Objectives/Importance of HRM

Increase in competition among entrepreneurs, globalization, rapid change in technology, complexity in

business operation, size of business etc. enhance the importance of human resource management. The primary
objective of human resource management is to ensure availability of competent and dedicated workforce in the
organization at the time of necessity. Especially, it needs to fulfill societal, organizational, functional and
personal objectives. On the basis of the above objectives, HRM involves the following specific objectives:
a. Manage effective staff: Human resource management involves workforce planning, recruitment, selection,
appointment and placement of right person to the right job. It also includes training, development,
compensation, and grievance handling etc. for the employees. It helps to maintain the right size of
employees in the organization and enhance their effectiveness. The effective use of human resource
automatically facilitates for proper utilization of other physical resources of the organization.
b. Utilization of physical resources: Human resource management helps for the effective utilization of
physical resources including money, materials, machines etc of the organization. The effective utilization of
resources helps in minimizing wastage and maximizing productivity. It ultimately contributes to minimize
cost of products or service. It facilitates to face competition in the market.
c. Increase productivity: Human resource management focuses on maximum utilization of human and
physical resources of the organization. The proper use of efficient and dedicated manpower contributes to
maximizing productivity through appropriate use of other resources. It helps to improve quality and
quantity of products and service. It facilitates to gain and maintain competitive advantages for conducting
business in the market.
d. Focus on goal achievement: Human resource management involves selection and appointment of right
person to the right job. It also involves development and implementation of efficiency improvement
programs of the workforce. The function of all the staff members concentrates on organizational goals. It
helps for minimizing wastage of resources and cost of output. It contributes to earning profit and wealth of
the organization.
e. Helps to solve problems: Staffing helps to solve human resource problems of the organization. It is a
psychological phenomenon and sometimes creates complexity to the management. Professional and
competent employees can understand the organizational situation and helps in solving human resource
problems. The effective use of communication system among mangers and subordinates helps to solve
human resource related problems.
f. Job satisfaction: Human resource management ensures placement of the right person to the right job.
Incentives are provided to the employees on the basis of their skills and availability of organizational
resources. It makes employees more effective in their jobs and improves their performance. It gives them
utmost satisfaction and sense of belongingness.
g. Self-development of workers: Human resource management provides opportunities and facilities to the
employees for their personal development on the job. It involves training, seminar, further education, and
other efficiency development programs of the employees. It encourages them to involve in planning and
decision making activities of the organization.
h. Goal integration: Human resource management emphasizes on integration of organizational and
individual goals of employees. Organizational goal is to earn profit and wealth by maximizing business
volume in the market. Individual goal of employees is to earn financial incentives in terms of salary,
allowance, bonus etc. from the organization. It promotes commitment and loyalty of employees toward
organization.
i. Maintain quality of work life: Human resource management is the means of maintaining quality of work
life of employees. It helps to maintain good relationship with employees and total working environment of
the organization. Such better working environment facilitates to develop creativity and effectiveness of
employees.
j. Adaptation with change: Change is natural and inevitable because social environment is changeable.
Change brings new concept, knowledge, idea, technology and strategy in production and distribution.
Human resource management is the means that facilitates employees to accept the change and work with
changing environment of the society.