Profitability as a Function of Human Resource Management


Profitabilityas a Function of Human Resource Management

Profitabilityas a Function of Human Resource Management

Inthe modern world where economic systems are capitalistic in nature,profitability as the ultimate goal in business organizations isimportant. However, profitability is a function that is dependent ona wide range of factors (Rothwell, 2014). For instance, it stems fromproper human resource management, which consequently results inhigh-quality service delivery and high production of goods inindustries. Inthis case, proper management practices to ensure skill’s diversitywithin an organization translates to increased financial returns inbusiness entities.

Onekey driver for high productivity is the availability of qualifiedpersonnel. One of the components of human resource management is therecruitment of highly skilled employees, and this is achieved throughinterviews. Correspondingly, training is another crucial aspect ofhuman resource management since it encompasses continuous developmentof staff members through training programs.

Theneed for training has particularly been reinforced by continuedenhancement of technology geared towards increased production. Inreturn, large output culminates to better returns. Changes intechnology are the only source of permanent increases inproductivity. (“Technology and Productivity Growth,” 2016). Inline with this, managers should ensure that they are adapted to newtechnologies, while at the same time training their taskforce ontheir application.

Anotheraspect of productivity is employee’s motivation, in which humanresource management plays a significant role (Rothwell, 2014). Thistakes the forms of employee’s benefits, salary increments andbonuses. It is not only an incentive for employees but also presentslong-term reason for improving their standards of living.

Inconclusion, in a highly competitive business environment that shapesup the nation’s economic growth, considering the need for not onlyeconomic but also human development is in the best interests of everyorganization. Consequently, the business will enjoy progressivegrowth, high profitability and customer satisfaction. Therefore, suchbenefits necessitate the enhancement of organizations’ humanresource management departments.


Rothwell,W. J. (2014).&nbspPerformanceconsulting: Applying performance improvement in human resourcedevelopment.

Technologyand Productivity Growth.(2016). NationalBureau of Economic Research.Retrieved 4 November 2016, from