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Importance of Human Resource Management Significance of HRM can be discussed at four levels which are as follows:

1. Corporate Level For an enterprise effective HRM leads to attainment of its goal efficiently and effectively. HRM helps enterprise in the following ways. a. Hiring required skill set and retaining them through effective human resource planning, recruitment, selection, placement, orientation and promotion policies. b. Development of employees by enhancing necessary skills and right attitude among employees through training, development, performance appraisals etc. c. HRM also takes care of optimum utilization of available human resource. d. HRM also ensures that organization has a competent team and dedicated employees in future.

2. Significance at Professional Level a. HRM also leads to improved quality of work life, it enables effective team work among employees by providing healthy working environment. It also contributes to professional growth in various ways such as b. By providing opportunities for personal development of an employee Enabling healthy relationships among teams and allocating work properly to employees as well as teams.

3. Significance at Social Level a. HRM plays important role in the society, it helps labour to live with pride and dignity by providing employment which in turn gives them social and psychological satisfaction. b. HRM also maintains balance between open jobs and job seekers.

4. Significance at National Level HRM plays a very significant role in the development of nation. Efficient and committed human resource leads to effective exploitation and utilization of a nations natural, physical and financial resources. Skilled and developed human resource ensures the development of that country. If people are underdeveloped then that country will be underdeveloped. Effective

HRM enhances economic growth which in turn leads to higher standard of living and maximum employment.

Importance of Human Resource Management An organisation cannot build a good team of working professionals without good Human Resources. The key functions of the Human Resources Management (HRM) team include recruiting people, training them, performance appraisals, motivating employees as well as workplace communication, workplace safety, and much more. The beneficial effects of these functions are discussed here: Recruitment and Training This is one of the major responsibilities of the human resource team. The HR managers come up with plans and strategies for hiring the right kind of people. They design the criteria which is best suited for a specific job description. Their other tasks related to recruitment include formulating the obligations of an employee and the scope of tasks assigned to him or her. Based on these two factors, the contract of an employee with the company is prepared. When needed, they also provide training to the employees according to the requirements of the organisation. Thus, the staff members get the opportunity to sharpen their existing skills or develop specialised skills which in turn, will help them to take up some new roles. Performance Appraisals HRM encourages the people working in an organisation, to work according to their potential and gives them suggestions that can help them to bring about improvement in it. The team communicates with the staff individually from time to time and provides all the necessary information regarding their performances and also defines their respective roles. This is beneficial as it enables them to form an outline of their anticipated goals in much clearer terms and thereby, helps them execute the goals with best possible efforts. Performance appraisals, when taken on a regular basis, motivate the employees. Maintaining Work Atmosphere This is a vital aspect of HRM because the performance of an individual in an organisation is largely driven by the work atmosphere or work culture that prevails at the workplace. A good working condition is one of the benefits that the employees can expect from an efficient human resource team. A safe, clean and healthy environment can bring out the best in an employee. A friendly atmosphere gives the staff members job satisfaction as well. Managing Disputes In an organisation, there are several issues on which disputes may arise between the employees and the employers. You can say conflicts are almost inevitable. In such a scenario, it is the human resource department which acts as a consultant and mediator to sort out those issues in an effective manner. They first hear the grievances of the employees. Then they come up with suitable solutions to sort them out. In other words, they take timely action and prevent things from going out of hands. Developing Public Relations The responsibility of establishing good public relations lies with the HRM to a great extent. They organise business meetings, seminars and various official gatherings on behalf of the company in

order to build up relationships with other business sectors. Sometimes, the HR department plays an active role in preparing the business and marketing plans for the organisation too. Any organisation, without a proper setup for HRM is bound to suffer from serious problems while managing its regular activities. For this reason, today, companies must put a lot of effort and energy into setting up a strong and effective HRM. Objectives of Human Resource Management can be classified under four major categories.

1. 2. 3. 4.

Societal Organizational Functional Personal

1. Societal HRM may contribute ethically and socially regarding the needs and challenges emerging in the society. If an organization fails to use its resources for society benefits in ethical ways it may lead to restriction by society. For example, society may limit the HR decisions through laws in hiring, it may limit laws that address discrimination, laws regarding safety or other areas of concern.

2. Organizational The main objective of HRM is to achieve organizational goals by bringing organizations effectiveness. HRM is not an end but it is a means to assist the organization in order to attain its objectives

3. Functional Functional objective of HRM deals with contributions of each department regarding their need and effectiveness in order to attain organization goal. All the resource or skill set get wasted if HRM is not able to fulfill up with the organizational demand.

4. Personal HRM also deals with personal objectives of the individuals so that personal and organizational objectives can be met or order to achieve maximum production and attain competitive advantage. These personal objectives are important in order to maintain, retain and to motivate employees. If this not done employees dissatisfaction and poor performance will result in attrition or low productivity.