The Importance Of Human Resource Management In Any Organization

The importance of human resource management in an organization

Despite playing one of the most influential roles required for an organization’s success, the HR team does not get appreciation. This is where the importance of human resource management starts.
Imagine walking into your office tomorrow, and instead of the calm buzz, there is a chaotic frenzy about everyday work. Or, imagine your employees exceeding their leaves and still receiving their full salary.

Or, that new hire who’s joined and has no idea what to do next?

This is where your HR team takes the pressure of worrying about these things by being the silent enforcer. They maintain the culture, make the payout, and align the entire organization toward a common goal. Check the reasons below to know why your HR team is important to your company.

The importance of human resource management is to align everyone towards a common goal.

  1. Success in an organization is always the combined efforts of the entire team. Though the founder establishes the organization’s vision, every member needs to work hard consistently to reach the goal. While it’s easier to align a smaller team to a common goal, it gets increasingly hard as a team grows.
    Your HR team ensures that no matter the headcount, all team members are aligned toward the organization’s vision wholeheartedly.
  2. Hiring the right talent.

    Just as important as it is for everyone to believe in the bigger vision, it is to hire the right talent who could take your organization to new heights. And, it’s the responsibility of your HR team to hire the right employee.

    From posting job openings to scanning resumes to scheduling interviews to presenting an offer letter, your HR team is involved at every step to ensure a smooth hiring process. Your HR team also gauges whether a new hire would be a good cultural fit for the organization. No organization would want to hire someone whose beliefs are not aligned with the organization.

  3. Training and development of new hires.

    Once a new hire is on-boarded, he/she needs to be given adequate training to get to speed with their job responsibilities. This training entails the operation of the company, policies followed, and any/all training required in their field of work.

    The HR team is responsible for developing an effective training program that is profitable to the organization.

  4. Creating a happy and healthy work culture.

    Culture, in a nutshell, can be defined as your organization’s personality. It is the sum of your organization’s vision, beliefs, behaviors, and interactions. And, any business owner or CEO would want to avoid building a culture that’s toxic and demoralizing for its employees.

    Your HR team’s responsibility is to maintain and enforce practices that ensure employee engagement and motivation in your organization.

  5. Resolving conflicts between employees or employees and management.

    As mentioned earlier, at any cost you wouldn’t want your organization’s culture to turn toxic and make it harder for people to be productive, and conflicts are a sure way to make the atmosphere sour.

    It is the responsibility of your HR team to address any conflicts between internal team members and resolve them swiftly and justly. They must do it without diminishing employee morale.


  6. Managing employee perks and benefits.

    While there are many factors that influence your employees’ morale and motivation, providing them with benefits that make their lives simpler and better, is a sure way to make them feel cared and valued.

    Your HR teams, therefore, finalize the required employee benefits for your organization and how your employees could use them. Furthermore, you must upgrade these benefits regularly to cater to your employee’s changing needs.

  7. Guaranteeing appropriate and fair performance reviews.

    I’m sure, just like me, you would have come across friends or colleagues who’ve been highly demotivated after a performance review. After working hard all year round, to recognize what they had done wasn’t adequate or required, is certainly demoralizing.

    Your HR team needs to make sure your employee goals are well-defined and communicated to the employees. On the basis of these goals, your HR team needs to evaluate the employees during the appraisal cycle and provide appraisals accordingly.

  8. Proper and effective tracking of employee leave and attendance.

    Imagine one of your employees taking over a week of holidays spread across the month yet ends up receiving his full pay, in such a scenario your business incurs a loss every day your employee was on leave and on the overpaid salary.

    Therefore, your HR team ensures that there are no errors in tracking employee attendance/leaves. Even if smaller-scale manual attendance monitoring is still viable, supplying your HR team with a robust HRMS may help make their job easier. In this case, managing the attendance of 1000+ employees dispersed across locations or even 50 employees would be impossible. Even if your team size is small today, automating attendance and leave management can simplify payroll processes which are linked with employee attendance.

  9. Ensuring a smooth exit to employees leaving the organization.

    Just as critical it is for your HR team to ensure the talent is on-boarded efficiently, it is crucial to ensure all paperwork – experience certificate, relieving letter – are all in place.

    Your HR team needs to ensure all the required documents are in place when your employee leaves.

  10. Compliance with state and central regulations.  

    Finally, failure to comply with state and central statutory guidelines can leave your business vulnerable to punitive damages. These can further harm your business and increase your losses.

    Your HR team ensures your business is compliant with all necessary regulations and free of any vulnerabilities.

As evident, any organization that doesn’t have an HR team in place is bound to face troubles, then whether that be in hiring new talent or maintaining compliance or on deciding employee benefits. HR teams are an integral part of today’s workforce and critical to the success of any organization. This is the importance of human resource management.