Which human resource management activities are most important for an organization?

The functions of human resource management are designed to recruit potential employees, hire and train them, and then support them in improving their performance so they can reach their full potential and help the organization achieve its targets. Put simply, it’s important to find the right people, develop their skills over time, and create an environment where they can do their best work.

No matter the industry or the size of the organization, human resource management plays a lead role in the success of the business and its people. Here are five of the functions of human resource management.

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1. Recruitment and hiring

One of the most well-known functions of human resource management is recruitment and hiring. To remain competitive in the industry, businesses need to attract and retain top talent. 

The HR team typically meets with a hiring manager to learn more about open positions and gain a detailed understanding of the kind of people that will fit best in those roles. While they also consider education, experience, and skills, HR must look at personality traits and working styles to increase the chances of long-term compatibility.

A strategic HR department has a long-term recruiting and hiring plan that aligns with the company’s growth goals. This plan includes creating job postings and sharing them through their networks, screening incoming applications, conducting interviews, performing reference and background checks, and finalizing hiring paperwork.

2. Onboarding and ongoing training and development

Once a company hires employees, it’s vital to properly onboard and train them so they have the tools to excel in their roles. Human resource management provides onboarding for new employees, which can include sharing the company mission, vision, and values, in addition to internal policies and procedures. It may also include safety training, depending on the workplace.

In addition to onboarding, HR also facilitates ongoing professional development through training, seminars, workshops, and certifications. They may create internal training or outsource it to training experts. Investing in employees’ professional development helps build loyalty and reduce turnover, not to mention increasing performance and productivity.

3. Managing employee and employer relationships

A company’s success relies on its people, so human resource management must focus on fostering healthy relationships among all levels of employees.

This can include conflict resolution during tense situations or negotiating positive outcomes for all involved parties. It may also include providing specific types of training, such as anger management or mindfulness, to ensure employees have the resources to manage themselves effectively in the workplace.

4. Creating a rewarding company culture

One of the most overlooked functions of human resource management is developing an engaging company culture. Keeping employee morale high doesn’t happen only during team lunches or after-work drinks. It happens through the ethos of the company — the mission, vision, and core values.

Another HR responsibility includes making sure employees have competitive pay and both tangible and intangible benefits. The department should identify potential negative workplace cultural issues that could create problems among employees and help steer the organization in the right direction.

5. Overseeing disciplinary action

A difficult aspect of human resource management is disciplining employees when required. HR professionals must have a disciplinary process in place and must ensure all employees are aware of it as part of their onboarding.

If an incident occurs that requires disciplinary action, HR may need to notify the employee with a written warning and include it in their file. It may even be necessary to suspend, demote, or terminate the employee, depending on the issue. It’s best to have a legal expert on the HR team who can ensure the company follows all labor laws properly in terms of disciplinary actions.

Functions of human resource management can also include meeting compliance regulations and industry safety standards, maintaining the integrity of employee data, and overseeing employee benefits. Above all, the goal is to support employees in performing to their full potential to help the company reach its objectives.

This article is originally published on Jun 11, 2021, and updated on Nov 04, 2022.

Human resources management is a very important function in every organization. Without human resources management, companies would not be able to effectively recruit and retain employees, improve and enhance the organization, and they wouldn’t be able to maintain a healthy, accepting workplace culture and environment. Human resources management is so important to organizations that many call this department the heart and soul of a business.

Human Resource Management Definitions

There are many definitions of human resources management that authors have come up with to try and show the massive importance of human resource management to an organization. Here are some human resource management definitions by authors to iterate the importance of this department.

Ricky W. Griffin: “Human Resource Management is the set of organizational activities directed at attracting, developing and maintaining an effective workforce.”

Mathis and Jackson: “HRM is the effective use of Human resources and organization through the management of people related activities.”

Dale Yoder: “HRM is the provision of leadership and direction of people in their working or employment relationship.”

J. Jucious: “The field of HRM involves planning, organization, directing and controlling functions of procuring, developing, maintaining and utilizing a labor force.”

Functions of Human Resource Management

There are many functions of human resource management that help an organization stay successful. From recruitment and training to managing disputes, maintaining a healthy work-life balance, and all payroll responsibilities, the importance of human resource management in an organization is immense. Human resources management not only helps to keep employees happy and well trained, but it also ensures that the company is working within the guidelines of regulations and solves any liability issues that may arise.

Without a proper human resources management department in an organization, that company is almost guaranteed to fail. More important functions of human resources management include recruitment, training and development, appraisals, job reviews, career planning and development, employee benefits, employee safety, and employee motivation, just to name a few.

Objectives of Human Resources Management

Human resources management is so important to organizations because there are many objectives of this department that can drastically improve or negatively affect the organization. One major objective of human resources management is to drive productivity by ensuring competent employees are hired and remain up to date with training initiatives. Another major objective of human resources management and why it’s so important to an organization is that it builds coordination between organizational departments.

Without proper human resources management at your organization, your departments will have a hard time working together which will cause your business to suffer. More important objectives of human resources management are ensuring employee satisfaction, staying up to date with societal and ethical models, and maintaining a healthy work culture, as well as a healthy work-life balance for employees.

Types of Human Resources

Human resources management is so important to an organization because this department has many responsibilities and keeps the organization operating smoothly. As our society continues to change, the role of human resource managers is changing as well. From compensation and benefits managers to training and development specialists, there are many growing human resources specialties that organizations will continue to incorporate.

While the concept of human resource management encompasses many attributes, they’re all essential to the success of any business. If your organization lacks proper human resource management, now is the time to introduce this department before your business fails permanently.

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