Last updated on April 6th, 2024 at 02:06 am
In this article, we will discuss about the meaning and definition of Human Resource Management and The Importance of Human Resource Management.
The Concept of HRM has been boosted since the 1980’s. The business and the Academic are both accepted by HRM into their field. Human Resource Management is now a core department of every organization. With moving time, organizations are getting more and more aware about the importance of Human Resource Management.
In early age, Human Resource Management was considered as a menial job because of the responsibilities they had. But, with time, more responsibilities of the HR department was realized and now it’s a core department in any organization, which means, a business cannot function without an HR department anymore.
Top companies in the 90’s realize that their product is the reason they are at the top of the market. But, for the company to be at top next year, it will depend on the employee the company has. Such ideas made organizations understand about the Importance of Human Resource Management.
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What is Human Resource Management?
Human Resource Management is a managerial function which studies and aligns the employees skills according to the organization goal.
We can define Human Resource Management as a managerial function which involves recruiting, hiring, motivating and managing people within the organization.
The main focus of Human Resource Management is People of the organization. Every action they take is for the sake of the employees. Human Resource Management is a department created so that it can identify talent and skills of individuals and use it for organizational goal.
According to Invancevich and Glueck, Human Resource Management is defined as, “HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization”.
One of the best definitions about Human Resource Management is that Human Resource Management is an art of procuring, developing and maintaining a competent workforce to achieve the organizational goals in an effective manner.
Nature of Human Resource Management
Human Resource Management has to apply the management principles and functions. These management principles and functions are to be applied during all HR related work such as acquiring employees, development programmes, maintaining employees and their remuneration.
Decisions about employees must be incorporated. When decisions are made about different topics, they should be consistent with previous decisions made regarding the Human Resource.
The decisions taken in Human Resource Management have a heavy impact on the organization. And the better the decisions, the better The organization will perform. The better the organization performs, the better quality of product and services is provided.
The functions of Human Resource Management are just limited to business organizations, they are also applicable to the education system, health care system and others alike.
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Importance of Human Resource Management
In today’s modern times, Human Resource Management is considered as a core department. A department without which the firm could fall. Although previously, this was the case, Human Resource Management was not even considered as an essential department, but with time, the society realized the Importance of Human Resource Management.
There are many factors and responsibilities that made the business organization consider the Importance of Human Resource Management. Based on those functions, HR has become an essential managerial department of every business today. Let’s study these factors and understand the Importance of Human Resource Management.
Human Resource Planning (HRP)
The HRP can easily emphasize on the Importance of Human Resource Management in an organization.
Human Resource Planning is one of the managerial functions that the HR has to carry out. Here, the HR have to make sure the right skills in the organization are being placed at the right position in the organization.
HRM has to prepare an HR resource inventory. This inventory is prepared in order to understand and present the current availability of HR, the future need of HR, if there is any Shortage in HR. Depending on this data, the company then decides to lay off existing employees, or hire new potential.
Training and Development
Another function of HR that can easily emphasize the Importance of Human Resource Management is Training and Development.
In this function, the HRs identify what are the potential places where the employees have to be trained so that they can complete the organizational work assigned to them. Once these places have been identified, then the HR trains these employees accordingly to acquire these necessary skills.
Training and Development programmes are not only done for new employees but also for the existing employees. If there is a new technology or technique coming into the organization, the existing staff is trained in order to keep up with the technology. This saves up the cost of hiring a new employee and keeps the existing employee with experience within the organization. It also updates the employees knowledge and skills and saves their jobs.
Compensation and Benefits
Another one of the managerial functions of HRM is Wages and salary. Even the title should have given away about the importance of this task, and ultimately the Importance of Human Resource Management.
Compensation and Benefits refers to the salary and other welfare areas for employees. The HR has to decide upon the regular wages of the worker. The HR have to follow the proper guideline provided by the government i.e laws related to wages. Even for salary, HR has to make sure that the employees are being paid according to what they deserve.
The HR have to make sure that the organization is completing their responsibility towards the employees. This includes employee benefits such as health benefits, retirement plans, reimbursements, etc. The Importance of Human Resource Management is not only realized by the organization but also by the employees.
Union-Labor and Employee Relationships
This one is a big reason which reflects the Importance of Human Resource Management.
A healthy Industrial and labor relation is very important. It can be like a make or break situation, neither can work without each other. This is why it is important that there’s peace between both parties. And HR is the middle man, or the representative from the Industry side who listens to the demands from the Union and makes sure those demands are heard by the top management.
The relation between the employers and employees have to be handled carefully and in a calm manner. The demands and complaints of employees have to be taken seriously. Even while making HR policies, the main factor of employees and laborers have to be considered. All of these tasks are to be handled by the HR department. This is why it is necessary to emphasize the Importance of Human Resource Management.
Conflict Management
Another reason for the Importance of Human Resource Management is Conflict management.
The HR department is the middle man between management and the employee. So every conflict that arises has to be handled by the HR in a professional manner. They have to understand both sides neutrally, then take a decision based on the situation and negotiate accordingly.
Even in case of conflicts between employees, HR has the duty to resolve the conflict reported to them. They have to be unbiased and solve the conflict that arose.
Legal Compliances
The Importance of Human Resource Management cannot be explained without their contribution towards the legal work of the organization.
HR handles all the legal work of the organization. They make sure that the organization completes their legal compliances towards the government. HR makes sure that the organization respects their side of promises to the employees. HR has the responsibility to make HR policies according to the government rules and regulations. Basically, HR makes sure the organization follows all the laws and regulations.
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Final Words
HR is one of the most under-appreciated departments in most of the organization, this is why it is necessary to make sure that we, as the young generation know the Importance of Human Resource Management.
It’s essential that we know the Importance of Human Resource Management because we are going to be working in an organization, as managers, as workers, we should know what the HR contributes to the organization.
I hope this article about The Importance of Human Resource Management was helpful to you. If you have any queries or suggestions, let me know in the comment box.