Importance of Human Resource Management

Cite this article as: businesstopia, "Importance of Human Resource Management," in Businesstopia, January 28, 2018,

Human Resource Management (HRM) is a modern approach of maintaining people at workplace which focuses on acquisition, development, utilization and maintenance of human resource.
HRM is development oriented. It is concern of managers of all level and provides space for employee involvement, performance and growth. Several companies nowadays prefer HRM to personnel management because HRM plays vital role in maintaining quality team of working experts. Besides, it has several importance which are discussed below.

To maintain quality of work life

Happy employees who maintain quality of work life

Quality of work life is the perception of employees regarding the relationship between working condition with management. Simply, it is the relationship between employees and total work environment.
Quality of work life is concerned with the employee’s perception of physical as well as psychological wellbeing at workplace and it can be obtained by maintaining work autonomy, work freedom, job recognition, belongingness, rewards, etc.

To increase productivity and profit

Human resource management ensures right quality and quantity of personnel in workplace, apart from which, it creates opportunities to facilitate and motivate individual and group of employees to grow and advance their career. Motivated employees work hard to meet their personal career goal which directly influences productivity of organization. Minimizing cost and maximizing profit is the essence of productivity.

To produce employees who are easily adaptable to change

Human resource management performs various functions, among which training and development of employees is one of the vital ones. Training and development programs keep employees updated with skills necessary to adjust with alteration of organization’s environment, structure and technology.

To match demand and supply of human resource

Human resource management probes existing human resource in certain interval of time to identify if the company has adequate number of workers or not. In case when company has inadequate human resource, human resource management performs activities like recruitment and selection to balance the need. In the same way, it lay-off inefficient employee in case when the company has excessive employees.

To retain employees and motivate them to accomplish company’s goal

Retain employees who love their job

Utilizing human resource to their fullest and maintaining them in the company for a long term is a major function of human resource management. Under this function, HRM performs tasks like providing fringe benefits, compensation and rewards to the deserving employees. These activities do not only help in retaining employees in the company but also in achieving organization’s goal effectively.

To recognize merit and contribution of employee

Human resource management performs timely appraisal of employee’s performance in order to recognize excellent and poor workers. The excellent workers are then rewarded as a return for their contribution.

To create a feeling of belongingness and team spirit in the employee

Human resource management designs job on the basis of teamwork. As teamwork demands contribution from every team member, HRM focuses on making each and every employee feel valued so that employee contributes best from their side.

To sustain business in the market

Human resource management makes sure that the company has the best employee because promising employees are capable of taking their company ahead in the race by delivering excellent results. This guarantees organization’s success and stability in future.

To resolve conflicts

Resolving conflicts with a hand shake

In any company, either big or small, conflicts may arise between any parties/group. Conflicts are inevitable and they should not be ignored. Human resource management acts as a consultant to sort out such conflicts timely and conduct other organizational activities smoothly.

To develop corporate image

Every company should maintain good public image in order to sustain in the market. Any individual would like to work for companies which are known for moral and social behavior. On the other hand, companies that do not treat their employees in a good manner can run through employee deficiency and even collapse.

Cite this article as: businesstopia, "Importance of Human Resource Management," in Businesstopia, January 28, 2018,