Importance of HRM
Now a day the organization’s success depends on people-embodied, knowledge, skill and abilities embedded in the members of organization. These abilities and skills are the foundation of an organization’s core competencies.
To create organizations and help them to survive, HRM plays a very important role. We are living in an organizational world and surrounded by organizations. We are participating in them as employee, customer, client and member. We are spending most of our life with organizations to supply goods and services on which we depend to live. But on the other hand organizations depend on people and without them they would disappear.
Factors contributed in HRM:
Accommodating the needs of workers:
Workers demanding from organization to accommodate their personal needs by arranging programs like flexible work schedule, parental leaves, child & elder care assistance and job sharing. To reduce the conflict between organizational demands and family responsibilities, HR department plays a crucial role in designing and implementing such policies suitable for both workers and organizations.
Increased complexity of the Managers’ Job:
The job at the management level has become an increasingly complex and demanding due to many reasons like new technology, external competition, expansion in scientific information and rapidly changing environment. Therefore, human resource managers provide assistance in making strategic business decisions and matching competencies of organization’s human resource with mission of the organization. Executives mostly need assistance from HRM related to recruitment, performance & evaluation, discipline & conduct and benefits.
Litigation and Legislation:
There is an extreme contribution of state laws to the propagation and importance of human resource function. There are extensive requirement for record keeping and reporting to fulfill the laws, some HR departments hire additional staff and must work countless hours. The most influenced areas by legislation are equal employment, compensation, safety and labor relation. If an organization fails to comply with laws regulating can result in heavy penalties and back-pay awards.
Consistency:
One of the important factors of HR is to help in maintaining consistency and justice within an organization. Consistency is very important while making decisions regarding compensation and promotion. The compensation decision of managers without discussing the HR department may cause the salary structure tends to become very uneven and promotion decision may also be handled unfairly.
Expertise:
Now a days some special expertise required in HR to fulfill personnel activities. For making employee selection decision researcher have developed complex procedures; statistical calculations to combine test and interview scores which replaced traditional subjective interviews.
Cost of Human Resource:
The activities of human resource have become increasingly important because of high cost. The largest expense in most of the organization is labor cost which is often higher than any other necessary expenditure to cope up with the problems like absenteeism tardiness and discrimination.
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