What is Human Resource Management?
Human Resource Management involves the management of a company’s employees, or human capital, in an effort to meet business objectives. For this reason, the Human Resource (HR) department is one of the most critical sections of an organization. It works on dealing with all the points that come up in relation to employees like productivity, pay, performance evaluations, changing trends in the workplace, competition from rivals, among others. Let’s us look at Human Resource Management in a bit more detail.
Objectives of the management of human resources
In most cases, a company is striving to develop, distribute and market effective goods and services. Therefore, the objectives of HRM must contribute to achieving this purpose by improving work performance, providing well being to employees and clearly explaining all the tasks to be performed. In general, the objectives of HRM can be classified into three categories: explicit, implicit and long-term.
There are four main explicit objectives to be achieved through the efficient management of human resources:
- Attract potentially qualified candidates who are able to develop or acquire the necessary skills that the organization requires.
- Retain desirable employees.
- Motivate employees so that they cultivate a commitment to the company and be involved with its ups and downs.
- Help employees to grow and develop within the company.
Generally when these explicit goals are achieved positive results are obtained for the company. On the other hand poor selection of employees or defective design of a program to maintain motivation will lead to dissatisfaction and employee performance will suffer.
There are three types of implicit objectives related to human resources: improving productivity, establishing a quality of life at work and legal compliance.
For any business or organization, increasing productivity is an important goal. Through the management of human resources one can conduct a series of actions aimed at increasing labor productivity. The most productive enterprises differ from the least productive in, among other things, the treatment and guidance given to and by the HR department.
Quality of life at work
There is now a tendency to get employees to increase their level of commitment to specific activities performed within the organization by providing them with an enjoyable work experience.
For instance, many employees who wish to exercise personal control over their work have a greater ability to contribute towards the organization’s success. Consequently, there is an ever increasing number of companies that are convinced that giving opportunities to employees to cover these new aspirations and expectations will make them feel more satisfied, thereby increasing their quality of life at work. Furthermore, the HR department is also concerned with the establishment of a workplace that is conducive to the employee’s morale. A stringent 8-to-5 work routine can take a toll on anybody. Therefore effective human resource management works to keep the employee’s interest in the company by organizing off-work events like sports competitions, company picnics and the like. Also, it works on building a workplace that is attractive and has elements that keep the employees engaged. A prime example of this latter approach would be Google.
With regard to the management of human resources, organizations must abide by laws, rules, and court decisions. This affects virtually all functions and activities in the goals of a human resource management program. It is therefore important for the HR department to know and / or have counseling in laws and regulations that affect the selection decisions, remuneration, severance, and health and safety issues, as well as industrial relations.
They are related to the profitability and competitiveness; to increase corporate value and ultimately improve the efficiency and effectiveness of the company or organization. Human resource management has a significant impact on the final results of the company or organization through contributions to the achievement of its explicit and implicit goals.