What Is The Role Of Human Resources In An Organization – You have just been hired to work in the HR department of a small company. You learned about the job at a conference you attended organized by the Society for Human Resource Management (SHRM). Prior to this, the owner of the company, Jennifer, handled all things Human Resource Management (HRM). You can tell she’s a bit critical of paying a good salary for something she managed to juggle on her own. On your first day, you meet with the ten employees and spend a few hours with the owner of the company, hoping to find out which HR processes are already set up.
Shortly into the meeting, you see that she has a completely different perspective on what HR is, and you realize that it will be your job to educate her on the value of an HR manager. You see it as a personal challenge – both to educate her and to show her the value of this role in the organization.
What Is The Role Of Human Resources In An Organization
First, you tell her that HRM is a strategic process related to personnel, compensation, retention, training, and labor law and business policy. In other words, your job as a human resources (HR) manager will not only be to write policy and procedures and hire people (the administrative role), but also to use strategic plans to ensure that the right people are hired and trained for the right job at the right time. For example, you ask her if she knows what her income will be in six months, and Jennifer says, “Sure. We expect it to increase by 20 percent. You ask, “Have you thought about how many people you’re going to need because of this increase?” Jennifer looks a little shy and says, “No, I guess I haven’t gotten that far.” You then ask her about the training programs the company offers, the software , used to allow employees to access pay information online, and compensation policies. She replies, “Looks like we have some work to do. I didn’t know HR included all of that. You smile at her and start discussing some of the specifics of the business, so you can start writing the strategic HR plan right away.
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Every organization, large or small, uses different types of capital. Capital includes cash, valuables, or goods used to generate revenue for a business. for the business to operate. Capital includes cash, valuables or goods used to generate income 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: they must have people to make their capital work for them. This will be our focus throughout the text: generating revenue by leveraging people’s skills and abilities.
Human Resource Management (HRM) The process of hiring people, training them, compensating them, developing workplace policies, and developing employee retention strategies. is the process of hiring people, training them, compensating them, developing policies related to them, and developing strategies for retaining them. As a field, HRM has undergone many changes over the past twenty years, 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 outings, and making sure forms were filled out correctly—in other words, more of an administrative role than a strategic role critical to the success of the organization. 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 that HR is important in good times, HR is determined in tough times.” Kristen B. Frasch, David Shadowitz, and Jared Shelley, “No Whining in HR,” HR Executive Online, June 30, 2009, accessed September 24, 2010, http:// www.hreonline.com/HRE/story. jsp?storyId=227738167.
Here, at the very beginning of this text, it is necessary to note that every manager has some role related to human resource management. Just because we don’t have the title of HR Manager doesn’t mean we won’t do all or at least some of the HRM tasks. For example, most managers deal 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 equally important for someone who wants to be an HR manager and someone who will be running a business.
Have you ever had to deal with the HR department at your job? What was the interaction like? What was the department’s role in this particular organization?
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Note that many HRM functions are also tasks performed by other department managers, making this information important regardless of the career path taken. Most experts agree on seven main roles that HRM plays in organizations. These are described in the following sections.
You need people to perform tasks and get work done in the organization. Even with the most sophisticated machines, people are still needed. Therefore, one of the main tasks of HRM is personnel. Staffing The entire recruitment process from the first step of posting a job to actually hiring an employee. includes the entire recruitment process from posting a job to negotiating a salary package. There are four main steps within the HR function:
Every organization has policies to ensure fairness and continuity in the organization. One of the tasks of HRM is to develop the verbiage around these policies. HRM, management and executives are involved in the policy development process. For example, an HR professional would likely recognize the need for a policy or policy change, seek opinions on the policy, write the policy, and then communicate that 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 departments in the organization. Some examples of workplace policies might be the following:
These topics are further discussed in Chapter 6, Compensation and Benefits, Chapter 7, Retention and Motivation, Chapter 8, Training and Development, and Chapter 9, Effective Employee Communication.
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HR professionals must determine that compensation is fair, meets industry standards, and is high enough to entice people to work for the organization. Compensation Everything an employee receives for their work. May include pay, benefits, vacation and sick leave. includes everything the employee receives for his work. Additionally, HR professionals need to make sure that the pay is comparable to what other people doing similar work are getting. This includes creating pay systems that take into account the number of years in the organization, years of experience, education and other similar aspects. Examples of employee benefits include the following:
Retention The process and strategies for retaining and motivating employees to remain with the organization. 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. Ninety percent of employees leave a company for the following reasons:
However, 90 percent of managers believe that employees leave as a result of pay. Leigh Rivenbark, “The 7 Hidden Reasons Why Employees Leave,” HR Magazine, May 2005, accessed October 10, 2010, http://findarticles.com/p /articles/mi_m3495/is_5_50/ai_n13721406. As a result, managers often try to change their compensation packages to keep people from leaving when compensation isn’t the reason they left in the first place. Chapter 7, “Retention and Motivation,” and Chapter 11, “Employee Evaluation,” discuss some strategies for retaining the best employees based on these four factors.
After we’ve taken the time to hire new employees, we want to make sure they’re not only trained to do the job, but also continue to grow and develop new skills in their jobs. This leads to higher productivity of the organization. Training is also a key component in employee motivation. Employees who feel they are developing their skills tend to be happier at work, leading to increased employee retention. Examples of training programs may include the following:
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We look at each of these types of training in more detail in Chapter 8 Training and Development.
Human resources people need to be aware of all laws that affect the workplace. An HRM specialist may work with some of these laws:
The legal environment of HRM is always changing, so HRM must always be aware of the changes occurring and then communicate these changes to the entire management organization. Instead of presenting a chapter focused on HRM laws, we will examine these laws in each respective chapter.
Safety is a major consideration in all organizations. New laws are often created to set 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 both federal and union standards. Worker protection issues are possible
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