Understanding HR Management and It’s significance ?
In this article we will understand what exactly HRM is and why is it so important for an organization ?
Firstly it is germane to define Human Resources. In layman’s language it refers to the people of an organization. William R. Tracey, in The Human Resources Glossary, defines Human Resources as: “The people that staff and operate an organization.”
Human Resource Management, as the term explains is primarily concerned with managing the resourceconsidered to be the greatest asset of any organization — Human or people working within an orgnization. HRM is also an important organizational function which is common to all the organizations irrespective of its size and nature.
According to Armstrong (1997), Human Resource Management can be defined as “a strategic approach to acquiring, developing, managing, motivating and gaining the commitment of the organisation’s key resource — the people who work in and for it.”
HR Management is defined as a strategic management and cohrent approach concentrated to manage the people of an organization, the work culture or the environment and formulating policies and practices. which contributes in effective and efficient functioning of an organization.
It is a process — HRM is a process of managing people in organizations in a structured , systemized and thorough manner.
It can be defined as a process of procuring, developing and maintaining competent workforce in the organisation in order to achieve the goals of the organizations.
HRM is both an Art and Science
Science provides the proven facts and working knowledge & Art deals with the application of knowledge and skills. One must possess the working knowledge and also the art of applying the knowledge according to the situations we confront in managing the organization and its people.
What functions does an HRD in an organization performs?
Functions of Human Resource Management -
HRM plays a very significant role in the overall functioning of an organization.The functions are governed and taken care by the Human Resource Department, is the soul of any organization. It ensures the optimumand effective utilisation of human resources.
Now lets study in brief about the various roles and functions of HRM. They can be broadly classified into 3 categories -
1. Managerial Functions
2. Operational Functions
3. Advisory Functions
Managerial Functions include -
Planning : Planning is deciding in advance what is to be done, how it is to be done and by whom it is to be done. In this function the focus is on ascertaining the no. of people required to attain the organizational goals, anticipating vacancies, Job analysis — job requirements, job descriptions,competencies, etc.
Organizing — it includes organizing different tasks, In an organisation tasks are allocated among the employees as per the plan, relationships are established, and activities are integrated towards the common objective or aim which an organization strives to attain.
Directing — This function includes directing people towards a common pre-planned goal. Motivation is a key element here, motivating and encouraging the people to work willingly and effectively for the goals. Here HR Management has to ensure employee morale, maintaining cordial relationships, healthy working environment, pay & rewards and provision of safety requirements and welfare of employees to keep the employee motivated.
Controlling — Controlling is a process which measures the actual performance of the employees against the standard performance and provides corrective actions to be taken to bridge the deviation. Employee’s performance is assessed to ensure that predefined goals are met.It helps the HR Department to take decisions related to Performance appraisal, Training and Development, Promotion, Recruitment, Assessing JDs and taking corrective measures for improving the performance.
Staffing — Putting the right people at the right place is what staffing or recruiting is all about. Maintains competent workforce.
Performance Appraisal — As discussed in the managerial function it is a tool for controlling the performance or tracking the performance with respect to the goals met/targets achieved.
Training and Development — HR Department looks after the Training — acquiring necessary skills to perform a task more efficiently and Developing — Enhancing the existing skills of the employees and developing/improving them further.
Compensation — Human resource management determines the pay or salary/wages of every employee/worker according to the job type. HR Management decides employees compensation which includes — wage administration, salary administration, incentives, bonuses, fringe benefits etc.
Industrial Relations — Maintaining the internal relations of an organization, between employer and employer, employer and employee and employee and employee. They are responsible for resolving conflicts if any.
Maintenance — Working Conditions : Maintaining healthy working environment is very crucial to ensure“Happy Employees, cordial relationship and efficiency.
Employee Welfare: This function refers to various services, benefits, and facilities that are provided to employees for their well being.
HR Department holds an important role in the formulation of personnel programs, policies, and procedures. It takes part in decision making process along with the Top level management and is responsible for the application of the plans formulated.
Why is Human Resource Management important?
Well after understanding the meaning and functions of HRM it can be estimated that it holds a prime importance in an organization.
The function explains well and can be related to its significance. Human Rsource undoubtedly is the greatest assest as capital, land and material ,the other agents of production, are of no use without the key element which is labour. Managing the human resource ensures the expected output and better allocation of this resource helps to attain optimum results.
Maintaining the work culture and environment is equally important as it contributes to employee engagement, productive atmosphere, performance level etc.
Hence, Human Resource Department is the backbone of any organization.
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Author: Jaspreet Kaur