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Date published May 22, 2019 Categories 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. What's HotHRD Roundtable Report: Levelling Up Onboarding for...Attracting new talent is shooting up the priority list, but also proving more difficult than ever. 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Operative function Includes:
Advisory function includes:
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:
What is the primary role of HR management?Essentially, the purpose of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees. This mandate is unlikely to change in any fundamental way, despite the ever-increasing pace of change in the business world.
Which of the following is an organized approach for obtaining relevant and timely information on which to base HR decisions?The correct option is B) HR information system
It keeps information of employees working and about them.
Which of the following is a primary objective of the human resource department?The primary objective of HRM is to ensure the availability of competent and willing workforce to the organization as well as to meet the needs, aspirations, values and dignity of individuals/employees and having due concern for the socio-economic problems of the community and the country.
What is the process through which the organization chooses?Selection: Process through which the organization chooses, from a group of applicants, those individuals best suited both for open positions and the company.
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