Why do few companies make the effort to determine the effectiveness of HRM practices? Should a company be concerned about evaluating HRM practices?
HRM practices are possibly the best thing which can happen to any organization if taken seriously. HRM Practices can help any business reach heights if these practices are maintained and followed by the entire organization.
Why do companies put so much effort and time to determine the actual effectiveness of HRM practices
- The Human Resource Management plays a very important role in setting up the organizational strategies which are communicated to all the employees to sync the individual goals with the organizational goals.
- It is now a very common belief and notion that without an effective and efficient HRM system a company cannot sustain itself in the market for a long run as it won’t be able to meet it’s organizational goals.
- It also projects the short term as well as long term human resource needs way in advance, so that the company does not have to fall short on man power and affect the productivity of the organization.
- The retention of employees is really important. This is one of the core work which a HRM is supposed to do. They make various strategies and policies which can attract the employees to sustain and remain in the business.
Setting up HRM practices in the organization:
No organization in today’s world can function without a proper efficiently running HR department which is involved in making and implementing various organizational rules, guidelines and policies.
With the continuous and close interaction between the managers of various other professions and the HR managers, many expertise policies and strategies are formed after a deep analysis of market situation.
HR professionals with their expertise presume the following four areas:
Makingthe HRM guidelines and policies
- HR Professionals generally at the beginning of the year prepare and adopt a detailed strategy and working method which is in perfect sync with the Organizational strategies. These strategies are adopted after consultation and interaction with various department heads such as Finance Head, Production Manager, logistics head etc.
- Such Strategies are generally made at the inception of the organization, however they are continuously amended every year.
- There involves a continuous evaluation and check on these policies.
Choosing the right HRM methods
- It is very important to maintain a method which is very flexible and can be used in different areas such as selection, recruitment, training etc.
- The Line managers play a very important role in developing the various HRM practices and procedures.
Assisting various managers on HRM related matters
- It is very important to educate all the managers across various depatments well versed with the HRM processes because at the end these managers will educate their respective teams.
- Also, the HR Managers should themselves be very well versed with the HRM policies to work with the managers of various departments.
The most effective HRM practices are as follows:
Recruitment of employees
Recruitment has and always will be one of the very significant responsibilities of the HR Professionals. HR Professionals come up with various strategies and new ideas to select the right people for the right job.
Training given to the employees
Training and developments form a very important responsibility of the HR Professionals. It is very important to keep providing continuous training’s to the employees to keep them updated about the various happenings and technologies which are coming. Well skilled employees help to increase the productivity and maximize profits.
Compensation to the employees:
- HR Professionals primarily deal with the pay roll system. It is their responsibility to ensure that payment has been given to all the employees on time.
- Compensations works as a moral booster for employees.
- It is a very significant work which the HR Professionals have to carry out.
- According to the performance and proper analyses of the employees, the HR professionals give in detail various feed backs which involve praises as well as constructive feed backs.
Maintain Industry Relations:
- The HR Professionals always try and maintain healthy and friendly environment with the employees and encourage them to maintain such an environment with each other.
- Quality working conditions are always a being boon to any organisation
- A healthy environment motivates employees to work and gives them a feeling of belonging
Retirement benefits of the employees:
One of the major work of any organization to plan out the retirement benefits of the employee’s. It is the duty of the HR Professionals to give various types of assistance such as financial and health benefits.