Question

“As a result of globalisation and liberalisation, HRM has acquired a strategic importance in organisations.” Discuss.

Answer 1

• The globalisation and economic liberalisation, competition has become more intense. Indian companies now contend not only with each other but also with international firms. To stay competitive in this global market, businesses must leverage every potential advantage. One of the most powerful sources of such an advantage is human resources. Enhancing employees’ knowledge, skills, motivation, and morale can transform them into a key strength. By effectively developing, retaining, and engaging talent, a company can outperform its competitors. Human resources are invaluable, as they drive the productivity of both physical and financial assets.
• Human resource professionals play a crucial role in creating this advantage. Their expertise lies in acquiring, developing, retaining, and engaging talent. They support management in addressing people-related challenges and in building a workforce capable of meeting any business challenge.
• Employees are the most influential factor in a company’s success. As Narayan Murthy aptly put it, “Our greatest assets (people) walk out the door every single night and walk back the next morning.” Human resource management is the foundation of any organisation, essential for maximizing human potential through both people and evolving technologies.