Why HRM Is Important In An Organization

Assignment#1

Why HRM is important for any organization?

Like Operations, Accounts, Marketing Sales department, Human Resource is also one of the vital departments of any organization. It is a multifaceted and necessary part of any organization. It is responsible for different workplace needs, like recruiting, hiring, payroll, professional development and trainings, performance evaluation, employee retention, disciplinary action, and ethics.

HR is like resource multiplier for any organization. The prime function of an HR should focus on the greatest resource of all that any organization has – its employees. Without good employees, the best business plans and ideas fails, and without good HR, employees fails to give it best. There are many reasons

It is not like Sales, Operations, maintenance, Marketing or accounts/finance which brings in money/ business for the company. Most organizations usually have Hard HRM approach (recruiting, hiring, payroll and keeping records of employees) than soft HRM (integration, teamwork, coordination), this is the reason, HR professional’s involvement is not welcomed and often not needed at the time of meetings. If HR gets the opportunity to share the seat in meetings, their duty is to note the minutes of meetings and circulate it to the attendees of meeting at the end. On the other hand, most HR professionals itself are also unable to demonstrate how they support the bottom line (profitability) of the organization and get pressurized from employees and managers, and used to follow the instructions from other influential departments. That’s when the other departments recognize the value of HR. It requires a lot of amount of work on HR's part to build its credibility. It is mostly seen that they have to work really hard in order to show their visibility in the company. By working 'hard' do not mean working late nights to do their jobs, which is usually taken by HR professionals and lose their prime focus, but it mean creating good relations with employees and establish good processes, systems in the company, which employees find beneficial. Also, since it is a people's function, they have to put effort so that employees trust

Other revenue generating department’s heads has influence over it. Due to this hard approach of HR and non-serious attitude of company management towards HRM, it impacted the company business unsatisfactorily. Reward based appreciation practices is not followed. No bonuses for non-management level workers, so motivation level of workers has gone down which hiked the turn-over rate of skilled labor. Job satisfaction is non-existent among workers. No skill improvement and trainings sessions were conducted, whereas new state of the art production lines are erected. All these factors effected on productivity and market position of the products and it resulted in business loss. This is all because the higher management and HR are not on same level of operations. Neither Directors thought to consult HR before decisions nor HR showed interest in showing the support to company business.

Suggestion For Improvement:

In order to improve, HRM approach is needed to shift more towards Soft HRM and maintain balance between Hard HRM and Soft HRM. HR professionals need to more