Human Resource Management (HRM) is seen as central because it eschews cost in organisations. With relevant and practical examples, explain how the effective performance of HRM functions can reduce...

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Human Resources Management
Human resources management is such a procedure that brings both people and companies together so that their goals are met properly. Furthermore, HRM is one of the most significant approaches to the efficient and effective management of individuals in a company in such a manner that it helps their business for gaining a competitive advantage. It is also designed for maximizing the performance of the workers     in service of the strategic objectives of an employer (Stone et al., 2020).
Throwing light on the above-mentioned discussion it can be stated that HRM is one of the most effective tools that reduce costs in companies. In the recent times, given the hypercompetitive marketplace and volatile economies, businesses across the globe are in continuous pressure for compressing the costs and enhance profitability. However, being one of the most strategic business functions, HRM has a lot of advantages as well as can help the firms for cutting the costs.
Firstly, hiring and retaining the star performers and a company’s ability to do the same is quite important for reducing costs. A bad hire can be quite costlier every time companies replace a bad hire, it can cost them 10 times the salary of an outgoing worker. HRM can turn onboarding, hiring, as well as ongoing workers engagement into intelligent procedures that properly identify the best-fit individuals as well as retention strategies.
Secondly, HRM also provides regular employee mentoring and training that can help reduce the costs of the companies such as enhancing productivity and also by reducing the turnover of the workers.
Thirdly, if the automate repetitive processes is done properly then it can be one of the most significant cost saver as it not only frees the human resources management from doing manual repetitive tasks on a daily basis, but automation also helps to enhance speed and accuracy, eliminating the cost in terms of dealing with process delays and errors. For example, RPA in HR can particularly provide one third cost reduction...