The Impact of Human Resource Management on Productivity

Human resource management is a role that is often overlooked in some organisations, but businesses underestimate this important cog in their operations at their peril. To understand why human resource management is important to productivity, we only have to look to the experts who have found that a large majority of employees leave their jobs due to mismanagement. It is therefore clear that conscientious management of your human resources will help to retain an engaged and hard working team that will pull together for the good of your company as a whole.

Below we’ll take a look at how human resource management impacts productivity and how implementing good management practises will be beneficial for your organisation in the long run.

Building a Cohesive Team

Effective human resource management focuses on building a cohesive team while also encouraging a sense of belonging and team spirit. Hiring decisions are crucial in that the selected candidates have to bring tangible benefits to the organisation as well as be compatible with existing employees and the company philosophy. An organisation whose staff pulls together and shares a common objective stands a good chance of meeting its business goals and being successful.

Monitoring and Tracking Progress

One important aspect of human resource management is the monitoring and tracking of how an organisation is progressing in terms of its stated business goals. Ensuring accountability and transparency in order to make informed decisions requires close cooperation between departments, an area in which HR is a strategic aspect. The role of a human resources department will include making sure that different departments work together towards set objectives. In addition, HR software from providers such as CIPHR can also help to streamline processes, gather crucial data, lower costs, and save time.

Legal and Policy Compliance

There are many aspects involved in running a business, and labour laws can sometimes be complex and require specialist attention. Delegating human resources issues such as employee insurance, wages and other entitlements to the relevant HR department ensures that all laws and industry policy guidelines are met. This remit also applies to ensuring the compliance of an organisation’s current and future business objectives. Effective HR allows organisations to stay on the right side of the law thereby cutting expenditure on fees, fines, and potential loss of business profits.

The effectiveness with which a human resources department handles financial aspects of the business such as wages is also crucial to the continued survival of any organisation. Strategic hiring of personnel has to be undertaken with an eye on the impact of costs to the business in the same way tangibles such as fixed costs, real estate and inventory are assessed.

The impact of human resource management on productivity is therefore directly tied to the success or failure of a business as this department is intrinsically linked to all aspects of an organisation. A streamlined and effective HR department can help to increase productivity through ensuring all departments work towards a common goal successfully while still meeting all legal and policy requirements on the way to success.