What are the responsibility of human resource management in achieving the organizational objectives?

The term "human capital" refers to all employees in an organization. They are the key ingredients to achieving an organization's central objectives. It is up to experts in human resources to help managers leverage the combined talents of employees so that all objectives can be met.

Managers and HR workers can experiment with performance management strategies, but they need effective HR practices to motivate employees and maintain their loyalty.

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• Human Resources fulfills organizational goals by helping managers leverage the combined talents of employees so that all objectives can be met.

Because managers need employees to carry out their initiatives, they depend on HR personnel to assist with proper staffing. HR experts offer technical assistance, such as writing job descriptions, classifying workers into proper departments and assigning a fair rate of pay. Managers can often count on HR specialists to screen applicant pools and only recommend qualified candidates for interviews.

Without HR support, managers would have to perform all staffing activities.

Every company projects a vibe or attitude that tends to permeate all levels. This corporate or company culture impacts how employees view their jobs. It also impacts the way potential employees view job openings.

A company with a standout, engaging, supportive culture draws and retains employees, reducing employee turnover.

The HR team works to build, balance and drive a corporation's culture with focus groups, anonymous surveys and such in order to give each worker a voice. Human resources experts then collect the data, focusing on employee concerns and relaying them to upper channels to discuss solutions.

Oftentimes, leadership needs to become more nurturing or understanding to correct cultural woes.

Organizations can take two approaches to the view of compensation and benefits. On one hand, an organization incurs these HR costs to staff operations. On the other hand, pay and benefits can be viewed as investments in employees.

Either way, HR administers pay and benefits so that employees want to perform in their jobs. Without appropriate incentives, employees are likely to find work elsewhere.

Organizations use different processes to ensure workers have enough opportunities to develop in their jobs.

For example, employees are a source of future leaders. If employees are viewed as human capital, then the HR function must provide them with adequate opportunities for learning, including ongoing training and managers who guide their development. These ensure that workers are placed on a path to making a bigger contribution to the organization.

HR information systems offer data that management and HR experts can use to make decisions about employees.

For example, management can review the latest results of an employee survey and decide what changes to implement in the workplace in response to employee concerns.

Without such a decision-science approach to the working conditions for employees, management will miss important chances to improve the way talent is managed. Happy workers help an organization achieve its goals.

Human resource management is a very important function of management in an organization, in order to enable effective recruitment and retainment of the employees. Over the past couple of years, there has been a change in the perspective of the management approach followed by the organizations. Earlier, management functions such as planning, staffing, organizing and coordinating were given more attention. However, with the evolvement of the principles, the focus has moved to nurturing, empowering and managing the employees rather than supervising them.

Due to this change in the perspective of management, there has been a consequent growth in the management of people in the organization, development of policies that enable an organization to carry on it’s activities successfully. From getting the right the people with the right skillset to creating an atmosphere where employees can work in a team to achieve the organizational goals, HRM plays a crucial part. Thus, Human Resource Management is one such aspect of an organization, which businesses cannot do without. The entire workforce is built by HRM.

Recruiting: Employees are the backbone of any organization- this is the most vital fact about the industry. Hence, it becomes very important for the human resource department to ensure that they bring in the best and the most qualified people with the right skillset to the organization, this will ensure that the company has the most appropriate workforce who is dedicated and directed towards the success of the company.

Ensuring employee relations: The human resource department of an organization is ultimately responsible for maintaining a chaos free atmosphere in the organization which can be ascertained by ensuring that employees have a good rapport amongst themselves and have a healthy working environment.

Management of conflicts: This can be called as one of the most important sub-departments of the human resource management, where they’re supposed to ensure that conflicts among the workforce are resolved effectively with the best possible approach.

Training and development: Every employee, when joins an organization requires training. An effective training process provided to the employees will ensure their adaptability to the organization and better understand their roles and duties towards the organization. Choosing the best training methods and practices and getting the right people to train, again falls into the human resource department of an organization. Now, when the employees are trained and made adaptable to the organization, the human resource department also ensures that they’re growing in the organization as professional individuals as well.

Role of HRM in leadership development:

Developing an effective leadership in organizations has become really important and crucial, as leadership is the main driving force in an organization. As the ultimate goal of the Human resource management in an organization is to help them achieve its target by getting the most appropriate and skilled people into the organization. And this cannot be achieved unless and until there is no leadership development. Thus, focussing on building the most effective and efficient leadership provides an opportunity to the HRs from not only being administrative but also being proactive business partners in various functional departments that make a huge difference to the organization.

Therefore, Human Resource Management for any organization stands indispensable, be it an organization of five people or 5000 people, it is vital to the success of the organization.

As a practice, businesses and organizations depend on three key resources: physical resources, such as materials and equipment; financial resources, including cash, credit, and debt; and people. There can be no doubt that people play a vital role in an organization or business as a resource.

Having a thorough strategy, a marketable product or service, and efficient processes are all important. But all of this depends on the ability of the people within the organization to execute strategies, plans, and processes to make a business successful.

Every part of the business boils down to people. And by managing people, organizations can be more profitable, lead more effectively, create brand loyalty and do better work.

The human resource function of every defines their success as an organization. An organisation’s HR function plays a major role in the growth of its bottom line and the success of its business strategy. The very nature of a company is in its people, and giving direction to people is what human resource management (HRM) is all about. HRM provides an organization with the best services and systems drive both profit and team synergy.

Let’s dig deep into this and understand – What is HRM?

What is HRM?

According to The Harvard Model of Human Resource Management, created by Michael Beer, Human Resource Management is a strategic approach to the employment, development and wellbeing of the people working in an organization. Human resources management involves all management decisions and actions that affect the relationship between the organization and its employees – in other words, its human resources.

HRM refers to the management of all decisions within an organization that are related to people.

It concentrates on making the most of the human resources that are at the disposal of the organization and enhances the performance of employees to achieve the organization’s objectives. HRM ensures the seamless and effective application of policies and processes in the business. HRM is there to keep the balance between employee needs and satisfaction and an organization’s profitability and capability to reach its objectives.

In practice, however, HRM is a tool used to try to make optimum use of human resources, to foster individual development, and to comply with government mandates. Larger organizations typically have an HRM department and its primary objective is making company goals compatible with employee goals. For a company to attain its goals, it must have employees who will help it attain them.

An efficiently functional HRM aids the workforce of an organization to contribute efficiently and effectively towards the overall achievement of an organization’s goals.

To understand HRM, the functions of HRM must be taken into consideration. The functions of HRM are managerial, operative and advisory.

Managerial functions include:

• Planning: The planning function of HRM ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses for the organization. There are four key steps of the HRP process: Analysing present human resource supply, forecasting human resource demand, balancing projected the human resource demand with supply, and aligning the first three steps to the organizational goals.
• Organizing: Organizing is the function of HRM that involves developing an organizational structure to ensure the accomplishment of the organizational goals. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization.
• Directing: This includes activating employees at different levels and making them contribute maximum towards organizational goal. Tapping maximum potentialities of an employee via constant motivation and command is a prime focus for this function of HRM.
• Controlling: Post planning, organizing and directing, performance of an employee is to be evaluated, verified and compared with organizational goals. If performance is found to be deviating from the plan, control measures are to be taken.

Operative function Includes:

• Recruitment and Selection: Recruitment and selection creates a pool of prospective candidates and selects the right candidates from that pool. According to a study by the Allegis Group, 83% of organizations believe attracting and retaining talent is a growing challenge.
• Job Analysis & Design: This HRM function includes describing nature of the job, including the requisite qualifications, skills, and work experience for a specific position within an organisation. This function is crucial in helping to combining tasks, duties and responsibilities into a single work unit to achieve organizational goals.
• Performance management: Checking and analysing employee performance is another important function that HRM performs. According to Deloitte’s Global Human Capital Trends study, 79% of executives rate redesign of performance management system and practices to incorporate elements like continuous feedback, goal-setting, and employee-driven communication as a high priority.
• Learning & Development (L&D): This HRM function allows employees to acquire new skills and knowledge to perform their job effectively. L&D also prepares employees for taking up higher level of responsibilities. According to the Association for Talent Development (ATD), organizations that offer comprehensive training programs have 218% higher income per employee than organizations without formalized training.
• Compensation management: HRM also includes determining pays for different job types and compensations, incentives, bonuses and benefits related to a job function. According to Jobvite, most people (19%) left their jobs for compensation reasons.
• Policies: HRM functions by drafting, revising, publishing and implementing the organizational policies, which are essential for the fair treatment for all the employees.
• Employee Welfare: This function takes care of numerous services, benefits and facilities provided to an employee for their wellbeing. According to a study by MetLife, 51% of employers say using health and wellness benefits to maintain employee loyalty and retain talent will become even more important in the next 3 to 5 years.
• HRMS: This function involves recording, maintaining and retrieving employee related information including employment history, work hours, earning history etc.

Advisory function includes:

• Top Management Advice: One of the critical HRM functions is to advise the top management in formulating policies and procedures. The advisory function of HRM also advise the top management on appraisal of manpower. This function also involves advice regarding maintaining high-quality human relations and improving employee morale.
• Departmental Head advice: Under this HRM function, HRM advises the heads of various departments on policies related to job design, job description, recruitment, selection, appraisals.

What is the importance of HRM?

The following reasons highlight the importance of HRM.

Recognizing and valuing individuals: HRM acknowledges every employee’s worth within the organization, suggesting that the organization recognize and value individual contributions. The empathy monitor study by the Businessolver states that 93% of employees say they’re more likely to stay at an organization with an empathetic employer. Also, the happywork study by Ultimate Software says that 75% of employees would stay longer at an organization that listens to and addresses their concerns.

People bring ideas: HRM manages people, and people bring new new skills and ideas into the organization and fuel the growth of business.

Quality of work life: Quality of work life is a legitimate concern, and that employees have a right to safe, clean, and pleasant surroundings, which is one of the responsibilities of HRM. According to ‘Global Productivity Hinges on Human Capital Development’, a study by Gallup, 85% of employees worldwide feel disengaged at work and only 15% derive fulfillment from their work.

Upskilling is a long-term interest: HRM recognizes the need for continuous learning; talents and skills must be continually refined in the long-term interests of the organization.

Facilitate continual worker adaptation: Opportunities are constantly changing. Organizations need methods to facilitate continual worker adaptation and HRM provides the organization with those methods.

Employee satisfaction: People have a right to be satisfied by their work, and organizations have a responsibility, and a profit motivation, to try to match their skills with their job. According to DecisionWise via Human Resources Today, 64% of workers globally feel their job gives them a sense of meaning and purpose.

Beyond technical training: HRM has a much broader scope than technical training—employees need to know more than the requirements of a specific task in order to make their maximum contribution.

Benefits of HRM

HRM bridges the gap between the employees and the management of an organization. Operating a successful organization requires a good HRM which is dedicated to the progress and growth of the organization. A balanced HRM is critical to the productivity and synergy of the organization.

An effective HRM allows organizations to tackle human resource issues strategically. HRM supports in attracting and retaining competent employees, helps the organization’s leaders and employees in adapting to organizational change, and enables the adoption of technology. HRM play a critical role in managing employees, helping them to work effectively and creatively to help their organisation to attain a competitive advantage in their market.

The question ‘What is the importance of HRM?’ can be answered by considering all the ways that HRM helps organizations to meet their competitive challenges and create value. These facets of HRM include how an organization manages the human resource environment and acquires, trains, assesses, develops and compensates its employees.

The importance of HRM goes unnoticed in the organization with the routine hustle and bustle in the workplace, but without the effective HRM contributions, the organization might not be able to achieve its fullest potential and expand its horizons.

Here are the benefits of HRM:

• Strategic Management: HRM enhances the company’s bottom-line by triggering positive output, leading to organizational success. Leaders with expertise in HRM participate in corporate decision-making that underlies human resource decisions.
• Mission, vision, values, and goals: HRM when handled strategically contributes to an organization’s mission, vision, values, and goals. This, in turn, enables employees to see where they fit within the organization and helps to shape and define their roles.
• Branding internally: Creating a positive brand about the organization for its employees and internal stakeholders is an important responsibility of HRM. According to a study by CultureIQ, Building an employer brand and company culture helps companies increase qualified candidates (49%), increase diverse candidates (32%), increase employee referrals (41%), and hire the right people (55%).
• Creating awareness for employees: HRM builds workplace awareness by providing complete information to employees of their functioning and governance.
• Maintaining a conducive work environment: A favourable work environment within the organization where the employees can have both hygiene factors and motivators is taken care of by HRM. One of the top employer attributes that jobseekers value most is a pleasant working atmosphere, according to a study by Ranstand.
• Talent management: This is one of the important responsibilities of HRM. HRM remains committed to recruitment and selection, on-boarding, training, management development, performance management, succession planning, career paths, and other aspects of talent management.
• Organizational culture: HRM impacts the culture of the organization and has a key role to play in ensuring that an organization’s culture continues to be supportive and effective. The culture of an organization never solidifies — it changes with changing demographics, workplace norms, industry forces and other factors. HRM moulds the organization’s culture, and the organization’s culture is reflected in the HRM – so they are interlinked. According to another study by CultureIQ, 73% of employers believe a great corporate culture gives their organizations a competitive edge.
• Conflict management: Conflicts are part of any healthy and robust organization. Not everyone always feels the same way, but they need to develop effective working relationships for contributions and productivity. HRM helps by knowing the personalities of each of the employees and taking on the necessary role of advocate, coach or mediator.