Human Resources are the people that make up an organization or even the whole economy. Since a company cannot function without Human Resources, a department, commonly known as HR (Human Resources) or HRM (Human Resource Management) is formed within the company.
The HR or Human Resources department within a company strategically manages all the employees within the organization. The management capabilities of HR directly impact the internal and external growth of a company.
The HRM team in a company consists of highly skilled individuals who have excellent managerial and communication skills when it comes to people. The organizational culture in a company reflects the effectiveness of the HR management within the organization. Therefore, having an efficient and skilled HR team is crucial for any organization.
Hiring and recruitment activities.
Talent acquisition and onboarding activities.
Conducting orientation and training programs for both new and old employees.
Employee performance management and appraisal.
Maintaining and managing labor relations.
Maintaining and managing managerial relations.
Establishing an ideal organizational culture.
Providing employees with an ideal work environment.
Monitoring and establishing the company policies.
Bridging the communication gap between departments and different employees in the chain of command.
Forming plans. strategies and plan of action to fulfill organizational goals.
The Human Resource management of a company is considered poor when there is a lack of order, motivation, ethics, and productivity within an organization. The organizational goals, both long and short term are not met timely or at all, in a poorly managed company.
In a poorly managed company, constant preaching of ethical codes and company policies is quite common; also, employee performance and the work environment will degrade as well. In this case, the HR of the company has failed.
When the employees are not managed properly and there is no order and structure in the workplace, it is quite natural for a conflict to arise. The conflict between employees can seriously damage the company since the success of a company thrives on collaboration and teamwork. This is a serious case of negligence of responsibilities by HR and poor management.
High employee turnover rate
No employee likes to stay in a place where there is no structure and has regular conflict. A poorly managed workplace does not provide an employee the ideal work environment to grow and progress in their career. This, poor HR management will lead skilled and potent employees to leave the company.
A demotivated and less productive workforce
Having a very poor work environment, constant conflict and stress, chaotic workplace, and lack of ethical code will never motivate employees to work their best. Poor management and negligence from HR also give the employees a free pass for not being as sincere in their work. Thus, productivity and motivation will decrease.
Miscommunications and misunderstandings
Poor HR management will lead to many communication barriers and misunderstandings in the workplace. One of the major responsibilities of the HRM is to bridge the communication gaps in the organization and manage labor and managerial relations effectively. When not done right, miscommunications may lead to conflict which may be very damaging for the company's future.
Another key responsibility of HR is recruitment, hiring, and talent acquisition. When HR acts irresponsibly and is incapable, the employees that are hired will reflect the incompetency. Highly skilled employees can only work under highly skilled managers with excellent leadership qualities. When a company has under-skilled employees and managers, its future is doomed.
Shortage of labors
In a company that has poor HR management and where labor relations are not maintained properly, people would be less likely to be part of the working staff. This will also cause a shortage of laborers for the company. Maintaining good labor relations is very important for a company and poor HR management can drive them away.
Employee Engagement Issues
In a workplace full of conflict, poor management, incompetency, and zero collaboration, high employee engagement is not possible. If the HRM team is incapable of managing employees properly and building an engaged workforce, employee performance and productivity will drop. The employees will never build the commitment and connection towards the company goals and mission.
Decline in company growth rate
Poor employee performance and a disengaged workforce will never be able to achieve the company goals. Due to the internal conflict, poor management, inefficiency, and disengagement, the goals set by the senior management team in the organization will never be fulfilled in time. Some may even never get fulfilled and to make things worse, the employee turnover rate will increase making it even harder for a company to survive.
In a business, the better the internal state of a company, the better the product sold will be. With poor management, underskilled employees, lack of discipline and ethics, negligence, and shortage of laborers, a company cannot provide a high-quality product at the best price. When internal issues arise in the company, it is reflected in the product sold to the customers. Therefore, poor management of human resources can be extremely dangerous to a business.
In a workplace with poor HR management, underskilled staff, irresponsibility, and negligence, no ethical or company code, and conflict among employees; the company is bound to face legal issues. The issues could be related to the product, employee behavior, or the condition of the workplace.
Maintaining strict ethical codes and company policies within the company is very important. Breaking these codes must entail serious consequences under the strict monitoring of HR.
A professional and ideal work environment must be provided in the workplace.
All the employees need to be provided with the opportunities to grow further in their careers by HR. This will make them happy and more likely to stay.
The HRM team must possess excellent communication, negotiation, empathic, and problem-solving skills.
The process of talent acquisition must be taken very seriously by HR. Highly skilled and potent employees who can adapt to the company culture well should be recruited.
All the laborers must be treated with respect and paid fairly.
The HR has to organize various activities and programs which cater towards increasing employee engagement and interpersonal relationships.
The organizational goals must be reviewed and discussed frequently by HR. HR needs to review and improve employee performances constantly.
Upskilling training and mentorship programs can be provided to the employees by HR for better performances.
The product offered by the company must have fulfilled all the legal criteria starting from production up to sales.
Effective communication and negotiating abilities to communicate with the employees and get things done.
Empathic and active listening to form better relationships with the employees and to identify hidden problems in the workplace.
Leadership and management skills to avoid the above-mentioned consequences of poor HR management.
Recruitment and talent acquisition to build a skilled and efficient workforce.
Ability to direct the workforce towards the ideal organizational culture.
Ability to maintain a balance between being strict and maintaining discipline as well as being a safe space for employee problems.
Researching and problem-solving skills with updated knowledge of the Human Resource Management system.
Since you will have to manage the entire workforce, skills like multitasking, coaching, administrative expertise, and being proactive is a must.
Since Human Resources within the company determine the smooth running and success of a company, proper management of these employees is extremely important. If the HR aspect of a company is overlooked, the company will face multiple issues which can seriously damage the company. Low revenue, high employee turnover rate, conflicts, and legal issues naming a few. Therefore, having a skilled and excellent Human Resources team is very important.
If you are someone who owns a company or wants to have a career in Human Resource Management, it is very important to understand the consequences of poor HR management and build the necessary skills or hire qualified officers to manage the employees in the company.