21 Vital Importance of HRM(Human Resource Management)
21 Vital Importance of HRM(Human Resource Management): A modern approach to maintaining people at the workplace is Human resource Management. An organization can never succeed in its goal without good human resources. The highlighted functions of Human Resource Management team are to recruit suitable candidates, provide proper training, encouraging employees and establish a better connection with all the employees.
Also See: Top 12 Responsibilities And Role of HR Manager
Importance of HRM(Human Resource Management)
So, it is important for the growth of an organization and how it is vital will be discussed below in brief. Let’s begin with the maintenance of quality in the working environment.
1. Maintain the quality of work-life
Quality of work is defined as the perception of employees towards the relationship between work atmosphere in an organization and the management. It signifies the connection of employees with the work environment. The main concern of the quality of work-life is associated with the employee’s physical insight as well as psychological well being at the workplace. It can be acquired by keeping up the work autonomy, freedom to work, job recognition, and reward and so on.
Also See: Importance of Motivation in HRM?
2. Maximization of Gain and productivity
The accurate quantity and quality of personnel are ensured by the HRM professionals in an organization. Apart from the right employees at the workplace, it also creates opportunities to avail and motivates individuals as well as the group of employees to enhance and advance their professional career. Due to the relevant opportunities, the encouraged employees work hard to fulfil the personal career objectives which have a straight impact on the productivity of an organization. When productivity increases within an organization, then it automatically affects the cost and maximizes the profit margin.
3. Employees must be adaptable to changes
various functions are performed by human resource management and out of which, training, as well as the development of employees, is the main focus. Special programs of training and development remain the employees updated with all the skills required to adjust with alteration in environment, structure and innovative technologies of an organization.
Also See: Work Life Balance in HRM? How to Maintain It
4. Equality in demand and supply of human resource
The exploration of human resources is done after a certain interval of time to investigate the sufficient number of employees needed to work in an organization. In case, if the number of employees is inadequate in an organization, then various activities of hiring and selection are done to perform the activities to balance the need of employees in an organization. On the other side, if the company has an excess number of employees as compared to the needs, then they also lay off inefficient workers.
5. Retain and Motivate employees
The importance of human resource department emerged when it comes to utilization of potential employees and maintaining them within the organization for a long time. Under this, the deserving candidates receive a reward, compensation as well as fringe benefits by the HR personnel to encourage and grow their interest to do the job in an efficient and effective manner. All such activities and steps in favor of the employees not only maintaining them in the working environment of an organization but also assist them to achieve the goals as assigned to them in a timely manner.
Also See: Employee Motivation- Definition, Importance, Techniques, Quotes
6. Recognition of the contribution of employee
To order to differentiate the poor from the deserving employees in an organization, HRM performs an appraisal of the employees from time to time. The excellent employees get rewarded for their utmost contribution to the growth of an organization and its goal achievements.
7. Create a feeling of team spirit and belongingness
The designing of the job is done on the basis of teamwork by the HRM. As a part of a team, the contribution of each member is required to emphasize the targets and it gives a feeling of importance to every employee. In this way, the best possible efforts made by every employee to accomplish the goals in a defined time frame.
Also See: Importance of Recruitment and Why It Is Needed?
8. Sustainability of the business in the marketplace
It ensures by the Human Resource Management team that all the employees are up to mark according to the requirements as well as goals of an organization. The abilities and skills of the employees help the organization to go ahead in this competitive market by delivering thriving and excellent services. So, the success and stability of an organization depend on how efficient and capable the employees of the company are.
9. Resolving Conflicts
No matter how small or big a company is, it is obvious that conflicts arise among different parties and employees due to the strong and distinctive opinion of the employees. It is evitable that the conflicts arise but it ought not to be ignored in any case. In such issues, HRM acts as a consultant between the various parties and sort out the issues to maintain the working atmosphere. In this way, the working of an organization runs in a smooth way.
Also See: 8 Common Types of Human Resources
10. Develop corporate image
In order to sustain in the market, a professional and good image should be maintained by all the companies. Everyone is interested to work with the company who has a good reputation for moral as well as social behaviour. On the contrary, the companies having a bad image and deal with their employees in an ineffective way can run through the deficiency and collapse of employees.
11. Recruitment
HRM has the utmost importance in the recruitment process of employees. The plans and strategies come from the HR department to recruit the suitable and right employee for an organization. Different criteria designed by them to recruit the employees for various departments as it suits such as personal interview, online assessment tests, face-to-face interview, writing tests, etc. The formulation of obligations for employees and the clear vision of their tasks as assigned to them are also done by the HRM personnel. By considering all such factors, the contract is also signed with the candidate to keep a piece of evidence that the person agrees with all the terms and conditions of the company.
Also See: Scopes of Human Resource Management
12. Training
After meeting all the requirements of the recruitment process, it is time to provide proper training to the employee as per the needs of the company. Here, the working employees get a chance to sharpen their skills and develop them at the same time which will help them to fulfil all the duties associated with their assigned role.
13. Grow public relations
To a great extent, maintenance of public relations is a responsibility of the HRM department. They systematize official meetings, seminars, get together and official gathering on behalf of the company to improve and build up strong bonds with other areas and business firms. At the same token, HRM also plans some impressive and attractive marketing and advertising plans in such events for the growth of the company.
14. Facilitates growth as a professional
The employees trained well due to the training policies of HRM department and this makes them ready future challenges in any sort of working environment. The gained knowledge and skills not only utilized in their current organization but also contribute to the growth of other companies which they may hire in the future.
Also See: Functions of Human Resource Management
15 Co-ordinal relationships
The healthy practices of Human Resource Department can assist the company to maintain and establish co-ordinal relationships with the unions. In this way, the workers realized that they have great value for the company and always remain in favour of the company’s decision.
16. Monitor Company’s Culture
A different culture followed by various companies. Most of the organizations even say that the culture owes by the HR department, but the ownership lies in the management as well as employees. It must be ensured by HRM personnel that the creativity and productivity will enable by the company to jump into the ocean of success.
17. Develop fair and strategic Compensation Plan
The knowledge and awareness about every location and associated expenses are known by HRM and they decide the rules and policies for salary accordingly. In addition to this, they also implemented a certain grade for salary at all the levels of the company.
Also See: Human Resource Development (HRD): Definition, Process, Functions
18. Handling Payrolls
It does not matter whether the business is small or large, HRM plays a great role in handling payrolls each year. The entire details of employee related to the payment are managed by the HR Department.
19. Maintain Management Cost
Regular surveys organized by the HR Personnel to get a detailed report on current salary status via the labour market. They also ensure that the functions and responsibilities of an employee are equivalent to the salary they get. HRM is a very perfect solution for the companies who have the main concern about the management of the budget.
Also See: Ethics in HRM (Human Resource Management) – Importance & Guidelines
20. Brings in joy in Organization
All the responsibilities take-up by the Human resource department related to various events, activities, theater trips, celebrations, festive seasons, ceremonies and other opportunities for development. HR has the ability to organize all such recreational events for the employees and manages the budget too.
21. Proper use of all resources
It is certain that HRM personnel make the proper use of all resources whether they are human and non-human. They have a policy that if all the resources utilized in a proper way, then they can achieve the set goals of the company.
Also See: 12 Prime Functions of Human Resource Management
In spite of the standalone tint, the overall importance of Human Resource Management in an organization can be clearly seen through the prism of strategic objectives. It is not a micro approach. A holistic opinion needs to be adopted towards the HRM personnel as the policies of the department enmesh with the goals of the company. To exemplify, if the obligatory training to the employees met in an indecent way, then the company suffers a lot of wastage of time as well as it also feels deviated from the right direction.
To encapsulate, there must be integration between the practices of the human resource and entire strategies for the organizational growth to utilize the potential of employees and offers a better return on investment (ROI) for every buck spend on this personnel.
Also See: Evolution and History of Human Resource Management
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