Introduction
According to Edwin Flippo, human resource management is the process of planning, organizing, directing, and controlling of the procurement development of the human resources to the end that both individual and societal objectives are achieved (Deb, 2006). Human resource is considered as the most valuable asset in any organization because the human resource function, in a real sense, adds considerable value to the organization (Beardwell and Claydon, 2007). Complete withdrawal of the human resource function would almost imply cessation to the whole organization (Deb 2006). From a general point of view, the human resource function is identified as one that serves as perfect employee motivation and maintenance of organization’s culture of high morale. Through the 21st Century, the human resource function has advanced to a strategic one still in a bid to signify the value it adds to the organization. As evidenced by the preceding discussion, it is a fact that human resource management adds value to the organization. This paper provides a comprehensive discussion on how the function can make a difference by adding value to the organization.
HR Management and Value Addition
Employees
Through the people (employees), the organization enjoys good performance both in the short run and in the long run. It must not be ignored that an organization is fomred by people, and the fact that it has succeeded is derived from the success of individuals who can all be traced back to the human resource function (Andresen & Nowak, 2014). The long-term success and financial performance of any organization are directly correlated to the accomplishments of the people. Human resource management adds value to the organization by promoting the link between such people (performers) and performance. The HR management function also persuades persons responsible for allocating resources for training, development and motivation of the people so that they can perform.
Talent Acquisition and Retention
Human resource management adds value through talent acquisition and retention. It is the role of HR management to recruit and select employees on behalf of the whole organization. As such, the quality as well as the quantity of workforce in the organization is greatly determined by the human resource function in that particular organization. The organization’s functions that attract, hire and retain workers are built by the HR function (Deb, 2009). It is important to note that the HR management’s value adding role is only evident when the function has management to recruit the right people in the right numbers for the right jobs such that the organization does not over-employ neither does is suffer from lack of enough labor. The human resource function adds real value by incorporating individuals with considerable knowledge, skills and competence into the organization through recruitment and selection.
Legal Protection
One of the most unnoticeable manners through which the human resource management function adds value to the organization is through legal protection. Human resource management ensures that the whole organization is not discriminated and that it does not find itself in wrongful termination lawsuits (Kaufman, 2014). The human resource personnel does so by ensuring that the larger organization is always on the right side of the law. Human resource personnel must ensure that all the HR management functions conducted in the organization are completed in compliance and adherence to threshold laws. Besides, fairness and equity in recruitment and selection must be established, and the human resource function ensures that the right systems are in place to see this done. In this case, the value is added through minimization of additional costs and time wasted.
Planning
A recently advanced manner through which the human resource management function adds value to the organization is through planning. Over the recent past, human resource management has not been about ‘reaction’ but ‘pro-action’. This has made human resource planning an essential element of strategic human resource management that seeks to ensure that the human resource function adds value to the organization (Aswathappa, 2013). HR management is a major participant to the current views and future expectations of the organization at large with the head of human resource function being a key personnel in the overall organizational planning (Beardwell and Claydon, 2007). It is almost impossible to purport to add value without incorporating planning.
Organization and Coordination
HR management makes a difference by adding value to the organization by ensuring well organized and properly coordinated members of the organizational staff for goal achievement. The HR management function plays a considerable role in ensuring that the overall organization goals and objectives are achieved. It is important to point out that organizational goals are not achieved by machines neither are they achieved by any other category of resources in the organization other than the human resources. The coordination and organization of this resource towards the achievement of these goals are, therefore, an essential element of the HR management function as far as value addition is concerned (Randhawa, 2007). Such coordination and organization seek to ensure that the right man has the right job at the right time for the right payment.
Organizational Cost Reduction and Efficiency
The HR management function is a major contributor towards overall organizational cost reduction and efficiency. Most of the major resource consumptive in any organization functions revolve around the HR function. As such, the organization can focus on the HR management function in minimizing cost and ensuring efficiency for value addition. HR management value addition operations focus on the minor operations such as the cost of HR service per employee, process times, the level of accuracy in a given number of transactions and the levels of absentees. While some of the previously mentioned phenomenon focus on cost reduction, others seek to ensure efficiency (Dwivedi, 2010). For instance, the cost of HR service per employee focuses on cost reduction for value addition while the seeking to minimize the level of absentees can only lead to value addition through increased efficiency.
Training and Development
One of the essential components of the HR management function as far as overall organizational value addition is concerned is the individual’s value addition to the level of service provided by individual employees. Value addition to the level of services provide by the people in the organization occurs through training and development. According to Flippo, training is an essential element of value addition through the HR function as it ensures that employee’ knowledge and skills are increased to enable them to do a particular job. While this is so, development is seen as an HR management function that will enhance future value addition because it is aimed at ensuring that employees grow, and they realize themselves in a broader manner (Dhar, 2008).
Motivation and Involvement
Another way through which the HR management function can make a difference within the organization through value addition is through motivation and involvement. Previous research has proven that individuals can give their best when they are well motivated and when their relevance is appreciated (Beardwell and Claydon, 2007, pp.89). The HR management function plays a considerable role as far as motivation is concerned. It is this role that determines the amount of salary that is enough to attract, motivate and retain the employees, decides who to give fringe benefit who not to give and employees to be recognized, appreciated and praised through rewards. In other words, it is the HR management function that organizes the motivators to ensure that they perform their motivating roles effectively on every employee (Lall & Zaidi, 2010, 54). Besides, the HR management function ensures that all employees are engaged and involved well enough to ensure that their skills, knowledge and competencies are recognized and appreciated.
Minimized Reworks and Repetition
HR management adds value by ensuring operational human resource deployment order maintenance hence minimal repeated works and responsibilities (Beardwell and Claydon, 2007). Where there is no order in the deployment of personnel, different individuals find themselves conducting the same roles. The organization ends up paying different individuals for performing the same duty, yet one individual was enough to do it. The HR management function prevents such occurrences hence saving a considerable amount of financial resources for the organization. Besides, it contributes towards harmony (Durai, 2010, pp. 87). When different individuals are given the same responsibilities, the likelihood of performance collisions is increased. HR management ensures that all individuals are well aware of their separate and distinct roles and responsibilities in the organization and, therefore, the likelihood of re-works and collisions is minimized. This saves cost and time for the organization hence leading to considerable value addition.
Performance Appraisal
Finally, HR management conducts frequent performance appraisals. In performance appraisal, a period and impartial employee rating are done by the organization through the HR department in matters about the present job and potential for a better job (Beardwell and Claydon, 2007). Employee’s appraisal enables them to note their weaknesses and lay down strategies for strengthening them while maximizing on the areas pointed out as considerable strengths (Deb, 2009). As such, employee appraisal adds value by ensuring that employees improve on areas where they perform poorly. If it requires them to advance their skills, knowledge and competencies, they do so. Value added to the employees is value added to the organization since people form an organization. Performance appraisal may not, however, add value to the organization is it is not used in a bid to make employee corrections and affirming their strengths for maximization.
Conclusion
Bibliography
Andresen, M., & Nowak, C. 2014. Human resource management practices: Assessing added value. http://dx.doi.org/10.1007/978-3-319-08186-1 [Accessed 28 May 2016]
Aswathappa, K. 2013. Human resource management: text and cases. New Delhi, McGraw-Hill Education.
Deb, T. 2006. A strategic approach to human resource management: concept, tools, and application. New Delhi, Atlantic.
Deb, T. 2009. Managing human resources & industrial relations. New Delhi, Excel Books.
Dhar, R. L. 2008. Strategic human resource management. New Delhi, India, Excel Books.
Durai, P. 2010. Human resource management. Chennai, Pearson. http://www.myilibrary.com?id=266325. [Accessed on 28/05/2016]
Dwivedi, R. S. 2010. Textbook of human resource management. New Delhi, Vikas Pub. House Pvt. Ltd.
Kaufman, B. E. 2014. The development' of human resource management' across nations unity and diversity. http://public.eblib.com/choice/publicfullrecord.aspx?p=1757634. [Accessed 28 May 2016]
Lall, M., & Zaidi, S. Q. 2010. Human resources management. New Delhi, Excel Books.
Randhawa, G. (2007). Human resource management. New Delhi, Atlantic Publishers & Distributors.
Beardwell, J. and Claydon, T., 2007. Human resource management: a contemporary approach. Pearson Education.
