First, we should start with the human resource management definition. So, what is human resource management (HRM)? HRM is one of the aspects of company management, which is aimed at staff recruiting, evaluating its work, and creating optimal working conditions for specialists, as well as organizing training and resolving any conflict situations.
Why are human resources important? Today, when the effectiveness of any business and its competitive advantages directly depend on the performance of the main resource, employees, the importance of human resource management is extremely high. Therefore, the requirements for HR managers are constantly growing, the value of the unconventional approach to work and the degree of professionalism increase as well.
How HRM is important for employees? Effective HRM is important not only for a company, but also for employees, because without proper working conditions, without opportunities for training and professional growth, the professionalism of an employee will not grow, moreover, an employee can degrade, which is very bad for both this person and for a company.
Often, company managers focus on financial management, production, marketing, but they may not pay enough attention to the development of human resources management structures, but the cost of this mistake can be very high. Effective human resource management directly affects the overall value of a company, because it’s due to human resource management, the share of intangible assets, and intellectual capabilities of employees increase, as well as the value of a brand. This defines the importance of human resource management.
What are human resources (HR) management about?
What is human resource management in an organization? It is related to the achievement of goals in the following areas.
- HRM involves a complex approach to improving work efficiency in a company;
- HRM is aimed at developing commitment, i.e., human resource management emphasizes the importance of the tasks and values of a company;
- Employees in HRM are considered to be an asset, human capital, and HRM is aimed at company growth;
- Formation and development of HRM is a direct task of the heads of departments of the organization;
Selection of staff and their improvement.
It is very important for any company to acquire and retain highly qualified, loyal and well-motivated staff. In order to do this, you have to be able to correctly assess and satisfy all the needs of the organization for employees, as well as to increase and develop the abilities of employees (potential, personal contribution to the work of the enterprise, the possibility of the use of their work in future). In order to implement these activities, a company must provide its employees with the opportunity to learn and grow professionally. In addition, the selection of such resources involves the development of systems with fairly high working standards, which increase flexibility and encompass the process of selecting applicants and recruitment, a bonus payment system that depends on working indicators, as well as training and development of the company's management.
Evaluation of employees.
Modern human resource management should motivate employees; consolidate the unity and improve the commitment to the activities and results of the company. Employees should understand that they are appreciated, and their work, achievements, abilities, and professionalism are rewarded.
Relationship between employees and company management.
The purpose of human resource management is to form such a microclimate in the company team, where it is possible to maintain highly productive and harmonious relationships between employees and the management team, and as a result, the teamwork succeeds and develops. It is necessary to carry out appropriate management activities that are aimed at increasing the commitment of employees to the goals and objectives of the company, as well as to take some steps aimed at demonstrating to employees their importance and value.
The goal of human resource management is also to promote the development of an appropriate atmosphere of trust and cooperation in the organization. Human resources management helps a company in balancing mutual interests and helps to adapt to the needs of certain groups that are interested in the work of a company. These can be groups of owners, managers, employees, suppliers, customers, government agencies, community groups, etc.
Another goal of HRM is to manage a team, but one should take into account both group and personal differences between the needs of employees, their style of activity and aspirations. Human resource management must ensure equal opportunities for all so that an ethical approach is applied, namely: caring for people along with transparency, and fairness in relationships.
Since the importance and value of employee’s professionalism are constantly growing in the modern world, the importance of the HR manager, or a specialist who performs these functions, is growing as well, so training new modern HRM methods and practices are becoming an essential aspect of the development of any company in the world or in Dubai, the UAE .