2.2 Why is Human Resource Management important?

An effective HRM system allows organizations to address human resource issues

strategically. This helps the workforce deliver high quality health services, despite
internal and eternal challenges to the organization. A strong human resource
management system helps organizations prioritize their organizational and !usiness
strategies while effectively managing the changes inherent in health sector reform and
decentralization. HRM helps attract and retain competent employees, assists employees
and managers in adapting to organizational change, and facilitates the use of technology
to determine how and where work is done.
Role of the Line Manager
"ine managers are more production# and goal#oriented, as it is their role to make or save
money for the company. "ine managers are often referred to as supervisors, if at a more
entry#level stage. "ine managers are more hands#on oriented and responsi!le for getting
the work done, maintaining employee performance and handling disciplinary issues.
Answer$
"ine authority or function is a %irect or main function of an individual or department. &t
involves %irect and "egitimate Authority over su!ordinates. &t decides what to do, and
when to do it. eg., 'roduction for a Manufacturing company.
(taff Authority on the other hand is an assistant function as it guides line managers or
functions into performing a specific activity. They are more specialized and therefore
provide advice to "ine authority. eg., Human Resource )HR* for a Manufacturing
company.
A HR manager has line authority over the staff of the HR department and staff authority
to support, assist, and advise mangers of other %epartments in matters related to HR
management
Basic Functions
Management operates through various functions, often classified as planning, organizing,
staffing, leading+directing, and controlling+monitoring.i.e
Planning$ %eciding what needs to happen in the future )today, net week, net
month, net year, over the net , years, etc.* and generating plans for action.
Organizing$ )&mplementation* making optimum use of the resources required to
ena!le the successful carrying out of plans.
Staffing$ -o! Analyzing, recruitment, and hiring individuals for appropriate .o!s.
High 'erformance /ork (ystem is a name given to a set of management practices that
attempt to create an environment within an organization where the employee has greater
involvement and responsi!ility. More specifically, H'/( has !een defined !y 0ohlander
et al )1223* as 4a specific com!ination of HR practices, work structures, and processes
that maimizes employee knowledge, skill, commitment and flei!ility5 )0ohlander 6
(nell, 1223, p. 782*
More than ever !efore organizations today are facing increased competitive challenges
due to glo!alization, rapid technological advances, an increased emphasis on accelerated
change and innovation, demands for higher quality and customer service, and the risks
and rewards of managing a diverse workforce. To meet these challenges and sustain a
competitive advantage, organizations must com!ine human resource )HR* practices into
an overall High 'erformance /ork (ystems )H'/(* that enhances employee
involvement and performance. According to %atta, 9uthrie 6 /right, organizations that
use H'/(s or systems of HR practices designed to enhance employees: competencies,
motivation, and performance is associated with lower employee turnover, higher la!or
productivity and improved overall company performance )122,*.
The ma.ority of !oth current and past H'/( research findings availa!le for the
manufacturing sector generally neglect the service sector as a stand#alone entity.
However, cross#industry H'/( research is availa!le that includes the service sector as
referenced throughout this paper. /ith the service sector now accounting for ;< percent
of gross domestic product )9%'* in the =nited (tates, which serves as a key economic
health indicator )/orld >act!ook, 122;*, additional research is recommended to eamine
the effects and !enefits of H'/(s in the new service economy.