The Importance of Human Resource Management

Arnie S. Punzalan

The success or downfall of an organization depend on its human resources. Thus, human resource management (HRM) plays a vital role in any organization.

In this article, I will discuss some of the advantages of HRM in an organization. The HRM department of an organization can control and enhance an employees’ experience throughout the workforce while strengthening business operations.

Moreover, HRM improves the company's bottom line with its knowledge of how human capital affects organizational success.

If you have experts in strategic management, they can participate in corporate decision-making that underlies current staffing assessments and projections for future workforce needs based on business demand.

The HRM also plays an important role in setting a company's wages and salary system. HR compensation specialists can develop realistic compensation structures competitive with other businesses in the area. These specialists conduct extensive surveys to maintain compensation costs in line with the organization's current financial status and projected revenue.

Aside from these roles, the HR also plays an important role in analyzing employee benefits. Benefits specialists can reduce the company’s costs associated with turnover, attrition and hiring replacement workers.

These specialists are important to the organization because they have the skills and expertise to negotiate group benefit packages for employees, within the organization's budget and consistent with economic conditions. They also are familiar with employee benefits most likely to attract and retain workers.

In my next article, I will further discuss the advantages of HRM in an organization.

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