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the broader climate, e.g. they have not become out-dated due tot the legal, social, technological and competitor influences and advances (Lawler 2004).

There are many essential aspects that must be taken into account while analysing any given company. First, all managers are human resource managers. Secondly, employees are viewed as assets. Third, human resource management is a matching process, integrating the organization’s goals with employees’ needs. Employees should receive satisfaction equal to that of company. This paper concentrates on the aspects of HRM contributing to the development of an effective workforce in the organization. The major goals of HRM are to build up employees into an effective workforce. Development includes training and performance appraisal. Training and development represent a planned effort by an organization to facilitate employees’ learning of job related behaviors (Pfeffer 1998). Organizations spend nearly $100 billion each year on training (Lawler 2004). Training may occur in a variety of forms. The most common method is on-the-job training.

Recruiting can be defined as seeking the right people for the right job. Two factors influence recruitment. These are: expected staff supply and demand and human resource management policies and practices. Human resource management policies and practices may influence the recruitment process, in that people may be attracted to apply for jobs if the organization becomes known for its good human resource management approach. Conversely, poor human resource management practices may increase turnover. Effective recruiting is essential to an organizations financial future

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