Importance Of Human Resource In An Organization – Every organization, big or small, uses different types of capital to run the business. Capital includes money, securities, or assets used to generate income for a business. For example, a retail store uses records and inventory, while a consulting firm may have its own software or facilities. Regardless of industry, all businesses have one thing in common: they must have people who put their capital to work for them. This is what we will focus on throughout the article: making money using people skills and abilities.
Human resource management (HRM) is the process of recruiting people, training them, compensating them, developing policies related to them and developing strategies to retain them. As a field, HR has gone through many changes over the past two decades, giving it a larger role in today’s organizations. In the past, HRM meant processing payroll, sending birthday gifts to employees, organizing company outings, and making sure forms were filled out correctly—more administrative responsibilities, but not strategically important to the success of the organization. Jack Welch, CEO of General Electric and management guru, sums up the new role of HR: “It’s about parties, birthdays, and records… Remember that HR is important to ‘in good times, HR is defined in bad times'” (Frasch , et al., 2010).
Importance Of Human Resource In An Organization
It should be noted here, at the beginning of this article, that every manager has a role related to resource management. Just because we don’t have the HR manager title doesn’t mean we don’t do all or at least some of the HR tasks. For example, most managers talk about employee compensation, motivation and retention, making these aspects not only part of HR, but also part of management. As a result, this book is just as important for an aspiring HR manager as it is for someone running a company.
Pdf) Human Resource Management Best Practices And Firm Performance: A Universalistic Perspective Approach
Have you worked with human resources in your career? How was the interaction? What was the department’s role in that particular organization?
Keep in mind that many HR functions are also skills performed by managers in other departments, making this information important regardless of your career path. Most scholars agree on seven main roles that HRM plays in organizations. These are described in the following sections.
You need people who get the job done and get the job done in the organization. Even with the most sophisticated machines, humans are still needed. Therefore, one of the main functions of HRM is personnel. Recruitment includes the recruitment process from job posting to salary package negotiation. There are four main stages in the employee’s work:
Every organization has a policy to ensure the integrity and continuity of the organization. Part of HRM’s job is to shape the context of these policies. HRM, management and leaders participate in the development of the policy. For example, HRM personnel are likely to recognize the need to change the policy or policy, research policy information, write the policy, and then communicate that policy to employees. It is important to note here that the HR department does not and cannot work alone. Everything you do needs to involve all the other departments of the organization. Some examples of workplace policies may include the following:
Pdf) Competencies And Human Resource Management: Implications For Organizational Competitive Advantage
These topics are discussed in more detail in Chapter 6, “Compensation and Benefits,” Chapter 7, “Retention and Incentives,” Chapter 8, “Training and Development,” and Chapter 9, “Communicating Effective Employees.”
HR professionals must determine that compensation is fair, in line with industry standards, and high enough to attract people to work for the organization. Compensation includes everything the worker receives for his work. In addition, HR professionals must ensure that the salary is equal to what other people doing the same job can earn. This includes creating a salary structure that takes into account number of years with the organization, years of experience, education and similar factors. Here are some examples of workers’ compensation:
Retention involves retaining and motivating employees to stay with the organization. Compensation is an important factor in employee retention, but there are other factors as well. 90 percent of workers leave a company for the following reasons:
Despite this, 90 percent of managers think that employees leave because of pay (Rivenbark, 2010). As a result, managers often try to change compensation packages to dissuade people from leaving, if the reason for leaving is not compensation. Chapter 7 “Retention and Motivation” and Chapter 11 “Employee Management” discuss some strategies for retaining the best employees based on these four factors.
What Is The Harvard Framework For Hrm?
Once we take the time to hire a new employee, we want to make sure that they are not only trained to do the job, but that they continue to grow and develop new skills on the job. This results in higher productivity for the organization. Training is a key component of employee motivation. Employees who feel they are developing their skills tend to be happier in their jobs, resulting in higher employee retention. Examples of training programs may include the following:
We discuss each of these types of training in more detail in Chapter 8 “Aid and Development”.
People should know all the laws that affect the workplace. HR professionals can work in some of the following areas:
The legal world of HRM is constantly changing, so HRM must always be aware of the changes that are happening and then communicate these changes to the entire management organization. Rather than presenting a chapter focused on HR laws, we will discuss these laws in each relevant chapter.
Importance Of Hr Planning
Security is very important for any organization. New laws are often created with the goal of establishing federal or state standards to ensure worker safety. Unions and union agreements can affect occupational health and safety requirements in the workplace. It is the HR manager’s responsibility to be aware of employee safety requirements and to ensure that the workplace complies with federal and union regulations. Employee safety issues may include the following:
We will reflect on these issues in Chapter 12 “Cooperation with Trade Unions” and Chapter 13 “Safety and Health at Work”.
Tip: Knowing labor protection laws in general is a human task. In some industries this is very important; indeed, it could mean life or death.
In addition to these important responsibilities, good communication skills and excellent management skills are key to successful management and general management. We discuss these issues in Chapter 9 “Effective Employee Relations.”
Writing The Hrm Plan
In addition to managing internal factors, HR managers must consider external forces that may affect the organization. External forces, or external factors, are things that are not directly controlled by the company; however, there may be things that can have a positive or negative impact on HR. External factors may include the following:
For example, recent trends in flexitime (allowing employees to set their own schedule) and telecommuting (allowing employees to work from home or in remote locations for specific periods of time, such as “and one day a week)” factors that affected HR. HRM must be aware of these external issues, so that they can develop policies that suit the needs of the company, but also the needs of individuals. Another example is the Patient Protection and Affordable Care Act, signed into law in 2010. Complying with this bill has huge implications for HR. For example, companies with more than fifty employees must provide health insurance or pay a penalty. Currently, an estimated 60 percent of employers provide health insurance to their employees (Cappelli, 2010). Since health insurance is compulsory, cost issues and the use of health benefits as a recruitment strategy are important external challenges. Any manager who acts without regard to external forces can alienate employees, resulting in a disengaged and unhappy workforce. Failure to understand external factors can also mean breaking the law, which also has several implications.
Knowledge of key external factors is critical to a successful HR professional. This allows you to make strategic decisions based on changes in the external environment. To increase this knowledge, it is necessary to read several books.
One of the ways managers can learn about external forces is to attend conferences and read various articles on the web. For example, the Society for Human Resource Management’s website, SHRM Online
What Does Hr Actually Do? 11 Key Responsibilities
, is not only a work in the field, but also discusses current HR issues that can help managers make better people management decisions. In Section 1.3 “Today’s HR Challenges,” we delve into recent external issues affecting the role of human resource management. In Section 1.1.2 “The Role of HR,” we discussed some of the skills needed to be successful in HR.
Most professionals agree that there are seven main tasks performed by HR professionals. All this must be considered in the relationship
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