Human resource management is a significant strategy in the organizational structure that holds greater importance in managing the workforce and internalizing the organization’s values in employees, which would further enhance the overall positivity, productivity, and profitability of an organization.
Human resources are crucial assets for a company, as major workflow in an organization is dependent on its workforce performance and efficiency.
So, human resource management is vital for any organization to keep up with the organization’s ethos and accomplish the desired objective of development without dilemmas, disputes, and conflicts.
Let us know in detail about what is human resource management and the importance of human resource management (HRM) in an organization’s functioning.
What is Human Resource Management?
Human resource management is a systematic and strategic approach in managing the most vital asset of an organization, which is its workforce or employees. It is a multifaceted system that involves strategic planning, organization, staffing, direction, controlling, and coordination.
It aims to streamline the employee’s functioning in an organization and also maintain a healthy work culture. Furthermore, it is an essential department in the organization’s departmental hierarchy which is piloted by HR managers in association with a vibrant team of enthusiastic HR professionals.
Human resource management of the organization plays a vital role in enhancing positivity in the work environment, as the workforce of an organization consists of diversified internal as well as external public.
Diversified employees from different backgrounds, possessing contrasting thoughts and approaches to perform, require inclusivity, which is managed by the HR professionals for the overall growth and development of the company.
What is the Importance of Human Resource Management (HRM) for an Organization?
Now that we have an insight into what is human resource management, let us know about the importance of human resource management in the organization or why human resource management is important for organizational growth and development.
1. Organizational Strategy and Planning
Human resource management in an organization is important for strategizing the employees’ workflow as well as acquiring the best talents suitable for organizational growth and development.
Planning the organization’s strategy by HR management involves:
- Anticipating HR needs
- Confirming the needs by evaluating the resources available
- Budget planning for accomplishing the needs of HR.
- Employees engagement planning
- Strategizing employee retention
- Framing policies that promote inclusivity in the workplace
- Internalizing employees in the work environment
- To ensure the work-life balance, etc.
2. Talent Acquisition
The importance of Human Resource Management (HRM) is important for the recruitment of qualified and skilled professionals who would contribute to the goal attainment of the organization.
HR managers along with HR generalists and recruiters shortlist candidates for the organization who are eligible for the designated posts and make hires to ensure the continual workflow of business processes without any hindrance due to under-staffing.
Talent acquisition plays a vital role in the success of an organization, as the productivity of a company is defined by the right quantification of employees and quality of work output, for which it is essential to hire the right people for the right work.
3. Employee Retention
Retaining top talents in the organization is arduous, which requires well focused and strategic approaches that can be achieved by engaging employee in productive tasks and framing policies that would enhance and maintain work-life balance.
It is the role of HR managers to retain employees and work on the persisting gaps that are distancing employees from the organization. This makes human resources management severely essential for the organization to have a seamless workflow of business processes with appropriate vigilance and development.
4. Employee Development
Employees are considered the backbone of an organization’s system. A positive workplace not only focuses on self-growth and development but also elevates its employees’ career progression and advancement.
Employee development can help retain employees, as it would provide them with career progression along with confidence to perform efficiently.
One of the major importance of human resource management (HRM) is to embark on the employees’ interests and provide them a platform to justify their skills as well as to ensure the overall development of the organization.
5. Employee Engagement
Employee engagement decides the involvement of employees in an organization’s work culture. Employees who tend to be more engaged are radically inclined towards the organization, hence nullifying the chances of taking an exit from the company.
To ensure that, HR managers are responsible for conducting activities, workshops, events, conferences and so to enhance team-dynamics within the organization.
As the saying goes, “Teamwork makes dreams work”, employee engagement contributes to team building, hence adding to the importance of human resource management in the organization.
6. Performance management
Managing performance in the organization is a significant role of HR managers and associates to navigate the efforts of employees towards goal attainment of the organization.
In a workplace of diversified employees, human resource management (HRM) is essential to manage performances in order to reach the preset objective that would enhance organizational growth and development.
7. Conflict Resolution
The next in a row is conflict resolution. The importance of human resource management is to mitigate conflicts that arise due to faulty management, discrimination, biases, competitor tactics and more.
HR managers are responsible for drafting policies that would best suit the organizational needs as well as contribute to a positive work environment.
An employee spends the majority of their time in the workplace, so it is essential for their mental as well as professional well-being to work in a positive and enthusiastic work culture. This makes the importance of human resource management (HRM) more crucial to deal with conflicts and frame norms that would lessen the scope of conflicts.
8. Enhanced Quality of Work
Assigning the right tasks to the right employees boosts the employee’s morale and motivates them to achieve more.
For Example: If an HR manager is assigned to do tasks such as payroll processing, event planning etc., the result would be adequate and excelling whereas if an HR manager is assigned to do the job of administrator or HR generalist, then the capability and efficiency will downgrade hence affecting the overall growth of the organization adversely.
This makes Human resource management (HRM) extremely important to keep a check on employees’ quality of work in their respective departments and resolve their work-related queries or address their issues in case of divergence.
9. Ensuring Safety & Security
Ensuring the safety and security of employees in the workplace adds to the importance of HRM. In a workplace of populous audiences, guiding the safety of the employees in the work environment from harassment, physical injuries, fire outrage, etc., and securing employees’ data from being leaked, hacked, or malware is an essential task of HR management.
HR manager is responsible for ensuring, structuring, and implementing robust procedures that would protect the interests of employees, make the workplace safe for them to work by keeping a check on safety hazards measures, and maintaining confidentiality to ensure that employees’ data are not compromised.
10. Training and Development
In the fast-evolving market environment, the significance of training and development elevates to improve the efficiency and skills of employees, so that they can perform efficiently without perplexities.
Human resource management play a vital role in developing the knowledge of employees by providing them with adequate workshops and training, as well as keeping them updated with ongoing technological development and trends.
11. Reducing the gap between demand and supply of Human resources
Reducing the gap between the demand and supply in human resources is essential for sustainable business growth and development. Factors that initiate gaps between the demand and supply of human resources are evolving job market dynamics, skill deficiency, workforce demographics, etc.
HR management mends the gap by adapting to suitable techniques such as:
- Collaboration and industries association
- Automation and technology enhancement
- Knowledge transfer
- Networking with professional organizations and talent pools to get quick access to skilled individuals when required.
- Global talent sourcing from out of the country to explore diversity, prioritize creativity, and welcome new ideas to the team.
- Providing upskilling and re-skilling among the existing and new workforce.
- Welcoming new employees with orientation and training etc.
12. Building a corporate image
Building the corporate image of the organization and retaining its reputation is a vital aspect of human resource management, which emphasizes the importance of HRM in an organization’s workflow.
The importance of HRM in the company strengthens when it comes to motivating employees’ morale and boosting their enthusiasm to be productive.
Monotonous work-life burnout is the employees’ enthusiasm to work actively. To enhance their motivation HR managers and generalists plan activities such as corporate philanthropy, fun activities, etc. to keep up with employees’ interests in the workplace.
It also ensures fair recognition and rewards to deserving employees and adequate training for development to encourage employees’ enthusiasm and keenness to work.
14. Escalating Productivity and Profitability
Human resource management professionals elevate the productivity of the employees by enhancing employee connection with the organization and the profitability increases along with the surging of efficiency in employees.
15. Building a Healthy Work Culture
- Work Convenience
- Manage your workforce from anywhere with ease!
- Helping employees achieve the set goals.
16. Compliance and Risk Mitigation
The human resource management team mitigates the risks of legal lawsuit, and conflicts from internal and external audiences by making the employees comply with the policies and procedures that is significant for organizational development.
17. Payroll Management
Processing payroll on time is an essentiality as it works as a motivating element for the employees. Human resource management includes processing payroll and managing the same on time which enhances the impact of its importance.
18. Compensation and benefits
Compensation and benefits management is vital for the employees’ morale as it instigates their efficiency and motivates them to perform better hence increasing the productivity of the organization.
19. Surging Employee Connection
Human resource management has greater importance in connecting the employee with the organization and building a healthy professional relationship that would further enhance productivity, employee retention, and overall growth of the organization.
The importance of human resource management is pivotal for organizational growth and development. It is multi-faceted, and its benefits extend beyond employee management as it helps unlocking the potential of organizations’ most valuable and beneficial assets.
In the dynamic business market, the uniqueness of an organization’s presentation, productivity, and benefits makes it stand out from the crowd and gain goodwill. Human resource management not only elevates development in the organization but also helps accomplish a profound reputation for the company in the cut-throat market.