not effective for future performance, it is necessary to modify the system.

Major Roles of HRM

Human resource management is a vital function of management in organizational settings. HRM performs the following roles in an organization.
1. Line Function Role: HR managers perform the line authority role within the human resource management department. They have right to make decision to direct the work of subordinates. And given order to their own department.

2. Staff Function Role: HR managers perform the staff authority role by assisting and advising line managers on HRM matters. HR managers are generally staff managers. They assist and advise line managers in acquisition, development, utilization and maintenance of human resources. They also administer various benefits and services for employees. They also assist line managers to comply with legal provision related to human resources in the organization.

3. Functional Control Role: HR managers perform the functional control role by coordinating all activities related to human resources management. They ensure that human resources objectives, policies, procedures, programmes and laws are being consistently carried out by line managers throughout the organization.

4. Strategies Role: HR managers are concerned with the development and implementation of people strategies to attain organizational goals. Such strategies are integrated with overall organizational strategies.

Responsibilities of HRM

According to the expert, “The direct handling of people is and always has been an integral part of every line manager’s responsibility, from president down to the lowest level supervision.” For example, one major company outlines its line supervisors’ responsibilities for effective human resource management under the following general headings.

Placing the right person on the right job.
Starting new employees in the organization (orientation).
Training employees for job that are new to learn
Improving job performance of each person.
Gaining creative cooperation and developing smooth working condition.
Interpreting the company’s policies and procedures.
Controlling labor cost.
Developmental moral
Protecting employee’s health and physical condition.

In small organizations, line managers may carry out all these personnel duties unassisted. But as the organization grows, they need the assistance specialized knowledge, and advice of a separate human resource staff.

Development of HRM Concept

The development of human resources management concept is as follows:
1. Industrial revolution stage: Industrial revolution brought the three major developments

The development of machinery
The linkage of human power to machine
The establishment of factories.

Due to the industrial revolution, people specialized in their job. Workers organized themselves into trade unions to achieve better conditions of employment. Labor laws were enacted to protect the interest of worker. Collective bargaining between labor and management was used to settle industrial disputes.

Robert Owen reduced working hours and built houses and schools for workers. After industrial revolution, problems related to human resources led towards taking care of employees. It can be considered as the first stage of human resources development.

2. Scientific management movement stage: This stage aimed at improving worker efficiency through proper selection, training and compensation. F.W. Taylor suggested the following tips

Individuals who are selected for the jobs should be physically and mentally ready to demand of jobs.
Employees should not be called upon to work at the time that would be detrimental to their health.
Education and development of the workers, properly trained and developed workers produced best.
Incentive system to “earn more be performing more” properly paid workers.
Specialization through division of work to achieve efficiency.

3. Industrial psychology: An employee having positive attitude can faster industrial efficiency. Efficiency can be increased by testing intelligence test of the employee. Thus to increase the efficiency, human psychology should be studied through different test and should developed a good interest, and positive attitude on the work in them.

4. The human relation movement stage: This stage focuses people element in personnel management. Hawthorne studies serve as the beginning of human relation movement. It advocates the following personnel management aspects.

Participative management and teamwork.
Importance of social setting and group dynamics in employee productivity.
Need for improved communication among managers and employees.

5. The period of labor legislation: To control, direct and motivate the labor, there should be strong need of some kinds of legislation. The civil right act was passed in 1964. Discrimination law, pension laws, health and safety laws, federal regulatory agencies and their interpretive, guidelines, and cowed ruling affected virtually every aspect of employment.

6. Organizational development movement stage: The organization development (OD) movement of the 1960s and 1970s was closely associated with the concept of behavioral science. The OD approach concentrates on overall organizational effectiveness, especially with regard to process how people behave in situation where they are constantly interacting with one another. Team development and management of change were often important features of an OD programme. Particular attention was paid to the analysis of group process and OD consultants evolved methods of analyzing organization behavior, especially within and between group, and of solving conflict problems.

Concept and Factors Contributed for the Development of HRM

Concept of HRM

Human resource management is concerned with people dimension in organization. It focuses on management of human energy and capabilities to improve productivity. People possessing physical strength and energy alone are not human resource. People become human resource only when they contribute their competencies. Competencies are the combination of knowledge, skill, attitude, experience etc. As we know management is the art of getting things done through other people. Managers perform the function of planning, organizing, staffing, coordinating, directing etc. The staffing function is concerned with human resource management.

According to Decenzo and Robbins, “Human resource management is a process consisting of four functions acquisition, development, motivation and maintenance.”

According to Paul G. Hastings, “Human resource management is that aspect of management having as its goal the effective utilization of the labour resources of an organization.”
Similarly, Oliver Sheldon defines, “Human resource management is a part of the management process, which is primarily concerned with human constituents of an organization.”

Hence, in conclusion human resource management is very crucial for the success of any organization. Human beings are a resource to an organization but it is the living resource which cannot be equated with the other resources which are unanimated. Human resources add to the value while other resources add to the cost. All the firms buy the same material and machines but it is the people in the organization who built it and makes differences in the ultimate product. The human being never reaches an ultimate value throughout his lifetime at work which other resources reach to an ultimate value it starts producing. Thus, the management of human resource is very complicated and challenging task for those who are interested with the successful running of an organization and this implies considerable knowledge by various aspects of human resource management. The human resource management function or personnel function should be lightening rod attracting the tension and human conflict, which are inevitable in an organization and community.

Factors contributed for the Development of HRM

The phrase “human resource management” is not new. It was used as long as 40 years ago, but at that time, it was interchangeable with personnel management. The development of HRM has gone through different stages. Many factors have contributed for the development of human resource management. They are follows:

1. Industrial revolution stage: Industrial revolution brought the three major developments.

The development of machinery
The linkage of human power to machine
The establishment of factories.

Due to the industrial revolution, people specialized in their job. Workers organized themselves into trade unions to achieve better conditions of employment. Labour laws were enacted to protect the interest of worker. Collective bargaining between labour and management was used to settle industrial disputes. Robert Owen reduced working hours and built house and schools for workers. After industrial revolution, problems related to human resources led towards taking care of employees. It can be considered as the first stage of human resources development.

2. Scientific management movement stages: This stage aimed at improving worker efficiency through proper selection, training and compensation. F. W. Taylor suggested the following tips:

Individuals who are selected for the jobs should be physically and mentally to the demand of jobs.
Employees should not be called upon to work at the time that would be detrimental to their health.
Education and development of the workers, properly trained and developed workers produced best.
Incentive system to “earn more be performing more” properly paid workers.
Specialization through division of work to achieve efficiency.

Participative management and teamwork
Importance of social setting and group dynamics in employee productivity.
Need for improved communication among managers and employees.

5. The period of labour legislation: To control, direct and motivate the labour, there should be strong need of some kinds of legislation. The civil right act was passed in 1964. Discrimination law, pension laws, health and safety laws, federal regulatory agencies. And their interpretive guidelines and cowed ruling affected virtually every aspect of employment.

6. Organizational development movement stage: The organization development (OD) movement of the 1960s and 1970s was closely associated with the concept of behavioral science. The OD approach concentrates on overall organizational effectiveness, especially with regard to process how people behave in situation where they are constantly interacting with one another. Team development and management of change were often important features of an OD programme. Particular attention was paid to the analysis of group processes and OD consultants evolved methods of analyzing organization behavior, especially within and between group and of solving conflict problems.

In particular, Schein (1969) developed methodologies for process consulting. This involves helping clients to generate information, which they can understand about their projects and problems, and creating conditions for them to won the solutions to their problems by gaining internal commitment to their choice.

Organizational Outcomes of HRM System

Organizational Outcomes of HRM System

The organizational outcomes of HRM are:

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.
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.
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.

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.
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.
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.
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.

Pages