Outcomes of HRM System

 The nine areas of HRM have been termed spokes of the wheel in that each area impacts on the HR outputs: productivity, QWL, readiness for change, profits , goal attainment, job satisfaction and commitment, etc. Those nine areas continually process the HR inputs. It is through them the HRM outputs are produced. Short explanations of HR outputs are given below.

1. Productivity of HR

Productivity refers to the relationship between inputs and outputs. In other words, it is means used and outcomes derived. HR productivity stands for the elimination of waste of resources  by way of frustration , dissatisfaction low morale, etc. Productivity helps to promote efficiency and effectiveness and performance of HR. High productivity leads an organization towards competitiveness and success. Productivity is related with efficiency . Following are the factors which affect productivity. They can be classified into two categories: 

a. External factors: They include the infrastructure; availability of funds, energy, water and political, social and economic conditions of the country. These factors together affect the productivity of an organization's HR and other resources. 

b. Internal factors: They can be classified into four major categories.

• Capital investment: HR productivity can be improved through capital investment. If an organization can acquire  best possible machinery available in the world that will help to improve the efficiency of the workers. The logic behind more capital investment is to offer the latest, "state of the art" equipment. This will helps the employees  to work smarter, not harder. 
• Innovation: Innovation is the process of taking a creative idea and turning it into a useful product, service or method of operation. People with innovative idea should got chances to create new things for the organization. Three sets of variables have been found to stimulate innovation. They are : 
• Organization's structure: Organizations that stimulate innovation will have flexible structures, easy access to resources and open communication.
• Culture: A culture that is relaxed , supportive of new ideas and encourages monitoring of the environment. 
• HR practices: Utilizing creative people who are well trained, up to date in their fields and secure in their jobs.
• Learning(Training and Development -T&D): Employees can do better if they are provided with training and development programs. T&D programs can be made successful only through the use of learning elements. HR managers can improve productivity through the use of employee learning components 
• Motivation: The level of productivity is also dependent on motivation or level of an employee's motivation. Productivity is the function of: P= f(Ability + Motivation + Opportunity to do) .

2. Quality of Work Life (QWL)

It refers to the favourableness or unfavourableness of a job environment for people. The basic purpose of QWL is to develop work environments that are excellent for people as well as for the economic health of the organization. The elements in a typical QWL programme include many items:

• Open communication,
• Equitable reward systems,
• A concern for employee job security, and 
• Participation in job design, etc.

They make the job(s) / employees: 

• More interesting, 
• Challenging and satisfying through the development of efficient working relationships, and 
• It makes employees psychologically satisfied on their work.

In short, HR managers can use the following five procedures and policies to make the work less structured and more rewarding to the employees. They are: autonomy, recognition, belongingness, progress and external rewards.

3. Readiness for Change

Change is an alteration of an organization's environment, structure, technology or people. Readiness for change (of employees) is concerned with ability to adjust in the changing environment. Organizations live in the age of transition. In fact, 'change or die' is the present day reality. Organizational change can be costly and difficult to the employees. It is the general tendency of human being to resist change- no matter how much beneficial the challenge to the job security, economic factors, fear of unknown among others.

To make the change programs effective, HR managers need to overcome those resistances to change successfully. To overcome resistance to change, HR managers can use following tactics.

• Education and communication,
• Participation and involvement,
• Facilitation and support,
• Negotiation/ agreement with employees, 
• Manipulation and cooption, and
• Coercion (either accepts change or leaves the organization option to the employees).

4. Higher Profits

Proper management of HRM system helps to achieve targeted level of profits. Without profits business organizations cannot sustain in the competitive environment. It is one of the highly important outcomes of HRM system.

5.Job Satisfaction and Organizational Commitment

They are the last but not the least important outcomes of HRM system. We discuss them separately in the following ways:

a. Job satisfaction: It is an important element in management- employee relationships. It is important from the managerial as well as employees' point of view because: 

• It has some relationship with mental and physical health of employees,
• It spreads goodwill about the organization,
• Employees can stay long with the organization, and 
• It helps to reduce absenteeism and turnover, etc.

Research Findings: They indicate that highly satisfied employees tend to have better physical and mental health , learn new job-related skills more quickly. Hence, they accept change easily, have fewer on-the-job-accidents, and fewer grievances.

b. Organizational commitment: It is employees' attitude towards the organization. It blinds employees with their organization-they stay longer in the organization. Committed employees are believed to attend work regularly, protect organizational assets and share organizational goals. Ways to enhance commitment are: 

• Commit to people-first values,
• Clarify and communicate organizational mission,
• Guarantee organizational justice,
• Create a sense of community, and 
• Support employee development, etc.