Role Of Human Resources In An Organization – Every organization, big or small, uses different types of capital to run its business. Capital includes money, valuables, or goods used to generate income for a business. For example, a retail store uses registers and inventory, while a consulting firm may own software or buildings. Regardless of the industry, all companies have one thing in common: they need people to make capital work for them. Throughout this text, our focus will be on generating income using people’s skills and talents.
Human resource management (HRM) is the process of developing strategies for hiring, training, compensating, developing policies regarding people, and retaining them. As a field, HRM has undergone many changes over the past two decades, making it an increasingly important role in today’s organizations. In the past, HRM meant processing payroll, sending out birthday gifts to employees, making sure company check-ins and forms were filled out correctly—in other words, an administrative role rather than a strategic role critical to an organization’s success. Jack Welch, former CEO of General Electric and management guru, sums up the new role of HRM: “Get out of the parties, birthdays, and sign-up forms. … Remember, HR matters in good times, and HR matters in bad times” (Frash, et al., 2010). .
- 1 Role Of Human Resources In An Organization
- 2 Things To Ponder About Human Resource Management
- 3 What Is Human Resource? (human Resource Management And Analytics)
Role Of Human Resources In An Organization
Here, at the beginning of this text, it should be pointed out that every manager has some role in human resource management. Just because we don’t have an HR manager title doesn’t mean we don’t handle all HRM tasks. For example, many managers deal with compensation, motivation and employee retention – making these aspects not only part of HRM but also part of management. As a result, this book is equally important for aspiring HR managers and business managers alike.
Things To Ponder About Human Resource Management
Have you ever had to deal with HR at your job? What was the relationship like? What was the department’s role in this particular organization?
Remember that many HRM functions are tasks performed by other department managers, making this information important regardless of career path. Most experts agree on seven key roles that HRM plays in organizations. These are described in the following sections.
You need people to carry out tasks and get things done in your organization. Even the most sophisticated machines require people. Therefore, one of the main tasks in HRM is HR. HR covers everything from hiring to negotiating salary packages. There are four main steps within the HR function:
Every organization has a policy to ensure fairness and continuity within the organization. One of the jobs of HRM is to get around this policy. When policy is made, staff, managers, and leaders are involved in the process. For example, an HRM professional will likely recognize the need for a policy or policy change, seek feedback on the policy, write the policy, and then communicate the policy to employees. It should be noted here that the HR department does not and cannot work alone. All of them should involve other departments of the organization. Some examples of workplace politics may include:
What Is Human Resource? (human Resource Management And Analytics)
These topics are covered further in Chapter 6, “Compensation and Benefits,” Chapter 7, “Retention and Motivation,” Chapter 8, “Training and Development,” and Chapter 9, “Effective Employee Communication.”
HR professionals must ensure that compensation is fair, meets industry standards, and is sufficient to motivate people to work for the organization. Compensation includes anything an employee receives for their work. In addition, HRM professionals should review salaries to ensure they are comparable to the salaries of others doing similar work. This includes creating pay systems that take into account the number of years with the organization, years of experience, education and similar aspects. Employee compensation includes:
Retention involves motivating employees to stay with the organization. Compensation is a major factor in employee retention, but there are other factors as well. Ninety percent of employees leave the company for the following reasons:
Despite this, 90 percent of managers believe that employees leave because of pay (Rivenbark, 2010). As a result, managers often try to change compensation packages to keep people from leaving when compensation is not a reason to leave at all. Chapter 7, “Retention and Motivation,” and Chapter 11, “Employee Appreciation,” discuss some strategies for retaining the best employees based on these four factors.
The Essential Role Of Hr In An Organization
When we take the time to hire new employees, we want them to not only do the job, but to continue to develop and develop new skills in their jobs. This leads to higher productivity for the organization. Training is also a key component in motivating employees. Employees who feel they are developing their skills are happier in their jobs, which leads to employee retention. Examples of training programs may include:
We address each of these types of learning in Chapter 8, Learning and Development.
Human resources personnel must be aware of all laws that apply to the workplace. An HR professional may deal with some of these laws:
The legal environment of HRM is always changing, so HRM must always be aware of the changes and then communicate these changes to the entire management organization. Instead of presenting a chapter focused on HRM laws, we will refer to these laws in each chapter.
Functions Of Human Resource Management
Security is a key focus in all organizations. In most cases, new laws are enacted to establish federal or state standards to ensure worker safety. Unions and union contracts can also affect worker safety requirements in the workplace. The HR manager must be aware of worker protection requirements and ensure that the workplace meets federal and union standards. Employee protection issues include:
We look at these issues in detail in Chapter 12 ‘Working with Trade Unions’ and Chapter 13 ‘Safety and Health at Work’.
Note: Knowledge of labor protection law is generally a human resources task. In some industries this is very important; in fact it could mean life or death.
In addition to these key roles, good communication skills and excellent management skills are key to successful human resource management and general management. We discuss these issues in our section on Successful Employee Communication.
Where Should Km Leadership And Governance Belong In An Organization?
In addition to managing internal factors, the HR manager must consider external forces that may affect the organization. External forces, or external factors, are things that the company has no direct control over; however, they can be things that have a positive or negative impact on human resources. External factors include:
For example, the recent trend of flexible work schedules (allowing employees to set their own schedules) and telecommuting (allowing employees to work from home or at a remote location for a specific period of time, such as one day a week) are external factors. personnel were affected. HRM must be aware of these external issues so that they can create policies that meet not only the needs of the company but also the needs of individuals. Another example is the Patient Protection and Affordable Care Act, signed into law in 2010. The implementation of this bill has significant implications for personnel. For example, a company with more than fifty employees must provide health care or pay a fine. Currently, 60 percent of employers offer health insurance to their employees (Cappelli, 2010). Health insurance will become mandatory, and concerns about costs, as well as the use of health benefits as a recruiting strategy, are major external issues. Any manager who acts without consideration of external forces will likely alienate employees, resulting in unmotivated and unhappy workers. Failure to understand external factors can also mean breaking the law, which has consequences.
Understanding the key external factors for successful HR is important. This allows him to make strategic decisions based on changes in the external environment. Reading a variety of publications is necessary to develop this understanding.
One way managers can stay aware of external forces is by attending conferences and reading various articles on the web. For example, the Society for Human Resource Management website, SHRM Online
Human Resource Transformation Toolkit Organization Vision Team Roles Showing
, discusses not only jobs in the field, but also contemporary human resource issues that can help managers make better decisions about people management. In Section 1.3, “Today’s HRM Challenges,” we delve deeper into the latest external challenges affecting the role of human resource management. In Section 1.1.2, “The Role of HRM,” we discuss some of the skills needed to be successful in HRM.
Most professionals agree that there are seven main tasks that HRM professionals perform. All of this must be considered in context
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