The Importance Of Human Resources In An Organization – HR has many important functions in an organization. These include recruitment, performance management, learning and development and more. In total, there are 12 main functions of Human Resource Management.

If we want to understand the functions of Human Resources, we need to understand what Human Resource Management (HRM) is.

The Importance Of Human Resources In An Organization

According to Storey (1995), HRM is a distinctive approach to employment management that seeks to achieve competitive advantage through the strategic deployment of a highly committed and skilled workforce using an integrated array of cultural, structural and personnel techniques.

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In this article, we’ll take a look at 12 HR functions and explain how they help drive an organization forward. These functions are:

The first HR function is to know the future needs of the organization. What kind of people does the organization need and how many? Knowing this will shape recruitment, selection, performance management, learning and development and all other Human Resources functions.

In short, human resource planning is an ongoing, data-driven process of making sure the right people are in the right place at the right time to achieve the organization’s strategic goals.

Attracting people usually starts with the employer brand. In fact, businesses with excellent employer brands hire 50% more qualified applicants. Obviously, being an attractive employer has many advantages – as well as the opposite. A good example of the latter is the tobacco industry, which struggles to attract talent because of its unsavory reputation.

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With a strong employer brand and the right procurement strategies in place, you’re already halfway there. After candidates apply, the selection process is an HR tool to select the best qualified and highest potential candidates. Establishing an effective hiring selection process is critical, as bad hires can reduce productivity by up to 36%.

Technological advancements in recruiting have moved rapidly, and as a result, there are different types of recruiting tools for each part of your recruiting funnel. 3. Performance management

Performance management is essential to keeping employees productive and engaged. Good performance management involves strong leadership, clear goal setting and open feedback.

Although (bi)annual performance reviews, where the employee is reviewed by their manager, are still common, 69% of HR professionals believe that performance management will become more frequent and include natural conversations in the near future.

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360-degree feedback is also gaining popularity as a performance management tool. With this type of feedback, peers, managers, subordinates, and sometimes even customers review an employee’s performance, which can be very helpful in spotting potential areas for improvement.

Performance management is also a tool for bridging the gap between the workforce you have today and the workforce you want to have tomorrow by helping employees develop future-ready skills and competencies. 4. Learning and development

Enabling employees to develop the skills they need for the future is an important responsibility of HR. This is also related to human resource planning, the first HR function we listed, where HR bridges the gap between today’s workforce and the workforce needed in the near future.

Traditionally, organizations have a set budget for learning and development. This budget is then distributed among his employees. In some countries these costs are mandatory. For example, in the UK, companies with an annual turnover of more than £3 million pay a compulsory rate of 0.5% set for the vocational training of their employees.

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In other countries, such as Belgium and the Netherlands, it is the employer’s responsibility to take care of L&D employees. In the third group of countries, such as the United States, this is almost unregulated territory.

Despite differences in regulations, almost all employers understand the value of investing in the (future) skills of their employees. It is the responsibility of the HR department to steer these efforts in the right direction. Moreover, HR plays an increasingly important role in upskilling leaders and managers, which is one of the key HR trends for 2023.

According to Janice Burns, Senior People Consultant at Degreed, while organizations must balance economic factors and prioritize based on value opportunities, investing in employee skills is critical to capturing and ultimately retaining value for the organization.

“Creating a space where employees can improve their skills not only has comprehensive benefits, but also fulfills the needs of the individual. Now more than ever, employees are looking for ways to improve themselves for their professional future. “Employers who provide L&D resources for skills development foster an environment of motivation and invest in their employees – empowering them for their future endeavors,” says Burns. 5. Career planning

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The fifth function of Human Resource Management is career planning, development for managers and employees, collectively referred to as career path.

Showing employees how their ambitions can align with the company’s future helps attract and retain them. For the organization, there are benefits of better succession planning, higher productivity and a stronger employer brand.

“Organizations often prefer to source talent internally, promoting existing employees when possible,” said Ben Schwenke, Business Psychologist at The Test Partnership.

“However, this approach only works if your employees have the opportunity to progress by demonstrating the necessary abilities, skills and knowledge. By considering possible career trajectories, HR practitioners can ensure that their employees are well-equipped to transition into their current roles and save them from having to look for talent abroad,” says Schwencke.

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Job evaluation is a technical aspect of HR. This involves comparing different parts of the overall HR operation. This may include the quality and availability of employees, location, working hours, economic situation, job responsibilities and how much value the job brings to your organization. The idea behind function evaluation is to reward similar jobs in the same way.

Functional assessment helps the HR department ensure that the company is successful both at a strategic level and through service delivery and support. Thus, the company is able to provide the required level of services while performing strategic activities. 7. Awards

Rewarding employees for their work is another important HR function. Compensation and benefits are integral to attracting the right candidate for the role and company. These will vary according to different fields, countries and cultures. In some countries, such as the United States, health insurance is often part of a job offer. However, this is not as common in countries such as the UK where the public health system provides most of the healthcare.

The general rewards framework suggests that rewards are more than just money and other monetary benefits. They can also have relational and psychological consequences.

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Rewards include salary as well as growth and career opportunities, status, recognition, good organizational culture and a satisfying work-life balance. For example, fantastic colleagues and meaningful work also reward employees. The monetary reward of the job consists of material rewards and other (secondary) benefits.

The Employee Value Proposition (EVP) summarizes all these aspects. Your company’s EVP is different from your external image and brand. This is the image the company projects to its employees. So the rewards are more than just financial. Here is an incomplete overview of the total awards:

75% of organizations expect compensation to be more challenging in the near future, and only 53% are fairly confident or very confident about their overall compensation package. It is up to HR and Compensation and Benefits teams to develop an overall rewards strategy that works for their employees and their business.

Functions 1 to 7 all belong to the area called talent management; they aim to attract, develop, motivate and retain (high performing) employees. 8. Production relations

Final Exam Hrm

Another function of HR is to maintain and develop relations with trade unions, other collectives and their members.

Unionization is still dominant in Europe, although it is declining overall. The most recent data shows that 92.2% of workers in Iceland were members of a trade union, and 67% in Denmark. However, only 23.5% and 6% of workers were employed in the UK and Estonia. Union membership in the US is low, with 10.1% of workers.

Maintaining a good relationship with unions will help identify and resolve potential conflicts quickly, and will also be useful in tougher economic times when layoffs or other measures are required. 9. Employee participation and communication

According to Dave Ulrich, one of HR’s primary roles is to be a trusted activist for employees. Employees should be informed and listened to on various topics that concern them. Communication is concerned with the dissemination of information relevant to employees.

Human Resources (hr) Meaning And Responsibilities

Being a Human Rights Advocate is one of the four core HR competencies we’ve identified for the future of the HR workforce. People Advocacy is about culture building, people experiences and being a workplace champion and communication expert.

Linda Shaffer, Checkr’s Chief People and Operations Officer, emphasizes the importance of HR’s communications function.

HR plays an important role in establishing and implementing health and safety regulations. Making these rules part of the company culture is one of the main functions of HR.

A famous example is the energy and petrochemical company Shell, where it is forbidden to walk up the stairs without holding the handrail – also at the company’s headquarters. It is part of Shell

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