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OPTION 01:

 Introduction
In this case, MR. Perera is the General Manager of "Wasana," and he contends that
allocating funds for the department is unnecessary because, in his opinion, managing
other resources is more important than managing human resources.

 Definition of Human Resource Management

Human resources are employees who work for the organization. The overwhelming
significance of HR is due to the unique characteristics of HR such as the ability to
think, feel, and react, unpredictable and complex behavior, making decisions in
respect of all other resources, etc. In terms of HR, both managerial and non-
managerial employees are included. To manage these human resources, we use
human resource management. Human Resource Management (HRM) is the efficient
and effective utilization of human resources to achieve the goals of an organization.
HRM is a process. The generic purpose of HRM is to generate and retain an
appropriate and contented human force that makes the maximum individual
contribution to organizational success. To achieve this generic purpose, several
strategic goals have been implemented, such as improving employee productivity,
employee development, increasing quality of work life, etc. To achieve those goals,
objectives such as procuring the right people for the right jobs, retaining the most
appropriate employees within the organization, etc., have to be achieved. Then to
achieve those goals, functions such as pay management, welfare management, job
designing, job analysis, etc., have to be achieved.

Functions Objectives Strategic Generic

Goals Purpose

 Why are human resources more important than other resources?

Human resources are the most important resource for accomplishing organizational
goals compared to other resources. Other resources, such as methods, materials, time,
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and so on, contribute to the organization's ability to achieve its goals. But to achieve
those goals actually, availability of HR is essential. All the other resources are
collected and used only by human resources through decision making. According to
Opatha, Henarath (2009), other resources make things possible, but only human
resources make things happen. Hence, human resources have become more important
than other resources in achieving organizational goals.

 Importance of Human Resource Management

Human Resource Management is important for an organization because it helps it to
maximize employee performance, minimize staff turnover and minimize absenteeism,
reduce risks, and sustain profitability. Well-managed HR departments are able to find
qualified employees, set appropriate salaries for them, offer competitive benefits
packages that meet their needs, and enforce the necessary employment policies. As a
result of these services, human resource managers can improve overall staff
productivity by tackling any number of workplace issues, including harassment or
discrimination in the workplace. This is why the management team should have
someone who is solely dedicated to overseeing HR concerns.

Another importance of HRM is that the success and quality of other functional fields
heavily depend on the quality of HRM. To achieve organizational goals, an
organization must have the right functional managers (Operations, Marketing,
Finance, Management Information System [MIS], Research and Development [R &
D], etc.), and those managers must be competent, motivated, and satisfied in order to
make the right functional decisions and achieve organizational goals. Keeping
managers motivated and competent, etc. can happen only if good HRM exists within
the organization.

HRM is a responsibility of every manager in the organization. Every manager

(operational, financial, marketing, etc.) has a certain set of subordinates, and every
manager should be sufficiently competent in managing (human resource planning,
induction, training, grievance handling, etc.) his staff efficiently and effectively to get

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the maximum workforce for the organization. If those managers do not accept their
responsibility, then human resource activities may not be done in the expected way.

HRM contributes to the success of the organization and then to society's success. By
managing human resources properly, an organization can achieve its goals and will
contribute to meeting the basic needs and wants of its people, enhancing their
wellbeing. HRM functions such as grievance handling, pay management, welfare
management, etc., will improve the lives of people. Through those, an organization
can achieve both internal success and societal success.

As employees are different from one another, understanding each of them and
managing them is a somewhat difficult task. They may react in unexpected ways.
HRM is related to the benefits of the employees because if employees are satisfied
and highly engaged in their work, they will most probably produce more efficient and
productive work, which by and large relates to the success of the organization. So, to
achieve organizational goals, understanding the expectations, abilities, and
personalities of employees is very important.

The department established for coordination of HRM activities in an organization is

the Human Resource Department (HRD). HRD is very important to organize the staff
and work properly in the organization for effective and efficient HRM.

Some functions of HRD are as follows.

1. Job designing, analyzing, recruiting, selecting, hiring, and induction

(The process of finding suitable employees for the jobs and giving a first-good
impression to the employees to get the maximum output from the employees for the
organization)

2. Personnel Administration

(Tasks such as contracts, pay slips, authorizations, and leaves are work that is time-
consuming and requires a good level of team coordination to avoid errors and
problems. By doing the administrative process correctly, we can decrease the level of
productivity of the employee.)

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3. Staff training, development, and welfare administration

The process of improving current and future employee performance by increasing

employees’ abilities will ensure the growth of every employee. It involves the
provision of as many opportunities as possible to accomplish an employee’s personnel
objectives.

4. Employee performance evolution.

It will measure the degree of effectiveness and efficiency of employees in performing

their jobs. Each employee’s performance and their commitment to the company
should be regularly assessed.

5. Labor relations, grievance handling, etc.

Management of all interactions between management and trade unions, as well as the
identification and resolution of employee dissatisfactions arising from injustice in the
workplace.

By doing these functions, we can achieve the goals and objectives of HRM, and then
we can achieve organizational goals and objectives.

 Conclusion

Human resource management is a set of practices that affect the performance,

attitude, and behavior of employees at work. In the very early days, HRM was not
considered an important part of the organization, but now, without a human resource
management department, an organization cannot be administered successfully.
Organizations gain a competitive advantage when they focus on HRM practices. These
methods involve staff recruiting, selection, and encouragement in order to promote
workplace diversity, manage knowledge and creativity, and put a greater emphasis on
employee development and engagement. The HR department is hyper-focused on
employee performance and ensures that the reward and punishment systems are fair.
The HR department has been quite effective in lowering turnover rates, and as a result,

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it now runs training and development programs for staff in order to make them more
productive and efficient for the company.

Hence, managing people is not an easy thing. There should be qualified, experienced
people for that. Therefore, allocating funds for a human resource department is not an
unnecessary thing, and human resource management is more important than other
resources in an organization.

References

 Aslam, H.D., Aslam, M., Ali, N. and Habib, B., 2013. Importance of human
resource management in 21st century: A theoretical
perspective. organization, 3(3).
 Opatha, Henarath. (2009). Human Resource Management: Personnel.

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