The Role Of Human Resources In Organizations – Any organization, big or small, uses different types of capital to keep the business running. Capital includes cash, valuables, or goods used to generate revenue for a business. For example, a retail store uses registers and inventory, while a consulting firm may have its own software or buildings. Regardless of industry, all companies have one thing in common: their capital must be the people who work for them. This will be our main focus throughout the text: making money using people’s skills and abilities.

Human resource management (HRM) is the process of recruiting, training, compensating, developing policies and developing strategies for retaining people. As a field, HRM has undergone many changes over the past two decades, giving it an even more important role in today’s organizations. In the past, HRM meant processing payroll, sending birthday gifts to employees, organizing company visits, and making sure forms were filled out correctly—more of an administrative role than a strategic role critical to the organization’s success. Jack Welch, former CEO of General Electric and management guru, sums up the new role of HRM: “Get out of the weddings, birthdays, and registration forms…Remember, HR matters in good times, HR is defined in bad times” (Frasch, vol. .p., 2010).

The Role Of Human Resources In Organizations

It should be noted at the beginning of this text that every manager has some role to play in human resource management. Just because we don’t have the title of HR Manager doesn’t mean we don’t handle all or at least some of the HRM tasks. For example, most managers are concerned with employee compensation, motivation and retention – making these aspects not only part of HRM but also part of management. As a result, this book is essential for both the aspiring HR manager and the person running a business.

Hr’s Evolving Role: No More

Have you ever had to deal with human resources at your job? What was the interaction like? What was the department’s role in this particular organization?

Remember that many HRM functions are tasks performed by other department heads, making this information important regardless of career path. Most experts agree on seven main roles that HRM plays in organizations. They are described in the following sections.

In an organization, you need people to complete tasks and get work done. Even with the most sophisticated machines, people are still needed. In this regard, one of the main tasks in the HRM system is staffing. Staffing covers the entire recruitment process from job posting to salary package negotiation. There are four main steps in HR:

Every organization has a policy that ensures fairness and continuity within the organization. One of the jobs of HRM is to develop the words around these policies. HRM, management and executives are involved in the policy development process. For example, an HRM professional recognizes the need for a policy or policy change, seeks feedback on the policy, writes the policy, and then communicates the policy to employees. It is important to note here that HR departments do not and cannot work alone. Everything they do should involve all other parts of the organization. Some examples of workplace policies may include:

Components Of Human Resource Management

These topics are covered further in Chapter 6, “Rewards and Benefits,” Chapter 7, “Retention and Motivation,” Chapter 8, “Training and Development,” and Chapter 9, “Successful Employee Relations.”

HRM professionals must determine that compensation is fair, in line with industry standards, and high enough to attract people to work for the organization. Compensation includes anything an employee receives for their work. Additionally, HRM professionals must ensure that salaries are comparable to what other people doing similar jobs are paid. This includes creating a salary system that takes into account the number of years with the organization, experience, education and similar aspects. Examples of workers compensation include:

Retention involves retaining and motivating employees to stay with the organization. Compensation is a major factor in employee retention, but there are other factors as well. 90 percent of employees leave the company for the following reasons:

Despite this, 90 percent of managers believe that employees quit as a result of pay (Rivenbark, 2010). As a result, managers often try to change compensation packages to prevent people from leaving when compensation isn’t the reason they leave. Chapter 7, “Retention and Motivation,” and Chapter 11, “Employee Evaluation,” discuss some of the best retention strategies based on these four factors.

What Is Organization Development

After we take the time to hire new employees, we want to make sure they are not only trained to do the job, but also develop new skills and continue to grow in their jobs. This leads to higher productivity for the organization. Training is also a key component of employee motivation. Employees who feel they are developing their skills are happier in their jobs, which increases employee retention. Examples of training programs may include:

We look at each of these types of training in more detail in Chapter 8, Training and Development.

Human resources personnel must be aware of all laws affecting the workplace. An HRM professional may work with some of these laws:

The HRM legal environment is constantly changing, so HRM must always be aware of the changes taking place and then communicate these changes to the entire management organization. Instead of presenting a chapter focused on HRM laws, we will cover these laws in each relevant chapter.

Human Resources Organization Chart: What Is It And How To Create One?

Security is a critical concern in all organizations. New laws are often created to establish federal or state standards to ensure worker safety. Unions and union contracts can also affect employee safety requirements in the workplace. It is up to the human resources manager to be aware of employee protection requirements and to ensure that the workplace meets federal and union standards. Worker protection issues may include:

We discuss these issues in detail in Chapter 12, Working with Trade Unions, and Chapter 13, Occupational Safety and Health.

Topic: Knowing the law regarding worker protection is a human resources job. In some industries, this is critical; in fact, it could mean life or death.

In addition to these basic roles, good communication skills and excellent management skills are key to successful human resource management as well as general management. We discuss these issues in Chapter 9, “Successful Employee Relations.”

Pdf) Role Of Human Resource Management Functions On Organizational Performance With Reference To Kenya Power & Lighting Company – Nairobi West Region

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 a company cannot directly control; however, they can be things that can have a positive or negative impact on human resources. External factors may 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 remotely for certain periods of time, such as one day a week). HR was affected. HRM must be aware of these external issues so they can develop 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. Compliance with this bill has huge implications for HR. For example, a company with more than fifty employees must provide health insurance or pay a fine. Currently, 60 percent of employers offer health insurance to their employees (Cappelli, 2010). Because health insurance will be mandatory, costs as well as the use of health benefits as a recruitment strategy are major external challenges. Any manager who ignores external forces can alienate employees, resulting in unmotivated, unhappy workers. Failure to understand external factors can also mean breaking the law, which also has a number of consequences.

Understanding key external factors is essential for a successful HR professional. This allows him to make strategic decisions based on changes in the external environment. It is necessary to read various publications to develop this understanding.

One way managers can stay aware of external forces is by attending conferences and reading various articles on the Internet. For example, the Society for Human Resource Management website, SHRM Online

What Is A Human Resources Information System (hris)?

, which not only provides job postings in the industry, but also discusses many modern human resource issues that help managers make better decisions about people management. In Section 1.3 Challenges in HRM Today, we take a deeper look at some of the latest external issues affecting HR management roles. 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 this should be considered in relation to each other

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