Role of HRM in Promoting Innovation

Business leader across the world have widely accepted that innovation is vital for both competitive advantage and long term success. The ability to innovate has become an important predictor of future growth. The dynamic business environment requires companies as well as their HR teams to think out-of-the box, and come up with innovative approaches to survive the downturn and hold employees together. Studies strongly show that the most successful corporate innovation strategies are the ones that predominantly focus on people and human capital. These include finding, engaging and incentivizing key talent for innovation, creating a culture of innovation by promoting and rewarding entrepreneurship and risk taking and developing innovation skills for all employees.

This paper aims to study the relationship between innovation and human resource management which will help to understand the role HRM plays in promoting Innovation in organizations. The research methodology adopted for this paper is using existing literature and secondary data.