Human Resource Management And Its Importance

The maintenance of human resources within an organization which is aimed at increasing the employee performance and achieving the business objectives of the company is known as human resource management. Previously, this segment was not given much importance as it was not a profit yielding segment directly. But now the scenario has changed and importance of this segment has been established. Often an HR consultancy is partnered with to look in to this functionality of this segment. The importance of human resource management is established as follows.

• The in-house management of human resource is very important as it contributes significantly to the understanding and management of human capital in an effective manner. Human capital is a critical aspect of every business and it becomes all the way more important for small and medium enterprises as many resources perform cross functional duties for the organizational needs.

• It helps in managing the budget within the organization and controlling the operational costs to great extent. This helps in managing the internal business systems in a more organized manner which in turn contributes towards increasing the profit margins in a sensible way.

• Workforce diversity is a new concept which has been widely accepted among many companies. In this the workforce is composed of people from different locations, cultural fit and age. While this concept contributes towards effective knowledge increase and sharing among employees, it also gives rise to unwanted conflicts. HR management resolves and prevents such scenarios with effectiveness.

• The employees need to be assessed from time to time in order to understand the knowledge standpoint of the resources. This helps in analyzing the existing strengths and pointing out the gaps of knowledge as well. Based on this analysis the training and development is formulated and carried out for business benefit.

• Human resource management contributes significantly towards employee satisfaction and motivation. This segment looks in to employee behavioral trends and interactions. This observation is then utilized for formulating HR policies which help in better management of the work environment and organizational structure.

• This functionality is a major contributor towards building and maintaining the brand image of the organization in the market and industry. The initiatives taken under HR management are often spoken on social media by employees and their acquaintances. This helps in building up the brand value that goes in towards customer base build up and market presence.

• Management of human resource helps in scaling up of employment opportunities. The gap in knowledge or skill set is readily identified on time for initiating the recruitment drive. This helps in strengthening the workforce capability with perfection and ease.

• Lastly managing of employee related issues is addressed under this functionality. Many times employee have queries related to payroll, time sheet, leave tracking and other related areas. There also arises certain conflicting situation between the employees and management in certain arenas which is also resolved under this segment

Hence human resource management forms a core functionality of any organization that contributes towards achievement of business goals and objectives.