IMPORTANCE OF HRM

Human resource, along with financial and material resource contribute to the production of goods and services in an organization. Physical and monetary resources, by themselves, cannot improve efficiency or contribute to an increased rate of return on investment. It is through the combined and concerted efforts of people that monetary and material resources are harnessed to achieve organizational goals. But these efforts, attitudes and skills have to be sharpened from time to time to optimise the effectiveness of human resources and to enable them to meet greater challenges. This is where HRM plays a crucial role. The significance of HRM can be discussed at four levels:

1.    Corporate: Good human resource practices help in attracting and retaining the best people in the organization. Planning alerts the company to the types of people it will need in short, medium and long run. HRM can help an enterprise in achieving its goals more efficiently and effective in the following way:

·         Attracting and retaining talent through effective human resource planning, recruitment, selection, compensation and promotion policies

·         Developing the necessary skills and right attitude among the employees through training

·         Securing co-operation of employees through motivation; and

·         Effectively utilising the available human resources

2.    Professional: Effective management of human resource helps to improve the quality of work life. It contributes to professional growth in the following way:

·         Providing maximum opportunities of personal development of each employee;

·         Allocating work properly and scientifically; and

·         Maintaining healthy relationships between individuals and groups in the organization

3.    Social: Social human resource management has a great significance for society. Society , as a whole is the major beneficiary of good human resource practices

·         Employment opportunities multiply

·         Scarce talents are put to best use

·         Organizations that pay and treat people well, are always ahead of others and deliver excellent results

·         Maintain a balance between the jobs available and job seekers in terms of numbers, qualifications, needs and aptitudes

·         Provide suitable employment that gives social and psychological satisfication to people

4.    National: Development of a country depends primarily on the skills, attitudes and values of its human resource. Effective management of human resources helps to speed up the process of economic growth which in turn leads to higher standards of living and fuller employment.