HR in adepartment has various functions which are vital and crucial for anorganization. It is undeniable that individual development and working tomaintain a productive working environment are vital but the functions of HR arenot limited to this extent only. Apart from individual development and workingto maintain a productive working environment HR plays multiple roles for thegrowth and functioning of the organization. Other crucial functions of HR in anorganization may include recruitment and employee selection, fullestutilization of human capital resources for the growth of the organization,balancing the needs of the organization with those of the employees to assurethe well being of both the parties, guiding the leadership in the organizationon each and every aspect of human resources for the growth of the organization,adapting the best educational and cultural shifts in the organization to keepup with the current trends in the business organization and requirements of thehour, retaining the top talent in the organization at the available resourcesand maximizing the productivity and many more. Training and development of theemployee as per the new requirement in the business environment is vitalfunction of HR department in any organization. It is a tested fact that recruitment and selection ofemployee in an organization has the highest impact on the profit and margin ofan organization. In the Boston Consulting Group findings it was revealed thathow different HR functions impact the business and the profitability of an organization.
As per the report recruitment function of HR can impact the profit growth asmuch as 3.5 times and profit margin as much as two times of an organization(John, 2012). This is evident that mere rectifying and having excellentrecruitment and selection process can multiply the profit margin of anorganization by two times and an organization can meet its aspiration of makinghigh profit. Under the HR function of recruitment and selection an organizationcan plan to have right kind of personnel for the defined roles in theorganization and can recruit them at the right time to perform beneficialactivities of the organization to meet the short and long term objectives ofthe organization (Fajana, 2002). Throughanalysis of various other functions of HR in an organization, looking into theimportance of these functions for the organization, collecting the literaturereview, relating these functions to the impact on the productivity and profitmargin of the organization we can conclude that these other functions of HR arevery vital to meet the principles and goals of an organization. They are asmuch crucial as the functions like promoting individual development and workingto maintain a productive and positive working environment.
In fact it was foundthrough analysis that simply focusing on excellent recruitment and selectionprocess by an organization it can multiply its profit margin by two times.