Importance of  human resource management

‍Well first things first, what is Human Resources?

Human resources are the people who make up an organization's workforce. This means the employed individuals who have skills and abilities to help achieve organizational goals and are hence important assets to a company. Hr managers are also in charge of staffing in an organization.

And what is Human Resource Management?

Human Resource Management refers to the processes and systems used by hr professionals to manage people in a particular organization. The processes may differ from one company to another, but all in all, play a vital role in their HR function. 

‍A good human resource manager is well versed with employment laws and creates a great work environment for the rest of the team. They play an important role in the  organizational culture and directly affect the bottom line of the company.

Now that we have a clear definition of these terms, let us understand the importance of human resource management to an organization or rather how the company benefits from effectively managing its employees.

Importance of Human Resource Management to Organizations

Organizations have a variety of resources, including time, money, assets, and employees. While all of the resources mentioned are important, human resources are the most important because other resources may make a company's goals and objectives possible, but human resources actualize the achievement. It goes without saying that making it happen is more important than the possibility of it happening. 

Most if not all management functions such as operations, marketing and finance heavily depend on the human resource department. When these management functions are run by competent employees, then the overall running of the organization becomes easier and therefore more successful.

Effective and efficient human resource practices in an organization such as training, motivation, planning, and proper communication channels generally improve employee performance. This means high levels of productivity and more profits. At the end of the day, there will be an increase in organizational performance.

The functions of human resource management in an organization include

1.   Hiring Process 

Hiring the right person depends on a human resource manager who is well informed about the needs of the business. They are in charge of bringing in new employees who have skills, relevant competencies, and team members who will fit into the work culture of the organization. The workplace culture is a collection of attitudes, beliefs, and behaviors that contribute to the regular atmosphere of the workplace.

2.   Retaining skilled and empowered employees

A more empowered workforce performs better and is more productive. People are more engaged when they are empowered, which leads to higher levels of productivity and revenue.

3. Employee retention

Employee retention decisions are made by the HR department which is in charge of performance management in an organization. They play a key role in maintaining healthy employee relationships and resolving conflicts that may arise. They come up with team-building initiatives that are aimed at retaining employees in an organization.

4.  Analyzing benefits

Hr professionals also function as benefits specialists. They are important to the organization because they have the skills and expertise required to negotiate group benefits packages for employees while staying within the organization's budget and in line with economic conditions. They are, however familiar with the employee benefits that are most likely to attract and retain employees. This can help the company save money on turnover, attrition, and hiring replacement workers.

5.  Job satisfaction

The degree to which an employee feels self-motivated, content, and satisfied with his or her job is defined as job satisfaction. Job satisfaction occurs when an employee believes he or she has job stability, professional development, and a comfortable work-life balance. Hr managers promote job satisfaction by ensuring proper working conditions, providing incentives that boost employee productivity, and by extension, promoting business goals.

6. Right tools for employee performance appraisal/management strategic goals

The human resource department is in charge of performance appraisal. This provides adequate feedback on employee performance, serves as a foundation for modifying or changing behavior toward more effective working habits, and provides data to managers for assessing future job assignments and compensation. The concept of performance evaluation is important for effective workforce management. With the right tool, it contributes to a  hrm system that has everything in one place, including payroll software, allowing employees to be paid on time and with all of their benefits/allowances, etc. Included.

Do you want to improve employee management and reap the above-mentioned organizational benefits?

Switch to workpay