The importance of HRM in an organization
What is HRM
Human resources management (HRM) is a strategic approach to the effective and efficient management of people in an organization and can help their business gain a competitive advantage and benefits. HRM is essential for the organization to achieve it’s goals and success (Pfeffer, 1994 Jackson and Schuler 2000, Barney, 1991). In every organization, HRM has now become the major role as they act as a bridge between employer and employees and has the power that influences growth, success, and substantially because people are the most important asset of an organization. “Our employees are our most important asset” (Guest, 2001).
HRM involves creating the right roles and opportunities, planning for workforce recruitment, ensuring continual training and development, fostering strong performance management, offering attractive compensation structures and benefits, keeping updated with legislation and legal compliances, and providing protection against economic instability.
The objectives of HRM
1. Societal objectives: Measures put into place that responds to the ethical and social needs or challenges of the company and its employees. This includes legal issues such as equal opportunity and equal pay for equal work.
2. Organizational objectives: Actions taken that help to ensure the efficiency of the organization by providing training, hiring the right number of employees for a given task, or maintaining high employee retention rates.
3. Functional objectives: Guidelines are used to keep HR functioning properly within the organization as a whole and to ensure that all of HR's resources are being allocated to their full potential.
4. Personal objectives: Resources used to support the personal goals of each employee. Eg. providing the opportunity for education or career development as well as maintaining employee satisfaction.
Scope of Human Resource Management
Figure 2: Scope of HRM; Source: MBA Tuts
1. Personnel Aspect - Process of bringing people and organizations together so that the goals of each are met. Through;
Human Resource Planning
Job Analysis and Job Design
Recruitment and Selection
Orientation and Induction
Training and Development
Performance Appraisal
Compensation Planning and Remuneration
Motivation
2. Welfare Aspect
Refers to the working conditions and amenities at the workplace. This includes responsibilities and services such as safety services, health services, welfare funds, social security, and medical services.
3. Industrial Relation Aspect
Dynamic and complex relationship between employers and employees which is a web of much more complex than the simple concept of handling labour-capital conflict
Importance of HRM
HR management practices and systems have been linked to the increased productivity, higher quality work, higher level of profitability, and organizational competitiveness (Cascio, 1992; Schulr and Jackson 1996).
The importance of HRM can be discussed as:
1. Importance on an individual organization
-Procurement of required talents through recruitment, selection, placement, inducting,
training, compensation, and promotion policies and ensure a team of the efficient and competent workforce2. Professional Importance
-Provides opportunities to employees for their personnel development and provide healthy relationship among employees
-Proper allocation of work among employees and training for the developmentNational Importance
-Effective HRM will speed up the economic growth of the nation. This will lead to a better standard of living and more job opportunities.
Conclusion
In
today’s world, HRM plays a very significant role in daily
life and it is considered
the backbone of any organization. Human resources are a key element in the
success or failure of an organization’s growth, sustainability, and meeting it’s
objectives. Strengthening human resource management is considered as one
of the solutions
to elevate organizational performance
through organization capability
(Katou, 2010; Chang and Huang 2005). Effective human resource management is
very much crucial if an organization want to entice and hold a good workforce
and to influence the the development
rapidly to improve employee’s motivation in a business and pay attention to company’s policy and law respectively. Wich can overall increase the
efficiency of the company and leads to gain higher profits.
References
Barney, J. B. 1991. Firm resources and sustained competitive advantage. Journal of Management, 17: 99-120.
Cascio, W. F., & Boudreau, J. W. 2012. Short introduction to strategic human resources. New York: Cambridge University Press.
Chang, W. A. and Huang, T. C. (2005) Relationship between Strategic Human Resource Management and Firm Performance a contingency Perspective. International Journal of Manpower 26(5): 434-449.
Guest, D. 2001. Voices from the boardroom. London: Chartered Institute of Personnel and Development.
Katou, A. A. and Budhwar, P. S. (2010) Causal relationship between HRM policies and organisational performance: Evidence from the Greek manufacturing sector. European Management Journal 28: 25-39.
University of Calicut: Human Resource Management
Available at: http://www.universityofcalicut.info/cuonline/exnotif/ex5462.pdf
Accessed on: [24.07.2021]
What is Human Resource Management: What is HRM
Available at: https://www.whatishumanresource.com/human-resource-management
Accessed on: [24.07.2021]
Hi, you have brought up a broad concept Jackson. Nicely written. The importance of Hr has become obvious due globalization, technological advances, and competition. Thankyou for sharing.
ReplyDeleteThank you for your valuable comments Rukmali. Appreciate it..
DeleteHRM is the key towards the success of an organisation. Also it is a vast subject and you have summarise the importance of it nicely.
ReplyDeleteGood job.
Thank you for your comments Gangani.
DeleteCorrect Jackson. Not the HRM but the effective HRM is so much important or the organizations nowadays. The high competitive HR market sometimes deviate the efficiency of HR practices. HR plays a key role in developing, reinforcing and changing the culture of an organisation. Pay, performance management, training and development, recruitment and onboarding and reinforcing the values of the business are all essential elements of business culture covered by HR
ReplyDeleteThank you for your inputs Oshadha. Appreciate it.
DeleteAgreed Jackson. Human resources management is a very important function in every organization. Without human resources management, companies are not be able to effectively recruit and retain employees, improve and enhance the organization, and they wouldn't be able to maintain a healthy, accepting workplace culture and environment. Thanks for sharing.
ReplyDeleteLooking after the most important asset of the organization is the key responsibility of HRM. So obviously HRM is a crucial part of organization. Having a department just for sake of following standard guidelines is no use . HRM should be very effective to get the maximum outcome
ReplyDeleteThank you for your valuable comments Tharindu.
DeleteHi Jackson. These are the new trends of HRM. The most inspiring shifts have related to changing core HR practices such as the remote onboarding of new employees, the shift to virtual/online learning and development interventions rather than the more traditional face-to-face practices that employees have been used to.
ReplyDeleteThank you for your valuable comments Parami.
DeleteHuman resource is the most important asset that company has and managing it in a effective way is always give a competitive edge. As you discussed importance of HRM subject is a broad one which goes beyond the organization up to social responsibilities. Effective and efficient workforce is the deciding factor for company success.
ReplyDeleteThank you for your valuable comments Sunith.
DeleteEffective human resource management necessitates both scientific and human relations approaches. The emphasis is both goal-oriented and on human welfare. To summarize, HR practices are critical for overall organizational performance levels, and any move to drive the firms towards higher goals should be based on attainable HR strategic goals. Strategic policies create a clear path for the firm's goals while also building an effective workforce team. You have nicely arranged your article Jackson, also informative article.
ReplyDeleteNice work
Thank you for your valuable comments Umesh.
DeleteNice topic ,, well explanation People are always an organization’s most valuable asset. They ensure organizational success by contributing to the best of their abilities towards the company’s goals. It is significant to consider the employees’ health and well-being and treat them well enough, so they align their goals with the company’s growth. And if they’re treated like cattle or being mistreated, they will dissociate themselves from such a workplace. That’s where human resources play an essential part in developing organizational strategy as well as addressing the employee-centered needs of an organization.
ReplyDeleteThank you for your valuable comments Janarthan.
DeleteHuman resource management (HRM) is the management of people in a business. HR management bridges the gap between employee performance and the organization's strategic goals. Furthermore, an effective human resource management team can provide businesses with a competitive advantage.
ReplyDeleteThank you for your valuable comments Nadeeshan.
DeleteAgreed Jackson,HRM can pay attention to accomplishing the organization's strategic goals, through making use of the capabilities present in it. HRM allows in education employees and reaching their task balance, in addition to wages and salaries, to make sure elevated productiveness.
ReplyDeleteThank you for your valuable comments Bhashitha.
DeleteIn every organization, human resource management is a important function. Without human resource management, businesses cannot effectively recruit and retain employees, improve and enhance the organization, or maintain a healthy, accepting workplace culture and environment. Human resource management is so critical to organizations that many refer to it as the "heart and soul" of the business. You have explained it very well Jackson.
ReplyDeleteHuman resource management is a key division in every company. Companies would be unable to successfully recruit and retain personnel, improve and enhance the company, or maintain a healthy, acceptable workplace culture and environment without human resources management.
ReplyDeleteVery well written with proper reaserch Jackson. All the best.