Importance of Human Resource Management in an Organization’s growth

 · 5 mins read

Description- HRM is the brains of an organization which helps to procure, maintain and develop the human resources of the organization to achieve its goals.

Human resource is one of the most important factor among the various other factors of production. A company’s success depends on how efficiently it puts into use the human factor as the efficient use of land, machinery and capital ultimately depends on this human element. In every organization be it production, manufacturing, outsourcing or different type of services including the legal industry, human resource management is vital. It is simply a process of bringing the people and organization together and to meet the goals of each other. In other words, it is the process of procuring, developing and maintaining a competent workforce for achieving the Company’s goals.[1]

Features of Human Resource Management-

It has a pervasive force i.e., it is present in all type of organizations and at all levels of management. HRM is action oriented. It essentially focuses on achieving the goals and all problems are solved through rational principles established. HRM attends to the individual needs even though they might work in teams. Employees are motivated to put forth their best and are selected through a process of training and development with adequate salaries. It’s all about ‘people’ in an organization. They are allotted tasks individually or team wise and their rewarded for their work. The ultimate goal of HRM is to help the organization to achieve their goals. Attempts are done to increase the productivity by developing and improving the work force. They are rewarded according to their needs and as per their productivity in the team. Also, trainings are given for better results from the employees. The HR Manager is the specialist advisor. In the words of Terry, human resource management is not a one time or one hour each day process, it is a continuous effort with constant alertness and awareness about the human relations.”[2]

Objectives of Human Resource Management-

The objectives of HRM are multifold. The most important objective of it is to help the organization in achieving its goals, if the HRM fails to do so, it will wither and die. Another primary objective of HRM is to utilize its workforce efficiently and to produce the intended result from each employee. It also aims to provide motivated and competent workforce to the organization. Yet another objective of HRM is to help the employees realize their potential and to improve them at a personal level. HRM also builds a positive, healthy and social atmosphere which in turn builds the quality of work. It has also the duty to communicate all HR Policies to all employees. At the same time it must be ethically and socially responsible towards the societal needs.

Importance of HRM-

In today’s corporate world, every organization recognizes the need to have an efficient HRM which can distinguish one enterprise from that of others. Knowledge, skills and abilities are the key to the success of an organization. With appropriate HR policies, practices and effective management an organization can have itself distinguished from other competitors.

  • __At the enterprise level- __A good HRM can help to procure and retain competent workforce. A well in advance planning can help the organization in identifying the type of workforce that it requires. It can also promote commitment, right attitude, training to adapt to the challenging situations and loyalty through appropriate training and rewards.
  • At the individual reward- Gone are the days, when only financial reward was considered necessary for the employees. Now a good HRM can help improve the person at an individual level through training and rewards. It promotes team spirit, loyalty, commitment and diligence.
  • At the society level- A good HRM is ultimately beneficial to the society in large. It creates employment opportunities and it finds out the talented one’s from a large pool of applications made to it.
  • At the national level- A good HRM can help to exploit the natural, physical and financial resources in such a way that it will help the country to grow and compete at the international level and ultimately raise our standard of lives.

Trends in HRM

With the advancement of science and technology and the internal and outside changes occurring rapidly, the organization is also greatly influenced. In the 21st century we see a lot of innovations and changes in the organizational structure. One such is the e-HRM, whereby the functions of HRM are delegated to the management and employees. They access the functions typically via internet and other technological means. This reduces cost, time, space and improves the quality of work. With the availability of internet 24/7, the scope of e-HRM is much wider than the typical HRM.


Even though we all know the importance of HRM in the daily activities of an organization, it is also necessary for the HRM to comply with the legal rules of the State and Centre. They have to update their policies timely on the basis of the laws present in the particular State. If not, it is possible that the organization will be liable for huge penalties/ fines. Thus, a legal compliance mechanism is a must have in any organization. The HRM must Plan, Prevent and Protect the interests of the Company, employees and the society. As rightly stated by Rob Silzer, “ Financial resources may be the lifeblood of a company, but human resources are the brains.”


  2. Id.

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