Benefits Of HRM

HRM is a process having to do with estimating manpower requirement, recruitment & selection, training & development, compensation, retention, performance evaluation of an employee within an organization. In other words, the job as HR manager will be not only to write policy and procedures and to hire people but also to use strategic plans to ensure the right people are hired and trained for the right job at the right time.

HRM is contributing a lot in the current scenario. Here we are discussing some of the benefits of HRM:

• Manpower requirement: HRM helps in determining the manpower requirement for an organization. Before going for recruitment process an organization must know how much staff is required for a particular job.

• Recruitment & selection: Taking into consideration the long term needs of the enterprise, right men should be appointed at the right time for the job most suitable to them. Both internal & external sources of recruitment may be used to recruit the staff. When you are going to select the most suitable candidate for the specific job, written, psychological & physical tests should be taken. Candidate should also be interviewed before final selection.

• Training & development: Training helps in refining & increasing the skills & abilities of an employee. It also increases the efficiency of the staff & makes the employee more useful. As a HR manager, you should evolve a systematic program of training which will help the organization a lot by increasing productivity, reduced supervision, heightened morale, standardization etc.

• Promotion & transfer: Employees are promoted to higher ranks on the basis of their performance & seniority. You can also transfer employee from one place to other place according to their ability & experience. As a HR manger, you should evaluate the performance of an employee from time to time & make decisions regarding promotion & transfer.

• Compensation: As a HR manager, you should ensure that the employees are suitably remunerated for the services rendered by them. Methods of wage payment must be fair & meets organization standards also. It will be good, if incentives are provided for better performance.

• Retention: To retain an employee for a long time is also very important. HR manager should also motivate the employees from time to time so that they work with the organization for a long time. Compensation is a major factor in employee retention, but there are other factors as well. You must also provide various benefits to the employee such as bonus, medical facilities, good working environment etc. so that they stay with you for a long time.

• Performance evaluation: Performance appraisal is basically the assessment of an employee performance in a systematic way. It refers to the process of appraising performance, giving feedback to the employees & offering rewards to them. Performance appraisal is an important tool for employee motivation. As a HR manager, you should evaluate the performance of an employee on a regular basis so that employees get motivated.

• Conflict Management: There can be many situations in an organization where the employer & the employee do not agree on the same decision. Because of this, conflict may be arising. In this situation, HR manager acts as a counselor to solve the issues between the employer & the employee in an effective manner. The HR manager must take right decisions so that things may not go wrong.