Business Management, Ethics and Entrepreneurship

What is the Importance of Human Resource Management?

According to Dirks “The objectives of personnel administration include the utilization of human resources effectively, establishment and maintenance of productive and self-respecting working relationships among the participants and attainment of maximum individual development of the members in the organization.”

According to the Indian Institute of Personnel Management, “Personnel management aims to achieve both efficiency and justice, neither of which can be pursued successfully without the other. It seeks to bring together and develop into an effective organization the men and women who make up an enterprise, enabling each to make his or her own best contribution to its success both as an individual and as a member of a working group. It seeks to provide fair terms and conditions of employment and satisfying work for those employed.”

The basic objective of human resource management is to contribute to the realization of organizational goals. However, the specific objectives of personnel management may be outlined as follows:

(i) To ensure effective utilization of human resources. All other organizational resources will be efficiently utilized by human resources.

(ii) To establish and maintain an adequate organizational structure of relationship among all the members of an organization by dividing the organization tasks into functions, positions, and jobs, and by defining clearly the responsibility, accountability, authority for each job and its relation with other jobs in the

(iii) To generate maximum development of human resources within the organization by offering opportunities for advancement to employees through training and education.

(iv) To ensure respect for human beings by providing various services and welfare facilities to the personnel.

(v) To ensure reconciliation of individual/group goals with those of the organization in such a manner that the personnel feels a sense of commitment and loyalty towards it.

(vi) To identify and satisfy the needs of individuals by offering various monetary and non-monetary rewards.

In order to achieve the above objectives, human resource management undertakes the following activities:

Human Resource or Manpower Planning, i.e., determining the number and kinds of personnel required to fill various positions in the organization. Recruitment, selection, and placement of personnel, i.e., employment function. Training and development of employees for their efficient performance and growth. Appraisal of performance of employees and taking corrective steps such as the transfer of the employees from one job to another. The motivation of the workforce by providing financial incentives and avenues for promotion. Remuneration of employees. The employees must be given sufficient wages and fringe benefits to achieving a higher standard of living as this would motivate them to show higher productivity. Social security and welfare of employees.

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Shreya Kushwaha

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