Human Resource Management: How They Are Important To An Organisation

Human resource management refers to managing the employees of an organization by senior officials. Employees of an organization are considered as essential resources because they make a great contribution to an organization's infrastructure by all means like production and distribution. Human resource management requires a focused approach in order to ensure that human resources are utilized to their best to achieve the goals of the organization. Hence training and development in human resource management can play a major role in achieving those goals.


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An HRM strategy is a combination of following individual strategies that include:-

  • Finding the best fit for best practice– it means that complete corporate strategy is interlinked to the HRM strategy. As HRM is considered as a field aimed at management of human resources to help the organization achieve its goal, the accomplishment of such management is possible only by applying personnel needs of a firm with the organization's objectives or goals. Let's take an example to suppose a bike manufacturing firm plans a cooperate strategy for raising its sales by 20% over 2 years.
  • The HRM strategy will have to work accordingly and for that, it needs to focus on how personnel can be managed for the achievement of 10% growth. The various HRM functions that need to be tailored include recruitment, selection, recognition/reward, an HR plan and learning and development.
  • Close collaboration between senior management and HR is also an essential tool for the development of the corporate strategy. Complete involvement of a senior HR official is highly required when corporate objectives of the organization are being devised. Out of all the functional areas of an organization, the HR department is the one that plays a vital role.
  • Persistent monitoring is also required to predict whether the strategy is properly working or not for the organization, via surveys, employee feedback, etc.
  • Implementing HR strategy depends on a number of factors like the firm's size, cultural approach within the firm, firm's industry and firm's people.

Collectively speaking, an HRM strategy aims at management of not only the people but also the various functional areas within the organization.