Human Resource Management in Contemporary Business

Cite this


In contemporary business, Human Resource Management (HRM) is essential to the comprehensive development of organizations due to its impact on the company’s performance. Dessler (2020) identifies planning, organizing, staffing, leading, and controlling as the five primary responsibilities of business management. Among them, HRM focuses on staffing and leading, which concern hiring strategies, compensation, strategies of maintaining high morale, and other factors regarding personal management (Dessler, 2020). As a result, comprehensive knowledge of HRM is essential to all business managers and directly affects the chances of the organization’s success in the industry. Ultimately, the current paper examines the primary responsibilities of HRM in detail and provides a reflective analysis of how I can support a company in becoming a learning organization.

HR Tasks and Responsibilities

As mentioned briefly before, the role of HRM in contemporary business cannot be underestimated since it affects all areas of a company’s performance. Recruiting suitable candidates and retaining employees are necessary strategies to positively change the company and enhance the organizational culture (Williams, 2021). Crystal Williams (2021) – Chief HR Officer at FLEETCOR – mentions that the impact of HRM is now more prominent than ever. From these considerations, the associated challenges regarding digitalization and shift to remote work are also changing the conventional HR strategies (Williams, 2021). Ultimately, HRM is essential to comprehensive business development and the improvement of the organization’s resilience in the rapidly transforming world.

Staffing Responsibility

Staffing is the primary responsibility of HRM that refers to hiring, training, setting quality standards of performance, counseling, and compensating. HR is responsible for hiring the “right” people for the job with corresponding competencies and mindsets, which can contribute to the organization’s development (Dessler, 2020). At present, there are multiple strategies, such as data analysis and psychological tests, that enhance the hiring and training processes (Janetius et al., 2019). Ultimately, HR managers should continually learn and adopt innovative methods to improve their performance.

Leading Responsibility

The leading responsibility of HRM is the primary focus of the current paper and refers to motivating and retaining employees. Williams (2021, para. 5) states that the HR departments should “be the employees’ collective voice” and become the mediator between the organization’s objectives and the goals of the individual workers. Building a trustworthy relationship with employees is essential to increasing their productivity and desire to stay with the company for extended periods (Williams, 2021). Therefore, HRM is directly connected to leadership frameworks and should be focused on finding the consensus between employers and employees. After all, if both sides are satisfied, the organization has much higher chances of success in the industry.

Unplanned and Unmanageable Developments

One of the most significant functions of HRM leading is the response to unplanned and unmanageable developments in the outside environment. The recent outbreak of the COVID-19 pandemic is the most illustrative example of HRM’s importance to the organization’s success. MacArthur (2021) explains that the competencies of HR managers during such troubling times determine the organization’s chances of successfully overcoming unexpected challenges. The author states that open-mindedness, transparency with employees, management training, and emotional aid are notable qualities that HR managers need to support their companies (MacArthur, 2021). The inevitable impact of COVID-19 on business has demonstrated the effectiveness of HRM leading as a response to unplanned developments.

Moreover, the implementation of the Organizational Support Theory (OST) is one of the additional methods that enhance HRM response to unmanageable external events. In general, OST is a framework that focuses on improving the employees’ perceived organizational support (POS) -employees’ beliefs that the company cares about them (Caesens & Stinglhamber, 2020). Higher POS is associated with lower levels of stress, better productivity, and a more responsible attitude toward work among employees (Caesens & Stinglhamber, 2020). From these considerations, HR managers need to demonstrate their compassion and desire to achieve a mutually beneficial relationship with employees (MacArthur, 2021). In the article, MacArthur (2021) states that the days of authoritative supervision are over, and emotional support is the core foundation of new methods of transformational leadership. Thus, the human-centered approach is necessary to establish trustworthy relationships with employees and assure them that unplanned developments would not hinder their work and profits.

Value Creation and Retaining Employees

Value creation and the establishment of healthy organizational culture is another method of retaining employees. Real-world uncertainties and rapidly changing environments are arguably the most significant external factors that might slow down the company’s development. In such cases, focusing on organizational culture is an effective method to maintain high morale among employees and enhance business performance (Warrick, 2017). Warrick (2017) emphasizes such HRM characteristics as leadership frameworks, teamwork, collaboration, and commitment to development as aspects of a high-performance culture. In this sense, HRM activities and other organizational policies create a value specific to the organization and establish a healthy and productive atmosphere within the team. In turn, employees would be more proactive in their tasks and have a better relationship with the employers.

Learning Organization

Lastly, it is essential to discuss how I can contribute to the company’s transformational development toward a learning organization. According to Dessler (2020), employers and employees agree on a psychological contract, which implies a mutually beneficial relationship. I agree with this statement and believe that employees as individuals might have a major impact on organizational development. After all, the organizational culture consists of employees, managers, and employers, which means that only collaboration between all stakeholders can effectively transform the company. Shin et al. (2017, p. 46) state that a learning organization “does not rely on top management to tell it what to do, but challenges <…> all of its employees to achieve its organizational goals”. In other words, all employees contribute to the organizational change, and the impact of individuals should not be underestimated.

From these considerations, I believe that I can also play a significant part in the process. However, it is crucial to be open-minded to organizational change, seek more productive alternatives, and establish a dialogue with managers and the employer to achieve this goal. Trust is essential to learning organizations; that is why I also try to be transparent in communication and lead by example. Ultimately, I think that learning organizations with transformational leadership can achieve success with a focus on sustainability and equality.


The current paper has demonstrated the importance of HRM management and, specifically, the leading function for the overall organization’s success and resilience. HRM supports the employees in the rapidly changing business environment and creates organizational value to retain candidates at the workplace. It is particularly efficient to mitigate the uncertainties of the real world and assure employees that the company cares about them. Ultimately, most companies can benefit from developing a competent HR department and establishing communication between the employer, managers, and employees.


Caesens, G., & Stinglhamber, F. (2020). Toward a more nuanced view on organizational support theory. Frontiers in Psychology, 11, 476.

Dessler, G. (2020). Human resource management (16th edition). Pearson.

Janetius, S. T., Varma, P., & Shilpa, S. (2019). Projective tests in human resource management and hiring process: A challenge and a boon. The International Journal of Indian Psychology, 7(4), 258-265.

MacArthur, H. V. (2021). HR’s new role: How Human Resources needs to evolve to support the future of work. Forbes. Web.

Shin, H., Picken, J., & Dess, G. (2017). Revisiting the learning organization. Organizational Dynamics, 1(46), 46-56.

Warrick, D. D. (2017). What leaders need to know about organizational culture. Business Horizons, 60(3), 395-404.

Williams, C. (2021). Redefining the role of HR in 2021. Forbes. Web.

Cite this paper

Select style


BusinessEssay. (2022, December 18). Human Resource Management in Contemporary Business. Retrieved from


BusinessEssay. (2022, December 18). Human Resource Management in Contemporary Business.

Work Cited

"Human Resource Management in Contemporary Business." BusinessEssay, 18 Dec. 2022,


BusinessEssay. (2022) 'Human Resource Management in Contemporary Business'. 18 December.


BusinessEssay. 2022. "Human Resource Management in Contemporary Business." December 18, 2022.

1. BusinessEssay. "Human Resource Management in Contemporary Business." December 18, 2022.


BusinessEssay. "Human Resource Management in Contemporary Business." December 18, 2022.