The Nexus Between Corporate Governance and Human Resources Management Practices

Abstract

To enhance optimal performance and thus assuring the attainment of goals, top executives in contemporary organizations are formulating/embracing policies and adopting measures that are considered most appropriate given the rather keen competition among firms. One such policy and/or measure is the strengthening of corporate governance. However, governance becomes meaningful only to the extent it can enhance the performances of the key resources that must be engaged in a drive toward goal accomplishment. People are indispensable yet perhaps the most difficult to manage. A conscious effort must therefore be made by the top-level management to challenge and stimulate the workforce to higher productivity; among other things, by setting the pace for and influencing the employees. Yet through effective Human Resource Management, the organization paves the way for the grooming of highly skilled and experienced people to occupy positions on the Board of Directors across organizations. In effect, there is a symbiotic relationship between corporate governance and Human Resources Management.