The structure of modern companies continues to evolve and becomes more complex. This notion signifies the need for companies to upgrade and expand their human resources management departments. Noe et al. (2016) state that “effective management of human resources creates a competitive advantage.” This particular organizational task should not be viewed as a liability imposed by legal laws but as a beneficial addition to the company.
Human resources are an essential part of every organization’s workflow, as much as raw resources and technologies. A well-organized work of the human resources department can boost productivity and morale of employees and make a company less susceptible to labor supply fluctuations (Noe et al., 2016).
The task that lies in HR departments expands beyond administration, monitoring relationships of employees, and hiring new workers, it includes finding an optimal person for each vacancy and policing company norms. Therefore, HR can provide crucial insight for the company’s directors into the future course of events, potential growth opportunities, and necessary changes for the optimal functioning of the company.
The knowledge of the company’s employees allows HR to propose potentially beneficial strategies. Companies that invest in the development of HR benefit from a streamlined workflow, improved decision making, and open communications (Noe et al., 2016).
Noe et al. (2016) state that the “dynamic nature of managing human resources makes the field challenging and difficult, but such complexity also provides a great opportunity to carve out unique and sustainable sources of competitive advantage.” It is absolutely necessary to include an HR department representative to the executive leadership table. Not only a company gains greater control over the recruitment but also discovers more for expansion.
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2016). Human resource management: Gaining a competitive advantage (2nd Canadian ed.). McGraw-Hill.