Role of Human Resources in Organizations

Topics: Human resource management, Human resources, Strategic management Pages: 13 (4129 words) Published: September 10, 2013
This paper will define and evaluate the role of Human Resource Management (HRM) in the achievement of organizational goals. During the first four hundred years of industrialization, it was all about machines, which gradually replaced the human labour. They were so important that humans were not even considered a resource. Not anymore. With information revolution, internet connectivity and the age of customized services, humans are the greatest resource. That makes human resource management, by far, the most important stream of the art of managing business. Human resources are by far the most important resources for any organization. Needless to say then that making the best possible use of these resources is crucial to the fate of organization, and hence once of the most important priority for the managers of that organization. What makes it different from other streams of management is the fact that Human resources management or HRM cannot be defined by simple thumb rules, nor can it be taught or explained by simple theories, without a grave risk of oversimplification. It requires keen observation of human traits, sensitivity arising from emotional intelligence, and understanding of human nature like a psychologist Traditionally organization resources have been divided into three categories: human resources, financial and physical (buildings, machines, raw materials etc). Whilst all these resources are very important, the Human Resource plays an important role in achieving organizational objectives, conceptually. Human Resources Management is regarded as a strategically and coherent approach to management of organization’s most valued assets, that is people working there who collectively contribute to the business. Human Resource Management is an approach which is based on four(4) major principles according to Storey (2001), the first one being that Human Resource are the most important assets that an organization has and the effective management is the key to its success. The second principle is that success is most likely to be achieved if the personnel policies and procedures are closely linked to and with so that they can make a major contribution to the achievement of the corporate objectives and strategy plans. The Third principle is corporate culture and value, the organizational climate and managerial behavior that emanate from that culture will exert the major influence on the achievement of the excellence , the culture must therefore be managed. The last principle of Humana Resource Management is concerned with integration, that is getting all members of the organization involved and working together with a sense of common purpose. Implementation of Human Resource Management plans involves four primary activities: acquisition, development, compensation, and maintenance. Acquisition entails the hiring of workers most likely to help a company attain its goals. The development function encompasses the training of workers to perform their tasks in accordance with company strategy. This activity also involves company efforts to control and change employee behavior via reviews, appraisals, incentives, and discipline. Compensation covers the payment of employees for their services. Maintenance requires structuring labor relations the interaction between a company's management and its unionized employees and ensuring compliance with Government employment laws. Finally, the evaluation function includes the assessment of a company's HRM policies to determine whether they are effective. The purpose of Human Resource Management is to anticipate changes within the employee framework, thereby ensuring that the organizational objectives are fulfilled (Nankervis, Compton and McCarthy, 1993). This process is critical to the strategic objectives of the firm. If changes in the ‘people market’ can be anticipated, and if this is attended to at the senior level, human resource management can act as a proactive...

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