The Importance Of HR Departments

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Business owners try to maintain a fine balance between spending and earning so they can maximize their profits. “An overriding theme facing managers and organizations is to operate in a “cost-less” mode, which means continually looking for ways to reduce costs of all types – financial, operations, equipment, and labor.” (Mathis & Jackson 2012 p 6). At a minimum, businesses incur a planned expense on employees by way of payroll expenditures. Additional spending on employees can occur and may be considered a positive investment if employers can find a balance between employee morale and solid business practices. When this balance is achieved and maintained, employees will be more involved in operations and dedicated to the business. Engaging …show more content…
The department’s ability to effectively perform in all of these areas is critical to the success of a business. All three components of HR management directly impact the morale of employees in all aspects of their employment. HR personnel are directly involved in an employee’s career from the time they are hired, through the day-to-day work and training, and any promotion or firing decisions that could impact the employees. In certain business fields, such as technology development, ineffective HR management has been associated with the failure of initial start-up companies. According to Parmjit, Shivakanth, & Jyothis (2013) many technical start-ups failed due to a lack of definitive HR policy implementation. They set themselves up for failure because they us HR practices (p. 55). Their research demonstrated how a lack of foresight in HR management can have the opposite effect of a well implemented HR department. Most importantly HR practices both positive and negative are felt most directly by the …show more content…
By enlisting their HR department in a new way they were able to empower their employees. Netflix also improved employee morale by investing in the best employees. They strongly believe in the idea that hiring talented personnel and retaining those employees was instrumental to the success of Netflix. “The best thing you can do for employees – a perk better than foosball or free sushi – is hire only “A” players to work alongside them. Excellent colleagues trump everything else.” (McCord, 2014 p.72). When employers invest in the success of their business by hiring and cultivating the most talented employees, they benefit both the company and the employees. Many companies don’t have the financial flexibility to implement the practices that Netflix has used, but they are still able to implement ideas that improve employee morale and instill company identity in their employees. Some of the more creative ideas implemented by HR departments such as employee volunteer programs (EVP) require lower financial commitment from the employer while ultimately improving employee morale. “By contributing to employee satisfaction, volunteer opportunities have been shown to increase morale, improve employee recruitment and retention rates, and enhance productivity, and ultimately positively affect

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