In modern conditions of market relations, human resources are the leading indicator of the competitiveness of an enterprise. Human management resources are the internal competence of the firm, which provides leadership positions and success in an increasingly competitive struggle (Belcourt et al., 2019). Firm employees influence the firm’s value and create an organizational climate that increases performance level, product quality, and efficiency of business processes.
Thus, there is a relationship between human resource management strategy and the effectiveness of the organization (Garton, 2017b). High professionalism of the employees will ensure the firm quickly and efficiently achieve the organization’s strategic capabilities. Employees with unique skills who are motivated to grow themselves and improve the company will better understand which direction the company needs to move to achieve the most tangible change.
Essence of Human Resource Management
Human resource management aims at the most efficient use of personnel labor to obtain maximum economic benefits. This process is based not only on the ability to organize a team from a quantitative and qualitative point of view but also on using psychological techniques. Each executive should be prepared for the fact that personnel management is a more complex process than, for instance, handling the technological part of the production (Belcourt et al., 2019). This is due to the high likelihood of conflict situations on both work and personal issues.
Human resources are assessed when recruiting an employee; their qualifications and experience serve as indicators of potential for effective performance. After recruitment, they are usually confirmed by the employee’s annual performance reports. Companies are continually looking for better methods to measure their employees’ performance. Over the past ten years, human resource assessment has become more systematic and complex. Organizations have become much less reliant on traditional skills and more on flexibility, learning, and teamwork. Many companies have established special centers designed to provide a comprehensive and quantitative assessment of the skills and experience of individual employees.
TD Canada Trust is part of the TD Bank Group. The group’s assets are estimated at 1.4 trillion Canadian dollars (“Total assets of Toronto Dominion Bank from 2013 to 2020,” 2021). TD Canada Trust is one of the largest banks in Canada. The Bank supports an inclusive strategy and provides an opportunity for development and career growth for employees. Such measures can lead to the use of more creative approaches in activities and the consideration of multiple opinions when creating new products.
The company strives to anticipate the desires of its customers by thinking like them. This focus on client satisfaction can strengthen their confidence in the firm and increase the influx of new people who want to use banking services. The Bank conscientiously manages its projects, functioning extremely quickly and efficiently. It constantly introduces innovations simplifying the company’s activities and making it possible for the firm to become a leader among competing banks. Innovation and fair trade improve the company’s image and push profits.
One of the Bank’s corporate strategies is to expand its client base by creating unique broad-based services. The company interacts not only with individuals but also helps firms in the needs of their businesses. The Bank creates convenient conditions for regulating financial flows for its clients. For example, the company is developing mobile applications that allow users to monitor their financial transactions online. In addition, the firm provides insurance services, including travel medical coverage, life coverage, and many other types of insurance. Employee development is ensured through corporate training designed to update and improve the skills of those working in the firm. The hiring practices of the firm are aimed at implementing the principles of ensuring diversity in the workplace. Bank reports are recognized annually as the most transparent in providing information on ongoing measures to overcome gender inequality and advancing women’s equality.
The Role of HR in Supporting Capabilities and Strategies
A modern firm is not so much a manufacturer of goods as knowledge. In many organizations, an increasing part of the effect obtained is the result of the application of special knowledge, extensive training of personnel, and interaction with partners and contractors.
Human capital, more than physical assets or financial resources, becomes a sustainable competitive advantage (Garton, 2017a). Companies can select, manage, evaluate, and develop the capabilities of their employees to transform their qualities into meaningful financial performance for the company. Human capital, not factories, equipment, and production stocks is an indicator of competitiveness, economic growth, and efficiency today (Garton, 2017a). TD Bank employees adhere to the firm’s strategy, but they are also attentive to everything new – if necessary, they can quickly adjust the course of action. Their desire to improve customer trust and their creativity lead to effective solutions.
In a modern market economy, a bank’s competitiveness depends on its ability to generate new knowledge, which, as a result, creates a competitive advantage. The role and importance of human resources in knowledge management are undeniable. Developing organizational and individual learning processes and helping to create an open culture can help a firm manage its human capital. As a result, with the help of such motivated employees, it is more effective to achieve planned corporate goals.
Belcourt, M., Bohlander, G. W. & Morris, S. (2019). Managing human resources (9th ed). Nelson.
Garton, E. (2017). HR’s vital role in how employees spend their time, talent, and energy . Harvard Business Review. Web.
Garton, E. (2017). What if companies managed people as carefully as they manage money? Harvard Business Review. Web.
Total assets of Toronto Dominion Bank from 2013 to 2020. (2021). Statista. Web.