Human resources management (HRM) plays most important role for an organisation to manage employees to work effective, creative, quality and productivity to reach the competitive advantages over competitor and achieve organisation goals and objectives.
Human Resource Management deals with issues related to compensation, performance management, organisation development, safety, wellness, benefits, employee motivation, employee training and others. HRM plays a strategic role in managing people and the workplace culture and environment. Human resources management is very crucial for any organisation without it they can not reach their goals and objectives. If organisations that have not considered effective of human resources management they will not manage their staff at work effectively and can not examine what they will do to make working people more productive and effective. The importance of Strategic management will draw the picture of further improvement in achieving above goals. Truss,Catherine(1999).
References
Truss, C., 1999. Human resources
managment : genderaed terrain. The International Junerl of HumanResourse
Manegment, 10(2).
Main functions of the HR Management: *Human Resource Planning: The first function of the HR is to know the future needs of the organisation.What kind of people the organisation need and how many of them to be recruited. Knowing this data will reshape the selection, performance management, learning and development, and all other HR functions.
*Recruitment and Selection: second HR function involves attracting people to work for the organisation and selecting the best candidates. Attracting people usually starts with an evaluating employee brand . Being an attractive employer has plenty of advantages in the institution. A good example of the latter is the tobacco industry which struggles to attract due to its tainted reputation.With a strong employer brand and the right sourcing strategies, you’re already halfway there. Once candidates apply, selection is an HR instrument to pick the best qualified and highest-potential candidates. *Performance management This is essential in ensuring that workers stay productive and engaged. Good performance in management involves good leadership, clear goal-setting, and open feedback around institution.
Performance management tools include the annual performance review, in which the employee is reviewed by his or her manager. It also includes 360-degree feedback tools in which peers, managers, subordinates, and sometimes even customers review the employee’s performance. These kinds of tools can be very helpful in providing feedback. Performance management is also an instrument to close the gap between the workforce you have today and the one you want to have tomorrow. One of the best ways to build your future workforce is through learning and development.Silva,MarleneSofia Alves e and Lima, Carlos Guilherme de Silva(2018)
References
silva, m. s. A. e. a. L. G. d. s.,
2018. The Role of Information Systems in Human Resource Management. Management
of Information Systems, 21 02.
Training and Development programme help in better utilisation of an organisation's resources, i.e. men, machine, material and money.
It indicates less wastage, with respect to resources and time. When a worker is skilled(according to relevant organisation given) and trained enough, the amount of wastage will be less (considering material usage, machine wastage, and human work time), as well as the learning time will be reduced, and the work will be performed in very less time.
It improves the performance of the employee which results in increased profitability. (As an example product quality may be high)
The employees learn new and improved methods of performing an activity, which helps the organisation to survive, compete and grow in the market. (Example: Given organisation may have some functions better and varied to other organisations which attract employees)
It results in a reduction in employee turnover, idle time and absenteeism. (Introduction of new working environment)
It develops a positive attitude in employees towards the work and organisation, as well as boosts their morale, which helps them adapt themselves to the changing environment. (Final out come may be improved compare to initial position. Kariaa ,Adam ,Omari ,Stella and Kimori ,YONA(2016).
References
Kariaa ,Adam, O. ,. a. K., 2016.
Importance of traing and Development on Performance of Public Water Utilities
in Tanzania. AFRICAN JOURNAL OF BUSINESS AND MANAGMENT, Volume 2.
This will prompt recruit, evaluate and train employees to create a positive atmosphere in an organisation taking one step a head. In an organisation hiring employees called recruiting. But they might have less skills required by the organisation. Further they have to be trained and evaluate their performance skills. Finally they can be promoted for specific task or employment.
Organisational structure specified employers as the method by which work flows through an organisation. It allows groups to work together within their individual functions to manage tasks as specified. Traditional organisational structures at the beginning tend to be more formalised with employees grouped by its function (such as finance or operations), region or product line. Less traditional structures are more loosely woven and flexible as usual, with the ability to respond quickly to changing business environments.
Organisational structures have being evolved since the 1800's. In the Industrial Revolution, individuals were organised to add parts to the manufacture of the product moving down the assembly line. Frederick Taylor's scientific management theory optimised the way tasks were performed, so workers performed only one task in the most efficient way. In the 20th century, General Motors pioneered a revolutionary organisational structural design in which each major division made its own cars in product line.
Today, organisational structures are changing as swiftly from virtual organisations to other flexible structures as specified. The future will likely bring more functional, product and matrix organisational structures in the institution. However, as companies use to continue to evolve and increase their global presence, future organisations may embody a fluid, free-forming organisation, member ownership and an entrepreneurial approach among all members.Wright,P.M.AND Nishii,L.H(2006).
References
Wright, P. N., 2006. Starategic HRM
and organizational behevior : Integrating multiple levels of analysis.
HR related key functions in business areas: This will explain how does the main functional area related to other sub divisional areas such as Customer service, Administration and IT support, Marketing and sales, Human resources, Research and development, Finance, and operations. Because of these reasons we can conclude that HR has its main function in key business areas.
Purchase Function:
Materials required for production of commodities should be procured on economic terms and should be utilised in efficient manner to achieve maximum productivity. In this function the finance manager plays a key role in providing finance.
In order to minimise cost and exercise maximum control, various material management techniques such as economic order quantity (EOQ), determination of stock level, perpetual inventory system etc. are applied. The task of the finance manager is to arrange the availability of cash when the bills for purchase become due.
Productivity Function
Production function occupies the dominant position in business activities and it is a continuous process. The production cycle depends largely on the marketing function because production in sales. Production function involves heavy investment in fixed assets and in working capital. Naturally a tighter control by the finance manager on the investment in productive assets becomes necessary. It must be seen that there is neither over-capitalisation nor under-capitalisation. Cost-benefit criteria should be the prime guide in allocating funds and therefore finance and production manager should work unison.
Distribution Function:
As goods produced are meant for sale, distribution function is an important business activity. It is more important because it provides continuous inflow of cash to meet the outflow. So while choosing different distributing channels, media of advertisement and sales promotion devices, the cost benefit criterion should be the guiding factor.
If cost reduction in distribution function is effected without compromising efficiency, it will lead to increased benefit to the enterprise in the form of higher profit and to the consumers in the form of lower cost.
As every aspect of distributory function involves cash outflow and every distributing activity is aimed at bringing about inflow of cash, both the functions are closely inter-related and hence should be carried out in close unison.
Accounting Function:
Charles Gastenberg visualises the influence of scientific arrangement of records, with the help of which inflow and outflow of funds can be efficiently managed and stocks and bonds can be efficiently marketed. Moreover, the efficiency of the whole organisation can be greatly improved with correct recording of financial data.
All the accounting tools and control devices, necessary for appraisal of finance policy can be correctly formulated if the accounting data are properly recorded.
For example, the cost of raising funds, expected returns on the investment of such funds, liquidity position, forecasting of sales, etc. can be effectively carried out if the financial data so recorded are reliable. Hence, the relationship between accounting and finance is intimate and the finance manager has to depend heavily on the accuracy of the accounting data.
Personnel Function:
Personnel function has assumed a prominent place in the domain of business management. No business function can be carried out efficiently unless there is a sound personnel policy backed up by efficient management of personnel. Success or failure of every business activity boils down to the efficiency of otherwise of the men entrusted with the respective function.
A sound personnel policy includes proper wage structure, incentives schemes, promotional opportunity, human resource development and other fringe benefits provided to the employees. All these matters affect finance. But the finance manager should know that organisation can afford to pay only what it can bear.
It means that expenditure incurred on personnel management and the expected return on such investment through labour productivity should be considered in framing a sound personnel policy. Therefore, the relation between the finance and personnel department should be intimate.
Research and Development:
In the world of innovations and competitiveness, expenditure on research and development is a productive investment and R and D itself is an aid to survival and growth of the firm. Unless there is a constant endeavour for improvement and sophistication of an existing product and introduction of newer varieties, the firm is bound to be gradually out marketed and out of existence.
ADVERTISEMENTS:
However, sometimes expenditure on R and D invovles a heavier amount, disproportionate to the financial capacity of the firm in such a case, it financially cripples the enterprise and the expenditure ultimately ends in a fiasco.
On the other hand, heavily cutting down expenditure of R and D blocks the scope of improvement and diversification of the product. So, there must be a balance between the amount necessary for continuing R and D work and the funds available for such a purpose. Usually, this balance is struck out by joining efforts of finance manager and the person at the helm of R & D.
Financial Management and Economics:
Financial management draws heavily on Economics for its theoretical concepts. The development of the theory of finance began as an offshoot of the study of economics. A finance manager has to be familiar with the two areas of economics, i.e. microeconomics and macroeconomics.
Microeconomics deals with the economic decisions of individuals and firms, whereas macroeconomics looks at the economy as a whole in which a particular business unit is operating
The concepts of microeconomics help a finance manager in developing decision models like fixation of prices, cost volume profit analysis, break even analysis, inventory management decisions, long-term investment decisions called capital budgeting, cash and receivables management models or working capital management decisions etc.
A firm is also influenced by the overall performance of the economy as it is dependent upon the money and capital markets for the procurement of investible funds. The finance manager should, thus, recognise and understand the macroeconomic theories, monetary and fiscal policies and their impact on the economy as a whole and the firm in particular. Baswardono,W. et al (2019).
References
Baswardono, W. ,. a., 2019.
Desinign of human resource information system micro small and medium
enterprises. 12, Volume 1402, p. 0660056.
