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Meaning, Importance and Functions of Human Resource Management.

Human resource management is organizing, coordinating, and managing employees within an organization to carry out an organization's mission, vision, and goals. This includes recruiting, hiring, training, compensating, retaining, and motivating employees

Definition of Human Resource Management (HRM) 

Human resource management is organizing, coordinating, and managing employees within an organization to carry out an organization’s mission, vision, and goals. This includes recruiting, hiring, training, compensating, retaining, and motivating employees. 

HRM staff also develops and enforces policies and procedures that help ensure employee safety. The HRM team manages adherence to federal and state laws that may work to protect employees’ private information and ensure their physical safety and mental and emotional well-being. Organizations of varying sizes and industries rely on HRM to keep business running smoothly and efficiently. 

Purpose of human resource management (HRM)

Companies use HRM to invest in employees to boost job satisfaction and improve employee performance. The methodology behind HRM recognizes the value employees bring to an organization, also known as human capital. Investing in employees and strategically supporting their needs can improve job satisfaction and, therefore, greater success in their role within an organization. 

Employees who are well trained, competent, valued, and supported by their employers will likely have the skills and motivation necessary to carry out the organization’s goals. This might look like tuition reimbursement programs, on-the-job training, or mentorships within an organization that can help employees develop their talents and boost productivity. HRM aims to create a highly skilled workforce and boost confidence and competence so that employees are motivated to contribute. 

HRM has a strong focus on company culture and job satisfaction. Much of what motivates employees comes from the culture in which they work. Building and maintaining company culture can be challenging to measure and quantify, but it’s an important function of HRM to retain and recruit employees. 

HRM also protects employees. Human resource (HR) professionals manage legal documents, policies, and regulations, identify what applies to their organization, and find effective ways to educate employees and enforce company policy. 

HRM aims to be an ally or partner to employees. HRM emphasizes employee development while protecting employees from discrimination, workplace hazards, and unfair compensation. 

 

Human Resource Management more commonly known as HR has been defined in many different ways but at the heart of every definition is the human capital - the employee. HRM is defined as the effective management of people in an organisation or company so that they may contribute to the company's or organization's business success.. HRM systems and policies are designed to maximize employee performance to achieve strategic objectives.

Human Resource Management is defined by Edwin Flippo as “planning, organizing, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.”

Some of the most basic roles of HRM are - recruitment strategies, recruitment, training, motivation, leave policies, other workplace policies, employee-related legal compliances, organisational culture, monitoring, salary structure etc to name a few.

HRM - Human Resource Management Meaning, Nature & its Origin

HR has its origins in the industrial revolution, 18th century Europe. The Industrial Revolution got a large number of labourers who moved from farming into mills, factories and mines. An unexpected rise in the workforce necessitated representation and planning.. This need facilitated the organisation of trade unions to represent the interests of the working people. Employers had to decide whether to accept the unions' demands at a cost to themselves or endure the loss of productivity. The skilled workers were thought to be the first to successfully negotiate their circumstances through this method. Skilled personnel were difficult to replace and faced the risk of joining competitors.

At the same time, intellectuals such as Charles Babbage and Robert Owen highlighted that employee well-being led to excellent performance; a company could not thrive without healthy personnel. they believed the success of an organisation was greatly dependent on the people.  One of the oldest professional HR associations- CIPD (Chartered Institute of Personnel and Development) which was started in the year 1913 had started in England as the Welfare Workers' Association.  The year 1948 saw the formation of the American society for Personnel Administration, this later became the largest professional HR organisation which is the Society for Human Resource Management (SHRM).

The origin of HRM study has its origins in organisational psychology, organisational behaviour, organisational theory and industrial psychology. Cornell University (U.S.A.) in 1945 was the world's foremost institution of higher education to focus on workplace studies at — The School of Industrial and Labour Relations.

Nature of Human Resource Management - HRM

Any and all organisations are fuelled by human beings even artificial intelligence is designed and programmed by human beings making HRM pervasive. Human resource management assumes that the people alone generate value and add to the competitive advantage of organizations making Human Resource Management a very important function in all organisations.

Employees can be certain that they will be working in a professional and safe workplace if a company has statutory compliance in its HR department. Statutory compliance with payroll and employment laws instils employee confidence, helps build a healthy work environment, and increases employee retention. In today's increasingly competitive economy, HRM plays a critical role in employee retention.

 

Importance

WHY HUMAN RESOURCE MANAGEMENT IS IMPORTANT

Employees are the foundation of every successful business. This is why human resource (HR) management is so important.

The HR department performs a wide variety of duties and is responsible for helping employees feel safe, valued and properly supported. Exceptional human resource management ensures that the HR department runs smoothly and continues to evolve over time. 

FUNCTIONS

Functions of HRM:

1.     Job design and job analysis (2) Employee hiring and selection (3)Employee training & development (4) Compensation and Benefits (5) Employee performance management (6) Managerial relations (7) Labour relations (8) Employee engagement & communication (9) Health and safety regulations (10) Personal support for employees (11) Succession Planning  (12) Industrial Relations

1. Job design and job analysis

One of the foremost functions of HRM is job design and job analysis. Job design involves the process of describing duties, responsibilities and operations of the job. To hire the right employees based on rationality and research, it is imperative to identify the traits of an ideal candidate who would be suitable for the job. This can be accomplished by describing the skills and character traits of your top-performing employee. Doing so will help you determine the kind of candidate you want for the job. You will be able to identify your key minimum requirements in the candidate to qualify for the job.

Job analysis involves describing the job requirements, such as skills, qualifications and work experience. The vital day-to-day functions need to be identified and described in detail, as they will decide the future course of action while recruiting.

2. Employee hiring and selection

Recruitment is one of the primary functions of human resource management. HRM aims to obtain and retain qualified and efficient employees to achieve the goals and objectives of the company. All this starts with hiring the right employees out of the list of applicants and favourable candidates.

An HRM helps to source and identify the ideal candidates for interview and selection. The candidates are then subjected to a comprehensive screening process to filter out the most suitable candidates from the pool of applicants. The screened candidates are then taken through different interview rounds to test and analyse their skills, knowledge and work experience required for the job position.

Once the primary functions of HRM in recruitment are completed, and the candidate gets selected after rounds of interviews, they are then provided with the job offer in the respective job positions. This process is important because these selected employees will, after all, help the company realise its goals and objectives.

3. Employee training & development

Imparting proper training and ensuring the right development of the selected candidates is a crucial function of HR. After all, the success of the organisation depends on how well the employees are trained for the job and what are their growth and development opportunities within the organisation.

The role of HR should be to ensure that the new employees acquire the company-specific knowledge and skills to perform their task efficiently. It boosts the overall efficiency and productivity of the workforce, which ultimately results in better business for the company.

HRM plays a very crucial role in preparing employees for bigger tasks and responsibilities, which leads to the holistic development of employees at work. And an organisation which provides ample growth and development opportunities to its employees is considered to be a healthy organisation.

4. Compensation and Benefits

Benefits and compensation form the major crux of the total cost expenditure of an organisation. It is a must to plug the expenses, and at the same time, it is also necessary to pay the employees well. Therefore, the role of human resource management is to formulate attractive yet efficient benefits and compensation packages to attract more employees into the workplace without disturbing the finances of the company.

The primary objective of the benefits and compensation is to establish equitable and fair remuneration for everyone. Plus, HR can use benefits and compensation as a leverage to boost employee productivity as well as establish a good public image of the business.

Therefore, one of the core HR department functions is to lay down clear policies and guidelines about employee compensation and their available benefits. One of the functions of HR manager is to ensure the effective implementation of these policies and guidelines. This creates equality and builds transparency among the employees and the management within the organisation. After all, the level of employee satisfaction at work is directly proportional to the compensation and benefits they receive.

5. Employee performance management

The next activity on the HR functions list is effective employee performance management. Effective performance management ensures that the output of the employees meets the goals and objectives of the organisation. Performance management doesn’t just focus on the performance of the employee. It also focuses on the performance of the team, the department, and the organisation as a whole.

6. Managerial relations

Relationships in employment are normally divided into two parts — managerial relations and labour relations. While labour relations is mainly about the relationship between the workforce and the company, managerial relations deals with the relationship between the various processes in an organisation.

Managerial relations determine the amount of work that needs to be done in a given day and how to mobilise the workforce to accomplish the objective. It is about giving the appropriate project to the right group of employees to ensure the efficient completion of the project. At the same time, it also entails managing the work schedules of employees to ensure continued productivity. It is essential that HR handles such relations effectively to maintain the efficiency and productivity of the company.

7. Labour relations

Cordial labour relations are essential to maintain harmonious relationships between employees at the workplace. At the workplace, many employees work together towards a single objective. However, individually, everyone is different from the other in characteristics. Hence, it is natural to observe a communication gap between two employees. If left unattended, such behaviours can spoil labour relations in the company.

Therefore, it is crucial for HR to provide proper rules, regulations and policies about labour relations. This way, the employees have a proper framework within which they need to operate. Therefore, every employee will be aware of the policies which will create a cordial and harmonious work environment.

Such a structured and calm work atmosphere also helps with improving performance and aching for higher targets.

8. Employee engagement and communication

Employee engagement is a crucial part of every organization. Higher levels of engagement guarantee better productivity and greater employee satisfaction. Efficiently managing employee engagement activities will also help improve employee retention rates. HRM is the right agent who can manage employee engagement seamlessly. Proper communication and engagement will do wonders for the employees as well as the organization. The more engaged the employees are, the more committed and motivated they will be.

Human resource teams know the ‘humans’ of the organization better than anyone else. This gives them an upper hand in planning engagement activities. Although such activities might not fall under the direct functions of HRM, they are indeed required for organizational welfare and employer branding.

 

9. Health and safety regulations Every employer should mandatorily follow the health and safety regulations laid out by the authorities. Our labour laws insist every employer provide whatever training, supplies, PPE, and essential information to ensure the safety and health of the employees. Integrating health and safety regulations with company procedures or culture is the right way to ensure the safety of the employees. Making these safety regulations part of the company activities is one of the important functions of HRM.

10. Personal support for employees

HRM assists employees when they run into personal problems which may interfere with the workflow. Along with discharging administrative responsibilities, HR departments also help employees in need. Since the pandemic, the need for employee support and assistance has substantially increased. For example, many employees needed extra time off and medical assistance during the peak period of the pandemic. For those who reached out for help, whether it may be in the form of insurance assistance or extra leaves, companies provided help through HR teams.

11. Succession Planning

Succession planning is a core function of HRMs. It aims at planning, monitoring, and managing the growth path of the employees from within the organizations.

What usually happens is that promising and bright employees within the organization who have excelled in their roles are handpicked by their supervisors and HRs, and their growth paths are developed.

This, of course, becomes quintessential as those employees who recognize the fact that the company is investing in their growth and development, and therefore, will stay loyal in the long run. However, while developing such employees towards a higher role, companies must keep in mind several aspects, such as improving employee engagement, assigning challenging tasks and activities.

An employee leaving the organisation can prove to be disruptive and expensive. Therefore, succession planning is a saviour of some sorts, as it helps identify the next person who is just right to replace the outgoing individual.

12. Industrial Relations

It’s usually the production lines and manufacturing units where this HR function is mostly used. You see, Unions exist in factories and manufacturing units. And their responsibility is towards the goodwill about the workers — in fact, they’re always vocal and upfront about.

Now, for a company, especially into manufacturing and production, the HRs must have ongoing Industrial Relations practices. They must also continuously engage with the Unions in a friendly and positive manner to maintain amicable relations.

The true motive of Industrial Relation touches on a lot of issues within the company. For instance, Industrial Relations may be in place to meet wage standards, reduce instances that call for strikes and protests, improve working and safety conditions for employees, reduce resource wastage and production time and so on.

Industrial Relations is extremely important because, if handled properly, they can circumvent protests, violence, walkouts, lawsuits, loss of funds and production time. IR is a sensitive yet critical function of the HR department, naturally, it requires personnel with vast experience.

HRM plays a major role in the smooth functioning of the organisation. The process starts with formulating the right policies for the job requirements and ends with ensuring the successful business growth of the company. Therefore, HRM works as an invisible agent that binds together all the aspects of the organisation to ensure smooth progress.