Objectives and Importance of Human

Resource Management
In order to achieve organizational objectives integration of employer’s interest and
employee interest in necessary.

In this light, the objectives of HRM may be summarised as follows:

(i) To provide, create, utilise and motivate employees to accomplish organisational goals.

(ii) To secure integration of individual and groups in securing organisational

effectiveness.

(iii) To create opportunities, to provide facilities, necessary motivation to individual and

group for their growth with the growth of the organisation by training and development,
compensation etc.

(iv) To employ the skills and ability of the workforce efficiently, i.e., to utilise human
resources effectively.

(v) To increase to the fullest the employee’s job satisfaction and self-actualisation; it tries
to prompt and stimulate every employee to realise his potential.

(vi) To create a sense and feeling of belongingness team-spirit and encourage

suggestions from employees.

(vii) To help maintain ethical policies and behaviour inside and outside the organisation.

(viii) To maintain high moral and good human relation within the organisation.

(ix) To manage change to the mutual advantage of individuals, groups, the organisation
and the society.

(x) To ensure that, there is no threat of unemployment, inequalities, adopting a policy

recognising merit and employee contribution, and condition for stability of employment.

Importance of Human Resource Management:

Human resources are the valuable assets of the corporate bodies. They are their strength.
To face the new challenges on the fronts of knowledge, technology and changing trends
in global economy needs effective human resource management. Significance of HRM
can be seen in three contexts: organisational, social and professional.
Organisation Significance:
HRM is of vital importance to the individual organisation as a means for achieving their
objectives.

It contributes to the achievement of organisational objectives in the

following ways:
1. Good human resource practice can help in attracting and retaining the best people in
the organisation.

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2. Developing the necessary skills and right attitudes among the employees through
training, development, performance appraisal, etc.

3. Securing willing cooperation of employees through motivation, participation,

grievance handling, etc.

4. Effective utilisation of available human resources.

5. Ensuring that enterprise will have in future a team of competent and dedicated
employees.

Social Significance:
Social significance of HRM lies in the need satisfaction of personnel in the organisation.
Since these personnel are drawn from the society, their effectiveness contributes to the
welfare of the society. Society, as a whole, is the major beneficiary of good human
resource practice.

i. Employment opportunities multiply.

ii. Eliminating waste of human resources through conservation of physical and mental
health.

iii. Scare talents are put to best use. Companies that pay and treat people well always
race ahead of others and deliver excellent results.

Professional Significance:
Professional significance of HRM lies in developing people and providing healthy
environment for effective utilisation of their capabilities.

This can be done by:

1. Developing people on continuous basis to meet challenge of their job.

2. Promoting team-work and team-spirit among employees.

3. Offering excellent growth opportunities to people who have the potential to rise.

4. Providing environment and incentives for developing and utilising creativity.

Advantages/benefits/Significance/importance/need of
HRM
"I emphasize this - no matter how good or successful
you are or how clever or crafty, your business and its
future are in the hands of the people you hire".
--- Akio Morita (Late) (Businessman and co-founder of Sony Corporation. Japan )

Ref: The Book : MADE IN JAPAN. Page.No.145

Human Resource Management becomes significant for business organization due to the following
reasons.

 Objective :- Human Resource Management helps a company to achieve its objective from time to time
by creating a positive attitude among workers. Reducing wastage and making maximum use of
resources etc.

 Facilitates professional growth :- Due to proper Human Resource policies employees are trained
well and this makes them ready for future promotions. Their talent can be utilized not only in the
company in which they are currently working but also in other companies which the employees may join
in the future.

 Better relations between union and management :- Healthy Human Resource Management
practices can help the organization to maintain co-ordinal relationship with the unions. Union members
start realizing that the company is also interested in the workers and will not go against them therefore
chances of going on strike are greatly reduced.

 Helps an individual to work in a team/group :- Effective Human Resource practices teach individuals
team work and adjustment. The individuals are now very comfortable while working in team thus team
work improves.

 Identifies person for the future :- Since employees are constantly trained, they are ready to meet the
job requirements. The company is also able to identify potential employees who can be promoted in the
future for the top level jobs. Thus one of the advantages of HRM is preparing people for the future.

 Allocating the jobs to the right person :- If proper recruitment and selection methods are followed,
the company will be able to select the right people for the right job. When this happens the number of
people leaving the job will reduce as the will be satisfied with their job leading to decrease in labour
turnover.
The scope of Human Resource Management refers to all the activities that come under the banner of Human
Resource Management. These activities are as follows.

 Human resources planning :- Human resource planning or Human Resource Planning refers to a
process by which the company to identify the number of jobs vacant, whether the company has excess
staff or shortage of staff and to deal with this excess or shortage.

 Job analysis design :- Another important area of Human Resource Management is job analysis. Job
analysis gives a detailed explanation about each and every job in the company.

 Recruitment and selection :- Based on information collected from job analysis the company prepares
advertisements and publishes them in the newspapers. This is recruitment. A number of applications are
received after the advertisement is published, interviews are conducted and the right employee is
selected thus recruitment and selection are yet another important area of Human Resource
Management.

 Orientation and induction :- Once the employees have been selected an induction or orientation
program is conducted. This is

another important area of Human Resource Management. The employees are informed about the
background of the company, explain about the organizational culture and values and work ethics and
introduce to the other employees.

 Training and development :- Every employee goes under training program which helps him to put up a
better performance on the job. Training program is also conducted for existing staff that have a lot of
experience. This is called refresher training. Training and development is one area where the company
spends a huge amount.
  Performance appraisal :- Once the employee has put in around 1 year of service, performance
appraisal is conducted that is the Human Resource department checks the performance of the
employee. Based on these appraisal future promotions, incentives, increments in salary are decided.

 Compensation planning and remuneration :- There are various rules regarding compensation and
other benefits. It is the job of the Human Resource department to look into remuneration and
compensation planning.

 Motivation, welfare, health and safety :- Motivation becomes important to sustain the number of
employees in the company. It is the job of the Human Resource department to look into the different
methods of motivation. Apart from this certain health and safety regulations have to be followed for
the benefits of the employees. This is also handled by the HR department.

 Industrial relations :- Another important area of Human Resource Management is maintaining co-
ordinal relations with the union members. This will help the organization to prevent strikes lockouts and
ensure smooth working in the company.

The Human Resource Officer is responsible for providing support in the various human resource
functions, which include recruitment, staffing, training and development, performance monitoring
and employee counseling.

SCOPE

(The way that the position contributes to and impacts on the organization) The Human Resource
Officer provides advice and assistance to supervisors and staff. This may include information on
training needs and opportunities, job descriptions, performance reviews and personnel policies.

The position coordinates the staff recruitment process .The Human Resource Officer provides
advice and support to supervisors and staff selection committees and ensures that they have
accurate and timely information in order to make effective decisions.

Failure to provide adequate advice or assistance may result in lost opportunities for staff
development, poor staff morale, financial loss to staffs for residents and a loss of credibility.