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People are the most significant and important asset in any business or organization. This is for reasons that the success and future of your organization fully depends on the type of people you hire. A sound human resource management system ought to be put in place in order to concentrate well on the recruiting, directing and managing of people working for the organization. Human resource management deals with a number of issues in a business organization regarding the welfare, working environment and safety of all employees. If the HRM is effective, it contributes a lot towards the general company direction as well as the accomplishment of its objectives and goals. Here are some points to illustrate the importance of human resource management.


Human resource management greatly improves the bottom line of a company due to its rich knowledge of how the human capital in an organization greatly affects its success. Company leaders with a rich knowledge and expertise in HR strategic management are capable of participating in the corporate decision-making processes especially those that touch on the staffs. They are instrumental in coming up with decisions that are based on the current staffing assessments as well as give projections for the required workforce in future depending on the business demand.

Recruitment, Selection and Training

A company’s human resource team is charged with the major responsibility of hiring the right employees on its behalf. They ought to come up with the best hiring strategies and plans to get the right people on board. The recruiters are supposed to manage the whole process of recruiting new employees from screening their resumes to arranging interviews. They should come up with the best criteria to choose the right person who fits seamlessly into a precise job description. They are also involved in the selection process by helping all the other managers to effect proper hiring decisions that go in tandem with the company’s workforce needs.

Employee skills need to be sharpened every now and then to ensure they are well informed of any new technologies thereby increasing their productivity and the company’s profitability as well. The HR team arranges for the necessary training when it is needed. Your employees will get the opportunity of sharpening their skills, which prepares them to take on new responsibilities in the company.

Performance Appraisals

After hiring the best candidates for the job, they should be well motivated to ensure they perform at their best. The HRM practices in place are responsible for motivating employees to work smarter and harder on their roles. One of the most effective motivation efforts is the use of performance appraisals to assess the work performance of employees either individually or in their work groups. The performance appraisals should then be linked tightly with the firm’s incentive compensation system. Performance appraisals ensure that employees set their goals and work hard towards achieving them. They execute their work effortlessly in order to meet their goals.

Maintaining a Good Work Atmosphere

It is a well known fact that the performance of an individual is largely dependent on the work culture or atmosphere prevailing at their workplace. A competent human resource team ought to provide a great working space for the employees. The HR team should ensure that your employees work in a healthy, clean and safe environment as it brings out the best in every one of them. The team ought to ensure that your firm meets all the set Occupational Safety and Health Administration regulations. The prevailing workplace atmosphere should be friendly as it offers a job satisfaction.


All organizations ought to comply with all the set employment laws governing their industry. It is the duty of the HR team to ensure that your firm is fully compliant with all these laws and regulations. The team should ensure that all employees have legitimate documents that allow them to work in the country to protect your firm from any form of liabilities in future.

Growing Public Relations

In any firm, the responsibility of ensuring great public relations with other key players in the sector lies squarely with the HRM to a large extent. The HRM team is responsible for organizing seminars, business meetings and a number of other official functions for the company aimed at strengthening the existing relationships with other players in the industry. In some instances, the HRM is actively involved in the preparation of marketing and business plans on behalf of the company.

Disputes Resolution

In any given organization, there are several areas or instances that can lead to a number of disputes. These disputes can arise between the employer and employees, employees with their colleagues as well as between the employees and clients. Conflicts in an organization are almost inevitable. When a dispute arises, it is the duty of the human resource management department to quell and solve it. They will play the role of a conflict consultant as well as the mediator in order to sort out the differences in an amicable manner. The team listens to the accounts of both parties involved in a dispute and come up with amicable solutions. The team takes appropriate action and measures to ensure that things do not spiral out of control.

Final Words

Any company without a competent human resource management team in place stands to suffer from a number of serious problems. Effective HRM practices go a long way in guaranteeing better performance and higher profits for companies. It is advisable for a company to invest a lot of energy and effort in coming up with an effective and strong HRM.