The Significance of Implementing Effective Human Resource Management

Abstract

In the modern economy, there is a continuous development of market dynamism, where strategic human resource management acts as a fundamental factor determining the sustainability and development of an organization. Employees are the core of any organization. Effective interaction with them contributes to the well-coordinated and flexible work of the organization. This article discusses the importance of implementing effective human resource management practices. As part of this study, a survey was conducted among Ernst&Young auditors, aimed to analyze the impact of various human resource management practices on employee effectiveness within this organization. The article reveals the aspects that are important for improving the efficiency and satisfaction of employees. Five key aspects are analyzed: training and development, performance evaluation, compensation, authority and responsibility, and the work environment. The study is provided in the form of a quantitative analysis of respondents’ responses, which reflect their perception of existing human resource management initiatives. Research has revealed that investments in staff training and development, as well as the creation of a transparent evaluation and remuneration system, have an impact not only on increasing employee satisfaction and strengthening the position of loyalty to the company, but also contribute to achieving the strategic goals of the organization.