In this modern and technological era, competition has been increased between organizations of every industry. This is why human resource management is important to all managers. The main role of human resource management in an Organizations is to find unique talent (workforce) to compete and sustain themselves in market. Diversity may become one of the hurdles in the process of hiring and retaining the unique talent.
Human Resources are the people who compose the workforce of an organization. On the other hand, Employees are the most important resource of organizations and organizations invest its time and money upon them, that’s why organizations want to build long-term relations with their employees to and build basic characteristics of employee & want to retain them
Importance of Human Resources Management – HRM
As employees are considered as the most important asset of an organization. So organizations invest its time and money upon them in the form of Training and Development. Training is to improve the Knowledge, Skills, and Attitudes of employees for the short-term, particular to a specific job or task. E.g. skills and technical training, Counselling, Coaching, Employee Orientation.
Development is to prepare employees/managers for future responsibilities, while increasing the capacity to perform at a current job. E.g. Management Training (which includes the strategies for dealing with challenging situations and difficult employees and to lead people with a variety of behavioral styles) and Supervisor Development (to utilize the available resources with the organization for the enhancement of management skills & knowledge of managers and supervisors.)
- Recruitment and Selection is the most important Function of HRM. HR managers have to manage the process of recruitment and selection in a very effective way. They have to take the separate Recruitment and selection methods to fill the top management and lower management posts. To fill the lower level management posts, HR managers mostly follow the recruitment and selection process. But to fill up the top-level management posts, they follow-up the “Succession Planning” approach in a wisely manner. For this purpose, they take a keen interest in the organization’s
- HR department is responsible for planning compensation and benefit plans for all employees in the organization. Human Resource Management proposes the market-based Compensation and benefit plan. In the long-term, the HR department also determines the Bonuses, Incentives, Perks, Retirement plans, etc. to attract and retain the best employees of the organization.
- HR managers also deal with the employee’s health and safety program. They make sure the employee’s safety and for this purpose, they take measures to create a safe working environment.
- Conflict Management is also one of the most important functions of Human Resources. HR managers solved the issues that occur in an organization. Conflict may arise between employees or employees and managers. HR professionals who have trained with types of conflict management strategies, play their techniques in negotiating and resolving the conflicts.
- Employee Satisfaction is also the one of the roles of the HR department. HR professionals by understanding Psychology in HRM resolve the issues or difficulties that employees face within an organization. They also play their roles in motivating the employees towards their jobs. So that turnover rate can be reduced to a minimal
- HR department is responsible to recommend the organization to achieve its strategic goals and objectives. It is also responsible for achieving its mission and vision. For this purpose, HR professionals try to align the organization’s goals with individual goals. So, in this context importance of HR for organizational success couldn’t be denied
- Personnel Management in HRM is also one of the important functions of HRM. Human Resource department measures the performance of employees on the basis of specific performance criteria. Performance measurement helps the HR managers to monitor the performance of employees.
- Importance of the HRM department can be seen in the compliance related issues in an organization. They ensure that the organization is following some acts like the Fair Labor Standards Act, Uniform Services Employment and Reemployment Rights Act (USERRA), Family and Medical Leave Act (FMLA) etc.
Why is Human Resource Management Important – The Absence
- Staffing the wrong person at the wrong place and time with wrong skills at the wrong
- The process of Job Analysis may be derailed
- The process of Training and Development will be stopped
- Turnover rate will be increased
- Compensation and Benefits Management System will wrongly be decided
- The conflict between employers and employees will be increased. In result, employees will be unmotivated and dissatisfied
- Difficult to achieve the organization’s mission, vision, goals, and
- The uncertainty of Equal Employment Opportunity
- Lack of innovation and unique talent in the organization
- Absenteeism rate will be high
- The absence of an ideal work environment
- Organizational culture will not be maintained
- Difficult for an organization to gain a competitive advantage
- The uncertainty of labor and employment laws
- Inferior workforce
- Wrong succession planning and career paths
- The disorganized and unsystematic hiring process
In the result, HR is the essential part of an organization. The organization will be less successful without the HR department.