Workers are important and the main resource of an organisation; allocating them into the right positions with the most productivity outcome is the job of human resource management (HRM) department. Therefore, one of the significant requirements for an organisation to function well is to have an efficient HRM department. Thus, to create a required HRM, understanding its structure and its function is necessary; as the result, the purpose of this essay is to identify the contribution of HRM activity to organisation in the current economic climate.
The term human resource has many different definitions for it such as “the personnel department of an organization, dealing with the recruitment, administration, management and training of employees; abbreviated as HR. The personnel employed in an organization” (CBS Interactive Inc 2010) or “The division of a company that is focused on activities relating to employees. These activities normally including recruiting and hiring of new employees, orientation and training of current employees, employee benefits, and retention” (BusinessDictionary.com 2010). Likewise, HRM also has quite a number of definition like: “Administrative activities associated with human resources planning, recruitment, selection, orientation, training, appraisal, motivation, remuneration, etc. HRM aims at developing people through work” (BusinessDictionary.com 2010). However, the most suitable and complete one in this essay is “Human Resource Management (HRM) is the function within an organization that focuses on recruitment, management, and providing direction for the people who work in the organization. HRM can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training” (About.com Guide 2010). In accordance with those points of view, human resource management works in order to put right people into the right tasks, and make sure the employees can meet the organisation’s goals. Humans are the greatest resource of an organisation; without them, all business functions like communicating through all kinds of media, manage cash transaction or dealing with customers could not be accomplished, or it can be said that humans and their potential are necessary to drive an organisation. Organisation changes continuously affect not only the business but also the employees. In an organisation, human resource management is responsible for how employees are treated. It is in charge of taking on people into the organisation, helping them with their work, resolving all the problems arising, and compensating them. In order to maximise the organisational productivity, it is important to manage individual’s abilities, time, and talents. In general, there might not be an HRM department in small organisations, with fewer than a hundred workers, and line managers will be responsible. On the other hand, the human resource managers in larger organisation will organise the HRM tasks and report directly to the chief executive officer (CEO).
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