The significance of Human Resource Management in an organization
Discuss about the Importance Of Human Resource Function In An Organization.
The importance of Human Resource function in an organization cannot be undermined. The human resource department of any organization acts as a useful partner in assisting the firm to achieve its strategic goals and objectives. Hence, the report will be discussing the importance of Human Resource in an organization along with the different key areas of importance (Cascio 2018). The relevance of inculcating the different human resource perspectives in the ABC insurance will be explained (Renwick, Redman and Maguire 2013). As ABC Insurance is a service oriented business it becomes even more important to ensure that the human response dimension of the organization is correct so as to ensure effective client relationships.
The HRM practices can be taken to be the meeting point of overall strategy and the different goals of the organization. It should not be considered as a separate unit of the organization. If a holistic view is adopted towards the organization then it can be easily ensured that there exists no strategies which tend to keep aside the HRM policy and simply concentrate on the overall development of the organization. Hence, it is crucial for the organization to take the HRM policies very seriously as the future of the organization lies in the hand of the employees. Human resource management comprises of various functions like training and development, performance management, looking after various investments which are being made on the employees and their return (Brewster, Chung and Sparrow 2016). Hence, involvement of HRM needs with the overall strategy of the organization provides better results for the organization and the organization’s ROI and turnover tends to increase.
In the absence of a sound HRM strategy, it will become increasingly difficult for the firm to be able to manage their employees and if the employees are not managed well, it may lead to problems for the firm with respect to the firm`s long term objectives.
The ABC Insurance company needs to ensure that it has a sound HRM strategy in place which will go a long way in assisting the given organization to secure competitive advantage.
Talent management
Talent Management can be defined as the management of the abilities, competencies and the power of the different employees in a firm. Very often Human Resource Management is considered to be restricted to just the recruitment of the employees in an organization but in reality it is also concerned with the exploration of the different qualities of the employees and develop them in a manner such that the desired results for the organization is achieved. For this purpose it is important for ABC Insurance to hire the best talent which is available in the given industry. After the recruitment of the employee takes place it lies the responsibility of the organization to transform them according to the given culture of the firm so that the best can be extracting out of them.
Inculcating different human resource perspectives
Employees and specifically talent in an organization is often not given the relative importance which they deserve, however, it is not the case and the employees can be taken to be the backbone of the organization and for this reason, it becomes extremely important for them to ensure that they are engaging in a healthy relationship with the different clients (Brewster 2017). If the organization is unable to do harness the primary essence of the employees then they will not be able to achieve success.
The learning organization can be described as an organization whereby an organization has the buildup of an environment which is in tune with the different organizational goals and objectives. When the organizational goals are properly aligned with the environment, the results achieved bring the organization closer to its goals. Such an environment and the people assist the firm thereby expanding their capacity and contribute to creation of results which the firm truly desires. In such a setting, the company will be able to foster an environment which can support and nurture the employees (Alfes et al. 2013).
The Learning Organization is relatively dependent on the mastery of five dimensions. It comprises of systems thinking whereby the organization is divided into various smaller systems. It also comprises of personal mastery whereby the individuals in the firm aim to enhance the personal focus and energy so that he is able to learn continuously (Chelladurai and Kerwin 2017). The third dimension mental modes. The mental modes are the assumptions and the generalizations that tend to have a huge influence on the way the individuals conduct their actions. These modes are required to be challenged to present new ideas.
The fourth dimension is the shared vision which acts as a powerful motivator. Lastly, the team learning aspect of an organization helps the members to focus on the common goals (Purce 2014). The ABC insurance can benefit in a good light if they concentrate on making their organization a learning one.
Employee engagement can be defined as a fundamental concept whereby the primary aim is to understand in qualitative and quantitative light the relationship between the employees and their organization. An engaged employee is one who is completely enthusiastic about his work and indulges in organizational decisions. His actions have a tripling impact whereby they tend to have a positive impact on the organization. Any employee with a higher engagement generally tends to outperform the employees who have a lower engagement.
Talent Management
The term employee engagement has now become synonymous with employee satisfaction. The term has become relatively important because individuals these day are likely to enjoy working in an organization which is engaging rather than a one which bores them because they tend to be highly distracted. Hence, it is the duty of organizations like the ABC Insurance to ensure that the different members in the organization are highly motivated and engaged towards the long term welfare of the organization. This shall ensure success for the firm and its operations.
Any employee in any firm must be treated with utmost respect and they should be given an opportunity to prosper within the realm of the firm. Hence, the term employee retention can be rightfully described as the ability of an organization to retain the employees. The given term can be effectively measured in the form of a percentage and it is believed that the employee retention rate should always be on a higher side (Bratton and Gold 2017). However, general the given term is understood as the ability and the will of the organization to retain its given employees. It is largely defined by the practices and the attempts which are portrayed by the firm in order to ensure that the employees stay in the firm. In the given aspect, retention becomes a strategy rather than an outcome. The organization needs to look out for opportunities in order to ensure that it is able to distinct well between the low performing employees and the high performing ones and thus their primary focus should lie on those employees which are actually worth the effort from the side of the organization.
Poor management of the business relationships possess the capability to hamper employee growth and development.
According to the experts, if an organization has a holistic approach and perspective towards talent alignment in order to have a successful business strategy then, it shall be able to foster an environment whereby the human resource perspective of the organization is easily able to support the overall objective of the given organization (Reiche et al. 2016). Given below are certain ways which can be adopted by ABC Insurance in order to ensure that it is able to use its HRM department to support the business:
- Assist the leader in clear identification of the people component of the strategy
The leader of any organization has various duties to look by and thus it becomes extremely important for the Human Resource Department of an organization to draw attention towards the People component of the strategy. If the employees are able to become an effective part of an organization then they will be able to achieve long term sustainability.
- Ensure successful employee engagement
The organization`s HRM department assists the business by ensuring successful employee engagement. When the employees of the organization are assisted carefully in its goals, the goals become easier to achieve (Armstrong and Taylor 2014). Proper engagement programs directed towards the employees help in successful achievement of organizational vision.
- Keeping cultural components at the top priority
A business functions in a society and hence, it becomes quite important for the business to abide by all he cultural aspects of the society. The HRM department plays a relative role in this by allowing the organization to maintain its cultural component.
Conclusion
Therefore, from the given analysis on the relative importance of HRM in an organization it could be witnessed that the Human Resource indeed has a crucial role to play in the development of the organization and goes a long way in assisting it to achieve its objectives. Hence, the human resource department of an organization should be collaborated with to achieve the vision.
References
Alfes, Kerstin, A. D. Shantz, Catherine Truss, and E. C. Soane. “The link between perceived human resource management practices, engagement and employee behaviour: a moderated mediation model.” The international journal of human resource management 24, no. 2 (2013): 330-351.
Armstrong, Michael, and Stephen Taylor. Armstrong’s handbook of human resource management practice. Kogan Page Publishers, 2014.
Bratton, John, and Jeff Gold. Human resource management: theory and practice. Palgrave, 2017.
Brewster, Chris, Chul Chung, and Paul Sparrow. Globalizing human resource management. Routledge, 2016.
Brewster, Chris. “The integration of human resource management and corporate strategy.” In Policy and practice in European human resource management, pp. 22-35. Routledge, 2017.
Cascio, Wayne. Managing human resources. McGraw-Hill Education, 2018.
Chelladurai, Packianathan, and Shannon Kerwin. Human resource management in sport and recreation. Human Kinetics, 2017.
Purce, John. “The impact of corporate strategy on human resource management.” New Perspectives on Human Resource Management (Routledge Revivals) 67 (2014).
Reiche, B. Sebastian, Günter K. Stahl, Mark E. Mendenhall, and Gary R. Oddou, eds. Readings and cases in international human resource management. Taylor & Francis, 2016.
Renwick, Douglas WS, Tom Redman, and Stuart Maguire. “Green human resource management: A review and research agenda.” International Journal of Management Reviews 15, no. 1 (2013): 1-14.
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