After an organization's structural design is in place, it needs people with the right skills, knowledge, and abilities to fill in that structure. People are an organization's most important resource, because people either create or undermine an organization's reputation for quality in both products and service.
Staffing as a Management Function
In addition, an organization must respond to change effectively in order to remain competitive. The right staff can carry an organization through a period of change and ensure its future success. Because of the importance of hiring and maintaining a committed and competent staff, effective human resource management is crucial to the success of all organizations.
Human resource management (HRM), or staffing, is the management function devoted to acquiring, training, appraising, and compensating employees. In effect, all managers are human resource managers, although human resource specialists may perform some of these activities in large organizations. Solid HRM practices can mold a company's workforce into a motivated and committed team capable of managing change effectively and achieving the organizational objectives.
Understanding the fundamentals of HRM can help any manager lead more effectively. Every manager should understand the following three principles:
- All managers are human resource managers.
- Employees are much more important assets than buildings or equipment; good employees give a company the competitive edge.
- Human resource management is a matching process; it must match the needs of the organization with the needs of the employee.