The Importance of Human Resource Management in Modern Organizations

 

             Companies in the fast-paced business world need excellent Human Resource Management (HRM) strategies to stay competitive. Undeniably, HRM should be considered one of the most important functions of an organization. That is because it has multiple key purposes in ensuring new and existing workers are on board with the organization’s goals, staying productive and contributing to the creation of value for the company. This paper will dive into the core benefits of HRM and give a detailed overview of the academic perspective on the importance of being equipped with excellent Human Resource Management.

Recruitment and Selection

Another primary function of HRM is recruiting and selecting the right people; and good selection policies ensure that the best people join the organizations, which is important for maintaining competitive advantage. Specifically, Breaugh and Starke (2000) state that strategic recruitment processes are designed to seek out competent employees who fit in well with the organizational culture and whose values are congruent with those of the organization.

Training and Development

Continuous Training and Development is a key to employees’ careers and business success. HRM's responsibility is to identify training needs and engage in programs to enhance employees’ competencies and performance.
Noe (2010) has highlighted the number of benefits that ongoing training will achieve for employees such as ‘boosting Performance, increasing job satisfaction and decreasing turnover rates’.

Performance Management

Performance management is the logical consequence of HRM because it provides a framework for creating a system of evaluation and improving employee performance. Performance management creates a system in which an individual’s goals are made to coincide with the goal of the organization, the individual’s development and human capital are promoted and the organization’s performance is enhanced. Aguinis (2013) him, the performance management system is a tool that provides multiple uses and aids managers and leaders in organizations in accomplishing the following goals, which are creating strategic focus, fostering personal development and enhancing overall organizational performance.

Employee Engagement and Motivation

Good HRM practices promote employee engagement and motivation. Engaged employees are productive, committed, highly involved in their work and less likely to quit. ‘Such HR efforts as recognition programmes, onsite career development and progression opportunities, and positive work environments sustain and enhance engagement.’ (Macey and Schneider, 2008)

Compensation and Benefits

The compensation and benefits structure is an essential component of HR that can help the company recruit the best talent in the market, as well as motivate the employees to be more productive. Subsequently, HRM assumes the responsibility of guaranteeing that the remunerations offered are fair and compare favourably with organizational counterparts. According to Milkovich, Newman, and Gerhart (2013), it is clear that when employees are compensated equitably followed by adequate benefits then, they will exhibit high job satisfaction, more so they will not be tempted to leave their jobs.

Legal Compliance

First, it guarantees that organizations conform to the legal compliance and regulations concerning hired employees to avoid incidences of legal disputes and penalties. Thus, through constant subscription to the current legal acts and adopting permissible procedures, HR divisions safeguard against complaints or any memberships that might lead to a lawsuit. Desserer (2013) notes that one of the major segments of HRM is compliance laws, which protect the entity and its people.

Diversity and Inclusion

HRM has the essential obligation to ensure that the conception of diversity and variety is appreciated and implemented. Diversification leads to new ideas and approaches by members due to the variation of background knowledge of the team members. Cox and Blake (1991) argue that diversity can increase performance because organizational activities become more versatile and profound due to a range of talents and perspectives.

Health and Safety

Another critical responsibility that is handled by HRM is in guaranteeing the welfare of employees in various workplaces. SAFETY & WELLNESS: Through compulsory use of safety programs and encouraging health-boosting campaigns, HRM minimizes employee accidents on the job and helps improve the health of its workforce. According to Goetsch (2011), health and safety management systems show that the development of proactive organizational systems results in more productivity and satisfaction among employees.

Employee Relations

As is clear from this essay, it is crucial to preserve positive employee relations at work like any other thing in society. HRM solves Organizational conflicts, coordinates between Management and Employees, and maintains and improves organizational culture. As Stone treated it in 2013, healthy employee relations add to high morale and lesser conflict in the firm.

Strategic HRM

Strategic management of human resources refers to the integration of human resources functional activities with its organizational mission, objectives, and goals to make strategies to acquire and manage talented individuals for increased business values. Wright, and McMahan (1992) suggest that SHRM boosts overall organizational performance by aligning HR practices with organizational strategies.

        This is how Human Resource Management became a vital aspect of any contemporary organization as it contributes to various aspects of the company. During the recruitment process, staffing, training and development, performance management, and employee relations, organizational HRM procedures make certain that companies have functional workforces. It is evident from the above discussion that the concept of strategic HRM helps organizations achieve sustainable success and a stronger position in their particular competitive fields.

References:

Breaugh, J. A., & Starke, M. (2000). Research on employee recruitment: So many studies, so many remaining questions. Journal of Management, 26(3), 405-434.

Noe, R. A. (2010). Employee training and development. McGraw-Hill/Irwin.

Aguinis, H. (2013). Performance management. Pearson.

Macey, W. H., & Schneider, B. (2008). The meaning of employee engagement. Industrial and Organizational Psychology, 1(1), 3-30.

Milkovich, G. T., Newman, J. M., & Gerhart, B. (2013). Compensation. McGraw-Hill Education.

Dessler, G. (2013). Human resource management. Pearson.

Cox, T., & Blake, S. (1991). Managing cultural diversity: Implications for organizational competitiveness. Academy of Management Perspectives, 5(3), 45-56.

Goetsch, D. L. (2011). Occupational safety and health for technologists, engineers, and managers. Prentice Hall.

Stone, R. J. (2013). Managing human resources. John Wiley & Sons.

Wright, P. M., & McMahan, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), 295-320.