Impact of HR in an organization?
Have you ever thought what if all your departments in a company do functions on their own without any internal coordination and goal alignment? Human Resource is the key to ensure alignment of organizational goal with departmental and individual goals. HR practices are created to establish strong tie between the firm and the employee. An organization can use HR practices to help employees in developing skills that can be further used to contribute in its growth and intellectual development. Starting from Hiring till Exit of an employee HR is crucial as it contributes by recognizing right talent, onboarding, performance management, training & development, rewards and recognition to Exit interview and analysis all these decisions by HR affects an organization’s overall growth. Do you think your organization will grow if you have low employee productivity? Do you think you can retain talent providing low wages and no rewards? The answer is “No” and if you think you can do it without having HR then you need to calculate the opportunity cost you pay for not having an HR in the organization. HRM is that tool using which firms are able to work on a lot of organizational aspects at the same time. With an established HRM in place, the firm keeps its employees satisfied and that in itself contributes to the success of the company as such. As per one survey it was found that HR practices are directly or indirectly linked to all three outcomes. The use of HR practices is related to enhanced financial outcomes(net margins), organizational outcomes(client satisfaction) and HR outcomes(sickness absence,  attrition etc.) The impact of HR:

  1. It has direct impact on recruiting skilled and talented individuals, develop them and retain them in the organization.
  2. Training and Development of employees leads to high performance and ultimately affects the overall performance of organization.
  3. Performance Management systems designing and implementation helps to identify high performers and low performers and also it helps to reward them based on performance rightly.
  4. Valuable HRM initiatives enable companies to deal with human resource problem in a strategic way.
  5. To have in place streamlined Exit Procedure to have exit analysis and retain talent in the organization by fixing loopholes in policies of the organization if any.

Even though there are certain organizations that do not consider human resource management as a key function of management, one must admit that HR is of assistance and contribute crucially to the success of several corporations nowadays. The employees represent the business’s most essential asset because the employees are well involved in operations and enable decision-making process. Also, the costliest asset of any business is its employees due to the fact that 70% of a company’s budget is allocated to the workforce. Employees are such valuable assets who can make business developed and profitable, this is a high time to identify the proper Human Resource policies and practices on which any business can rely in a bid to put up the success in the industry because an organization can simply be assessed by specific HR policies it uses to support business strategies and lead the company to growth.