The importance of human resource and its role in an organization

In this blog, Our discussion will focus on human resources and their role in an organization. 

The human resource department is one of the most important aspects of any organization. Employee management is the responsibility of this department. Any organization's human resources department is crucial to its success. HR theories describe the policies, procedures, strategies, and tactics used by employers and managers to manage their employees. Management practices and organizational structures can positively or negatively influence employee behavior, according to human resource theories. 

HR Theories 

There are four Human Resource theories which are named as follows: 

• Organizational Lifecycle Theory 
• Strategic Contingency Theory
• General Systems Theory
• Transaction Cost Theory

1. Organizational Lifecycle Theory 

This is the first HRM theory.

 Organizations are affected by both external environmental conditions and internal factors at some stage of their life cycle. We have seen the rise and fall of organizations and entire industries. Products also have a life cycle, which marketing and sales experts have long recognized. According to scholars, it was reasonable to conclude that organizations also have a life cycle. 

2. Strategic Contingency Theory 

Another HRM proposition and practice is strategic contingency proposition, which, as the name suggests, is grounded on two generalities, viz... aspects of "opportunity" and "strategic". Readiness is the need for various tasks of a subunit of an organization that is affected by the tasks of other subunits. This situation becomes strategic when the other subunit begins to control the majority of the case and becomes powerful in the organization. According to strategic contingency proposition, a leader becomes a crucial part of an association because of his unique capacities to break the biggest HR challenges that others cannot break. Too much dependence on the manager, so it is not easy to replace him. 
 

Hickson who is the founder of this theory wrote: 

‍“Organizations can be described as a collection of departments or functions that align together to cope with uncertainty.” 

‍‍The theory helps objectify leadership techniques instead of relying on personalities. 

3. General Systems Theory 

Another HRM proposition or proposition that's extensively used in HRM is systems proposition, which is the interdisciplinary study of systems. Every system is limited by space and time, it is influenced by the environment, its structure and purpose are determined and expressed by activity. Changing one part of the system can affect other parts or the entire system. It may be possible to prognosticate these changes in gets patterns. The growth and degree of adaptation of learning and adaptive systems depends on how well the system is connected to its environment. Some systems support other systems and maintain the other system to avoid failures. 

4. Transaction Cost Theory 

Sale cost proposition in mortal resource operation is part of directorial and agency proposition. It is based on the principle that costs occur when you get someone else to do something for you, for example managers run a company you own. 

 

Transaction cost theory is an alternative variant of the assumption concept of agency management. It describes a operation frame grounded on the net effect of internal and external deals, rather than the external. ​

(peoplehum, 2022)​ 

Functions of an HR department 

The human resource department's primary function is to manage an organization's employees. This includes recruiting, hiring, training, and retaining employees.  

 

• The HR department is responsible for ensuring that the right people are in the right positions in the organization. They also ensure that employees are trained and have the necessary skills to perform their jobs effectively.   
• Another important task of the HR department is to maintain a healthy work environment. They are responsible for creating policies and procedures that promote a positive work culture. This includes employee conduct, job security and employee benefits. 
• The HR department is also responsible for resolving conflicts or problems that arise in the workplace. The Human Resources Department is also responsible for employee wages and benefits. They make sure workers are paid a fair wage and get the benefits they need, such as health insurance, retirement plans and paid time off. 
• The HR department is also responsible for managing employee performance and providing feedback to employees on their performance.  
• In addition to these functions, the HR department also plays an important role in developing the organization's strategic plan. They work closely with management to identify organizational goals and objectives and develop strategies to achieve them. 
• The HR department also plays a key role in the implementation of these strategies.

Emerging Trends in HRM 

The consequences of the pandemic left a paradigm shift everywhere. 

 

To stay on top, the HR industry must implement an operating model that maximizes productivity while increasing flexibility and efficiency. 

 HR changes its structure almost daily according to changes in technology. With the right measures and approaches from business leaders, this should have a positive impact on day-to-day operations and subsequently on employees.

 

From my perspective, here are the beaming trends in HRM for 2023 and beyond: 

 

1. A hybrid structure 

Teams of employees made to work from home routine, with all teams and companies dispersed from one specific geographical location to the whole country.  

While some organizations encourage their employees to continue working in the office, many are comfortable and continue to follow a hybrid culture.  

Today, a hybrid work culture is also a natural first step for a company to expand to foreign markets. A hybrid culture automatically opens the door to new growth and revenue opportunities. In recent years, with the rise of hybrid culture, expansion through foreign markets has become easier and more affordable. 

2. Global expansion on the rise 

Taking your work to the global market - remote work is the first step. With the changing times and technology, HR management trends have also changed, and establishing a company abroad becomes a piece of cake. In addition, governments are strengthening strict policies in this post-pandemic era, supporting businesses as well. 

3. Employee experience takes precedence 

Today's employees want not only a good salary, but also a high-quality culture and a healthy work environment. In the framework of staffing trends, a good salary keeps an employee, and the choice is also helped by a competent environment and experience. HR managers should develop methods to encourage positive workforce health by making employees more flexible to change and disruption.  

Today, organizations offer products, services and methods to improve not only their own employee experiences, but also those of other companies. Employee management, time and attendance management, self-service employee portals, vacation management, etc. is among the trends in HR culture today. 

4. Analytics gaining the front seats 

With no physical human contact, tracking and measuring the work and employees became strenuous, especially when the workforce is spread throughout the globe. Analytics is said to play an impacting role in offering information for decision-making.  

Employee management is an integral part of an organization. What work to assign to which employee, tracking their progress, ensuring completion of OKRs, and rewarding the employees accordingly is very important to make the functions of a firm a success.

 

5. A surge in monitoring the employees 

As the hybrid workforce increases, managers are often unable to look at each employee and their work. The lack of personal interaction led to the rise of employee monitoring techniques, which again brought new trends in HR management.  

Work and performance monitoring, attendance and vacations are just some of the employee monitoring practices. 

6. Automation of everyday tasks 

To prioritize valuable and productive work, HR managers can use AI-based solutions to automate their daily manual tasks. In this technology-driven world, systems can now perform operations such as screening, talent acquisition, onboarding, attendance control, etc. and much more.  

Appropriate workflows are set up to streamline all automation and avoid errors. All these HRM trends are changing the face of the workplace and accelerating the growth of any organization that uses these methods.

 

7. Augmenting the hiring processes 

Another benefit that can be considered part of HR trends is chatbots. With their help, employers can now select high-quality candidates for suitable positions from among the abundant talent available.  

Activities such as resume screening select clear candidate profiles that improve work efficiency and productivity. Solutions like Applicant Tracking Software are one of the latest HR trends today. ATS simplifies the entire recruiting process from job opening to orientation and more. Job integration is another trend in HR that posts jobs to multiple sites with one click .

Conclusion 

In conclusion, HR department is essential for any organization. They are responsible for managing and securing the employees of the organization. 

 The main solutions offered by artificial intelligence to the HR sector are cloud solutions, robots, language processing, digital assistants, automated solutions, etc., which are just some of the initial steps.  

From learning how to do homework to contactless delivery, everything was randomly placed on the table in front of us.  

Management struggled to keep up with all the evolving changes while trying to maintain the customer base and employee morale while making enough profits to satisfy shareholders as well.  

Many companies sailed unscathed, while many others suffered serious setbacks. The points shared above are some of the "new standards" everyone in HR has been talking about. And these solutions quickly became trends in HR management as well. The pandemic is a big reason for changes in how the workforce is organized, but it has also opened the door to new opportunities and talent from around the world, de-emphasizing functions such as facilities, overhead and administrative costs. 

New trends in human resource management have certainly changed traditional methods and put the focus on a quality employee experience.

Reference 

What are HR theories? peoplehum. (2022). Retrieved April 8, 2023, from https://www.peoplehum.com/glossary/hr-theories  

 

Sharma, R. (2023, April 5). 7 emerging trends in human resource management (HRM). Zimyo. Retrieved April 8, 2023, from  

 https://www.zimyo.com/resources/insights/trends-in-human-resource-management/