Importance of Human Resources Management for Organizations
Background
Employees in an any organization are the most important asset as they are the main component that drives the organization to success. Hence, managing human resources is an important scope of an organization. When studying the evolution of Human Resource Management since the end of 18th century, it has been developing while adding more features to the scope of HRM with the complexity of organizations as well as human needs.
Figure 1: (Thomas, 2015)
What is Human Resources Management?
According to Mr.Ricky W. Griffin; “Human Resource Management is the set of organizational activities directed at attracting, developing and maintaining an effective workforce”(Pribanic, 2023)
According to Dale Yoder; “Human Resources Management is the provision of leadership and direction of people in their working or employment relationship”(Pribanic, 2023)
In practically, Human Resources Management is an organizational function which manages the relationships between employees and the organization. HRM division of an organization engages in the processes of employee hiring, training and development, performance management, compensation and benefits, assuring of employees’ safety and all other employee related matters.
Importance of Human Resources Management for an Organization Considering overall, human capital is the foundation for any organization and management of Human Resources is important to organizations in following parameters.
1. HRM affects the performances of the organizations
Every organization has its own motives, goals and visions to be achieved. Especially when the organization is a profit motive one, it’s constant improvement in financial performances is vital. Managing human resources is the main key for high performance of any company (Price, 2023). By giving the right position to the right person to work and to take decisions, implementing the innovative ideas of the employees, letting them to lead and motivate others, training them to work efficiently are few of things where the HRM affects in increasing of organizations’ performances.
2. For employee cost management and to get the maximum output from employees
HRM Division of an organization ensures the management of employee cost. Some companies incur the employee-related costs as the highest cost element and managing this cost while taking the best output from the same is a challenge and most suitable management decisions are to be taken. Complying with the company’s budget, they manage to utilize funds with maximum output to the company. Employee increments, training programs, compensations, allowances and all other benefits to the employees are mainly controlled by the HRM department (Brouard, 2020).
3. For the development of the working environment
This is also one of the most important functions of HRM. Any organization is able to get the maximum output from its employees when the employees are happy and satisfied (Wilcox, n.d.). In stressful working environments, companies lose control of human resources and the management will not be able to achieve the expected goals (Peart, 2019). The situation becomes critical in service providing organizations as employees are the people who manage the front level relationships. Finally employees may decide to leave the place. Hence, HRM is very important in order to establish a healthy working environment inside the organization.
Fair performance evaluations, fulfilling employee needs, offering trainings/career development and motivation programs timely, providing facilities to the employees to relax are some of the actions Human Resources Management Divisions of organizations implement to make stress free working environment for the employees.
4. For personal & professional developments of employees
Development of employees’ talents, skills and attitudes is very important for sustainable development of an organization. This encourages employees as well as helps to have loyal employees to the organization. HRM keeps and examines the records of each employee and provides various kinds of training and development programs for their personal and professional development. As the return, organization will have professional and developed team to work and in decision making where the organization will secure its future (Zoe Talent Solutions, 2022).
5. For measuring, improving and maintaining employee performance.
Every organization measure and review employee performances at least once a year. In this process, Human Resources Management Department uses a standard scoring module and rate the employees’ performances under many sections and rate them. This is an important system for both parties as the employees will understand how the management evaluates their work and for the organization to measure the employees’ performances. This assists to the HRM department to identify weaknesses and strengths of the workforce and for further planning of the organization (Herrity, 2022)
6. For recruiting the most suitable person for a position
People have different kinds of talents, skills, qualifications, experiences and HRM is responsible to acquire the most suitable team for the organization to run its activities. Experienced HR Managers are highly talented in recruiting the best people to organizations. This ensures the organization’s future for sustainable development. (Imm, 2021)
Conclusion
HRM is a process which has been evolved over time and nowadays it has become a mandatory scope in an any organization. HRM has a direct influence in organizational performance and development. For a sustainable development of an organization, best HRM practices are to be followed with timely reviewing in order to improve performance and also other qualitative factors.
References
Brouard, C. (2020) types of HR costs and how to reduce them. [online]
Available from: https://www.myhrtoolkit.com/blog/types-of-hr-costs [Accessed 16 July 2023].
Available from: https://www.indeed.com/career-advice/career-development/creating-a-positive-work-environment
[Accessed 16 July 2023].
Imm, J. (2021). The Importance of HR Management. [online] North Central College.
Available from: https://www.northcentralcollege.edu/news/2021/06/04/importance-hr-management [Accessed 16 July 2023].
Peart, N. (2019). Making Work Less Stressful and More Engaging for Your Employees. [online] Harvard Business Review Home. Available from: https://hbr.org/2019/11/making-work-less-stressful-and-more-engaging-for-your-employees [Accessed 16 July 2023].
Price, J. (2023). Why HR Is Key To Execute Success: How The Human Resources Functions Impacts Business Growth. [online] Forbes. Available from: https://www.forbes.com/sites/forbeshumanresourcescouncil/2023/02/08/why-hr-is-key-to-executive-success-how-the-human-resources-function-impacts-business-growth/?sh=2715c2663f08 [Accessed 16 July 2023].
Pribanic, E. (2023). Why Human Resources Management Is Important For Every Organization. [online] Tech Funnel. Available from: https://www.techfunnel.com/hr-tech/why-human-resources-management-is-important-for-every-organization/#:~:text=Human%20resources%20management%20is%20a,accepting%20workplace%20culture%20and%20environment%20Herrity,%20J.%20(2022,%20December%2022).%20indeed. [Accessed 16 July 2023].
Thomas, A. (2015). Human Resource Planning (HRP). [Online]
Available from: https://anjuthomasbims.wordpress.com/2015/11/24/human-resource-planning-hrp/ [Accessed 16 July 2023].
Thomas, A. (2015). Human Resource Planning (HRP). [Online]
Available from: https://anjuthomasbims.wordpress.com/2015/11/24/human-resource-planning-hrp/ [Accessed 16 July 2023].
Wilcox, L.( n.d). 13 Ways to Increase Employee Happiness & Productivity at Work in 2023. [Online]
Available from: https://nectarhr.com/blog/employee-happiness-at-work#:~:text=When%20employees%20are%20happy%2C%20loyal,33%25%20of%20their%20annual%20salary.
Zoe Talent
Solutions, (2022). 25 Reasons HR is Important to an Organization. [Online]
Available from: https://zoetalentsolutions.com/25-reasons-hr-is-important-to-an-organization/
[Accessed 16 July 2023].
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ReplyDeleteA very useful article that explains the origin, evolution and benefits of human resource management. However, be sure to include a conclusion at the end of the post. Thanks.
ReplyDeletevery good article explaining evolution of HRM and how it affected the complexity of current bussiness.
ReplyDeleteThe HR department plays a vital role in all aspects of an organization. From finding and attracting top talent to creating a nurturing work environment, HR professionals are the backbone of successful companies
ReplyDeleteA human resource department is also in charge of keeping employees safe, healthy, and satisfied. With proper HR management, workplace policies keep up with necessary protective measures and implementation and provide solutions to issues between team members, avoiding risk for the company and its employees.
ReplyDeleteI'm grateful that you shared your information, which is really important for businesses.
The most important part of an organization is HR management. The existence of attractive employee is determined through HR management system.
ReplyDeleteYes, I believe that human resource management (HRM) is a strategic role critical for organizational performance, development, and sustainability, concentrating on best practices and recruiting, cultivating, and keeping top personnel.
ReplyDeleteExcellent blog posts! The management of human resources is the lifeblood of any flourishing business. It involves more than just hiring and firing; it involves fostering a culture of development, encouraging teamwork, and giving people the freedom to excel. Effective HRM is essential in the fast-paced world of today, where talent is the true competitive advantage.
ReplyDeleteAs per the post we can cascade HRM as follows topics talent management, compensation and employee benefits, training and development, compliance, and workplace safety. An HR department can help provide organizational structure and the ability to meet business needs by effectively managing the employee lifecycle.
ReplyDeleteHuman Resource Management (HRM) has indeed evolved from its predecessor, Personnel Management, to be one of the key pillars of organisational success as you have well described here.
ReplyDeleteHuman Resource Management (HRM) has indeed evolved from its predecessor, Personnel Management, to be one of the key pillars of organisational success as you have well described here.
ReplyDeleteHuman Resource Management (HRM) has indeed evolved from its predecessor, Personnel Management, to be one of the key pillars of organisational success as you have well described here.
ReplyDeleteAddressing potential challenges or obstacles that organizations might face in implementing HRM practices, such as resistance to change or resource limitations, could provide a more balanced perspective.
ReplyDeleteAs your article it states that HRM affects the performances of the organizations by managing human resources which is the main key for high performance of any company by giving the right position to the right person at the right time. However, this function will be effective to the entire organization and its depend on how other divisions provide their insights, information and collaborative support to the HR department.
ReplyDeleteThe blog rightly emphasizes the vital role of Human Resources Management in organizational success. Beyond simply managing administrative tasks, HRM is instrumental in aligning the workforce with the company's mission and vision. By investing in employee development, HRM not only enhances individual skills but also contributes to the organization's long-term sustainability.
ReplyDelete