Importance of Human Resource Management
Human Resource Management (HRM) is a modern approach of maintaining people at the workplace which focuses on acquisition, development, utilization and maintenance of human resource.
HRM is development-oriented. It is a concern of managers of all level and provides space for employee involvement, performance and growth. Several companies nowadays prefer HRM to personnel management because HRM plays a vital role in maintaining a quality team of working experts. Besides, it has several importance which is discussed below.
Quality of work life is the perception of employees regarding the relationship between working condition with management. Simply, it is the relationship between employees and the total work environment.
Quality of work life is concerned with the employee’s perception of physical as well as psychological wellbeing at the workplace and it can be obtained by maintaining work autonomy, work freedom, job recognition, belongingness, rewards, etc.
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To increase productivity and profit
Human resource management ensures the right quality and quantity of personnel in the workplace, apart from which, it creates opportunities to facilitate and motivate individual and group of employees to grow and advance their career. Motivated employees work hard to meet their personal career goal which directly influences the productivity of the organization. Minimizing cost and maximizing profit is the essence of productivity.
o produce employees who are easily adaptable to change
Human resource management performs various functions, among which training and development of employees are one of the vital ones. Training and development programs keep employees updated with skills necessary to adjust with alteration of the organization’s environment, structure and technology.
To match demand and supply of human resource
Human resource management probes existing human resource in a certain interval of time to identify if the company has an adequate number of workers or not. In case when a company has an inadequate human resource, human resource management performs activities like recruitment and selection to balance the need. In the same way, it lay-off inefficient employee in the case when the company has excessive employees.
Utilizing human resource to their fullest and maintaining them in the company for a long term is a major function of human resource management. Under this function, HRM performs tasks like providing fringe benefits, compensation and rewards to the deserving employees. These activities do not only help in retaining employees in the company but also in achieving the organization’s goal effectively.
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To recognize the merit and contribution of the employee
Human resource management performs a timely appraisal of the employee’s performance in order to recognize excellent and poor workers. The excellent workers are then rewarded as a return for their contribution.
To create a feeling of belongingness and team spirit in the employee
Human resource management designs job on the basis of teamwork. As teamwork demands contribution from every team member, HRM focuses on making each and every employee feel valued so that employee contributes best from their side.
To sustain business in the market
Human resource management makes sure that the company has the best employee because promising employees are capable of taking their company ahead in the race by delivering excellent results. This guarantees the organization’s success and stability in future.
In any company, either big or small, conflicts may arise between any parties/group. Conflicts are inevitable and they should not be ignored. Human resource management acts as a consultant to sort out such conflicts timely and conduct other organizational activities smoothly.
To develop a corporate image
Every company should maintain a good public image in order to sustain in the market. Any individual would like to work for companies which are known for moral and social behaviour. On the other hand, companies that do not treat their employees in a good manner can run through employee deficiency and even collapse.