Importance of HRM

By on June 7, 2011

Every industry requires certain prerequisites for its functioning namely; raw materials, finance and funding, machinery, etc. similarly, it requires manpower. And this manpower is the Human Resources and in order to manage the manpower, Human Resource Management is necessary. HRM involves managing manpower in order to improve individual, group and organizational effectiveness.

It is important to manage human resources as they help in the prosperity and progress through the committed and creative efforts and competencies of their human resources. Edwin Flippo defines the term, HR management as “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.” HRM emphasizes mainly on the accomplishment of individual or personal objectives of the employees (eg : promotions), encouraging team work, attaining higher profits, social development, etc.

Recruitment and maintaining good people is essential to the success of every organization, whether profit or non-profit, public or private. It is important  that organizations, manage human resources on a continuous basis, due to the growing expectations of employees. HRM works on the availability of competent and diligent manpower, ensures effective use of manpower through appropriate placements, constant provision of rewards , acknowledgements and incentives to the employees encourages and motivates them to do their best. HRM also attempts to devise the best possible compensation packages to the employees.

HRM encourages team work, facilitates career development and makes an effort to create the right environment to develop careers of managers within the organization. A healthy environment can occur only when the working relationships between all the employees are established, leading to an overall development of every individual employee as well as the organization on a whole. Dr. W.E. Deming once remarked- “Abundance of natural resources is not a requirement for prosperity. The wealth of a nation depends on its people.” HRM also looks into the grievances and issues faced by the employees and industrial relations.  Thus HRM acts as a fuel for the smooth functioning of an organization and its overall development and progress.



  • Machael Vaz , 2010 . Marketing And Human Resources Management .Mumbai . Manan Prakashan.




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