Human Resource Management and its Importance in the Business World

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Human resource management which is popularly abbreviated as HRM is the department of every organization which takes care of the most important asset of that firm that is the people working there. No company can run its operations without having people working on them. The fundamental duty of the HRM department is to control and coordinate the activities of the workforce so that they can achieve the goals. The HR managers devise policies to increase the commitment and motivation of the employees so that a favourable environment for maximum productivity.

The HRM encompass all those policies and practices which the organizations need to manage the personnel functions for maximizing the effectiveness of the procedures. In HRM the managers have to plan the requirement and availability of the workforce to run the processes smoothly. This planning is regarding many aspects such as recruitment, selection and acquisition of the most desirable talent, training and developing new, designing strategies for rewarding them for better performances, managing the performances by keeping them motivated and retaining people in the company.

These days the conventional responsibilities of HRM are changing rapidly and taking in to account many other functions also such becoming the change agents and bringing in the much-needed change by transforming the organizations into learning organizations. The main aim of HR managers is to create congruence in the individual goals and the strategic objectives of the company. When there is a connection between the two it becomes easy to achieve the set targets for the individuals, teams as well as for the organizations also. The efficiency of the operations depends a lot on how well the employees know about their job and how much dedicated they are to do it correctly. The HR manager has to create a balance in both of these aspects so that there remains no reason for not doing a job well. If you want to gain an understanding of the rewards being a function of Human Resource functions, read Benefits And Reward System in HRM. This article discusses different techniques which are adopted by the Human Resource personnel to keep the individuals as well as teams motivated to achieve higher results.


The Human resource department works on specific core value which is essential for conducting the process and policies properly. These values are listed as below:

  • The core assumption on which HRM functions work on is that human beings are the vital aspects of running the operations of any company. The commitment of the people working for a firm has a direct correlation with its success.
  • The individuals who work for a company brings all aspects of human beings such as attitude, personality, intelligence, skills, and behaviours to it.
  • HRM assumes that every individual is different and have distinctive nature, personality, Background, and abilities to do a particular work.
  • It is necessary to search, acquire, train, develop and motivate the human assets for achieving higher performances. Retaining the top performing employees is also a critical part of HRM.
    The employee satisfaction and commitment decide about the success or the failures of an organization.
  • Coordination is the key to manage the people effectively. There are different types of roles in every firm. Some people have to work on the necessary function to keep running the operations, and some personnel have to manage them. Therefore the commitment can be increased in the employees by communicating with them.
  • People who are motivated not only work efficiently but they also motivate other people working with them, and it is a huge benefit which the HRM can reap by setting transparent and smooth channels of communication and coordination.
  • HRM also assumes that the collaborative work environment can lead to the accomplishment of the targets in the desired manner.

The importance of the Human Resource Management functions

There are many reasons which make the HRM an essential department in every organization. Earlier the companies used to consider it a supporting function, but the management practices are changing rapidly and so as the HR responsibilities. The HRM has gained a lot of importance in the corporate world, and the reasons for it are summed up as follows:

  • HRM sets the platform for organizational development and growth

The primary focus of any organization is to earn profits and grow in the market. The HumanResource Management helps the companies to achieve these targets, and therefore it works as a catalyst in the development of the companies. The HRM does it by providing the means to improve the individual capabilities by training and motivating, designing the KRAs of the teams and people in such a way that they achieve the individual as well as the organizational objectives also. The development of team spirit for creating a coordinating and collaborative work environment is a crucial function of HRM which ultimately leads the companies towards a better future. The HRM policies become key factors in the utilization of the skills and competencies of the people and transform them into the organizational success.

The organizational development can be achieved by developing its employees, and the Human Resources department does it by designing and imparting the required training to people. Training is the excellent way to enhance the skill sets and competencies of the individuals to make them ready to achieve their targets in the more efficient way.

  • HRM keeps the workforce motivated with a suitable reward system

The employees achieve their targets efficiently if they feel motivated and this is the responsibility of HRM to keep the motivation intact. One of the primary tools which are used by the HR professionals is to recognize the extraordinary achievements and initiatives and reward them aptly so that the employees like to repeat it. The HR department has to create effective policies to reward the individuals.

  • HRM helps in creating a conducive work culture

No organization can achieve its goals in isolation, and one or a few individuals working independently can accomplish the organizational goals. The companies need teams who work interdependently to achieve a shared goal. The work of the teams translates into the organizational effectiveness. But the teams also need a conducive environment and supportive work culture so that they can change their duties into accomplishments. A progressive culture helps to boost the confidence of the employees in the company, and it also helps to generate a motivated and loyal workforce.

  • HRM maintains the human resource of the organization

The fundamental aim of HRM is to care and develop the human capital of the company. The organizations can not work alone with the technological equipment and machinery alone. They need human beings to operate those machines, and therefore people are the crucial factor in all functions whether its production, marketing, supplying, and managing finances etc. This is the reason HRM has established itself as the vital function. The HR department only handles the conflicts and grievances which arise in the workplace, and this is important to keep the working environment peaceful.