An Introduction to Human Resource Management

Human Resources a.k.a. HR department, manages various organizational functions and issues related to the employees working in the organization. It includes but is not limited to recruitment, training, performance management, defining work culture, employee motivation, policy administration, employee communications, employee safety, payroll management, etc.

“I am convinced that nothing we do is more important than hiring and developing people. At the end of the day, you bet on people, not on strategies.”

Lawrence Bossidy

Each organization needs people to carry out various functions. It makes human capital, more commonly known as human resource, a cornerstone of every business, big or small. Human Resource Management is the approach that a company adopts to manage its employees and workforce. A good Human Resource Management strategy treats its employees as assets and provides them with an environment conducive to them.

Let us look at the most critical functions that fall under the purview of Human Resource Management.

1. Recruitment and Staffing

Each business has to hire people to work. The HR department determines the number of people to hire, posts job requirements, shortlists candidates, interviews them, negotiates salaries, and selects the right candidate under the recruitment and staffing function of the HRM.

It can be a highly time-consuming process for the HR team. Sometimes it may take months for the entire process. As per various studies, the cost of hiring an employee is approx. $3500-$4000 for a business. The HR department has to ensure that all the processes concerned with recruitment are executed well, or else it may cost the company a lot of time and money.

2. Learning and Development

Learning and development, also known as training and development, includes conducting various training sessions for employees that will help them enhance their skills. The success of an organization hinges on training its employees.

Training an employee helps the business as employees utilize these newly acquired skills and expertise while performing their tasks. It will enable them to undertake tougher challenges and bigger responsibilities. The employees will add more value to the company.

It is essential that as a business, you look at these initiatives as an investment and not a cost to the company.

Many companies hesitate to provide training to their employees as they fear that they might leave the company and seek better opportunities post-training. If a company does not train its employees, it will have a workforce that does not know the recent industry trends. It will have a negative impact on the bottom line as the workforce would not be well equipped to solve problems that their clients may face. Richard Branson once famously said, “Train people well enough so they can leave, treat them well enough, so they don’t want to.”

3. Rewards and Recognition

Rewards and recognitions allow businesses to appreciate the hard work done by their employees. The various rewards and recognition also help motivate employees. It makes them feel valuable to the company and encourages them to contribute more.

The HR department should lay down transparent policies for the rewards and recognition given to the employees. Also, they must match the achievement of the employees, or it may have a reverse effect. A non-existent or unfair rewards and recognition policy may demotivate the employees and make them feel that their work is not valued. The HR department has to maintain the balance.

Also, there should be consistency in the rewards given to the employees. Any bias or partiality towards any specific department or employee may prove detrimental. The HR department should devise a fair, transparent, and consistent rewards and recognition policy.

4. Performance Management

The performance management process enables an employee to monitor and review his objectives and align those with the organization’s goals and objectives. It is a process carried out in unison by the employee and his/her manager through constant and consistent communication between them. The aim is to ensure that employees are on the right path to achieving the designated goals and objectives.

A performance management process starts with planning and setting clear goals and objectives for an employee. The employees should also be allowed to give their input. They should have complete clarity about the expectations they have to meet.

The next step is to monitor their performance and help employees take corrective measures if required. The employees performing well are encouraged to sustain excellence, and the company may provide them with opportunities to grow. The employees falling short of the expectations should be given adequate training and support, enabling them to improve their performance.

The HR department has to undertake the performance management process along with managers as they work with their team members daily and can provide more accurate feedback.

5. Employee Career Path

The best way to retain talent is to provide them with opportunities to grow. An employee should have clarity about the career path within an organization. They should know how to progress within the company and the desired performance levels. Also, it is imperative that once they match the desired level, they get the right opportunities to grow and move ahead in their career.

If the employees do not get these opportunities within the organization, they will start hunting for that outside. As a business, we would not want to lose high-performing employees. If they leave, the cost of replacing them is very high, and there is no guarantee that you may find someone equally proficient to perform their job.

A business should look at HRM as a key to its success. Happy employees will help create loyal customers. Loyal customers lead to a flourishing business. Hence a company must invest time and money to design and lay down employee-friendly policies that will help them manage its human resources more effectively.