How Human Resource Management really affects the smooth running and success of the organization?

Human resource management is the process of acquiring, training, appraising, and compensating
employees, and of attending to their labor relations, health and safety, and fairness concerns.

Human Resource Management is responsible for maintaining good human relations in the
organization. It is also concerned with development of individuals and achieving integration of goals
of the organization and those of the individuals.

The concepts and techniques every manager need to perform the “people” or personnel aspects of
management include:

• Conducting job analyses (determining the nature of each employee’s job)

• Planning labor needs and recruiting job candidates
• Selecting job candidates
• Orienting and training new employees
• Managing wages and salaries (compensating employees)
• Providing incentives and benefits
• Appraising performance
• Communicating (interviewing, counseling, disciplining)
• Training and developing managers
• Building employee commitment

The major functional areas in HRM are:

1. Planning: It is concerned with the planning the number and types of employees needed to
accomplish the organizational goals. Research is an important part of this function. This is done
through the Job Analysis which is the process of describing the nature of a job and specifying
human requirements such as skills and experiences.
2. Staffing: It includes Recruitment, the personnel functions that attracts qualified applicants to
fill job vacancies after the job analysis, job description and job specifications, and Selection,
the process such as interview, test, etc. conducted to select the most qualified applicants from
among those attracted to the organization.
3. Employee Development: This is the training and development of skills and knowledge to
perform their jobs effectively. In this process various techniques of training are used to develop
the employees. It includes providing training for new or inexperienced employees and
development programs which prepare employees for higher level responsibilities and which is
based on results from performance appraisals.
4. Performance Appraisals: It monitors employee performance to ensure it is at acceptable level.
The actual appraisal of employee performance is the responsibilities of supervisors and
managers. The knowledge of results or feedback is necessary to motivate and guide employee
performance improvements.
5. Compensation: HR personnel provide a rational method for determining how much employees
should be paid for performing certain jobs. Benefits are primarily related to maintenance areas

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 and many basic needs. To determine the monetary compensation for various jobs is one of the
most difficult and important function of the human resource management.
6. Labor Relations: This relates to the interaction with trade unions and negotiations.

Human resource management plays an important role in contributing to the realization of the
organizational goals. HRM mainly creates value by engaging in activities that produce the employee
behaviors the company needs to achieve its strategic goals. HRM helps maximizing the employee
performance (through the commitment of the employee) to attain the goals of the organization. HRM
can help ensure that an organization get results – through people.

Human resource management can ensure effective utilization of human resources. It can establish and
maintain an adequate organizational structure by dividing of organization tasks into functions, positions
and jobs, and by defining clearly the responsibility, accountability, authority for each job and its
relation with other jobs in the organization. It helps management in the preparation adoption and
continuing evolution of personnel programs and policies.

It can also help in selecting the right people for the right place at the right time by conducting proper
recruitment and selection process.

Besides, the maximum professional development of human resources within the organization can be
attained by offering opportunities for advancement to employees through training and education. It
ensures maximum benefit out of the expenditure on training and development and appreciates the
human assets. Framing a sound promotion policy, determination of the basis of promotion and making
performance appraisal can motivate and guide employee performance improvements.

Succession planning process can also be attained and it helps developing the organizational leadership
to enhance performance.

Human Resource Management is concerned with the motivation of human resources in the
organization. Every person has different needs, perceptions and expectations. An effective human
resource management can identify and satisfy the needs of individuals by offering various monetary
and non-monetary rewards. The reconciliation of individual/group goals with those of the organization
can make the employee feel a sense of commitment and loyalty towards it. It motivates employees and
upgrades them so as to enable them to accomplish the organization goals.

Human resource management also assists the organization for adopting the suitable wages and
salaries, policy and payment of wages and salaries in right time by determination of adequate and
equitable remuneration of personnel for their contribution to the organization objectives. Giving
sufficient wages and fringe benefits helps to motivate employees which leads to higher productivity.

Through innovation and experimentation in the fields of personnel, it helps in reducing costs and
increasing productivity.

Human resource management can also contribute a lot in restoring the industrial harmony and healthy
employer-employee relations. By creating and retaining harmonious relations with the help of

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sufficient communication system and co-partnership, the negotiation and handling the labor disputes
can be done easily.

Another advantage or impact of HR on organization and staff is the ability to avoid personnel mistakes
which includes hiring the wrong person for the job, experiencing high turnover, having people not
doing their best, wasting time with useless interviews, facing legal issues due to discriminatory actions,
having your company cited for unsafe practices, lack of training to undermine your department’s
effectiveness, committing any unfair labor practices.

Human Resource Management is concerned with the managing people as an organizational resource
rather than as factors of production. It involves a system to be followed in business firm to recruit,
select, hire, train and develop human assets. It is concerned with the people dimension of an
organization. An efficiently run human resource department can provide the organization with
structure and the ability to meet business needs through managing the organization’s most valuable
resources, its employees. Thus, the role of human resource management is very important in an
organization and it should not be undermined especially in large scale enterprises. It is the key to the
whole organization and related to all other activities of the management, i.e., marketing, production,
finance, etc. The attainment of organizational objectives depends, to a great extent, on the way in
which people are recruited, developed and utilized by the management. The proper co-ordination of
human efforts and effective utilization of human resources is critical to an organization. Therefore, the
human resource management greatly affects the smooth running and success of the organization.

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