Human Resource Management is a Fundamental Fact of Every Successful Business

 

 

 

What is the Human Resource Management (HRM)

            Human Resource Management (HRM) is the process of managing people in an organization to achieve its objectives. It involves recruiting and hiring employees, providing training and development opportunities, setting compensation and benefits, managing performance, and fostering positive employee relations. HRM ensures that an organization has the right people, with the right skills, in the right positions, at the right time, and at the right cost to achieve its goals. Essentially, HRM is about managing the most valuable resource of an organization - its people.

Human Resource Management is a Fundamental Fact of Every Successful Business

             Human Resource Management (HRM) is a fundamental fact of every successful business. It is a strategic approach to managing an organization's most valuable asset - its employees. According to Gary Dessler, a renowned author of HRM textbooks, "A company's human resources are its competitive advantage. They cannot be duplicated. They can only be imitated" (Dessler, 2017). The quote clearly emphasizes the significance of human resource management in an organization's success.

            Human resource management is a broad field that includes various functions, such as recruitment, training and development, compensation and benefits, performance management, and employee relations. Each function plays a critical role in building a competent and productive workforce. For instance, recruitment is essential for identifying and hiring talented individuals, training and development helps employees acquire new skills and knowledge, compensation and benefits attract and retain the best employees, performance management provides feedback for improvement, and employee relations foster a positive work environment. 

Ex.Chart of HRM Department organizing

            Effective human resource management is vital for every organization, regardless of its size or industry. A study conducted by the Society for Human Resource Management (SHRM) found that "organizations with effective HR practices achieve better financial results and higher employee engagement and retention rates than those without" (SHRM, 2019). Additionally, it is crucial for HR managers to align their strategies with the organization's goals and objectives. As Robert L. Mathis and John H. Jackson state in their book Human Resource Management, "Human resources strategies should support the organization's overall strategy, and HR programs should be designed to contribute to the achievement of the organization's goals" (Mathis and Jackson, 2021). 

 

            One of the critical aspects of human resource management is employee engagement. Engaged employees are those who are committed to their work and feel a sense of ownership and belonging towards the organization. A study conducted by Gallup found that "companies with engaged employees outperform those without by 202%" (Gallup, 2017). Engaged employees are more productive, innovative, and loyal, which leads to better organizational outcomes.

             Another important function of human resource management is diversity and inclusion. A diverse and inclusive workforce can improve organizational performance and foster innovation. According to Josh Bersin, a global industry analyst, "Diversity and inclusion are not just feel-good HR initiatives. They are essential components of innovation, productivity, and profitability" (Bersin, 2020). By embracing diversity and promoting inclusivity, organizations can tap into a wider talent pool and create a culture of respect and belonging.

            In conclusion, human resource management is a fundamental fact of every successful business. It is a strategic approach to managing an organization's most valuable asset - its employees. Effective human resource management is vital for every organization, regardless of its size or industry. It includes various functions such as recruitment, training and development, compensation and benefits, performance management, and employee relations. HR managers must align their strategies with the organization's goals and objectives to contribute to its success. Employee engagement and diversity and inclusion are also crucial aspects of human resource management that can lead to better organizational outcomes. In today's competitive business environment, companies that prioritize their human resources and invest in effective HR practices are more likely to achieve long-term success.

Reference :

1. Dessler, G. (2017). Human resource management. Pearson. [book(PDF)]
   
2. Society for Human Resource Management. (2019). The business case for HR. Retrieved from https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Documents/SHRM%20Business%20Case%20for%20HR%202019.pdf (online) [Accessed 22 3 2023]
3. Mathis, R. L., & Jackson, J. H. (2021). Human resource management. Cengage. [book(PDF)]
4. Gallup. (2017). State of the global workplace. Retrieved from https://www.gallup.com/workplace/238079/state-global-workplace-2017.aspx (online) [Accessed 22 3 2023]
5. Bersin, J. (2020). Diversity, equity, and inclusion: A call to action for HR. Retrieved from https://joshbersin.com/2020/06/diversity-equity-and-inclusion-a-call-to-action-for-hr/ (online) [Accessed 22 3 2023]
6. https://www.datatrained.com/post/wp-content/uploads/2023/01/Adobe-HRM-scaled.jpeg(heading image)
7. https://www.hrmexam.com/wp-content/uploads/2021/11/3.jpg(image)
8. https://slideplayer.com/slide/10668654/36/images/33/Organisation+of+HRM+Department.jpg (image)