IMPORTANCE OF HUMAN RESOURCE MANAGEMENT?
Meaning: -HRM is concerned with managing manpower to improve individual, group and organizational effectiveness. HRM consists of various elements such as; human resources planning, recruitment and selection, training, motivation, performance appraisal, career development, promotion and transfer of human resources.
Definition: -“Planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.”
Defined by………. (Edwin Flippo)
IMPORTANCE OF HUMAN RESOURCE MANAGEMENT
1. Availability of Competent Manpower: - The Primary objectives of HRM are to ensure the availability of competent and dedicated manpower. The success of any organization depends upon quality of its people. The quality of people can be improved through proper placement, training, career development and motivation.
2. Effective use of manpower: - HRM facilitates not only the availability of competent manpower, but it also ensures effective use of manpower. After selecting employees, they are placed at the right place of work. Proper placement helps to make effective use of manpower.
3. Motivation of Manpower: - HRM facilitates motivation of manpower. There is a constant need to motivate manpower by providing rewards and recognition. HR managers make attempt to devise the best possible compensation packages to the employees.
4. Morale of Employees: -Morale is a group phenomenon. In any organization, employees need to work in a group. Therefore, HR managers constantly make efforts to improve employees’ morale by; inviting suggestions from group members, providing group incentives. Etc.
5. Career Development of Employees: - HRM facilitates career development of employees. The HR managers make efforts to create the right environment to develop careers of managers within the organization.
6. Competitive Advantage: - HRM generates competitive advantages to the organizations. Effective HRM policies and practices make the manpower competent and dedicated. The performance of the organization improves due to competent workforce.
7. Working Relationships: - HRM establishes and maintains desirable working relationship among all the members of the organization. Authority and responsibility of each job is clearly defined by HRM managers.
8. Corporate Image: - Effective HRM is required to develop and improve corporate image in the minds of various stakeholders-customers, employees, shareholders and other members of society. The practices adopted by HR managers have a direct impact on the corporate image of the organization.
9. Social Objectives: -Nowadays, business firms fulfill their corporate social responsibility. HRM plays an important role in fulfillment of CSR of the organization. Through effective training and development, employees are motivated to produce quality goods and services and to take appropriate measures towards social development including environmental conservations.
10. National Significance: - HRM is also significant from the nation’s point of view. Dr. W.E Deming once remarked –“abundance of natural resources is not a requirement for prosperity. The wealth of a nations depends on its people.” Therefore effective management of human resources is required to speed up the process of economic development of a nation, which in turn would bring peace and prosperity to the nation.
