The Strategic Role Of HRM In An Organization

 

Image 1 ( (Hrwale.com, 2012)

Human resource management (HRM) is the department responsible for overseeing the most important component of a business, which is the workforce (Bianca, 2019). It focuses on strengthening the employer-employee relationship and defines the workforce strategy and action processes required to meet the organizational goals and objectives (Mayhew, 2019).

During the 1980s, the role of personnel departments was mainly administrative, and they were mostly responsible for issuing applications, providing employees with insurance enrolment forms, and processing payrolls. This changed over the next decade, and personnel departments became more involved with overall business goals and objectives. Organizations also started hiring human resource leaders capable of strategic management (Mayhew, 2019).

With this, personnel management evolved into human resource management, and human resource managers were tasked with developing strategic solutions to employment-related matters that impact the organization’s ability to meet its goals and objectives (Mayhew, 2019). A few of the strategic roles of HRM in an organization are given below:

 

Ensuring Workplace Safety And Risk Management

One of the main strategic roles of HRM is to create a work environment that is free from hazards and accidents. This entails risk management and mitigating potential losses from injuries or accidents on the job. Human resource managers can help lower company expenses for workers’ compensation by getting workers’ compensation insurance. Another task of HRM associated with creating a safe working environment is training employees on the proper use of complex machinery and equipment to avoid accidents and injuries (Mayhew, 2019).

 

Facilitating Employee Training And Development

In addition to avoiding accidents and injuries, proper employee training and development increases productivity and prepares the workforce for future positions within the organization. This is the reason why human resource managers place a significant focus on employee training and development (Mayhew, 2019).

 

Building Loyalty And Commitment

Human resource managers suggest and adopt strategies to increase employee loyalty, satisfaction, and commitment so that organizational productivity is high and the turnover rate is low (Bianca, 2019). The strategies can include mentorship programs, continuous feedback on performance, and recognition and reward systems (Half, 2022)

 

Building A Talent Pool

An HRM department helps an organization develop a competitive advantage by building the talent pool of the organization so it can offer a unique set of goods and services to customers. Building a talent pool is not just about hiring talent, but it is also about retaining them and helping them stay committed to the organization in the long run (Bianca, 2019).

 

HR Compliance

Employment and labor laws are quite complex and are constantly evolving. Hence, human resource managers keep track of this ever-changing landscape to keep organizations from running into trouble with the federal, state, or local governments’ laws. Noncompliance to these employment and labor laws can result in applicants or employees filing claims on the grounds of discriminatory hiring or employment practices, or hazardous working conditions (Paycor, 2022).

 

Conclusion

Human resource management is an important disciple of an organization. It helps to create an environment conducive to success and also adds value to an organization. It also oversees some of the most crucial aspects of an organization, such as employee engagement, safety, compensation, and performance. Thus, organizations should place a significant focus on HRM and invest more in this department to succeed in the long run. 

References

Bianca, A., 2019. The Role of Human Resource Management in Organizations. [Online]
Available at: https://smallbusiness.chron.com/role-human-resource-management-organizations-21077.html
[Accessed 28 March 2023].

Half, R., 2022. 14 effective employee retention strategies. [Online]
Available at: https://www.roberthalf.com/blog/management-tips/effective-employee-retention-strategies
[Accessed 31 March 2023].

Hrwale.com, 2012. Role of HRM in strategic management. [Online]
Available at: https://corehr.wordpress.com/2012/07/31/role-of-hrm-in-strategic-management/
[Accessed 31 March 2023].

Mayhew, R., 2019. The Strategic Role of Human Resource Managers. [Online]
Available at: https://smallbusiness.chron.com/strategic-role-human-resource-managers-11782.html
[Accessed 28 March 2023].

Paycor, 2022. The 5 main roles in HR. [Online]
Available at: https://www.paycor.com/resource-center/articles/the-5-main-roles-in-hr/#:~:text=Human%20Resources%20manages%205%20main,effectively%20managing%20the%20employee%20lifecycle.
[Accessed 31 March 2023].