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Importance of Human Resource Management in an Organization

human resource management

Tobiloba Fageyinbo            April 14, 2021

Human resource management involves effectively managing an organization’s workforce to aid the achievement of desired business objectives. HR departments work constantly to maximize employees’ performance, leveraging processes and technological tools for improved productivity. Hence, HR Professionals are responsible for developing strategies and policies to this end.

The HR department is responsible for driving functions as; employee benefits, recruitment for business roles and ensuring optimal selection of candidates, training and development of employees with skills needed for their professional development, employee relations to boost productivity and foster growth, performance appraisal, etc.

They also ensure that the organization adheres to industry policies and practices as well as governmental laws, and that the operations of the organization are within the boundaries of the country and industry laws.

Considering its various functions, HR management is essential for the growth of any organization as it serves to bridge the gap between employees’ output and how the organizations achieve their business objectives.

The Human resource or capital of an organization are its employees and are regarded as a significant asset as they provide an edge over the competition. Human resource managers therefore have the responsibility to effectively manage the people in an organization.

The following are major importance of human resource management in an organization;

1. Achievement of Organizational Objectives

If the best strategies of managing people in an organization are implemented, it ensures that the organization reaches its business goals in no time.

2. Ease with decision making

With qualified and expert HR managers, organizations can make corporate decision much easier. These may include; assessment of employees, and projecting the needs for the workforce based on business demands.

3. Strengthening business operations

Effective control of respective business units can help improve employees’ experience and aid the seamless running of business operations.

4. Establishment of a healthy work culture

Effective means of communication amongst employers and employees in an organization fosters trust, transparency, and exchange of feedback. HR managers help to ensure there is effective communication among employees so as to better understand issues or challenges which may exist. Such healthy work culture allows employers to objectively critique employees’ as well as reward them in terms of their output or performance.

5. Improves organizational performance

Effective human resource management practices such as capacity building for employees can help improve organizational performance significantly. The HR function works constantly to increase the productivity levels as well as the efficiency of work output by the workers in an organization.

7. Pay / Compensation

Lastly, HRM handles payment of salaries and compensation. They see that there is effective work pay or incentives to the employees.


The Human Resource Management Department is a valuable one every organization should be invested in to allow for improved performance and effective coordination of activities.

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