The Importance of Good Human Resource Management

Human Resource Management involves the recruitment and management of the people who work in an organization. The focus of Human Resource Management is to attract, select, train, motivate and compensate employees, while making sure that they comply with employment and labor laws. A team of professionals cannot be built by an organization without good Human Resource Management. As a result, businesses with good Human Resource Management (HRM) have higher profits than businesses without or with poor HRM.

Benefits of Good Human Resource Management

Research shows that the human part of resources in an organization makes up for approximately 80 percent of the organization’s value, so good Human Resource Management is very important. Let’s take a look at the main responsibilities of an HR team, and how good Human Resource Management can affect them:

  • Hiring personnel – HR representatives have to devise rules and criteria for hiring people who are right for the job. They also have to formulate the obligations and rights of the future employee. A contract for an employee is prepared based on these two factors. Recruitment is done through an educational and psychological evaluation, where the applicant’s skills and character are assessed, or through interviews, where the applicant is evaluated by the answers that he or she gives to a set of questions asked by the HR manager. Good Human Resource Management will make sure that only the most skillful people are hired for the job, increasing the organization’s value.
  • Training workers – Besides hiring people, another responsibility of the HR managers is to train employees by organizing training programs and determining the easiest and most appropriate way of introducing these training programs based on the employee’s needs. By doing this, Human Resource reps help employees gain additional sales and customer service skills, helping the organization’s interests, as well.
  • Appraising performance – Good Human Resource Management also involves motivating employees by encouraging them to work to their full potential, and offering them information regarding their job performance from time to time. A good HR manager’s goal should be to constantly develop and improve employees.
  • Conflict resolution – Whether the conflict is between two or more employees or between management and employees, a good HR manager is required to help settle any conflict. Employees whose rights have been violated, or who experience harassment or discrimination can contact their HR managers for assistance. HR managers should use anti-discrimination and anti-harassment laws to assist employees in resolving their legal matters, as well as to avoid litigation.
  • Improving compensation packages – Rewarding employees who have good work results is very motivating. Good Human Resource Management means compensating those who have exceeded expectations, which serves as an incentive for them and other employees to continue doing great work. Compensation packages can include holiday bonuses, end of year bonuses, holidays, awards, promotions and more.

Effective hiring and training practices, creating employees who are motivated and rewarded for their hard work, and maintaining a good relationship between employees and the company are all results of good Human Resource Management. Even for small businesses, managing the human resource aspect of the business is very important, and can only be done through good Human Resource management.

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