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Importance of HRM for Organizational Success

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A very good example of a company that demonstrates the role of HR in the success of the organization is the FREMAP’ s case.   The new management structure from a centralized and bureaucratic organization to decentralized structure was made possible by the activities spearheaded by the HR management team from the headquarter (HQ) of Fremap3.  The HRM played the significant role in enforcing and implementing new organizing approach.   The personnel of Fremap can perform several functions but is still aligned with the company’ s direction or company culture.   And accordingly, the corporate culture is the driving force behind the firm’ s organizational innovations.   Femap's common aim, which is cascaded among all its branches is to reshape the organization and processes to achieve its corporate goals more effectively.   And as it seems, HRM was effective in implementing ‘ high-performance practices’ among its employees and resulted in enhanced intensive professional development.   The purpose of this report is to understand how the new forms of organizing (NFO) practiced by Fremap produces great benefits to the organization, and identify possible limits of the changes being implemented.   Also, it will identify the significant role of HR functions, and identify how HR can be effective in implementing changes yet still maintain corporate culture and order to the organization.     With the current trend of management and with globalization, how will HR be able to maintain effectiveness among its employees, maintain good morale and lessen receptiveness to change, but instead harness initiative and support to changes that would result to the positive improvement of the organization?   All these will be tackled with references coming from studies of other organizations and by analyzing the approach of Fremap in its management.

Chapter 2 NFO produces great benefits to Fremap Fremap is a mutual insurance company that provides its associated firm’ s employees with insurance coverage and health care3.  It functions as a Health Management Organization and is in cooperation with the Social Security Act of 1966 providing sickness benefit and health care.

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