The Importance of Human
Resources Management - HRM - In Modern Organizations
Organizational Psychology holds that successful organizations do not owe their
success solely to market realities and sustainable competitive advantages.
Actually, there is a lot more. Successful companies are those that consider
their human capital as their most important asset. Facts and figures are the
quantitative elements of successful management, yet the qualitative, i.e. the
cognitive aspects, are those that actually make or break an organization.
Human Resources Management (HRM) is the strategic management of the employees,
who individually and collectively contribute to the achievement of the strategic
objectives of the organization. Assuming that the employees of an organization
are individuals with own mental maps and perceptions, own goals and own
personalities and as such they cannot be perceived as a whole, HRM holds that
the organization should be able to employ both individual and group psychology
in order to commit employees to the achievement of organizational goals.
Aiming to enable the organization to achieve its strategic goals by attracting,
retaining and developing employees, HRM functions as the link between the
organization and the employees. A company should first become aware of the needs
of its employees, and at a later stage, understand and evaluate these needs in
order to make its employees perceive their job as a part of their personal life,
and not as a routine obligation. To that end, HRM is very crucial for the whole
function of an organization because it assists the organization to create loyal
employees, who are ready to offer their best.
The HRM activities in modern organizations are typically performed in
communication with the General Management in an effort to provide a variety of
views when a decision must be taken. In that way, decision making is not subject
to the individual perceptions of the HR or the General Manager, but it becomes
the outcome of strategic consensus.
The main goals / responsibilities of HRM are:
• To retain low employee turnover rate by inspiring people to work for the
company
• To attract new employees
• To contribute to employee development
To achieve these goals, Human Resources Management trains and motivates the
employees by communicating ethical policies and socially responsible behaviour
to them. In doing so, it plays a significant role in clarifying the
organization's problems and providing solutions, while making employees working
more efficiently.
On the other hand, challenges do not cease for the HRM. Modern organizations can
survive in the dynamic, competitive environment of today only if they capitalize
on the full potential of each employee. Unfortunately, many companies have not
understood the importance of the human capital in successful operations. The
recruitment and selection of the best employees is a very difficult obligation.
Even companies that are voted in the top-ten places to work at, often endure
long periods of hard work to realize that human element is all an organization
should care about.
New challenges arise even now for the organization, and it is certain that new
challenges will never cease to emerge. Therefore, the use of proper Human
Resources techniques is a really powerful way for organizations to overcome
these challenges, and to improve not only their quantitative goals but also
their organizational culture, and their qualitative, cognitive aspects.