Nilukas Blog on "The Strategic importance of HRM & People Management"

 

The Strategic importance of HRM & People Management

 

Human Resource Management – Definition

Human resource management involves the practice of recruiting, hiring, allocating, and managing employees. It focuses on making the most of employees while lowering risk, similar to other business Assets managing employee relations(Chai & Sutner, 2023).

There is key six primary functions in HR: Employee relations, workplace safety, Recruitment, compensation, planning, labor law compliance, training.

 

Figure 1: Advantage of implementing HRM.

 

The effective management of people within an organization is what is meant by HRM. HR management helps in ending the performance gap between employees and the strategic goals of the Organization. A strong HR management team can also give businesses a competitive advantage through Organization objectives (GISMA Business School , 2023).

 

Figure 2: Human Resource Management

 

Organizations need human resources for a variety of purposes for ongoing organizational operations, including brand recognition and strategic planning. HR teams with a multitude of backgrounds provide a variety of services to employees in small organizations. The areas over which HR retains control can improve employee satisfaction across the board while strengthening Organization operations.

Human resources management is an essential function of every organization to operate. Without human resources management, an organization would not be able to successfully recruit and stay with staff and improve the organization, or maintain a confident, accepting positive workplace culture.

 

1.     Strategic Management

             HR helps Organizations to make strategic decisions to meet staffing needs.

 

2.     Salaries and Wages

HR creates reasonable compensation plans to keep wages competitive with other businesses.

 

3.     Analyze the Outcome/Benefits

Benefits professionals are essential for businesses to negotiate group benefit plans for each employee while continuing within budget and considering economic conditions.

 

4.     Safety and risk management are essential for successful operations.

Employers must provide safe workplace conditions and monitor the fulfillment to reduce accidents.

 

5.     Reducing liability issues

HR employee relations specialists reduce an organization's exposure to unfair employment practices.

 

6.     Training and development are an important part of an organization's       success.

HR provides training and development to encourage employer-employee relationships and prepare employees for leadership responsibilities.

 

7.  Employee satisfaction is an important factor in an organization’s   success.

Employee relations authorities improve employee performance, determination, and satisfaction through focus groups, surveys, and suggestions.

 

8.     Recruitment and Onboarding is the process of selecting and preparing   employees for employment.

As HR recruiters assess applicant tracking systems to maximize recruiting efficiency.

 

9.     Hiring processes are essential for successful employment HRM.

             HR professionals collaborate with hiring managers to make informed hiring decisions.

 

10.  Sustaining agreement is essential for a successful organization.

HR professionals ensure compliance with centralized and state employment laws and maintain applicant flow logs (Mayhew, 2019). 

Figure 3: Advantages & Disadvantages in HRM 

 

People Management – Definition

People management is the process of hiring, establishing, motivating, and keeping employees to maximize their talent and productivity.

(HRM), people management includes - Organizations must focus on Employee training, recruitment, compensation, performance management, and safety and wellness. Strategies for managing people consider their needs, special skills and abilities, and career goals while promoting positions with the objectives and values of the organization (HiBob, 2023).

 

    Figure 4: People Management

 Organizations can use people management to reduce absenteeism and increase productivity.

People Management is essential for successful businesses, as it provides the support, skills, abilities, and knowledge to enable higher employee retention, performance, motivation, and engagement with job responsibilities proactively. Investments in training and development, health, and well-being should be considered an investment, as people are essential assets contributing to growth and development to motivate & work effectively (Rebecca, 2018).

 

Figure 5: Benefits of People Management

 

People Management - HR people are responsible for people management. Organizations need people management to ensure the success of their operations. Recruiting, training, engaging, and retaining employees to develop their talent and increase productivity is the core responsibility of HR specialists. People management is about presenting workers with the tools and work environment that will promote their comfort and overall job satisfaction.

To help each employee overcome obstacles, feel confident moving forward, and address issues from outside the workplace that may be affecting their performance, HR professionals may need to adopt specific approaches for each individual employee.

 

At its core, people management is about taking care of the workers and comprehending how the organization can support their specific needs.

 

Employee engagement

Organizational success will depend on employees feeling as though they're a component of a larger entity and working together. A motivated colleague is not only more productive but also more committed to the Organization’s success. They'll be proactive members of the team who can view the bigger picture.

Increased workplace involvement and self-esteem are better for productivity, employee retention, and future employment.

 

Figure 6: Employee engagement

  

Recruitment 

The success of any organization is built on the right people and People managers also play an integral role in the recruitment process and in finding the right people to take a business forward. But not only on the skills of a candidate but on how their characteristics and personality will work with others.

Figure 7 : Recruitment

Resolution of Conflict

Any size organization will eventually face conflict, and many managers and employers are unaware of how to resolve it. Because there should be a better understanding of each person's needs and concerns, people managers play a crucial role in conflict resolution and commonly end up serving as the negotiator between individuals or departments.

 

Figure 8: Resolution of Conflict

 

Organizations can implement processes and practices to encourage better mental health only with the help of people management, which ultimately declines absenteeism and increases productivity. For example: Need to implement appropriate communication with all levels of the organization. The requirements of those in entry-level and junior positions can frequently be difficult for those in senior management and leadership positions to fully comprehend. Due to their understanding of each person's needs, people management professionals assist in bridging this gap and having conversations about complex needs at all levels of the organization in a way that everyone can recognize (MOL learn, 2022).

 

Strategic Importance of HRM & People Management

Human resources used to be solely responsible for recruiting and onboarding staff, but it has since developed into a potent adversary that can help a business navigate the difficult, rapidly evolving, digital-first corporate environment.

 

Strategic human resource management aligns employees with the objectives of the company.

Human resource management is generating a relationship between an organization's most asset - its people - and the strategic direction of the business through strategic human resource management. Growing the company, adjusting organizational culture to the modern workplace, and creating competitive advantage are all directly related to strategic human resource management.

Although it might appear to be a straightforward goal, expanding Organization has increasingly challenging considering a few emerging trends, including a competitive labor market, digital disruption, and social change. However, this is the situation in which strategic human resource management performs best (Vaughan, 2019).

 

Conclusion

Strategic HR management is essential for a successful Organization & People management ensures the right people are in the right place to achieve desired goals and improve employee performance and retention.

So that organization is built on strategic human resource management because, when done right, it makes sure that everyone within the organization is working toward a common goal. This raises the probability that the organization will succeed. Strategic HR management builds value and engagement to grow human resources.

 

References : 

Chai , W. & Sutner, S., 2023. TechTarget. [Online]
Available at: https://www.techtarget.com/searchhrsoftware/definition/human-resource-management-HRM
[Accessed 17 April 2023].

GISMA Business School , 2023. GISMA Business School. [Online]
Available at: https://www.gisma.com/blog/the-importance-of-human-resource-management
[Accessed 17 April 2023].

HiBob, 2023. Hi Bob. [Online]
Available at: https://www.hibob.com/hr-glossary/people-management/
[Accessed 17 April 2023].

Mayhew, R., 2019. CHRON. [Online]
Available at: https://smallbusiness.chron.com/10-reasons-hr-important-organization-22424.html
[Accessed 17 April 2023].

MOL learn, 2022. Mollearn. [Online]
Available at: https://www.mollearn.com/about/news/what-people-management-and-why-it-important/#:~:text=People%20management%20helps%20organisations%20implement,reducing%20absenteeism%20and%20improving%20productivity.
[Accessed 18 2023 2023].

Rebecca, 2018. developingedge. [Online]
Available at: https://www.developingedge.ie/The-Importance-of-Great-People-Management
[Accessed 17 April 2023].

Vaughan, T., 2019. Poppulo. [Online]
Available at: https://www.poppulo.com/blog/importance-of-strategic-human-resource-management
[Accessed 20 April 2023].

 

                 Figure 1: Advantage of implementing HRM.

                 Figure 2: Human Resource Management

                Figure 3: HRM Advantages & Disadvantages

               Figure 4: People Management

              Figure 5: Benefits of People Management

             Figure 6: Employee engagement

             Figure 7: Recruitment

            Figure 8: Resolution of Conflict