The Background Of The Human Resource Management Business Essay
It is in fact, difficult for an owner of a large business or corporation to effectively recruit workers who fit in with the company, compensate, retain, and provide employee benefits, develop employees’ skills and train when necessary, have knowledge of employment laws, establish a healthy work environment, finding the appropriate solutions to issues, concerns or disputes, and other tasks as it pertains to his or her employees, in addition to operating the business, all by themselves. Many organizations considers their human capital as their most valuable and important asset. In order to for any organization to reach its strategic business goals, sustain competitive advantages, and assists its employees, there must be a productive human resources management. "Human Resources Management (HRM) is the strategic management of the employees, who individually and collectively contribute to the achievement of the strategic objectives of the organization" (Pomoni). Conveying a strategic impact requires human resources to establish and implement strategies that will support business objectives and prioritizing and aligning various activities that will assist and reinforce achieving these objectives.
Human Resource Management also known as HRM or HR, is one of the most relevant and important departments within a firm, mainly because it is responsible for the management of the organization’s workforce. Yet, in today's rapidly changing business environment, it is the component of an organization that is often underestimated, misunderstood, and taken for granted as owners and employees fail to recognize its value. The Human Resource Management department is responsible for multiple tasks that are extremely critical in a company. Human Resource Management includes a wide range of activities. "Initially, human resources or personnel, as it was referred, primarily performed an administrative role of keeping records, developing reports, and paying employees" (Phillips 101). Today, however, these responsibilities have two main functions; managing the entire department and managing its employees. For these reasons, HRM must have strong communication, decision-making, and analytical skills, as well as experience in employee disciplines- "recruitment and selection, compensation and benefits, labor and employee relations, training and development, and health and safety processes" (Strayer et al. 21).
Since HRM is actively involved in almost every aspect of a company, it is an essential part of its overall health. It is imperative for this section to keep the organization functional, durable, and advantageous. "In recent years, recognition of the importance of human resources management to a company's overall health has grown dramatically" (Hillstrom and Hillstrom 575). Human Resource Management performs an extensive role in any organization, as it allows managers and employees to work both, individually and collectively, to contribute to the company’s objectives. The importance that HRM brings to the strategic part of planning is prevalent in achieving organization goals, which is extremely hard to do without involving human resources and employees’ input. By appreciating its value, HRM is the major component in developing business strategies, due to its keen perception and comprehension to put a plan into action.
As the role of HRM continues to evolve and the environment changes, it is important for individual organizations to become aware of, and understand the advantages and disadvantages of establishing a productive department. It makes great sense as to why it is a benefit to have a HRM on staff. However, there are a few reasons that may convince a company otherwise. Either way, whether an organization invests in HRM or not, can drastically affect the business. Therefore, this decision should be based on the needs, objectives, and what is best suited for the company.
In some corporations, the human resource department usually does not receive or lack recognition, in which these organizations fail to realize their importance in the operation of the firm. The most important task for human resource management is to gather and allocate resources (human capital). "Of all the tasks of management, managing the human component is the central and most important task, because all else depends on how well it is done, and should be regarded as such" (Swanepoel, et al.8). Another point is that HRMs creates a safe work environment. A safe and healthy environment will result in employees to work at their best, which will in turn increase the efficiency of the firm. Since this department is linked with the management of the organization’s workforce it also helps in bridging the gap between the employer, management, and the employees, and leading all in a productive relationship.
Absence of Human Resource Management may lead to a poor environment for employees to work, and discourages prospective employees to join. This department further assists the organization’s public relations by marketing its image to attract for skillful workers that fits the company objectives. "The responsibility of establishing good public relations lies with the HRM to a great extent. They organize business meetings, seminars and various official gatherings on behalf of the company in order to build up relationships with other business sectors" (Mukherjee). A major advantage is that HRMs are responsible for those assignments that take time away from operations. For instance, HRM simplifies the hiring process. This takes the pressure off of owners and senior executives so that they may focus their attention more on the core aspects of the business. Another important function of HRM is to make resources available to all employees. For example, providing information about company policies and procedures, benefits, promotions, training and education, and other issues such as discrimination and sexual harassment. If such information is conveyed appropriately to employees, it helps to prevent any unseen undesirable events that may risk the reputation of the company.