Importance of HR Functions in Organizations

This article discusses the importance of HR functions in organizations, including decision-making, recruitment, and differences between small businesses and international companies.

HRM
Student Name
[DATE]
institutional affiliation(s)
Course Title

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Answer 1.
Being a manager, I would like to take a decision that is legal and contributes to stockholder’s
satisfaction though it may minimize short term profits. According to Feffer (2017), HR
professionals and business leaders often have diversified mindset where most of them are
focused on increasing profits and driving sales, nevertheless, HR professionals are
additionally trained for considering perspectives related to legal compliance, company culture
as well as risks. Sustainability perceptions and stockholders’ satisfactions are significant
aspects that influences the way organization approaches to new decisions and an efficient HR
manager will anticipate future risks before jumping and crossing legal lines (Khan, 2014).
For instance, decision like providing competitive wages to employees along with other health
care benefits and pensions for attracting efficient and skilled workforce. Many firms offer
competitive wages within a specific industry and if any company pays below market-wages,
they may lose skilled workforce. Compensation is determined after reviewing financial
condition of the firm, efficiency and rates paid by competitors. Although decision taken here
may affect financial position of the company thereby affecting immediate profits, but in long
term this decision will prove satisfying for stockholders as acquiring skilled workforce will
help in meeting organizational goals more effectively (Adler & Ghiselli, 2015).
Answer 2.
Successful recruitment reflects validity of professionalism in businesses and thus recruitment
in HR functions seems to be most important for me. Even, organizations desire that right
people are appointed to meet organizational objective for which it is very essential to
implement appropriate recruitment process. Although recruiting may prove expensive or time
consuming, it helps organizations with making right choices. Recruitment function in HR

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streamlines initial processes like research, interviewing, hiring and sometimes training which
helps organizations reach viable candidates efficient for the job role ( Brewster, et al., 2011).
According to Harky (2018), recruitment and selection functions in human resource
department involves those processes through which skilled and unskilled employees’
requirements gets fulfilled along with creating organization’s competitive strength through
strategic recruitment advantage. In other words, good recruitment helps in developing
positive image of organization in front of public, competitors and peers.
Answer 3.
Although HR functions share same problem solving and planning development, they remain
dissimilar in small businesses as compared to organizations working in an international
setting. HR in small businesses and HR for larger ones basically differ in terms of
responsibilities, recruiting process, and resources. These differences can be seen during
policy and procedures presentation and implementation throughout the organizational
structure. International company HR manages have to perform wider range of activities in
comparison to small businesses. These includes exchange rates, international taxation and
international orientation for foreign employees along with international reallocation
( Brewster, et al., 2011).
International HRM deals with many external factors as compared to small businesses like
government regulations regarding staffing in different countries, code of conduct and
influence of local groups ( Brewster, et al., 2011). HR managers working in international
environment have to face various issues especially related to culture and communication
gaps. Therefore, they have to set entirely different HRM system addressing different regions

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requirement whereas small businesses HR programs remains employing single nationality
individuals (Khan, 2014).

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References
Adler, H. & Ghiselli, R., 2015. The Importance of Compensation and Benefits on University
Students’ Perceptions of Organizations as Potential Employers. Journal of Management and
Strategy , 06(01), pp. 1-9.
Brewster, C., Sparrow, P., Vernon , G. & Houldsworth, E., 2011. International Human
Resource Management. 3rd ed. London: Chartered Institute of Personnel and Development.
Feffer, M., 2017. Ethical vs. Legal Responsibilities for HR Professionals. [Online]
Available at: https://www.shrm.org/resourcesandtools/hr-topics/behavioral-competencies/
ethical-practice/pages/ethical-and-legal-responsibilities-for-hr-professionals.aspx
[Accessed 20 03 2019].
Harky, Y. F. M., 2018. The Significance of Recruitment and Selection on Organizational
Performance: The Case of Private owned Organizations in Erbil, North of Iraq. International
Journal of Contemporary Research and Review, 09(02), pp. 20393-20401.
Khan, D. M., 2014. HR as a Strategic Partner: A Critical Review. International Journal of
Human Resource Studies, 04(01), pp. 1-8.