Why HRM is one of the most, if not the most important function within an organization and how Companies, regardless of them being large or small, stay ahead of their competitors by utilizing HRM. Can businesses live without HR?
This thesis has a target to explain in detail what HRM and how efficient it is for every organization, as well as how enormous corporations are using it to their benefit in order to prevail in the business market. An overview of HRM as well as its elements are presented in it. The major point of the thesis is to show whether the Human Resource management alone is enough to give a big edge to companies against other one’s that do not have an HR department or a faulty one. The paper presents two major companies that have succeeded in that and two that have failed because of the lack of it. Furthermore, a case study of the most important HR scandal is presented and discussed. The research is done by collecting employee data in a relatively small city with many small-to-medium businesses. The data collected is to be compared with the bigger picture of the multibillion company world and their employees. Research concludes that regardless of the size of the organization, employees have the same demands and rights, something that a HR department is capable of managing. The paper will be focused on major companies known worldwide and business models they are a part of. Furthermore, strong aspects of HRM departments will be analyzed and presented in a way to observe whether the effects rising from them are groundbreaking. In the end, the question is answered in a harmonizing way by combining our findings with the historical data of the topics previously mentioned. The paper will also focus on the importance of the welfare of the employees and effectiveness it provides towards the business as well as examples of companies without HRM and how healthy they are or were during their operations. Furthermore, this paper is to present the readers a clear view of HR elements and the benefits they provide, based on world famous examples and studies. Last but not least, a subjective opinion of whether the lack of HR in a business can be a reason for it to fail