Employee is an assets of a company.

Therefore, company must value employees because

there is a strong correlation between the performance of employees and the persistency of a
company in the competitive environment of the society. Thus, all the employees in a company
must share the same objectives which is the companys successes (Baldacchino, 2001). However,
Youndt, Snell, Dean and Lepak (1996) are still in doubt if there is any relation between the
performance of the firm and maximizing the capabilities of the employee at which is the
responsibility of human resources activities that has been recognized as an essential role. But,
without the maximizing the capabilities of employees and thus, the lack of efforts from the
employees, the company will not achieve what it has achieved today as employees is the one
who do the work to maximize the growth and profits of the company. In another words, it can be
said that employees remains the backbone of the organization and without them, an
organization have the higher chance to seep into failure. Thus, there is a definite relation between
the activities of human resources management (HRM) and firms performance, hence, it should
be highly valued as it has the ability to determine the success or failure of an organization.
Then, HRM bears a high responsibility as any decision it decides, makes a differences in the
firms performance. Furthermore, Becker and Gerhart (1996) had mentioned that human resource
decisions affects the performance of an organization in a way that it must improve its efficiency
or contribute to the revenue growth. Therefore, Seyed-Mahmoud Aghazadeh (2003) stated that
the nature of HRM is its flexibility in responding to the changes in business environment and the
ability to predict such environment, thus, making proactive decisions. In addition, HRM
activities such as recruiting, selecting, training and promoting an employee requires careful
analysis when making such decision especially when there is tons of resumes to select from.
Without careful screening and selection by the HRM, the company may lose a skilled and
productive employees. Meanwhile, Seyed-Mahmoud Aghazadeh (2003) stated that successful
companies tends to have the ability to attract and retain productive employees. This indicates that
successful company tends to have low retention rate and it also indicates there is a high
performance rate that the company promote employees frequently which encourages flexibility
in work life balance. Furthermore, if labour turnover is low, expenses can be save from selecting
and training new employees as they can get into the working environment and interact with their
colleagues more easily. As a result, there must be a certain way that successful companies such

as Abrahams, Davidson and Co. handling their employees, thus the way they manage their
employees are studied.

References:
Baldacchino, G. (2001). Human resource management strategies for small territories: An
alternative proposition. International Journal of Educational Development, 21(3), 205
215. doi: 10.1016/S0738-0593(00)00029-8
Youndt, M. A., Snell, S. A., Dean, J. W., & Lepak, D. P. (1996). Human resource management,
manufacturing strategy, and firm performance. Academy of Management Journal, 39(4),
836 866. doi: 10.2307/256714
Seyed-Mahmoud Aghazadeh. (2003). The future of human resource management. Work Study,
52(4), 201207. doi: http://dx.doi.org/10.1108/00438020310479045
Becker, B., & Gerhart, B. (1996). The impact of human resource management on organizational
performance: Progress and prospects. Academy of Management Journal, 39(4), 779801.
doi: 10.2307/256712