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Top 5 Key Factors of Human Resource Management That Affect an Organization

September, 2021

Employees are at the heart of every successful organization. For that reason, Human Resource Management has turned out to be the most vital aspect of any organization as it involves effective management of the employees in the organization.

The HR department should lay the foundation to lead the employees and organization to strive towards success. Human resource management is challenging because it involves an enormous diversity of employees working together towards a common goal. This blog sheds light on the major aspects of human resource management that affect an organization.

Key Factors of Human Resource management that affect an organization

1. Positive environment

Fostering a positive work environment that inspires and motivates your employees to work productively can reap enormous benefits for the welfare of the employees and the business’s bottom line. A positive work environment can help develop happy employees who can take up joy and sincerity in their work and encourage co-workers to stay engaged and successful. Moreover, employees working in a positive environment are more willing to support team members and give positive support and encouragement. They will also be ready to take calculated risks in business while unhappy employees are more likely to play a safe game. Apart from these, the physical environment should also shed light on positivity. Or else it can negatively affect the employees. Lack of sunlight, inadequate devices, uncomfortable chairs can also lead to injuries. So, in these cases, it is necessary to repaint the walls, add a touch of plant life, improve lighting, quality devices, chairs, etc. can donate to a positive physical work environment.

2. Goal setting

When it comes to goal setting, the major outcomes are motivation, success, vision, fulfillment, etc. Without a clear goal, employees may feel pointless and feel less engaged in the tasks involved. Setting goals make employees feel a greater connection to their firms. They will get a feeling that they are working towards achieving a shared vision. Setting goals at macro and micro levels ensure that everyone is aligned and falls in the same loop. By tracking their work progress, you can give timely feedback whenever required. Moreover, your employees’ satisfaction when meeting goals- even smaller ones- will create a massive impression in their minds and boost their confidence in the times ahead. The framework of creating goals include aspects like:

  • Specific – The best way to set a goal is to be as detailed as possible. It helps to make the vision clear.
  • Measurable – Make it possible to measure your progress and see where you are in the line to your goal.
  • Achievable – Always set goals that are achievable. So, stay grounded while setting goals. Or else there won’t be much use in setting a goal.
  • Relevant – Plan goals that align with your organization and one that benefits the whole team.
  • Time-bound – It is essential to have a timeline, or employees will be more likely to push off from achieving the goals.

3. Employee development

Employee development is vital for employees to improve their skills and knowledge so that they may perform better. Employee development activities aid in the growth and development of employees, who are an organization’s valuable assets. For your employees to feel driven and establish a sense of loyalty and devotion to the firm, you must respect them. Employee development fosters a learning culture in the workplace, where all employees are encouraged to gain new skills and expand their knowledge. You should help them advance in their careers. For instance, you can encourage them to develop a reading habit. Or encourage them to enroll in various online or distance learning courses that will help them improve their abilities while continuing to work.

4. Communication

Communication plays a vital role in the success of every organization. Relationships strengthen, employee happiness increases, and productivity rises when employees feel free to express their opinions, ideas, and concerns. The workplace is, at its core, an interactive space. As a result, the workplace should be an environment that is based on successful communication. Communication and collaboration should go hand in hand for making the business a great success. It ensures that everybody is clear about their roles and responsibilities, creating a transparent workflow. Effective communication that is clear and understandable is attained not just in knowing what your function is in an organization but also in understanding its value within the overall business processes. The greater an employee’s understanding of how a firm operates, the greater their motivation to do their job and do it effectively.

5. Strategic management

Strategic management refers to the efficient use of an organization’s resources to achieve its objectives. Strategic management includes:

  • Studying and analyzing competitors.
  • Establishing goals.
  • Evaluating plans.
  • Ensuring that management implements the strategy across the organization.

Organizations must appropriately review their strategies to retain successful functionality as business environments change over time. This is applicable for businesses of all sizes, as strategic management may be quite beneficial.

To sum up

These are the key factors of human resource that affects the success of an organization. Considering the current and future complexities and problems in HRM, management must develop sophisticated methodologies and skilled people to manage sound lines.

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