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Human Resource Management and Shareholder Value in Management

The HR department is responsible for communicating shareholder value to analysts and investors. HUMAN RESOURCE MANAGEMENT employs a number of strategies to communicate the values of these intangible assets. Click here to get Payroll Software in Pakistan.


HUMAN RESOURCE MANAGEMENT should engage their workers to ensure that morale and motivation levels are optimal. Maslow devised a pyramid to represent the hierarchy of probable wants for the ordinary employee. HUMAN RESOURCE MANAGEMENT must attend to the entire pyramid and guarantee that all requirements are addressed.

Development and training

Training and development serve to raise the value of a company’s stock. Employees are now better trained, focused, and skilled to assist the organization grow by presenting innovative solutions and being better able to deal with a variety of difficulties.

Values and norms

HUMAN RESOURCE MANAGEMENT establishes the rules and regulations that govern any workplace. These rules and regulations contribute to shape the culture of any company, and within that culture, employees are either given or denied freedom of thought. These are the conditions that can either be advantageous for growth and hence increase shareholder value, or they can be unfavorable for growth and thus decrease shareholder value.

New approaches

Leaders are constantly implementing new corporate strategies; nevertheless, HUMAN RESOURCE MANAGEMENT is the one who brings a strategy to life. If new talent is required to support those initiatives, HUMAN RESOURCE MANAGEMENT becomes engaged, or if present talent has to be trained. “If CEOs want to be able to play this educational and strategic role, HR must be viewed as more strategic.”

The Strategic Relationship Between Business Strategy and Human Resource Management

HR’s position has evolved dramatically throughout the years. They are now a critical and strategic department in organizations, catering to more defined business strategies and roles. The most significant resource for any corporation is its people, and all business strategy revolves around them. As a result, business strategy and human resource management go hand in hand.


When a strategy is implemented, there may be a need for additional recruits to support that approach. HUMAN RESOURCE MANAGEMENT would need to be advised or requested to locate applicants who meet those exact needs, or perhaps teach existing employees to meet those requirements.


Those who would eventually devise tactics would have to be elevated to positions of power in the first place. This is the responsibility of human resource management, which elects and promotes employees to higher management positions who deal directly with new company strategy.


HUMAN RESOURCE MANAGEMENT is in charge of integrating innovative technological approaches, which not only aid enhance production but also help modify the work structure of any firm. To fully capitalize on the potential of these technological advances, newer business models and strategies must be adopted to adapt to these severe changes.

Data security is critical for risk management in human resource management

The well-being of any organization is critically dependent on the issue of data protection. From employee and client information to intellectual property and policy manuals. Each piece of information is critical and should never fall into the wrong hands. However, in the digital age, there is a significant risk of data security breaches, which can jeopardize any firm. It is automatically the obligation of the HRM to guarantee that the data is kept secure.

Employee personal information, such as name, contact number, CNIC number, and so on, must be shared in order to provide employees with a variety of essentials and perks, such as a bank account, health insurance, and so on. However, once the information is supplied, the question of whether or not the information provided will be used and managed responsibly arises.

It is also critical to provide the client’s information. When two parties enter into a contract, for example, information is transferred between them. This information is managed by the legal and HR teams, as well as other personnel directly associated with the project. It is also critical to ensure that their information is maintained in the appropriate hands in order to avoid lawsuits, infringement, and other problems.

HUMAN RESOURCE MANAGEMENT is directly accountable for data security. But how can we ensure that nothing goes wrong in the Digital Age? It’s quite straightforward. Engage the services of a Data Protection Officer. An officer who ensures that information is wiped after it is no longer in use, as well as ensuring that any specific information supplied goes through the legal process, guaranteeing that the information is not misused or leaked. Click here see best HR companies in Abu Dhabi.

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