Why Human Resource Is Important To Companies

An organization is comprised of various functional departments that contribute meaningfully to the development, and progress of the company in various ways. Of all the departments in a well structured organization, the human resource department stands out quite easily as the heart beat of the organization. It is the midpoint that links every other department together in a network. The function of human resource department is inexhaustible.

Why is human resource necessary for every company? Human resource is a combination of four key factors guiding the structuring and functionality of businesses;

  1. Social function – every company should have a social culture that determines attitude in workplace. It guides what is acceptable and how to balance work life and relationship between employee and customers without trampling of beliefs and human rights.
  2. Economic – this enables the management develops plans as how to sustain the business, reduce expenses and to improve income strategies.
  3. Legal aspect – this has to do with issues like tax laws, discrimination, insurance and various certifications that ensures the legality of running business.
  4. Technology and work tools – there are various functions of technology in the work place. From software to office functions

There are scenarios where small companies operate without a defined human resource department. Responsibilities are distributed equally across all employees but the disadvantage of this system of operation is that there are certain responsibilities that are not defined and employees may not have the skill or qualification to handle those responsibilities. It often leads to neglect and work conflicts on which employee is responsible for what duties. This is why it is necessary to employ well trained human resource personnel or in some cases, train specific staffs on human resource in order to get them certified and knowledgeable enough to handle its complexities.

Here are some roles a human resource department plays in every organization;

  • Recruitment of staffs

There are processes involved with recruitment and staffing. Finding the right staffs that would add value to the organization requires very technical interview strategies. Staffing involves creating a staffing plan, advertising for applications, scheduled test, and final selection. While recruiting staffs, it is also advisable to develop multicultural policies to guide employee behaviour.

  • Work ethics and policies

Fairness and equality can only be sustained in a multicultural environment when there are specific policies and laws guiding employees. This is inclusive of work ethics and attitude coordination checkers. These policies include dress code, vacation or leave policy, restrictions, and disciplinary measures.

Big organizations which are heavily staffed usually have policy handbooks which are given to employees on recruitment, these handbooks are revised after a period of time when certain policies change or there is a change in management which sometimes comes with an adjustment in working policies and conditions.

  • Staff training and capacity building

Hiring qualified staff doesn’t necessarily mean they won’t need training. There is usually induction training for new intakes to get them acquainted with processes and how each department works in synergy to maintain progress. There is also capacity building which are forms of training that enable staffs to learn and improve on new technology, and new skills. Asides these official forms of training, there are also team building training, this could be official with multiple lectures and tasks or it could be unofficial and scheduled as a fun activity in the outdoors to train team members to work together to achieve a common goal.

  • Business laws

A human resource department also acts as a private law firm that renders services relating to work safety laws, discrimination, health insurance laws, compensations, labor laws and every other law guiding the company. The HR ensures that employees and the management itself are fully compliant with these laws.

  • Conflict resolution

Often times there are people who have disparate interests and this tells on the product of work. Conflicts often arise for many reasons varying from cultural to personal. Employee can only peacefully agree and work together in systems where there is a strong HR presence to resolve conflicts or create policies that allows people to coexist in the same working environment in harmony.

  • Restructuring and updating

The world is constantly changing and evolving, various cultures are phasing out and new ones are being introduced. The economy takes various turns as different points and technology is at an all time high. There is so much to keep up with, and this is where the human resource department comes in. the HR is charged with the responsibility to restructure staffing, redesign methods and policies also suggest measures that would ensure that the company stays afloat. Various factors that should be monitored by the HR include;

  • New technology that would make work processes seamless
  • Current changes to employment laws
  • Downsizing