Significance of Human Resource Management
The strategic role of human resource management is the process of acquiring, training, appraising, and compensating employees, and attending to their labour relation, health, safety and fariness concerns.
There are various reasons why human resource management is important. They are as follows:
1. To identify manpower needs :
Determination of manpower needs in an organisation is very important as it is a form of investment. The number of men required are to be identified accurately to optimise the cost.
2. To incorporate change : Change is constant in any organisation and this change has to be introduced in such a way that the human resource management acts as an agent to make the change effective.
3. To ensure the correct requirement of manpower: At any time the organisation should not suffer from shortage or surplus manpower which is made possible through human resource management.
4. To select right man for right job: Human resource management ensures the right talent available for the right job, so that no employee is either under qualified or over qualified.
5. To update the skill and knowledge: Managing human resource plays a significant role in the process of employee skill and knowledge enhancement to enable the employees to remain up to date through training and development programmes.
6. To appraise the performance of employees: Periodical appraisal of performance of employees through human resource management activities boosts up good performers and motivates slow performers. It helps the workforce to identify their level of performance.
7. To improve competitive advantage: Organisations with capable and competent employees can truly gain competitive advantage in the globalised market. Higher the level of good performers greater the possibility of fast paced growth of the enterprise.
8. To provide incentives and bonus to best performers: It is the role of human resource management to recognise the best performers and to provide them with bonus and incentives as a form of appreciation for their work. This motivation can be either financial or non financial.
9. To determine employee commitment: Human resource management determines the level of commitment of employees to their work either through interview or questionnaire. The higher the level of commitment the higher the possibility of the organisation to be successful. This can be carried out through appropriate policies.
10. To emphasise socialisation: Human beings are social animals and they should be ensured that they are comfortable in the work place by maintaining cordial relationship with peers, subordinates and managers so as to contribute maximum to the organisation.
11. To promote favourable employee attitude: Organisations are expected to provide a good work environment to secure favourable employee attitude towards the management. This can be accomplished through conflict resolution, counselling, grievance reprisals etc.
12. To provide scope for collective bargaining: Human resource management encourages workforce to form a union to represent their grievances and find early solution for their problems by collective representation.