Human Resources Management (HRM) is an integral part of almost all large organizations. It is a department that looks into the recruitment, welfare, education and engagement of employees in accordance with the company policies. In other words one can safely state that human capital management is the organizational function that deals with various topics related to people in an organization such as performance management, hiring, wellness, compensation, organization development, safety, benefits, employee motivation, communication, administration, and training.
Here are few key activities of performed by a Human Resources Management Department in an organization:
– Organizational Design
– Performance Management and Appraisal
– Staffing
– Reward Systems, Benefits and Compliance
– Employee and Organizational Development
There are various activities that are part of human capital management function and these activities encompass the complete organizational set up. As you may note in various organizations ‘Line Managers’, spend a considerable amount of time to manage a number of human resource activities, which include disciplining, engaging, hiring, evaluating, and scheduling employees.
Human resource management team or department in an organization assist the organization with all activities related to staffing and maintaining an effective and agile workforce. Some of the most important HRM responsibilities include training and development, team-building, job analysis, recruiting, performance management and appraisal, compensation, worker health and safety issues, as well as identifying or developing critical methods for selecting staff. Human capital Department provides the tools, data and processes that are used by Line Managers in their human capital management component of their job.
The function of HR department in an organization is not limited to hiring and managing a large work force but research has shown that progressive and highly effective Human capital Management Practices have a major impact on corporate bottom-line and middle-line performance. Researchers have documented the positive impact of good HR practices on productivity; product and service quality; financial performance; and cost control. Researchers have documented the positive impact of good HR practices on productivity; product and service quality; financial performance; and cost control.
Those who consider Human Resources department as cost centre forget the vital role played by HR department in human capital management. Managing a talented work force, keeping it gainfully employed and engaged is an effective way in ensuring quality output from employees of an organization. Besides, human resources management provides competitive advantage to an organization. It refers to the ability of an organization to formulate strategies that place it at favorable position relative to other companies in the industry.