Human Resource Management : What it is and It’s Importance
What is Human Resource Management?
Human Resource Management is the function of your organization that deals with the hiring and recruitment of new talent, designing the job analysis of different positions in an organization, managing and observing the employee’s performance, and designing all the rewards and pay systems of your organization.
Why Is It Important?
When it comes to the resources, then there are 4 major resources that an organization can have;
- Land
- Labor
- Capital
- Technology
Among these 4, labor is the most important and unique resource. Labor consists of all the individuals that work for your organization. These can be your top-level managers to bottom level executives. Labor also includes all the cleaning and security staff of your organization.
Together all this labor makes up hundreds of people working for your organization. All these individuals are resources for your organization as they help you achieve your goals and mission. And the thing about resources is that they need to be managed properly. Hence this is where human resource management comes in.
As an organization, you need to make sure that you have the right talent working for you. People whose skills and expertise align with your organizational goals and people who are committed to them. This is why Human Resource Management is highly crucial for your organization’s success. No matter how much capital you own, or how advanced the infrastructure and equipment of your organization is, if you do not have the right people working for you, all the other resources and assets are useless.
Moreover, the top-level managers are too busy to handle all the recruitment and hiring process, or any day to day management of people. Some conflicts might arise between employees, or maybe some employee is not satisfied with the manger that he’s working under, or maybe some employees are being given too much work while others are sitting idle most of the day, feeling their talent and skills are being wasted in this job.
These are the problems that the top-level managers do not have the time and energy to deal with but at the same time, we can not ignore them. This is why there needs to be a team of people dedicated to dealing and solving these problems so that they do not end up becoming a hindrance to a company’s success.
Initially, the Human Resource department was only concerned with the hiring and recruitment of employees, managing employee’s performance, and designing the ways to praise and compensate for the performance of employees. But over time these roles and responsibilities have evolved and nowadays there is a lot that an individual working in the HR department needs to do. Keeping the employees satisfied and motivated, making sure that everyone is working efficiently, recognizing the areas in which employees might need training and development, and finding ways to build healthy and friendly relationships in an organization, to name a few.
In today’s world, Human Resource Management means;
“Designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals. Human Resource Management HR helps bridge the gap between employees’ performance and the organization’s strategic objectives.”
Individuals are working in your organization that goes out of their way to perform their job. People always giving there 100%, or sometimes, even more, people who are committed to your organizational goals as much as you are. These are the people who work past office hours and make sure that their work is their priority. These people need to be recognized and rewarded for their performance.
Human Resource Management plays an important role here as well, by designing the rewards and performance appraisal policies. These policies encourage the employees to work even better and hence employee productivity is enhanced. Acknowledging people’s efforts and appreciating them for it keeps the employees satisfied and motivated. And when they feel a valuable part of your organization, they are less likely to leave their job. In this way, Human Resource Management also helps with keeping the employee turnover minimum.
The HR department is also responsible to collect feedback from employees as well as the managers to keep everyone accountable. Furthermore, they also design training and development programs based on those feedbacks to help everyone become better in areas that they lack.
