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Critical Factors of HR

Managing Critical Factors of HR

The prerequisite for an organization to excel in all aspects of its business activities is absolute strategic management of its HR functions.Human resource management is an extensive term that covers various aspects of personnel function. This discussion is focused on three main aspects that constitute human resource management.

  • Personnel administration
  • Human resource development
  • Industrial relations

critical hr factors

Personnel administration:

It can be also called as the HR module where policies and programmes are laid down by the HR department for the benefit of the human resource personnel. Employment and compensation are chiefly dealt with in personnel administration. While business firms in the corporate environment are in constant demand of man power, finding the right person for the right job is always a testing task for them. Right from job analysis to HR planning, recruitment, selection, placement, induction and orientation, HR department is held accountable to define and develop these operative functions. Mere acquisition and incorporation of human resource is not adequate, the organizations have to engage themselves in empowering their employees through competent training, motivation and refining their social relations.

Job Assessment:

Job assessment has to be done for fixing compensation that includes wages and salary administration, incentives, bonus, fringe benefits and social security measures. The shifting business environment and consumer requirements compel the organizations to restructure and re-engineer their organizational functions. These moves can be viewed as strategic responses reflecting from all domains of an organization, namely product, marketing, manufacturing etc., where people are the centre of focus.

Human resource development:

This is easier said than done. Firms are trying to evolve and employ various methodologies of training to enhance the performance levels to the desired standards. Performance cannot be achieved by coercion or bureaucracy, as the work force is protected by numerous enactment of labor laws enforced by various governments. Training and development is a separate entity by itself and is a continuous process that aims at the development of the organization as a whole and also facilitates employee career planning and development.

Industrial relations:

The following factors have to be scrutinized by the management to maintain good personal relations with the employees.

  • Motivation
  • Morale
  • Job satisfaction
  • Communication
  • Grievance handling
  • Discipline procedure
  • Quality of work life
  • Employee participation

All said and done, the organizational health can be measured by checking the effectiveness of HR management through aspects like HR audit and research that aid the firms to analyze and understand the extent to which they are efficient in utilizing human resource for the benefit of their organization. The experience of a human resource manager comes in handy at situations like these, where he has to don different roles to suit the occasion.

  • Personnel role-advisor for top management, policy maker, counselor to employees, spokesman of the company, change analyst, liaison
  • Welfare role-researcher, catering man, motivator
  • Clerical role-time keeping, wages and salary administration, record maintenance, human engineering
  • Fire fighting legal role-negotiator, trouble shooter, peace maker, problem solver, grievance handling.

The management employs scientific, analytical, psychological and social techniques to build the business around human resource, who are the real value additions to the companies.