What is Human Resource Management?
- Human Resource Management which is also known as HRM is a strategic, systematic and the most important function within an organisation which primarily focuses on the effective, efficient and strategic management of people to attain various business goals.
- The primary focus of Human Resource Management is to manage its workforce which includes recruiting, training, retaining the efficient and effective employees inorder to move towards the path of success.
- The term human resources was first used in the early 1900s, to refer to the people who are employed in the organisation, in aggregate.
- Human Resource Management (HRM) is the governance of an organization’s employees. HRM is sometimes referred to simply as Human Resources (HR).
- Human resource management is the systematic and strategic procedure, which needs to be performed effectively and efficiently, it comprises of a series of events like recruiting, selecting, inducting employees, providing orientation, imparting training and development, appraising the performance of employees, deciding compensation and providing benefits, motivating the employees, maintaining cordial relations with the employees as well as a trade unions, ensuring employees health and safety, running various welfare measures in compliance with labour laws of the land.
- Human resource management is an employee management which primarily puts emphasis on those employees as assets of the business. In simple terms, employees are sometimes referred to as the human capital.
Bratton and Gold (2007), defined HRM as a strategic approach to manage employment relations, which emphasizes that leveraging people’s capabilities is critical to achieve competitive advantages, this is being achieved through a distinctive set of integrated employment policies, programmes and practices.
According to Gary Dessler – “Human Resource Management is the process of acquiring, training, appraising, and compensating employees, and attending to their labour relations, health, safety and fairness concerns.”
Ivancevich and Glueck – “Human resource management is the function performed in organizations’ that facilitate the most effective use of people (employees) to achieve organizational and individual goals”.
Byars and Rue – “Human resource management encompasses those activities designed to provide for and coordinate the human resources of an organization. Human resource functions refer to those tasks and duties performed in organizations to provide for and coordinate human resources”.
According to Decenzo and Robbins, “HRM is concerned with the people dimension” in management.
Features of Human Resource Management:
- Human resource management is considered to be an art as well as a science.
- Human resource management is a service function.
- HRM is a continuous procedure which contains a series of events or activities in order to accomplish organisational goals.
- HRM must be regulation friendly.
- HRM is a service oriented function.
- HRM is the management of its human resources, it is an activity which is performed in order to achieve predefined organisational goals. Hence, it is focused on the results which are produced after employing various managerial principles.
- HRM is an interdisciplinary and fast changing.
- Human resource management is a people centric management.
- Human resource management turns out to be the most important and integral function for the efficient and effective running of an organisation.
- HRM helps create Goodwill as with the effective utilisation of a human resources the companies can aim to reach great heights and intern, build its Goodwill in the long run.
- HRM develops team spirit as the employees are well taken care of, valued and appreciated.
What is Employee Retention?
Employee retention is a term which forms an integral part of the human resource management department. Employee retention refers to the retention of effective and efficient employees within the organisation.
Employee retention is the organisational goal of keeping productive and talented workers and reducing turnover by fostering a positive work environment to promote healthy relations showing gratitude towards the employees providing competitive pace and various benefits while encouraging a healthy work life balance.
It is defined as an organisation’s ability to prevent employee turnover or the number of people who resign from jobs within a certain period of time, either it may be voluntarily or involuntarily. High labour turnover ratio directly impacts the performance of the business organisation and its success in the long run.
The Advantages of Employee Retention:
As businesses strive to look for top talent, employee retention plays an integral role. The expert study suggests that a 90% retention rate turns out to be a great goal.
Cost Control:
It is a survey that employers spend hundreds of millions of dollars every year recruiting and training new candidates. The cost associated right from the selection, recruitment and training of these new trainees, is sunk if an employee leaves prematurely. Productivity, team cohesiveness and morale also has a financial impact.
Efficiency:
By keeping a primary focus on employee retention activities, companies significantly reduce the recruiting costs and enjoy significant returns on employee training. As recruiting is associated with recruiting costs which consist of fees paid to recruiters or advertisements for the position, interview related travel and possible sign in bonus. After these procedures the training costs are also incurred by the company, nevertheless, if the employee leaves prematurely after being hired, that cost associated creates a financial impact on the company.
Improved Productivity:
Employee turnover reduces productivity because it takes a considerable amount of time for a new employee to catch up to the speed and produce at a comparable level as the previous one. It is observed that high retention work environments tend to have more engaged workers who as a result are more productive, focused and intern help in the success and Goodwill of the organisation in the long run.
Goodwill:
Organisations with successful employee retention create a positive image within the society. A company which retains its employees intern has a better growth rate as the employees feel valued, appreciated and well taken care of .
Experienced Workforce:
It is an understood fact that the longer an employee remains in the organisation the more engaged, knowledgeable, skillful, experienced the employee will be. He or she knows the confidentiality, know hows and work ethics of that particular company. Experienced employees tend to have cordial relations with the customers, their co workers and know a way to tackle disputes/ unfavourable situations, if any.
Harmonious Customer Interactions:
when the employees in the organisation are experienced in quite all the areas it leads to great customer relationships. Satisfied long term employees are often better skilled in dealing with customers and have strong relationships with them. As customer experience is the most important aspect when it comes to the success of the business it can also be a key brand differentiator. Customer is considered to be the king of the market, and modern marketing is customer oriented which identifies, creates and caters to the needs of the customers in its target markets
Improved Employee Satisfaction And Work Ethic:
A great relationship exists between retention of employees and employee satisfaction. Great employee retention programs lead to worker happiness and satisfaction it helps to increase the level of commitment of workers towards their assigned roles. Satisfied, appreciated, valued, well taken care of and well paid employees are often more likely to stay committed to an organisation.
Strong Reputation:
The corporate culture develops overtime based on the employees cumulative traits and interactions. Experienced employees gradually align with the organisation’s culture and strenghthen the organisational work ethics.
Profit Maximization:
Employee retention is not only concerned with reduction or controlling of the costs. A survey or research shows that it can have opposite impact on the revenue/cashflow statements as well. Employees with better retention programs deliver a better customer experience and employee experience. As the experienced employees handle and manage the day to day business, customer and management issues in a better way it in turn leads to more productivity and boosts growth.
