Why Is Hrm Essential for the Success of an Organization?

Human resource management (HRM) is the process of recruiting, retaining, and cultivating qualified employees. It is one of the most challenging and crucial duties for any manager to perform. It emphasizes the people aspect of management. Regardless, every company is made up of individuals who use its offerings, enhance their skills and abilities, and motivate employees to attain better performance levels to maintain their devotion to achieving organizational objectives and efficiency. HRM is, therefore, crucial to practice and necessary to ensure that good personal or human resource development, recruiting and selection, and also learning and development, employee morale, performance review, and compensation will support the organization in achieving its commercial success.

Role of human resource management

The role of Human Resource Management includes ensuring employee happiness and developing corporate efficiency and performance. It may also give the business a strong direction of strategic edge and make a significant contribution to the success of the organization. There are various HR Management practices and guidelines that aid businesses in addressing human resource concerns in a planned manner. It allows the workforce to contribute to providing high-quality service unless the organization faces both internal and external problems. One of the most important roles of human resource management is to guarantee that the new firm attracts new practical, skilled employees, highly competent, and performing well personnel while embracing organizational change to determine how the job will get conducted. Many businesses, however, believe that human resource management is not a primary managerial responsibility. For instance, they regard some personnel, such as the labor force, as the organization’s most valuable asset since they are heavily involved in company operations and decision-making. As a result, corporations spend a lot of money on assets for their workers, with about 70% of a firm’s budget going to the staff (Byremo, 2015). Furthermore, workers are the most crucial resources and critical possessions in making a company more successful and lucrative, but it is critical to determine appropriate Human Resource policies and procedures. The institution’s performance may simply be measured by how these key Hr policies contribute to business strategy and lead to organizational growth.

Functions of human resource management

Many human resource management functions contribute to an institution’s growth. Human resource management is critical in any firm, from recruitment and orientation to conflict resolution, keeping a good balance between work and life, and all salary obligations. Human resource management guarantees that staff is satisfied and well-trained and that the organization operates within regulatory parameters and resolves any liability concerns that may occur. A corporation is nearly certain to fail if it does not have an effective human resources management department. Human resource management responsibilities that are more significant include recruiting, learning and development, assessments, job evaluations, career development and planning, employment benefits, worker safety, and employee morale.


Human resource management must get viewed through the lens of the institution’s broader strategic goals, rather than as an independent department that takes a unit-based or microscopic strategy. The purpose here is to take a holistic approach to HRM, ensuring that there are no fragmented tactics and that the HRM strategy gets fully integrated with the company goals. Finally, HRM must be incorporated into the entire plan to guarantee that people are used effectively and that businesses receive a higher ROI (Return on Investment) for every dollar or rupee spent on them. Companies risk losing money if their human resource management practices are not developed in this manner. And this does not augur well for the business’s survival. HR professionals demonstrate exceptional leadership abilities and boost an organization’s reputation. As a result, HR analytics training helps a professional brush up on various managerial skills including managing employee relations, assistance, guidance, etc.