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What is Human Resource Management? Why is it Important?


The human resource management is a common term that is heard amongst professionals. This term takes on a key part in the success of any system. The importance of human resource management is high in any organization. This function present in any management helps in maximizing employee performance.

Valuable employees are held in an organization and also certain aspects such as organizational culture, policies, benefits, compensation, and employee relation are maintained with the aid of human resource management.

HR sets up strategies, produces policies, systems, standards and procedures. There are some tasks which are taken care of human resource management.

They are chiefly responsible for training employees, rewarding, performance appraisal and recruitment and more. importance of human resource management

Human Resource Management: Nature

Human resource department works as a backbone for any company and acts as a medium that links employees with the management of the organization. They play an important role in building employee engagement strategies and also help in achieving company goals.

Some of the characteristics which the HRM features are,

  • It is a common sector present in all industries
  • Assigning jobs is done to the right employees for best results
  • They mainly focus on the outcome rather than rules
  • Help to meet the goals of the company
  • Motivate employees to bring out their best
  • Hire the best and competent employees
  • Help the employees to develop and grow
  • Builds and maintain better relations with all the teams
  • Encourage employees to work both in teams as well as individuals

Human Resource Management: Scope

The activities handled by the human resource department are multidisciplinary. They understand and schedule the employees by assessing the knowledge and skills they possess. The HRM scope is diverse and wide.

Personnel aspect:

It mainly deals with

  • Manpower planning
  • Recruitment
  • Selection
  • Remuneration
  • Training and development
  • Promotion
  • Incentives
  • Transfer
  • Layoff and retrenchment
  • Placement
  • Productivity etc.

Welfare aspect:

This mainly deals with facilities and resources like

  • Canteens
  • Rest and lunchrooms
  • Churches
  • Medical assistance
  • Health and safety
  • Housing
  • Transport
  • Recreation facilities
  • Education etc.

Industrial relations aspect:

This mainly deals with,

  • Union-management relations
  • Grievance and disciplinary procedures
  • Joint consultation
  • Settlement of disputes
  • Collective bargaining

There are ample reasons to point out the importance of hrm in an organization. Let’s run through a few points which present us why human resource management is important.

The Importance of Human Resource Management:

Here we have enlisted the importance of hrm in points.

1. Helps you achieve your objectives:

The chief ground for human resource management to be important is that they help the company to achieve their objective on a regular basis by means of developing a positive attitude amongst the employees.

They assist in diminishing wastage and make usage of maximum net income from the resources.

2. Design recruitment and training:

They are significant because they cull the right kind of people during recruitment. They call for initiatives and design criteria which are best suited for a specific task.

When required they also supply preparation for employees, which helps in evolving the presentation skills of the employees and then they take up new posts.

3. Professional development is attained:

The policies adopted by human resource management helps in providing excellent training for the employees.

When such training is offered, they are developed professionally. Their talent can be used inside the system and also in other companies which one may intend to join in the future.

4. Performance appraisals are a good thing:

The HRM motivates the employees by their performance assessment procedure. They help people to act according to their efficacy and also offer estimates to gain advances.

The employee’s performances according to their roles are monitored on a regular base.

With this concept, the employees are able to make an outline of their ends and go towards it. By this way, the employees are boosted and perform well.

5. Smooth relationship is preserved:

Employee relations The co-ordinal relationship between union and management is maintained with HRM.

The joins in the troupe comes to a determination that the troupe is also interested in their increment and the prospects for performing strikes are greatly brought down.

6. The work atmosphere is maintained:

Another important aspect to glance is that the workplace atmosphere and work culture are significant aspects that plays a central part in the operation of an employee. The human resource team offers good working conditions for the employees.

A dependable, tidy and clean employee can take out the best performance from an employee. Apart from this, job satisfaction is also obtained with a good work environment.

7. Enhances teamwork:

The HRM helps individuals and trains them to play in a team; this perfect training makes employees better to exploit in a team.

In this way teamwork is enhanced and employees learn to adjust and coordinate with their squad.

8. Handles disputes:

There are a number of hassles and issues that may rise up during the track amongst the employer and employee in an organization.

In such scenarios, the human resource department acts as a consultant as well as an intercessor to set right those sorts of events.

They first hear the grievances of the employees and sort them out by providing a proper solution. Whenever mandatory, they also require immediate action.

9. They prepare talents for the hereafter:

To integrate the occupation demands and produce perfect results, the employees are often trained.

During the training period, the potential employees of the team are distinguished to be advanced to the next higher grade. So HRM takes responsibility for preparing people for the future by picking talents.

10. Public relations are raised:

public relations The human resource management is responsible for rising public relations during the class of work.

They are responsible for organizing seminars, business meetings, and other officials get together on behalf of the fellowship so that public relationship with other systems is developed.

Commercial enterprise and marketing plans are likewise planned by human resource management in some shells. Hence they help in preparing and maintaining public relationships.

11. They select the right employee:

Human resource management follows a certain set of protocols to pick the correct candidate for a fixed task. Such sort of selection offers job satisfaction for the employee as they act in the proper class of occupation.

The routine of employees who leave their occupations is also reduced, which decreases labor turnover.

12. For handling payrolls:

Either small business or large systems, human resource management help in maintaining payrolls or handling open enrollment season each year.

The employee’s complete details regarding payments are taken charge by this squad. They too hire up the obligation to set the pay range within the establishment.

13. They maintain management cost:

The HRM trims down the management cost with various methods and brings about the best methods for benefits where few of them include health care coverage.

The human resource management also makes a detailed study on the current status regarding wage setting, by running through the labour market, employee trends and salary analysis with the equivalent job functions.

For budget-constrained organizations, human resource management can be a perfect solution.

14. Minimizing employee recruitment cost:

The cost of recruitment, replacement, training and ramp-up time can be outrageous for the organization, especially for small businesses.

But the HRM would design a well-structured recruitment and selection process which helps in minimizing the key expenses regarding job advertisements, training and enrolling new employees.

15. Helps you get the latest salary:

latest salaryAnother important reason for human resource management to play a key role is that they recommend in gaining market-based salaries, they determine salary ranges for their organization with the latest updates and knowledge.

16. They take in a lot of benefits:

The HR team researches bring in latest updates and recommendations for more of employee welfare programs so that employees are benefited.

When such employee benefit programs are brought to light, the employees are impressed and stay in the system.

17. Human resource brings in joy within the employees:

The human resource team is the one who takes up responsibility for events, activities, celebrations, theatre trips, ceremonies and other team development opportunities.

The HR manager is the one who manages the budget and organizes the event. This brings in joy and relaxation amongst employees apart from the work schedule.

18. They take hands and lead you in a new way:

When your organization has declared for introducing new products, deviating towards new goals, changing directions, the human resource team is the one who precedes them with the new process and plans.

They are considered important as they are responsible for advocating and carrying out strategies for the fellowship as well as society. With the new mission, human resource also helps in achieving strategic goals.

19. Human resource management recommends using resources:

Human resource management makes certain that they make proper use of all the available human and non-human resources. When such available resources are utilized properly, the goals of an organization is accomplished.

Societies who are developed to make proper utilization of their resources invite human resource management to plan for objectives and policies.

20. Organizational structuring:

Organizational structure The relationship carried on between the employees and management is fixed with the help of organizational structure.

It is the one which assigns tasks for each employee within the establishment. The projects to be delegated should be within the stipulated constraint which also packs into account location, responsibilities, accountability and other relationships within the system.

Human resource management plays a key role here by supplying exact and timely data. In this manner, human resource management maintains an organizational structure.

21. Humans are respected:

The human resource management is considered significant as they provide a respectful environment for the employees.

The human resource management makes sure that each employee is provided with respect and facilities which avoids dominating tendency which in turn avoids an organizational crisis.

In this aspect, proper respect is gained at a work station. With respect amongst employees, a safe working environment is upheld.

22. Setting goals is important:

On that point is an individual goal as well as an organizational goal within the employer’s judgment.

When employees have such a goal conflict, they are not able to perform well, hence human resource management helps in bridging the gap amongst the employees and brings in goal harmony.

When there is a match between the goals, resources are used perfectly which concludes in better results.

23. They bring in discipline and morality:

The human resource management team makes sure that discipline and morale is maintained inside the organization through performance-based incentives.

By offering such rewards a friendly working environment through the proper workplace design and assignment of tasks is obtained.

24. HR contributes to the growth of the country:

The growth of a state is also achieved by means of human resource management. When an efficacious and dedicated HRM is available, they lead to effective development and progress to using of natural, financial as well as physical resources in a proper manner.

The experienced and well-trained human resource makes sure for the maturation of the country. Effective HRM makes sure the economic process of the country is maintained and leads to enhanced growth in standard of living and maximum usage.

25. Friendly, professional level:

friendly environment Since the HRM improves quality of life and work, they sustain a friendly environment in the formation. This passes to professional development in the system.

The healthy relationship amongst team leads to proper allocation of work amongst employees and enhanced effects.

26. Creates awareness for employees:

The Human resource department is important because they develop awareness regarding the workplace and its regarded details.

They provide complete information to employees of their functioning and governance.

27. Covers many roles:

They are significant as they are able to cover up many functions in an establishment. They take on the executive role where HR is considered as a specialist. They meet the audit function as they monitor and check out other departments to see if health and safety, staff appraisal, training, are being preceded by the company HR’s policy.

Playing the facilitator role, they serve other departments to accomplish their goals as per the HR policies. Training is likewise furnished for people management issues. In the consultancy role, the HR advises the managers on certain aspects as how to manage issues.

In the service role, the HR acts as an information provider where they extend information and boost awareness about changes in the policy to functional area and departments.

28. Employee satisfaction survey:

The HRM takes responsibility to achieve employee satisfaction within the surroundings. They define the point of employee satisfaction.

The employee survey, focus groups and exit interview strategy are a few aspects where HRM finds out employee dissatisfaction and addresses those subjects to motivate employees.

29. They focus on performance management:

Human resource management focuses on the employee’s performance and scores them in that way. They provide the right job as per the employee’s accomplishments and expertise.

They compensate for the ones who are superior in their chores; the HRM does not blow the organization money on low performing candidates.

30. Succession planning processes:

Succession Planning The human resource management carries on succession planning which leads the organization to success in the future.


Employees who go with promises and exceptional capabilities in an organization are committed to leadership roles which is an important function carried on by the HRM.

With such important and valuable pointers, human resource management is considered compulsory. Any system without them is required to suffer serious issues during their day to day actions. For the same reason, many companies are taking efforts and setting up strong and effective HRM.