Human resource is considered the backbone for any business; whether it’s in a production industry or in a service industry. We all have heard of the term organizational chart. Any business has an organizational chart that consists of the structure of the organization and the relationships and ranks of its human resource (employees) position/jobs. Some organization charts are wide and tall whereas some may be short and narrow. Companies often believe that hiring and managing human resources are as important as any other operations. That is the reason why most companies have adopted and adapted to a new department in their organization known as the "Human Resource Department" in order to hires, manages and assesses the performance of its workforce. To put it in other words, there is a positive relationship between high performance work organizations HRM and the performance of the organization as a whole.
Meanwhile, companies that have poorly managed human resource department often face shortfall in their organizational performance. When an organization does not have the interest in showing how important the role and duties of its employees can contribute towards the organization; this is the critical phase where the employees do not feel motivated and obligated towards the organization. Thus as a result, their performance slows down and leads to an effect in the performance of the entire. It is the role of the organization to make employees feel how important and valuable they are to the company. If there is a mutual understanding and goal between the employees and organization; each factor can work together to meet and fulfill their common objective and goal.
On the other hand, motivated and high performance human resource of a company can also help create a value for a company; by building its core competency and at the same time developing sustainable advantage over its competitors. Successful companies not only have loyal and satisfied customers but also at the same time employ a strong performance, motivated and loyal human resource base. These two factors can bring a huge impact on the performance and success of a company.
In addition, to make my explanations clearer, I will be providing an example of how a company was unable to manage and organize their human resource management and as a result; led to a huge impact on the performance and awareness of the company to the world. This not only affected the performance of the organization but also affected the way customers and stakeholders perceived the brand or the company.
Multinational Companies and their policies
Poor working conditions have been present for decades. Usually, such issues are ignored and at times workers are unaware of such working conditions and negligence of human rights unless there’s a tragedy happened to convince the public to really gather for workers rights and form labor unions. Moreover, internationally, mainly in poor third...