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HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives.

HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.

You will recall that the single proprietor usually goes into a business on a small scale, doing all the work himself or having at best only a few employees to help him. The small businessman is usually closely associated with his helpers. He is familiar with their work and perhaps knows something about their home relationships and personal problems. And likewise, employees in a small company usually “know the boss“ and may even be acquainted with members of his family.

But as the business prospers and progresses, the proprietor discovers that he can no longer be personally be acquainted with each employee. In fact, in a large organization with several thousand employees, the management seldom knows more than a small fraction of the work force. But this does not mean that the top management or the owners have no interest in their employees’ welfare. It simply means that employer-employee relationship changes as a business grows or diversifies.

Effective Employee

Is one who has a genuine desire and interest to do the best possible job, and strives constantly to improve his performance. And hardly less important, he works effectively alone as