Importance and Objectives of HRM

Recently updated on April 13th, 2023 at 06:27 pm

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: organizational, social and professional.

  1. Organization Significance

HRM is of vital importance to the individual organization as a means for achieving their objectives.

It contributes to the achievement of organizational objectives in the following ways:

(i) Good human resource practice can help in attracting and retaining the best people in the organization.

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

(iii) Securing willing cooperation of employees through motivation, participation, grievance handling, etc.

(iv) Effective utilization of available human resources.

(v) Ensuring that enterprise will have in future a team of competent and dedicated employees.

  1. Social Significance

Social significance of HRM lies in the need satisfaction of personnel in the organization. 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.

  1. Professional Significance

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

This can be done by:

(i) Developing people on continuous basis to meet challenge of their job.

(ii) Promoting team-work and team-spirit among employees.

(iii) Offering excellent growth opportunities to people who have the potential to rise.

(iv) Providing environment and incentives for developing and utilizing creativity.


(i) To provide, create, utilize and motivate employees to accomplish organizational 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 organization.

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

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

(x) To ensure that, there is no threat of unemployment, inequalities, adopting a policy recognizing merit and employee contribution, and condition for stability of employment.

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