The Importance of Human Resource Management in Today’s Business Environment

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Table of Contents

Introduction
Conclusion
Reference List

Introduction

Human resource management (HRM) is a fundamental function in today’s business environment. It entails a wide array of functions, key among them is making assessments on how recruitment desires can be met through: whether using service providers or employing employees to achieve this objectives, conscripting and training the very finest of staff who are high performers, tackling employee efficiency/ performance concerns, and making sure personnel and administration practices conform to a range of set laws.

Employees are the backbone of an organization and proper management on their welfare determines the achievement of an organization’s needs, goals and objectives. Business should at all times guarantee that the staff has personnel guiding principles which match to existing policies and regulations. These guiding principles are distributed to workers in the form of manuals, and it is mandatory for all workers to have (Deb 2006).

Human resource management primary function:

Human resource management as a key administrative tool within an organization entails preparation, staffing, selection, orientation, teaching, evaluation, drive and the salary of the human resource (employees/workers) within an organization.

The primary function of human resource management is to increase the effectiveness and contribution of employees in the attainment of organizational goals and objectives. For the success of any organization there has to be an interconnected balance between the HRM department and other departments. Human resource management’s aim is to achieve the organization’s goals and objectives and subsequent survival by building up on people who are an organizations most valued asset. (Mathis & Jackson 2007)

EEO and Affirmative Action

Companies and organizations have a responsibility to put in place fair and transparent equal employment opportunity so as to be able to promote favorable working environments for all employees. This has to be in compliance with set down corporate equal employment opportunity (EEO) and affirmative action policies, which is mandatory for all organizations and working towards company affirmative action objectives is a vital element of human resource management within an organization.

Making available equal service chances means employing and hiring staff and managing the business devoid of illegitimate prejudice as illustrated in the “Discrimination and Harassment” policy. Personnel to have an obligation to respect the integrity, decorum, and potential of fellow colleagues and carry themselves according to their organization are set down equal employment opportunity and affirmative action policy (Armstrong 2006).

Human resources planning, recruitment, and selection:

Over time, tremendous changes have been witnessed in the business world in how employers carry out sourcing, selection and recruitment of employees. In tandem, the HRM function has also evolved tremendously in the past. However, the human resource department within an organization has always been considered as a vital component in hiring, training and managing people so that the organization performs at maximum output and is able to achieve its goals/objectives (Armstrong 2006).

The process of hiring new employees is involving and a difficult process as employers are selective and want to hire only the best from a wide pool of man power. Therefore, human resource managers should be able to set rules and regulations to be followed from the commencement of the recruiting process to the actual hiring of personnel.

When hiring human resource managers should always pick the smartest person available from the group shortlisted and interviewed. Proper hiring policies and procedures determine whether an organization will be able to retain its most excellent employees. Some pointers a human resource manager can utilize when hiring include: (Compton, & Nankervis 2009)

Thoroughly reviewing resumes and employment applications as they are legal documents;
Compare applicant’s skill to intended job vacancy description and see if the criteria is met;
Check whether applicant has appropriate educational qualifications;
spelling and grammar errors in the application;
check for mysterious gaps of employment;
check whether all employment dates are provided;
check whether there cases of “job hopping”;
Separate shortlisted applicants into groups e.g. (to be contacted, maybe, and rejected); and
Send declination letters to rejected applicants so as to avoid follow up calls.

However, there are numerous pointers and guidelines human resource managers can make use of to guide them in the hiring and recruitment process, which vary from organization to organization but it is up to the individual organization and manager to determine what works better for them and achieves positive results (Cooper, Robertson & Tinline 2003).

Human resources development:

Different organizations have to adapt diverse methods and align themselves to their set objectives and goals so as to be able to achieve them and continue to be relevant within their business environment.

This is because of the wide array of forces that come up against different businesses and challenge their performances. Here, size of business and size of industry comes into play in determining the action or path an organization is to embark on.

Trained and professional human resource managers are a major resource of a business in terms of workers development. They should have an understanding of the dynamics of advancement of human resource and be able to come up with guidelines and procedures that are able to facilitate effective and efficient training and development programs for the employees within an organization (Rothwell & Kazanas 2003).

Development of human resource can be set off due to an array of motives that may help employees in their work output. Some of these reasons may include:

HR managers recommend the need for enhancement of performance after carrying out appraisals of the employees.
Development may be part of the organizations strategies and objectives.
The administration may be testing or piloting a new organization system.
Training workers for particular and specific tasks.
Business may undertake human resource development as a requirement for succession so as to equip employees with necessary skills to take up new positions.
To enhance company image, reduction of employee turnover, and increase the aptitude of employees to take on new strategies and innovations

Compensation and benefits:

Remuneration, compensation and benefits are a sure way of maintaining a cordial employer-employee working relationship within an organization. This relationship must be upheld in order for all to be contended and achieve maximum output and it’s up to human resource managers to make sure of this.

Appraisal of employee performances is expressed as an evaluation of an employee’s performance in their specialty of work. The performance appraisal process is continuous and procedural and managers can use effectively to their advantage when determining remuneration and compensation benefits of an employee.

In evaluating employee’s performance, the optimal results are measured by considering the following: quantity and quality, timeliness, cost-effectiveness, absenteeism or tardiness, creativity, Gossip and Other Personal Traits, Personal Attributes and Etiquette, Manager Appraisal, Management by Objectives, 360-Degree or “Full-Circle” Appraisal, Assessment Center and Team Appraisal.

Definition of performance goals should also be included in the strategy so that the appraiser is able to identify what he/she should be expecting from the employees. Compensation and benefits should be made according to employee effectiveness and efficiency (Simms & Select Knowledge 2005).

In addition, implementation of succession planning which would inspire employees, who are the backbone of the company, to be interested in working for the company hoping to be elevated in their job positions can be utilized as a way of compensation and benefits (Kandula 2004).

Employee and labor relations:

Complaints by employees due to lack of regular performance appraisal, poor benefits and compensation, low remuneration and late payments of wages put organizations at risk of losing valuable employees. If no measures are taken to skirt around the issues raised, this may result in the company losing valued expertise as well as important business knowledge. Relations built up between an organization and its clients over a number of years may also suffer and not forgetting loss of our clients to competitors.

All these negative effects would end up affecting the realization of an organizations goals and objectives to an extent of making it redundant and may collapse or even become bankrupt. However this can be avoided through having good labor relations in place between the top management and employees. Implementation of succession planning which would inspire employees, who are the backbone of the company, into sticking around in the hope of being elevated in their job positions.

Safety and Health:

Employers have the responsibility of providing safe working conditions for their employees. Safety and health within the workplace are matters with substantial organizational and legal connotations for the top administration and HR managers.

Dealing with safety and health issues in the working environment saves employers money and brings more worth to business. Present estimates put company costs associated to work-related grievances at about 170 billion dollars, operation costs that are gotten straight from company profits. When personnel are healthy, the direct cost-savings to businesses include: minor compensation insurance costs; cheap medical expenses; quality products.

Proper safety and health results in huge reduction in indirect costs, as a result of enhanced efficiency; superior quality products; improved self-confidence; improved labor/administration relations; reduced turnover; enhanced utilization of human resources. Plainly put, shielding people workers is in everyone’s best concern; safety and health put in value to companies, and workplaces.

How do you believe the HRM role can be optimized for shaping organizational and employee behavior?

The success of the organization will depend on involvement of all departments within the organization and an effective coordination/relationship between the human resource management and other departments.

While other departments such as accounting, marketing, legal and so forth all work on achieving the organizations objectives the key to achieving this is through an efficient human resource department whose main aim is to increase the effectiveness and contribution of employees in the attainment of organizational goals and objectives (Rothwell & Kazanas 2003).

The above mentioned aspects all work hand in hand to achieve the organization’s objectives and none can be said to be more important than the other.

They all deal with one aspect or another of employees concerns. As this paper has shown, training and development of employees is dependent on planning, recruitment and hiring of employees. Compensation and benefits of employees is also dependent on training and development not forgetting recruitment. All this aspects of human resource management are interrelated and their functions correlate with each other.

Human resource managers can also make use of a company’s strategic planning framework. This is usually a plan by which an organization defines its objectives and how it will achieve them through utilizing its resources.

Human resource being a vital component of a business or organization it is crucial for a human resource manager to be able to align the functions of human resource management to the strategic plans of an organization. The plan should entail a mission, vision, benchmarks, a timeline, leadership and management actions required to support the plan and a course of action to implement the plan.

Professionals or trained personnel heading the human resource management can be a key advantage in workers development. He/she should be able to have a good perception of the dynamics of an organization and how to utilize its workforce to achieve maximum output.

Therefore, any organization/business/company should adopt human resource management methods to help gain maximum efficiency and also retain employees. This can be done by first outlining the expected capabilities and skills that an individual being picked for a certain role should have. Thereafter, identification of individuals with the highest potential in specific areas and roles should follow. Businesses should subsequently start preparing the individuals for progression into the identified positions.

This could be done by enlightening the employee with a clear perception of the duty he/she is about to undertake and the expectations the company has from him/her. If the employee is ready, training should begin immediately and an increase in salary would be an added motivator (Mathis & Jackson 2007).

Conclusion

In conclusion to this report, it is evident that every company, business or organization should embrace the importance of human resource management, it is very important to have a well functioning HRM that focuses on improving the working environment regularly.

It is obvious that even the employees feel the need for an effective and efficient human resource management department to address the various needs and issues affecting workers so as to sustain both their personal professional and company growth. Through a performance appraisal system, a lot of valuable knowledge, skills and expertise is saved and retained within the company while at the same time the issues that drag the company behind are eliminated.

Employee training and development is also a vital issue or component to sustaining a company’s upward stride and realization of objectives. With effective and professional human resource managers issues such as underperforming employees or unnecessary practices carried out in the company can be noticed and recommendations made early and this may save the company from eventual consequences.

In addition, employee succession is another important practice that is valuable in preparing a company that wants to meet its target and grow at the same time as it helps employees grow professionally. Succession works hand in hand with employee training and development and ensures that the company does not loose valuable expertise and knowledge to competitors and guarantees a better future for the organization.

Furthermore, the human resource managers can employ strategic planning as a method of aligning the company’s employee requirements to its objectives and goals. Through this, the goals and values of the company are retained and employees are secure within the company thus enhancing their dedication and loyalty.

Reference List

Armstrong, M. (2006). A handbook of human resource management practice. Pentonville Rd, London: Kogan Page Publishers.

Cooper, D., Robertson, T. I., & Tinline, G. (2003). Recruitment and selection: a framework for success. Melbourne, Australia: Thomson.

Compton, R. L, & Nankervis, A. N. (2009). Effective recruitment & selection practices. Melbourne: CCH Australia Limited.

Deb, T. (2006). Strategic Approach to Human Resource Management. New Delhi, Delhi: Atlantic Publishers & Distributors.

Kandula, S. R. (2004). Human Resource Management in Practice: With 300 Models, Techniques and Tools. Patparganj, Delhi: PHI Learning Pvt. Ltd.,

Mathis, R. & Jackson, J. (2007). Human Resource Management. New York, NY: Cengage Learning.

Rothwell, W. J. & Kazanas, C. H. (2003) Planning and managing human resources: strategic planning for human resources management. New York: Human Resource Development Center.

Simms, H. & Select Knowledge, (2005). Human Resource Planning. Melbourne: Select Knowledge Limited

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