Human Resource generally refers to those who work for an organization or company together with the department charged with the responsibility of controlling resources linked to workers. This particular term was introduced in the 1960s when the worth of labor relations began to gain attention and when concepts such as selection evaluations, organizational behavior, and motivation began to form. This paper will discuss and elaborate on the various functions of HRM and provide a conclusion at the end.
According to Buyens and Verbrigghe (2014), most HR departments today realize that in order to become successful, they must treat workers of the organization as their customers. It is the Human Resources’ job to convert potential and current workers into dedicated, loyal members of the organization. Different functions are assigned to the HR department, for instance recruiting, creating associations with workers, offering compensation and benefits to workers, protecting the workers while within the organization, and training and development (Mitsakis, 2014).
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Noe, Hollenbeck and Wright ( 2013) note that human Resource Management on the other hand, incorporates management functions such as recruitment of the right individuals, selection, induction of workers, orientation, motivation, compensation and staff benefits. It also implements health and safety, training and development, appraisal of employee performance, and upholding good associations with workers and their trade unions. It is also further involved in planning, controlling, organizing, and directing (Johnason, 2009). HRM is responsible for handling all aspects of workers. Today, the concentration on HRM has shifted to the strategic use of workers together with the quantifiable impact of worker programs over business. That is why organizations need to adapt to and be resilient when operating in the competitive business setting.
Organizations cannot have effective teams of working experts without good HR (Dessler, 2014). Human Resource Management is important in that it not only facilitates expert growth, but also helps an organization attain its objective through establishment of a constructive attitude among employees. HRM also allocates jobs to the right individuals, identifies potential workers, assists people to collaborate as a team, and improve the economy (Buyens & Verbrigghe, 2014). It ensures an organization has the right quantity and quality of personnel in the workplace while establishing chances to encourage and assist individual and teams of workers to develop and advance their profession. This is how all functions of Human Resource Management work integrate so as to capitalize on organizational and employee behavior.
Performance Management
Performance management systems tend to measure worker attainment relative to their abilities. In HR, it reviews a worker’s performance in the course of the preceding cycle or year, and deciding whether s/he measures up to his/her peers in the same band (Mitsakis, 2014). In the past, performance management was utilized as a source of income justification and determining a worker’s compensation based on performance. This novel technique was used to influence behaviors from employees to achieve particular results. For employees who were mainly driven by fiscal rewards, performance management was a complete success. However, it failed miserably when applied to workers who were mainly driven by development of their skills and learning (Noe, Hollenbeck & Wright, 2013). It is at this point that the need for a more all-inclusive approach to reward and control performance was needed.
Today, most of the ancient performance appraisals have been taken in by the concept of performance management. According to Johnason (2009), this approach now ensures that workers’ activities and results are congruent with an organization’s objectives. It also entails identifying outcomes and activities that will result in the organization triumphantly implementing performance management. Dessler (2014), further adds that an effective performance management system concentrates on laying down clear performance objectives and anticipations via the utilization of employee behaviors, outcomes, and actions. Constant discussions are carried out throughout the performance cycle and this incorporates things such as evaluation, feedback, mentoring, and coaching.
HR Planning, Recruitment, and Selection
In HR, planning focuses on the systematic and consistent process of evaluating the company’s human resource requirements under the ever changing conditions and putting in place workforce policies that are suitable to the long lasting effectiveness of the given organization (Buyens & Verbrigghe, 2014). Mitsakis (2014) explains that tranning is also considered to be important in budgeting procedures given that HR expenses and predictions affect and are affected by long lasting organizational plans. According to Mitsakis (2014), planning is usually carried out within the overall policy structure and goals of the organization or agency, and is affected by transformations in technology, availability of manpower, and public policies.
Noe, Hollenbeck and Wright (2013) point out that in today’s organizations, HR planning incorporates a rather complicated job of predicting and planning for the right kinds of personnel and right numbers at the appropriate locations and at the right time to carry out activities that are beneficial for the organization. HR planning can be triumphant to the extent that it correctly coordinates each of the specified components. On the other hand, recruitment and selection of workers is considered to be a vital process for any organization.
Recently, there has been increased evidence that the creation of a constructive psychological agreement with workers provides the foundation for a constructive result with regards to organizational motivation and commitment. Employees usually choose an organization or company that offers them better working environments and incentives for long lasting career. Notably, some recruits exist within the organization while others come from outside of it (Johnason, 2009).
Recruiting internally means that the HR personnel is prioritizing current workers as candidates for job openings. Dessler (2014) on the other hand, notes that selection is founded on the clearly developed criteria for the work performance. According to Buyens and Verbrigghe, (2014), both recruitment and selection are quite significant for the organization as the types of individuals chosen tend to influence the organizational culture. Organizations also consider selection based on age, empathy, flexibility based on situations, sales skills, tolerance for uncertainty, and education. Mitsakis (2014) elucidates that recruitment can be direct, third party, or indirect while selection incorporates personal interviews, aptitude tests, and achievement tests that measures the proficiency of an applicant’s attained knowledge.
HR Training and Development
HR functions within an existing performance management system can exceedingly contribute to effective training and development. Apparently, training and development is a function that is now being prioritized by most organizations. In today’s competitive business environment, nothing is static and innovations come into the marketplace on a daily basis. This development has in turn made organizations to be more dynamic in their business operations and ensure continuous implementation of changes so as to remain competitive (Noe, Hollenbeck & Wright, 2013). Large companies overall provide training to their workers for better use of their competencies. The significance of training and development impacts the organization constructively. Under this particular HR function, workers do not focus on tasks in order to attend their training conferences as this may delay the projects’ deadline.
The main reasons for training and development of workers in an organization is to increase organizational flexibility and stability, secure future manpower needs, introduce novel appraisal methods, minimize supervision and direction, and increase obedience to quality standards and productivity (Johnason, 2009). Training and development is part of the performance management system in the organization. It generally improves individual competencies while at the same time increasing the performance level of the organization. This function aims at improving human associations, team morale, and honing skills (Dessler, 2014). HR training and development has a number of benefits for the organization, for instance it not only improves employee performance and fosters growth, but also addresses employee weaknesses and ensures that workers are up to date with the trending advanced techniques and technology (Buyens & Verbrigghe, 2014).
Compensation and benefits
HRM has never been as important as it is today, especially since organizations are striving to attract, retain, and encourage employees to meet organizational objectives (Mitsakis, 2014). As a matter of fact, an effective performance management system often combined with compensation and great benefits often tend to attract, develop, as well as keep highly talented workers. People are considered to be a significant organizational asset and thus they need to be effectively and efficiently controlled. One way that an organization uses to attract, motivate, and retain its employees is through compensation and benefits. Smart employers have realized that in order to keep high quality workers, they must offer a great benefits and compensation package (Noe, Hollenbeck & Wright, 2013).
Compensation is the employer’s feedback for a worker’s work; it is the monetary worth an employer gives to his employees in return for their services. On the other hand, employees in this day and age are not willing to work for money alone and expect something extra. The extra compensation is referred to as benefits (Johnason, 2009). These are non-fiscal kinds of compensation usually offered together with cash salary as a way of enriching employees’ lives. Notably, compensation greatly impacts an organization’s ability to lure, encourage, and preserve top talent. HR compensation helps set performance standards, and open up communication among employees (Dessler, 2014). Clear communication and openness around compensation guidelines eases workers to support themselves and question management that might otherwise be uncomfortable (Buyens & Verbrigghe, 2014). Most importantly, compensation keeps an organization competitive and applicable in the industry.
Employee benefits are not performance based, but membership based. They also have no direct influence on employee performance, though inadequate benefits contribute to increased absenteeism and turnover, and low satisfaction in workers (Mitsakis, 2014). If workers get fair rewards for the services they provide, they will be satisfied and happy with their jobs. Recent studies indicate that an estimated 23% of workers tend to be less productive due to fiscal worries. Similarly, about 58% of workers lose their sleep because of worrying about adequate childcare (Noe, Hollenbeck & Wright, 2013). Providing benefits ensures increased loyalty and reference to other potential workers.
Employment and Labor Laws and Regulations
The area of Human Resource Management is generally influenced and fashioned by state and federal laws that govern employment issues. These laws and regulations rule all aspects of HRM, and one of the most significant pieces of HRM legislation is Title VII of the Civil Rights Act of 1964 (Johnason, 2009). This Act bans discrimination against workers or possible recruits on the basis of religion, sex, national origin, color, or race. It coerces employers to adhere to just practices with regards to training, compensation, benefits, hiring, and other duties and activities related to HRM (Buyens & Verbrigghe, 2014). Another significant legislation is the Equal Pay Act (1963) which bans salary and wage discrimination founded on sex, mandating equal compensation for equal tasks with few exceptions.
The system of federal and state laws and legislations that are present to control employment and labor associations is quite broad. Mitsakis (2014) affirms that in many instances, rules only apply to organizations having a particular limited number of workers and therefore do not control small firms. However, other regulations are applicable to all employee/employer associations, regardless of the size of the organization. Employment and labor laws and regulations are important in HR because they give structure to the workplace while defining what workers and employers are responsible for. Federal regulations are also outlined in some cases to offer both parties appropriate direction for resolving disagreements in the workplace.
Employment and labor laws are important in that they allow businesses to commit more of their attention to profitability and productivity rather than providing regular resources and energy to problem solving (Dessler, 2014). Without these policies, most small business owners would not be aware of their duties towards their employees. Labor and employment laws establish the structure for employers in developing their selection and recruitment processes, in addition to running their HR departments in promoting and maintaining workers (Noe, Hollenbeck & Wright, 2013). Employment and labor laws and regulations such as the National Labor Relations Acts tend to give tranquility of mind to both nonunion and union employees. They also uphold organizational uprightness and are useful for development of business principles and workplace ethics (Johnason, 2009). The labor and employment laws and regulations are important because today’s organizations need such formality to remind employers that they should be effective corporate citizens.
Conclusion
The Human Resource department is responsible for finding, securing, guiding, and developing workers whose talents and dreams are compatible with future organizational goals and objectives. The acknowledgement of the significance of Human Resource Management in recent years has led to an organization’s overall health and success. This particular function focuses on the recruitment, management, and direction of individuals working in an organization. HRM also plays a key role in management of individuals together with the workplace setting and culture. Notably, HR experts have established performance management systems which keep individuals happy, personally involved, contributing to organizational success, and motivated. These experts also assist in the formation of organizational climate and culture in which workers have the ability, commitment, and concern to serve customers satisfactorily.
As discussed, there are various responsibilities charged to HRM, for instance setting of policies, employment laws and regulations, employee safety and health, employee retention, training and development, staffing, and compensation and benefits. In order to maintain a competitive edge in today’s aggressive business environment, HRM personnel should keep up to date with transformations taking place in the exterior setting that may impact their workers.
References
Buyens, D., & Verbrigghe, J. (2014). “Adding value and HRM practice.” Management for Professionals . Pp. 15 – 30.
Dessler, G. (2014). Human resource management . 14 th edition. Upper Saddle River, NJ: Prentice Hall.
Johnason, P. (2009). HRM in changing organizational contexts . London: Routledge.
Mitsakis, F. (2014). “Human Resources (HR) as a strategic business partner: Value creation and risk reduction capacity.” Ijhrs , 4(1). Pp. 154.
Noe, R.A., Hollenbeck, J.R., & Wright, P.M. (2013). Human resource management: Gaining a competitive advantage . 8 th Edition. New York: McGraw-Hill Irwin.
