Question

Explain the role of Human Resource Management in organizations today. Which competencies do you consider core for your organization and why?

Answer 1

Human resource management (HRM) is nothing but managing the human resources. It is the policies and practices that manages the people or human resource in the organization which includes recruiting, hiring, training, rewarding, performance appraisal and retaining.

HRM is important part of business world which is very important to managers. The role of Human Resource Management in organizations today include the following: -

• HRM focus on recruitment and training the best talents so that they can contribute to organizational success. This is done by attracting large number of applicants, conducting interviews, assessing the candidates, selecting the best candidates with skills required for the job and providing training in order to enhance their skills.
• They deal with discrimination to avoid conflict situation which may hamper organization performance. They ensure legal compliance with labor and tax law which is very important for the organization.
• They monitor the performance of employees so that organizational performance are not hindered. HRM focus on conducting appraisal and performance review so that the employees performance can be monitored and corrected effectively.
• They enrich the employees so that they can contribute to organizational success. They focus on the career development of employees and provides opportunities for growth.
• They provide benefits and compensation to the employees. It caters to the wants and needs of a diverse group of population within the organization.

HR helps the employees to improve their performance by

• Understanding the employees need.
• Recruit and train employees
• Management of employees relations
• Monitor employees performance
• Handle discrimination at work
• Handle performance issues
• Ensure equal opportunities.
• Contribute towards the work life balance.

The six major positions in a human resource department are: -

• Staffing - This function includes the process of job analysis, human resource planning, recruiting and selection of employees.
• HR development - This function includes training the employees, focusing on their career development, organizational development and performance appraisal of the employees.
• Planning the compensation and benefits for people - This function includes designing the pay and salary for employees based on their role, level, job type etc., designing the employee benefits system and non-financial rewards.
• Providing safety and healthy work environment - This includes providing safety to employees and in maintaining good health.
• Maintaining employee and labor relations - This function includes managing industrial relations, collective bargaining and employee relations.
• HR research - This function includes designing, conducting and analyzing HR research and focus on interrelations of HRM functions.

Core competencies refers to the knowledge and capacity of workforce, that helps the business to be competitive in the market. It is the strengths of business that provide advantage in the competitive market. The competencies that is core to organization are its human resource. The strategic resources help the organization to gain competitive advantage. This is done by identifying the firm's resources and capabilities. These resources and their capabilities are then used appropriately to gain competitive advantage.

The four key attributes of resources and capabilities that lead to competitive advantage are: -

• Valuable - Resources help in achieving business goals efficiently and effectively.
• Rare - Resources that are not present with few or all competitors.
• Difficult to imitate - Resources are protected intellectual property.
• Non-substitutable - Resources who collaboratively create strategy that cannot be duplicated by the combining resources of another firm.