Introduction

For small businesses and large conglomerates alike, the human resources or personnel function

can be helpful for much more than simply processing payroll or handling the open enrollment

season once a year. Human resources play an essential role in developing a company's strategy as

well as handling the employee-centered activities of an organization. Organizational Psychology

holds that successful organizations do not owe their success solely to market realities and

sustainable competitive advantages. Actually, there is a lot more. Successful companies are those

that consider their human capital as their most important asset. Facts and figures are the

quantitative elements of successful management, yet the qualitative, i.e. the cognitive aspects,

are those that actually make or break an organization. Human Resources Management (HRM) is

the strategic management of the employees, who individually and collectively contribute to the

achievement of the strategic objectives of the organization. Assuming that the employees of an

organization are individuals with own mental maps and perceptions, own goals and own

personalities and as such they cannot be perceived as a whole, HRM holds that the organization

should be able to employ both individual and group psychology in order to commit employees to

the achievement of organizational goals.1

Human Resources: Human Resource Management (HRM) is the function within an

organization that focuses on recruitment of, management of, and providing direction for the

people who work in the organization. HRM can also be performed by line managers. HRM is the

organizational function that deals with issues related to people such as compensation, hiring,

performance management, organization development, safety, wellness, benefits, employee

motivation, communication, administration, and training.

HRM is also a strategic and comprehensive approach to managing people and the workplace

culture and environment. Effective HRM enables employees to contribute effectively and

productively to the overall company direction and the accomplishment of the organization's goals

and objectives.2

1. http://voices.yahoo.com/the-importance-human-resources-management-hrm-in-2687128.html?cat=3

2. http://humanresources.about.com/od/glossaryh/f/hr_management.htm

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1. Importance of Human Resource Management

An organisation cannot build a good team of working professionals without good Human

Resources. The key functions of the Human Resources Management (HRM) team include

recruiting people, training them, performance appraisals, motivating employees as well as

workplace communication, workplace safety, and much more. The beneficial effects of these

functions are discussed here:

1.1 Human Capital Value

Having an in-house human resources function is important. An in-house human resources staff or

a human resources expert on staff can increase the understanding of how important human

capital is to the company's bottom line. For small businesses, in particular, human capital is

critical because so many smaller firms have employees who perform cross-functional duties.

With a smaller workforce, if just one person leaves, it leaves the company with a huge gap to fill

and a potential threat to the company's profitability.

1.2 Budget Control

Human resources curbs excessive spending through developing methods for trimming workforce

management costs, which includes negotiating better rates for benefits such as health care

coverage. In addition, human resources ensures competitive and realistic wage-setting based on

studying the labor market, employment trends and salary analysis based on job functions. As

some small businesses have budget constraints, this human resources function is especially

helpful.

1.3 Conflict Resolution

Workplace conflict is inevitable, given the diversity of personalities, work styles, backgrounds

and levels of experience among employees. A human resources manager or a staff person

specially trained to handle employee relations matters can identify and resolve conflict between

two employees or a manager and employee and restore positive working relationships.

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1.4 Training and Development

Human resources conducts needs assessments for the organization's current workforce to

determine the type of skills training and employee development necessary for improving skills

and qualifications. Companies in the beginning or growth phases can benefit from identifying

training needs for existing staff. It's much less expensive than the cost to hire additional staff or

more qualified candidates. In addition, it's a strategy that also can reduce turnover and improve

employee retention.

1.5 Employee Satisfaction

Human resources specialists usually are charged with the responsibility of determining the level

of employee satisfaction -- often an ambiguous measurement at best. With carefully designed

employee surveys, focus groups and an exit interview strategy, human resources determines what

underlies employee dissatisfaction and addresses those issues to motivate employees.

1.6 Cost Savings

The cost to hire new or replacement workers, including training and ramp-up time, can be

exorbitant for employers, especially small businesses. With a well-constructed recruitment and

selection process, the human resources function can minimize expenses regarding advertising job

postings, training new employees and enrolling new employees in benefits plans.

1.7 Performance Improvement

Human resources develop performance management systems. Without a human resources staff

person to construct a plan that measures performance, employees can wind in jobs that aren't

suitable for their skills and expertise. Additionally, employees whose performance falls below

the employer's expectations can continue on the payroll, thereby creating wasted money on low-

performing employees.

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1.8 Sustaining Business

Through succession planning that human resources develops, the company identifies employees

with the promise and requisite capabilities to eventually transition into leadership roles with the

company. This is an important function as it can guarantee the organization's stability and future

success.

1.9 Corporate Image

Businesses want to be known as the "employer of choice." Employers of choice are the

companies that receive recognition for the way they treat employees; they are the companies for

whom people want to work. Becoming an employer of choice means human resources balances

recruiting the most qualified applicants, selecting the most suitable candidates and retaining the

most talented employees.

1.10 Steadfast Principles

Human resources ensure the workforce embraces the company's philosophy and business

principles. From the perspective of a small business, creating a cohesive work environment is

imperative. The first opportunity human resources has to accomplish this is through wise hiring

decisions that identify desirable professional traits, as well as orientation and on-boarding

programs.3

3. http://smallbusiness.chron.com/ten-reasons-human-resources-department-important-25554.html

2.0 Recruitment & Selection Process

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In order to increase efficiency in hiring and retention and to ensure consistency and compliance

in the recruitment and selection process, it is recommended the following steps be followed (also

refer to Staff Recruitment and Selection Checklist).

2.1 Need assessment

A organization first needs to have “Need Assessment” to identify in which sector, it is needed to

recruit the employee for achieving its target and goals. In its assessment the organization have to

realize the need human resource (HR) in the following situation- vacancy in existing post(s),

market expansion, increase in production capacity, launching new product, introducing new

system.

2.2 Checking the recruiting options:

Employees can be recruited from two sources. These are as follows:

i. Internal

Current employees are a major source of recruits the employees but entry-level position. Internal

source are included- promotion, transfer, job rotation, friends and relatives of existing

employees. Promotion and transfer are typically directed by operating manager with little

involvement by the Human Resource Department.

ii. External

When job opening cannot be filled internally, the Human Resource Department must look

outside organization for expert employees. External source included- advertisement, employment

agencies, and campus recruiting. Usually they mainly provide the notice of available job in their

websites, newspapers, university campus dailies and job sites.

2.3 Screening and Short-listing Applications

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The responses to the advertisements are sorted and screened. The CVs as well as the covering

letters are judged. Experience, educational degree, computer literacy, etc are the basis of judging

the candidates application.

2.4 Written test

It is the not important and effective tool for judging the candidates. The written test includes IQ

test, behavioral competencies, and communication skills.

2.5 Interview

The selection interview is a formal, in-depth conversation conducted to evaluate an applicant’s

acceptability. Through interviews the interviewers seek to answer three broad questions

1. Can the applicant do the job?

2. Will the applicant do the job?

3. How does the applicants compare with other who are being considered for the job?

Selection interview are most widely used selection technique. They can be adapted to unskilled,

skilled, and managerial and staff employees. They also allow two-way exchange information:

interviewers learn about the applicant and the applicants learn about the employer

2.6 Reference Checking

Reference and background check are important, which refers the process to undertake of those

application that appear to offer potential as employees. Reference check is indented to verify that

was state on the application from correct and accurate information. Some question are arises

through reference checking. Those are:

1. Is the applicant a good, reliable worker?

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2. Are the job accomplishments, titles, educational background, and other facts of the Resume or

application true?

3. What type of person is the applicant?

4. What information id relevant to match the applicant and the job?

2.7 Medical check-up

Normally, the evaluation consists of a health checklist and asked the applicant to indicate the

health and accident information. The medical evaluation may:

1. Entitle the employer to lower health or life insurance rates for company pain insurance.

2. Be required by state or local health officials, particularly in food handling operations where

communicable diseases are a danger.

3. Be useful to evaluate where the applicant can handle the physical or mental stress of a job.

2.8 Offer letter

When the candidates satisfy the Human Resource Recruiting Broad, then the broad provide to

the candidate offer letter.

2.9 Orientation /induction

Through orientation the recruiting organization try to introducing the new comers or new

employees with its work unit, rules and regulation, culture, norms, value, believe and exposure to

all important functions and locations of the company and so forth.

2.10 Follow up

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For make the employee more effective and efficient Human Resource Department continuously

interacts with the new entrants assisting to cope up with the work environment, work culture,

peer groups etc. In this stage the management tries to help the employee to get settled her/his

problems in the job, work environment and workplace-culture

Hence, this is how human resources are recruited and selected. Every country’s government has

some unique rules, acts or regulation to protect the interest of the employees to ensure the basic

rights of the employees. These acts or regulations say, how much salary will be paid to each

employee, what should be the minimum criteria to be appointed, what health and hygiene factor

an employer must comply to recruit and select human resources, Different provisions and

regulation of leaves, work hours etc. These all issues are covered by the act of every country.

Each and every organization must follow the government regulation such case but they can

frame their own regulation within the boundary of government rules and regulation.

3.0 Recruitment and Selection of Human Resource and its

Importance

Recruitment is a procedure that is undertaken in order to fill in a gap in the management and

selection can be described as an assessed procedure in order to select a candidate that is most

suitable for the position in hand.

The main aim of recruitment and selection is to aid the decision making of the upper

management to fill a gap; it helps them find the right candidate with the right qualifications and

skills to be able to do the job not taking in to consideration their race, age, gender, colour or

nationality. This is important as it is a fair, effective and in good practice.4

Recruiting staff is a very costly exercise. It is also an essential part of any business and it pays to

do it properly. When organisations choose the right people for the job, train them well and treat

them appropriately, these people not only produce good results but also tend to stay with the

organisation longer. In such circumstances, the organisation's initial and ongoing investment in

them is well rewarded.

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An organisation may have all of the latest technology and the best physical resources, but if it

does not have the right people it will struggle to achieve the results it requires.

Poor choices at the recruitment stage can prove expensive. The company needs to be sure of a

candidate's technical competence. Time and money spent in recruiting that particular employee

will have proved expensive and wasteful whilst a better candidate may not only have 'got away'

but also gone to a competitor.

In a highly technological competitive market, organization requires people who are not only

technically competent, well informed, loyal and committed but also capable of showing good

judgments, often under pressure. Hence it is very important to appoint appropriate human

resources for the organization. For this purpose each and every elements are very vital and must

be considered with utmost care.

4. http://www.markedbyteachers.com/university-degree/business-and-administrative-studies/why-is-effective-recruitment-and-selection-important-to-

organisations-which-selection-techniques-are-the-most-useful-and-why.html

4. Importance of Training and Developments in Organizational

success:

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Despite the potential drawbacks, training and development provides both the company as a

whole and the individual employees with benefits that make the cost and time a worthwhile

investment. So the importance of training and developing are given below:

I. Help in addressing employee weaknesses :

Most workers have certain weaknesses in their workplace, which hinder them from giving the

best services. Training assists in eliminating these weaknesses, by strengthening workers skills.

A well-organized development program helps employees gain similar skills and knowledge, thus

bringing them all to a higher uniform level. This simply means that the whole workforce is

reliable, so the company or organization doesn’t have to rely only on specific employees.

II. Improvement in workers performance

A properly trained employee becomes more informed about procedures for various tasks. The

worker confidence is also boosted by training and development. This confidence comes from the

fact that the employee is fully aware of his/her roles and responsibilities. It helps the worker

carry out the duties in better way and even find new ideas to incorporate in the daily execution of

duty.

III. Consistency in duty performance

A well-organized training and development program gives the workers constant knowledge and

experience. Consistency is very vital when it comes to an organization’s or company’s

procedures and policies. This mostly includes administrative procedures and ethics during

execution of duty.

IV. Ensuring worker satisfaction

Training and development makes the employee also feel satisfied with the role they play in the

company or organization. This is driven by the great ability they gain to execute their duties.

They feel they belong to the company or the organization that they work for and the only way to

reward it is giving the best services they can.

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V. Increased productivity

Through training and development the employee acquires all the knowledge and skills needed in

their day to day tasks. Workers can perform at a faster rate and with efficiency thus increasing

overall productivity of the company. They also gain new tactics of overcoming challenges when

they face them.

VI. Improved quality of services and products

Employees gain standard methods to use in their tasks. They are also able to maintain uniformity

in the output they give. This results with a company that gives satisfying services or goods.

VII. Reduced cost

Training and development results with optimal utilization of resources in a company or

organization. There is no wastage of resources, which may cause extra expenses. Accidents are

also reduced during working. All the machines and resources are used economically, reducing

expenditure.

VIII. Reduction in supervision

The moment they gain the necessary skills and knowledge, employees will become more

confident. They will become self-reliant and require only little guidance as they perform their

tasks. The supervisor can depend on the employee’s decision to give quality output. This relieves

supervisors the burden of constantly having to give directives on what should be done.

5.0 Importance of Motivational Tools in Job Satisfaction and Job

Performance:

Employers are not only responsible for hiring, training and paying their employees, but also

motivating them to perform effectively. Managers take different approaches to motivating

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workers, but those who are successful can organize workforces to give an organization the best

chance to succeed against its competitors. Employee satisfaction plays a role in motivation and,

ultimately, overall productivity and bottom-line results. It is important to an employee's mental

outlook to believe he is valuable to the company. Encourage feelings of worth in workers as a

means of increasing motivation and job satisfaction. Employees should be praised for

exceptional performance; manger should thank them for extra efforts, congratulate them on their

talents and reward them with gift cards and other expressions of gratitude. Also, manager should

give them challenges such as leading a work team, designing a project or mastering the new

office equipment and software, which can help increase feelings of worth when the challenges

are successfully met.5

Managing human beings is pivotal part of overall management. This is one of the integral parts

that a manager can’t ignore. The whole human resources work as a whole unit to achieve a

common goal within the organization. A well-defined management process never compromises

with its human resources. Because it is the human resources that can lead the organization to the

zenith of success on the other hand it can lead the organization to the edge to destruction. So the

fact is motivation is needed to make the human forces work in accordingly.

Managers use a variety of tools and techniques to encourage employee satisfaction, promote

motivation and improve productivity. Some of these tools involve finding ways to make

employees more comfortable in their jobs. Employee benefits, flexible work hours and

recognition for achievement all help improve job satisfaction. Other motivation techniques

include competition within a business as workers or work teams compete with one another to

achieve mutual goals more quickly and effectively. Individual workers are also responsible for

carrying out assigned tasks and seeking ways to keep personally motivated even during times of

high stress or poor performance. 6

5. http://smallbusiness.chron.com/links-between-motivation-job-satisfaction-13267.html

6. Satisfaction, Motivation & Productivity _ Chron.com.htm

Conclusion:

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The purpose of Human Resource Management (HRM) is to hire, train and develop staff and

where necessary to discipline or dismiss them. Through effective training and development,

employees at Enterprise achieve promotion within the company and reach their full potential. In

the 21st century the business world become complicated and hard to compete with on the other

hand peoples behavior is the most complex stuff the god has ever created so in order to deal with

all these a sound knowledge in human resources is required. Hence, the ultimate focus of HRM

is the people within an organization. Regular planning, monitoring and evaluation are important

for the success of HRM. Successful implementation ensures that all employees know their role,

career path and also feel part of an organization which is able to manage and reconcile their

expectations as well as those of the organization and its objectives. To sum up we can say that

any organisation, without a proper setup for HRM is bound to suffer from serious problems

while managing its regular activities. For this reason, today, companies must put a lot of effort

and energy into setting up a strong and effective HRM.

References

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1. http://voices.yahoo.com/the-importance-human-resources-management-hrm-in-2687128.html?cat=3

2. http://humanresources.about.com/od/glossaryh/f/hr_management.htm

3. http://smallbusiness.chron.com/ten-reasons-human-resources-department-important-25554.html

4. http://www.markedbyteachers.com/university-degree/business-and-administrative-studies/why-is-effective-recruitment-and-selection-important-to-

organisations-which-selection-techniques-are-the-most-useful-and-why.html

5. http://smallbusiness.chron.com/links-between-motivation-job-satisfaction-13267.html

6. Satisfaction, Motivation & Productivity _ Chron.com.htm

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