Human resource management is a development-oriented approach that puts its onus on maintenance, utilization, development, and acquisition of human resources. It has been able to create a niche place for itself in an organization because it helps in the management to deal with some very serious issues related to recruitment, training, benefits, wellness, safety, organizational development, workplace communication, performance management, employee motivation, and compensation, etc.
Human resource management has a strategic role to play in accomplishing the objectives of the organization. It flows from the values, vision, mission, and goals of an organization and the best part are that it has been able to create a balanced work environment that works in favor of both employees as well as the organization. This is the reason why companies are either creating a viable department in their own organization or outsourcing the services from human resource recruitment companies.
1. Importance of human resource management in the recruitment and training process
One of the roles and responsibilities of human resource management is taking up the mantle of the recruiting process. It first identifies the available vacancies in the company and then decides on the measures that need to be taken to fulfilling those positions. It is very important to select the right kind of employee for a specific job profile so that they prove a perfect fit. The human resource management is entrusted to come up with plans and strategies so that they can hire the best of the lot.
The team is involved with designing the criteria for the job profile; formulating the obligation or responsibility of the recruit and the role he will have to play in his job description. Recruiting is a lengthy process that demands to advertise for new postings, sourcing applicants, screening their credentials, conducting interviews on the onset and later coordinating with the managers who have the final say in the hiring of new recruits. A business organization draws the draft of its contract for the new employee after going through the suggestions of the human resource management team.
Another responsibility of the HRM team is to provide basic training to the new recruits so that they can adjust in the surroundings and also to the existing employees to help them sharpen their existing and develop new specialized skills and know-how.
The training helps the existing employees to take up new responsibilities within the organization and the best part is that it opens new doors of opportunity for career growth and development.
2. Importance of human resource management in the utilization of the company’s workforce
The human resource management is responsible for designing an organizational framework in an effective way so that the company can utilize its human resources at the maximum level. It is also entrusted with establishing a communication system so that the company can conduct its operations in a unified manner.
In order to utilize human resources in the best possible manner, the human resource management team makes sure that all the necessary precautions and preventive measures are being taken so that the health and safety of the employees are not compromised in any manner. The HRM team also works with labor unions to handle grievances in relation to misconduct or sexual harassment.
3. Importance of human resource management in developing public relations
Business entities are putting lots of effort, time and resources in setting up a strong human resource management department because they realize the broader scope of their roles, responsibilities, and importance in the organization. Besides looking into the internal issues and problems the human resource management is entrusted with establishing effective public relations with other business sectors.
They have to organize meetings, official gatherings, events and seminars on behalf of the company they are representing in order to build viable relations with the companies they are interested in. Developing corporate image in today’s competitive world is very important because people will see what you are portraying and will judge you accordingly.
Brand image and visibility matter a great deal to sustain in the market and this is why the human resource management team makes sure that their brand image remains at the top.
4. Importance of human resource management in performance appraisals
Performance appraisals are an important part of an organization as it helps to know whether an employee is working at his full potential or is he lagging behind. The human resource management team is responsible for performance appraisals of the employee and it is they who encourage employees to give their one hundred percent by giving important suggestions that will help in achieving desired improvements.
The team makes direct contact with individual employees to provide them with all the necessary information related to their definition of their roles and their own performances in that role. The suggestions prove a blessing for the employees as it helps them to know about the anticipation of the organization and outline the expected responsibility of the employees in much clearer terms.
Once you know about the expectation of others it becomes easier to enhance your own level to reach the set standards and this is what the human resource management helps employees with. Remember performance appraisals on a regular basis have proved a motivational tool for the employees and helped them to speed up their own performances.
5. Importance of human resource management in improving productivity
It is the human resource department that is responsible for the employees and maintaining the quality and quantity of personnel in the workplace. It is this department that motivates employees in order to make them more engaged in their work.
It creates numerous opportunities so that the existing talent is promoted and the one that needs help is given training or some type of learning opportunity that can help him to move forward in the ladder of success.
Remember when the employee is motivated it has a direct and positive impact on his work performance. His efficiency levels rise and so does the productivity of the employee as well as the company.
6. Importance of human resource management in managing disputes
In a business entity, there will be issues and problems between employees and employees and also employers and employees. Never ever ignore conflicts as it has the ability to grow out of proportion if not handled in a timely manner. It is the human resource management that looks into the conflict and acts as either a consultant or a mediator to sort out the problem in an effective manner.
It is its role to take action at the correct time so that the situation does not spin out of the control. The team is entrusted with talking with all the involved parties on a personal basis to understand the actual issue and then come up with a solution that will prove beneficial for all the involved parties but most importantly for the organization.
7. Importance of human resource management in supervising company culture
Every organization is different from the other in terms of its company culture. It is very important to create a culture that has specific values, mission, and vision so that it can be easily identified in the market because of its distinctiveness. The human resource management is entrusted with the maintenance of company culture and implementing strategies that ensure all the employees are aware and following it effectively.
The human resource management has to work with both the management and the employees and make them understand that the company culture should be aligned with their culture so that it becomes an integral part of their system. This will ensure that the number of mistakes is fewer. It is a fact that when everyone takes ownership of company culture then it is bound to be thriving.
8. Importance of human resource management in maintaining a workplace environment
An employee can give his best when he is working in a workplace that encourages him to do so. A good working ambiance is very necessary for productivity because it brings out the best in every employee. The human resource management team is responsible for maintaining a healthy, safe and clean work environment that will increase an employee’s efficiency and productivity levels.
Friendly workplace atmosphere is a necessity in every organization because it helps to keep the employees engaged, happy and satisfied and ultimately it results in employee retention.
9. Importance of human resource management in benefit analysis
The human resource management has the responsibility of cutting down on costs of several processes for example by emphasizing on employee retention and making sure that new recruits are hired only if necessary.
The team has the power to take part in negotiations with existing as well as potential employees about the various benefit schemes. They make important suggestions to the management so as to attract quality talent and retaining existing employees who are an asset to the organization.
10. Importance of human resource management in the talent management process
The importance of human resource management is to collaborate with various other managers in the organization so that they can make inroads in various talent management processes. These include succession planning, performance management, career paths, management development, etc.
In some cases, it is not possible for the human resource management department to make a decision by itself as it requires affirmation from that department head and this is why it collaborates with them to plan new ideas and effective practices and implement required strategies.
11. Importance of human resource management in creating a compensation plan
The human resource management has full knowledge of the organization and this makes it easy for it to become involved in various rules, regulations, strategies, and policies of the company. It is also entrusted in creating an effective compensation plan that is beneficial for both the employees and the organization.
It first collects information about what the compensation plan of the competitors is, then it takes into account the demographics that must be applied in order to determine the pay grades for all the levels of an organization. It keeps track of outside trends as well as the capabilities of the organization.
As the human resource management team is entrusted with the responsibility of controlling costs and taking into account various options, it makes sure that it comes up with an effective plan after going through all the recommendations.