HR Is Important to an Organization

by Ruth Mayhew

Related Articles
 1The Role of Human Resource Management in Organizations
 2Ten Reasons Why the Human Resources Department Is Important
 3Six Main Functions of a Human Resource Department
 4Primary Responsibilities of a Human Resource Manager

Human resources is important to organizations in 10 specific areas, ranging from strategic planning to
company image. HR practitioners in a small business who have well-rounded expertise provide a number
of services to employees. The areas in which HR maintains control can enhance employees’ perception of
HR throughout the workforce when they believe HR considers employees to be its internal customers and
renders services with that in mind.
Strategy

HR improves the company's bottom line with its knowledge of how human capital affects organizational
success. Leaders with expertise in HR strategic management participate in corporate decision-making that
underlies current staffing assessments and projections for future workforce needs based on business
demand.

Compensation

HR compensation specialists develop realistic compensation structures that set company wages
competitive with other businesses in the area, in the same industry or companies competing for employees
with similar skills. They conduct extensive wage and salary surveys to maintain compensation costs in line
with the organization's current financial status and projected revenue.

Benefits

Benefits specialists can reduce the company’s costs associated with turnover, attrition and hiring
replacement workers. They are important to the organization because they have the skills and expertise
necessary to negotiate group benefit packages for employees, within the organization's budget and
consistent with economic conditions. They also are familiar with employee benefits most likely to attract
and retain workers. This can reduce the company’s costs associated with turnover, attrition and hiring
replacement workers.

Safety

Employers have an obligation to provide safe working conditions. Workplace safety and risk management
specialists from the HR area manage compliance with U.S. Occupational Safety and Health Administration
regulations through maintaining accurate work logs and records, and developing programs that reduce the
number of workplace injuries and fatalities. Workplace safety specialists also engage employees in
promoting awareness and safe handling of dangerous equipment and hazardous chemicals.

Liability

HR employee relations specialists minimize the organization's exposure and liability related to allegations
of unfair employment practices. They identify, investigate and resolve workplace issues that, left
unattended, could spiral out of control and embroil the organization in legal matters pertaining to federal
and state anti-discrimination and harassment laws.

Training and Development

HR training and development specialists coordinate new employee orientation, an essential step in forging
a strong employer-employee relationship. The training and development area of HR also provides training
that supports the company's fair employment practices and employee development to prepare aspiring
leaders for supervisory and management roles.

Employee Satisfaction

Employee relations specialists in HR help the organization achieve high performance, morale and
satisfaction levels throughout the workforce, by creating ways to strengthen the employer-employee
relationship. They administer employee opinion surveys, conduct focus groups and seek employee input
regarding job satisfaction and ways the employer can sustain good working relationships.

Recruitment

HR recruiters manage the employment process from screening resumes to scheduling interviews to
processing new employees. Typically, they determine the most effective methods for recruiting applicants,
including assessing which applicant tracking systems are best suited for the organization's needs.

Selection

HR professionals work closely with hiring managers to effect good hiring decisions, according to the
organization's workforce needs. They provide guidance to managers who aren't familiar with HR or
standard hiring processes to ensure that the company extends offers to suitable candidates.

Compliance
HR workers ensure that the organization complies with federal state employment laws. They complete
paperwork necessary for documenting that the company's employees are eligible to work in the U.S. They
also monitor compliance with applicable laws for organizations that receive federal or state government
contracts, through maintaining applicant flow logs, written affirmative action plans and disparate impact
analyses.
To assist Employees in achieving their personal goals, at least in so far as these goals enhance the
individual’s contribution to the organization. Personal objectives of employees must be maintained,
retained and motivated. Other objectives: ^ Accomplish the basic organizational goals by creating
and utilizing an able and motivated workforce. v'' To establish and maintain organizational structure
and desirable working relationships among all the members ofthe organization. S Develop co-
ordination among individual and group within organization to secure the integration of organization.
S To create facilities and opportunities for individual or group development so as to match it with
the growth ofthe organization. S To attain an effective utilization of human resources in the
achievement of organizational goals. 9 S To identify and satisfy individual and group needs by
providing adequate and equitable wages, incentives, employee benefits and social security and
measures for challenging work, prestige, recognition, security, status. S To maintain high employees
morale and human relations by sustaining and improving the various conditions and facilities. S To
strengthen and appreciate the human assets continuously by providing training and development
programs. •S To consider and contribute to the minimization ofsocio-economic evils such as
unemployment, under employment, inequalities in the distribution of income and wealth and to
improve the welfare ofthe society by providing employment opportunities to women and
disadvantaged sections ofthe society. ■/ To provide an opportunity for expression and voice
management. ■S To provide fair, acceptable and efficient leadership. S To provide facilities and
conditions of work and creation of favorable atmosphere for maintaining stability of employment.
To create & utilize an able & motivated work force Establish & maintain sound organizational
structure Create facilities attain an effective utilization Identify & satisfy individual & group needs. v''
Maintain high employee morale Training & development Opportunity for expression Provide fair,
acceptable and efficient leadership Facilities and conditions.

1.7 Importance ofHRM The importance of human resource management can be discussed by
Yodder, Heneman and others, from three standpoints, viz., social, professional and individual
enterprise. 1. Social Significance: Proper management of personnel enhances their dignity by
satisfying their social needs. This is done by: (i) maintaining a balance between the jobs available and
the jobseekers, according to the qualifications and needs; (ii) Providing suitable and most productive
employment, which might bring them psychological satisfaction; (iii) making maximum utilization of
the resources in an effective manner and paying the employee a reasonable compensation in
proportion to the contribution made by him; (iv) eliminating waste or improper 19 use of human
resource, through conservation of their normal energy and health; and (v) by helping people make
their own decisions, that are in their interests. 2. Professional Significance-. By providing healthy
working environment it promotes team work in the employees. This is done by: (i) maintaining the
dignity of the employee as a ‘human-being’; (ii) providing maximum opportunity for personal
development; (Hi) providing healthy relationship between different work groups so that work is
effectively performed; (iv) improving the employees’ working skill and capacity; (v) correcting the
errors ofwrong postings and proper reallocation ofwork. 3. Significance for Individual Enterprise: It
can help the organization in accomplishing its goals by: (i) creating right attitude among the
employees through effective motivation; (ii) utilizing effectively the available goals of the enterprise
 and fulfilling their own social and other psychological needs of recognition, love, affection,
belongingness, esteem and self-actualization. Dynamic and growth - oriented organization do
require effective management of people in a fast - changing environment. Organizations flourish
only through the efforts and competencies of their human resources. Employee capabilities must
continuously be acquired, sharpened, and used. Any organization will have proper human resource
management (i) to improve the capabilities of an individual; (ii) to develop team spirit of an
individual and the department; and (Hi) to obtain necessaiy co - operation from the employees to
promote organizational effectiveness.

Effects of Globalization on Human Resources Management

by Jeremy Bradley

Related Articles
 1The Effect of Globalization on HR
 2What Are the Five Main Functions of Global Human Resource Management?
 3How Does Technology Impact HR Practices?
 4Challenges Faced by Human Resource Managers Because of Technical Changes

Globalization is a term in business that refers to the integration of an organization's operations, processes
and strategies into diverse cultures, products, services and ideas. Because of its emphasis on diversity,
globalization also has a deep impact on the way companies manage their employees. Understanding the
effects of globalization on human resources can help managers to better equip their organizations for the
increasingly global business environment.
Diversity Recruitment

With the rise of globalization, companies of all sizes are now interacting with customers and stakeholders
from diverse cultures, languages and social backgrounds. In response, many human resources managers
seek to hire employees from equally diverse backgrounds. Companies engaging in this diversity
recruitment recognize the value of having people on staff that their customers can relate to, and they know
that having a team of diverse people contributes to the range of ideas and influences within the
organization.

Push for Professional Development

A further effect of globalization on HR management is a push for professional development. Professional
development is concerned with providing employees opportunities to achieve their career-related goals.
Some organizations provide resources for their employees to earn a university degree, others send their
employees to conferences or networking events and training days. Professional development is important
to globalization because it creates a win-win situation. The employees feel as though the organization is
concerned with providing a range of skills and competencies for their employees. Likewise, the
organization benefits from the added skills and connections that the employees who take advantage of
professional development programs acquire.

Greater Emphasis on Training

Similar to professional development, a greater emphasis on training has resulted because of globalization
in human resources management. Training, however, tends to be focused on the needs and professional
competencies of groups of employees within the organization. The company might, for instance, host
language classes to give its call center staff an edge in telephone sales. It might also teach its employees
how to use a new global software platform. This emphasis on training seeks to give the company a
competitive edge in the global marketplace by honing the employees' diversity emphasis.

Management of Laws Across Jurisdictions

A final effect of globalization on human resources management is the need for businesses to understand
and apply the laws of many different jurisdictions to the particular business. The federal government sets
out a number of tax and labor laws that businesses operating in the United States must comply with, but
there may also be local and regional laws that apply to companies that operate in different states or
different countries. Selling products in Europe, for example, might mean that a company has to impose a
Value-Added Tax on its goods. Hiring employees at branch locations in different locations might change
the requirements on minimum wage, tax allowances or working hours. Understanding these laws is vitally
essential to the organization because any breach of them will have a serious impact not only on the
business's financial well-being but also on its reputation.