3. Why HRM must be in TOP of the company hierarchy? (Global Concept)

In the corporate world, the subject of Human Resource Management has come to stay at the top of the Ladder of Business Management supplementing the corporate goals and strong good governance measures. It is the quality and exceptional skills of the staff, workers, and the management who jointly possess the keys to corporate Governance and corporate stability of any corporate entity as they will be directly executing the plans, goals, targets, and the vision of the Board of Directors.

 But, all over the world, the high-performing top bracket executives usually coordinate with the HR Manager in picking up the best possible team members for the corporate matches in the future. One cannot have non-performers and losers in the team. With competition looming large at almost all businesses, corporate management will have to continually search for executives with high innovative skills. Very few businesses are enjoying absolute monopolies. Head Hunting has become an integral part of modern business management. Profitability would be the ultimate goal with any team of staff members.

 New threads face by the corporate world

However, I think there are other corporate measurements such as corporate standing, customer acceptance, good CSR practices, lower staff turnover levels, and a number of other norms to measure the level of corporate success. Major corporate conglomerates even proceed to the extent of spying over the activities of the top executives of rival companies. Some executives pass on core information to rival companies while some others join rival companies after gathering vital and core business secrets of their present companies. Some companies even make reward payments to executives of rival companies for passing on sensitive information to them on a regular basis. This type of practice is common in high-tech product and service, manufacturing and marketing companies or in companies subject to subtle changes in demand over the sensitiveness of key factors.

Why HRM must be in Top of the Table

Therefore, the appointment of an efficient HR manager is of great importance to the success story of any corporate entity. As it is the vision of any company to recruit and retain a long-serving staff cadre, the top management should assist the HR manager in recruiting the most suitable staff members to achieve group results at various levels. HR Manager could be considered as the live wire of any organization who will immediately unearth and remedy the conflicts of staff members within an organization. It is common to find the following types of conflicts within an organization at any time. These conflicts will come to the surface only in specific situations or at times of poor business results of a corporate entity. Finding fault with each other at a later stage will pull the company backward and will not yield the corporate results expected. It is up to the directors and top management to strengthen the hands of the HR managers at all times. 

Reference:

1. Ahmad, S., & Schroeder, R. G. (2003). The impact of human resource management practices on operational performance: recognizing country and industry differences.
2. Compton, R. L., Morrissey, W. J., Nankervis, A. R., & Morrissey, B. (2009). Effective recruitment and selection practices: CCH Australia Limited.
3. Martocchio, J. J., & Joe, M. (2004). Strategic compensation: A human resource management approach: Pearson Education India.