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Human Resource Management   | 2 Min Read

Importance of Human Resource Management

Written By Tonmoy Shingal

There has been an ongoing intellectual discussion or debate on the importance of Human Resource Management asset in industrial workplaces. While traditionally, some employers and even employees would view HR as the systematizing or policing arm of the executive management, it is a fairly small percentage of what HR stands for in any organization. People who have this notion see HR staff as mere gatekeepers and have little or no interest regarding employee issues.

There seems to be an uncanny love-hate relationship between HR staff and employees. HR management should know how to strike a balance to earn both the trust and respect of the CEO as much as a janitor, balancing interests and seeking to align the goals of the company and the vested interests of employees.  

The problem sometimes slices up at the center of conflict between management and employees, especially when the workforce feels slighted or that their rights are being ignored or worse, trampled upon.

Now, the importance of a good and balanced human resource management is critical to the productivity and synergy of the workplace. Their efforts are mostly geared towards employee engagement while enforcing company and state law policies regarding labor management.

Why Human Resource Management is Important in any Organization?

  • They are In-charge of Overall Recruitment and Training of the Workforce:

    In collaboration with hiring managers of employers, the HR provides leadership training, teamwork management, scheduling assistance, a systematic hiring process, recruitment planning processes, interview expertise, selection monitoring, and more.
  • Monitors Company Culture:

    Every organization has a distinct company culture. Some organizations say that HR owns the culture, but as in all other employee relation matters, the ownership is generally with the management and employees. HR must also make sure that the company culture will allow creativity and productivity to thrive the most.
  • Supervises Overall Talent Management Processes:

    This is one of the leading functions of the HR department. In collaboration with other managers, HR is on top of management development, performance management, succession planning, career paths, and other aspects of talent management. HR can't do it alone and rely heavily on managers and executive staff to help plan and execute strategies. However, HR has to bring new ideas and effective practices in the organization.
  • Develops Standardized, Fair, and Strategic Compensation Plan: 

    The HR department is knowledgeable in terms of rules and policies involving pay , depending on the city, state, or region. This must be applied when trying to evaluate salary grades for all levels of the organization. They guide managers as they determine the salary range within their organizations.
  • Finds Out, Recommends, and Implements Employee Benefits and Compensation Programs That Would Help Attract and Retain Superior Employees:

    HR keeps track of these trends especially regarding employee benefits and compensation perks. They are also responsible for controlling costs and considering various options before recommending adoption of such measures.
  • Recommends and Implements HR Strategies in the Organization:

    HR must always merge the current with future goals. This must be aligned to make sure that the momentum does not slow down at some point. If your organization is changing directions, developing new products, changing mission, vision, or goals, HR must lead the way with employee programs and processes. They must supervise with expansion and growth in mind, at all times.
  • Ensures an Active Workplace Environment Complete with Events, Celebrations, Field Trips, Celebrations, and Team Building Activities:

    HR should be able to actively engage and keep employees nurtured and happy in the work environment. HR is generally responsible for monitoring the budget and providing committee oversight in terms of these activities planned and implemented in the calendar year.
  • Be Proactive in Terms of Resolving Issues or Conflict Within the Organization or Mapping Out an Effective Approach to Enhancing Productivity in the Workplace:

    Conflicts are a part of any healthy and robust organization. Not everyone would feel the same way about each other, but they need to develop effective working relationships for contribution and productivity. HR can help by knowing the players and taking on the necessary role of an advocate, coach or mediator.

The importance of HR is easily overlooked in the organization ,especially in the busy day-to-day hustle and bustle of the workplace, but without an effective human resource management contribution in each of these areas, the organization would not be able to achieve its fullest potential and expand its horizon.

Think of talent management as a business strategy that will help you retain exceptional employees. For effective talent management, every aspect of recruiting, hiring, and developing employees is affected positively.

Every HR department has its eye set on providing every company the best services and systems that would work to drive not just profit but team synergy. The goal of talent management is a ensuring a superior workforce. Here are systems that the organization must include for best practices in talent management.

Functions of Human Resource Management:

  • Design and come up with clear job descriptions, so you know the skills, abilities, and experience needed for every role in the organization.

  • Recruitment and selection of the right employees who have superior potential and fit your organization's culture, with an appropriate selection process.

  • Lead and negotiate varied requirements and accomplishment-based performance standards, outcomes, and measures within a performance development planning system.

  • Map out and initiate effective employee on-boarding and ongoing training and development opportunities that would reflect both the benefits and response to the employee's and the organization's overall needs.

  • Be steadfast in providing continuous coaching, mentoring, and feedback, so the employee feels valued and important.

  • Conduct quarterly performance development planning discussions that focus on the employee's interests for career development.

  • Discuss with management and be able to design an up-to-date and effective compensation and recognition systems that reward people for their contributions. Even if all of the rest of your employment processes are employee-oriented, people still work for money. Employers of choice aim to pay above the market to talented employees.

  • Provide promotional and career development opportunities for employees within a system that includes career paths, succession planning, and on-the-job training opportunities.

  • Hold exit interviews to understand why a valued employee decided to leave the organization. Make the necessary changes, if the reasons provide information about company systems that you can improve.

Streamlining every aspect in the workplace processes and systems is important to produce an effective human resource management strategy that will give you exactly the results you need in an organization in real-time.

Human resource management, when handled strategically, flows steadily from the organization's mission, vision, values, and goals. This, in turn, enables every employee to see where he or she fits within the organization. This helps further shape and define his or her role in the company.This, in turn, enables employees to participate in the overall direction of the company. From a strategic perspective, an effective talent management system helps crucial employees feel as if they are part of something bigger than their current job.

Are You Prepared for Future of Work

Topics: Human Resource Management

Originally published October 23 2019,updated November 18 2019

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