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Importance of Human Resources in an Organization

Paper Type: Free Essay Subject: Business
Wordcount: 3292 words Published: 12th Jun 2017

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During long time men and resources are directly involved but just in order to production. But nowadays the importance of Human Resource (HR) for organisation became much more important than hiding people.

Human Resource are all the people which is directly contribute to organisation goals, are people who contributed in the past, now and for the company future, HR is the only resource capable to control and allocate all the other resource to produce goods and services. Greats companies and countries have an effective and efficient Human Resource Management to manager its resources. Managing human resource is very complicated and it is not just HR duties, it is all the managers’ duty. Some purpose of HRM is to reduce the differences between people, remove conflictions among employees and direct all the employees to organisation goals.

According to Armstrong (2003) Human Resource management (HRM) is an important department of an organization, that make people who works there, responsible indirectly and directly for the company goals. Because one of the principal aims to HRM is help the organisation to achieve successful through the people.

According to (Singh. Y,K, and Rawat.) Human Resource function is guiding employees to obtain competencies to achieve the organisation goals. In order to this, to HR be successful it is necessary an employee’s partnership to comprehend their present and future expectation to develop their abilities and exploit to the maximum potential, for both expectation (individual and organisation). Some process is used to develop these abilities such as performance appraisal, training, organisation development, feedback and counselling, career development, potential development, job rotation, and rewards.

However, in many companies now the biggest assets are people. The knowledge, abilities and skills have to be used to the maximum in the organisation to create value. It is an uncountable value for companies’ employees who are recognized for investors, society and for the competitors. (CIPD, 2010)

Moreover, it is very important for all companies to management their people within a planned and coherent framework which reflect the business strategic. It is also can guaranty the various aspects of people management are commonly reinforcing in developing the performance and behaviours necessary to achieve business success. (CIPD, 2010)

Main Body

Function of Human Resource Management

Human resource Management

Humana Resource has became necessary department inside a company, which the mainly focus is maintain the company (employees) with the focus on its objectives and maintenance the better relation between employees and must be capable to create polices and optimised resources. In other words, HRM is one of the most important departments to getting the better result for its employees.


Human Resource Management is the organizational function that deals with issues related to people such as compensation that deals with issues related to people such as employee motivation, safety, wellness, benefits, employee motivation, communication, safety, wellness, benefits, administration, and training, communication, administration compensation, hiring, performance management, organization development, hiring, performance management, organization development, and training.

Human Resource Planning (HRP)

Human resource CycleHuman Resource Planning has focus on identifying and quantifying current people for future companies needs. It is necessary to understand the nature and the value of which individual can bring for the company. Moreover, they need to be aware of the HR cycle through which individual pass as they move into and through the organisation. HRP needs to understand the employees’ needs and objective and compare with organisation goals and make the planning over this information and make the appropriate training to develop this people to get a better position for the future. One of the functions of the HRP is prepared everyone in a specific department to replace some who wants to leave the company. (University of Cambridge, 2005)

Furthermore, HRP should ensure that the organisation has the right number of people in the right place at the right time. HRP is one of the most important factors of HRM strategy, because it is necessary to find out the needs of different types of employees that a company need it.

HRP is based on quantitative analysis in order to guarantee that the numbers of the right sort of people are available when needed. HRP is apprehensive with ensuring the availability of right people who are committed to the organisation and engaged in their work. HRP is more focused on creating and influential a culture of organisation where there is a clear integration between employee’s values, beliefs and behaviour and organisation goals. However, HRP nowadays is more focused on what skills employees will need for the future jobs. (Armstrong, XXX)

Recruitment and Selection

(Singh. Y,K, and Rawat) Recruitment it is a process for attracting the competent people for the appropriated job in the organization. In other words, it is a process to discover new talents and new prospective employees from the outside or inside of organisation.

When companies decided to replacement someone or needs to additional employee, basically exist two processes that may be used: internal or if necessary external to the companies. Generally many companies have both internal and external sources that generated a lot of number of applicants. (Ivancevich, J.M (2007).)

Internal recruitment is an effective tool to identifying applicants for job vacancies; however, for HR managers it is difficult to know which employee might be interested in the vacancy. To help managers solve this problem it is used and approach called job posting and bidding. On the other hand, external recruitment is when a company has not find a right person internally for a specific vacancy. Thus, companies’ initiation to use external tool to find the right person such as: media advertising, special-events recruitment, executive search firms, e-recruitment, and employment agencies. (Ivancevich (2007)

The most common selection techniques is the interview, however, more than one-third of the organisations are using the e-recruitment, because can bring it large savings and can make advertisement on the same time, in addition, many companies are using the online application to build a selection database. (Bratton and Gold (2007).

One of the most important issues of the recruitment and selection process is quality, to be sure that the best person is applying for the best vacancy. However, Human Resources Managers should monitor the efficiency of all recruitment and selection to guarantee the value money and to ensure that the pool of applicants produced by the various methods is suitable. (hall and taylor, 2008)

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Training & Development

The basic objectives of training are people develop skills and knowledge to become more useful and productive for their selves and for the organisation, in the ways that the company and the employee can grow together on the same direction. Generally training has focused on the improvement their operative skills. Training is necessary for companies to fill the gap that exist between what employee can do and what employee should be able to do. (Singh. Y,K, and Rawat)

Training has because an important part of successful in companies in the terms of modern organisation, training has being a fundamental part of the backbone of strategic implementation. This is a process to improve their knowledge, skill, and abilities (KSAs), however, others HRM trends are empowerment, total-quality management, and team-work and so on. Ivancevich, J.M (2007).

Generally new employee belief equipment is the most important KSAs to know before start to work, other belief extensive training make for efficient for the organisation Ivancevich, J.M (2007).

The term training means to be more narrowly focused and oriented toward short-time performance. On the other hand, the term development means to be oriented more toward broadening an individual’s skills for future responsibilities. In order to this, the two terms should be blend in one phrase “Training and Development” to better supply employee opportunities and weakness to increase the company performance and achieve the goals. Ivancevich, J.M (2007).

Job Satisfaction

Job satisfaction is a important issue for companies and HR has a important function in solve this problem, because generally when people enjoy their job they can bring it their best and the company can growth and employee can growth as well, on the other hand, when people hate what they are doing it is not good for business and for the company. There are some important reasons that companies should invest in job satisfaction such as humanitarian perspective, focus on the employees, and respect between employees and so on. (Spector, 1997)

Does not matter what people have to do; they always do their best when they love what they are doing, if someone is doing a job which they are not happy the chance that they are not going to put all their best into it, and this issue can bring serious problems both for the employer and the employee. (VARAWALLA, 2010)

Low job satisfaction can bring negative aspects for a company and for the employee, the employee can feel depression and probably going to affect their personal life such family and friends and also can bring it health problem caused by stress. (VARAWALLA, 2010)


Nowadays companies seek a competitive edge, motivation is an important factor for talent retention and performance, in any circumstance the objective is to develop a workplace that is engaging and motivating, a place where employees want to stay, to contribute with their experience and knowledge to helps the companies goals. To maintain employees motivated same factor such as job satisfaction, achievement, acknowledgement and rewards, ultimate some companies focus is maintain its talents, (SHRM, XXXX)

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Treating people right is essential to creating an organization effectiveness and success for business, organisation may should develop ways to treat its employee to keep them always motivate and satisfied to make their best. Companies to get successful have to a great partnership between organisation and employees. However, challenges for companies are design a performance at high level and treat people in ways that are rewarding and satisfying. (SHRM, XXXX)

Motivation is a crucial factor for companies achieving business objective and goals and it is really important for companies that work based on team or even for people who works independently, part of the motivation is making sure that the goals and value are aligned with the companies’ mission and vision. Maintain motivated the team is important because may improve the quality work and higher production. .(Ehow, 2010)

Motivation has important for of all size of organisation that wants to be top performance with a high level of productivity and overcome obstacles or challenges, how much motivated are the employees more they going to contributing for an organisation. .(Ehow, 2010)

Companies may use a variety of strategies to improve employee’s motivation, such as incentives, feedbacks, and rewards programs, training, education, recognition programs, team meetings. .(Ehow, 2010)

Motivated employees is a strategic that can help to improve their performance and reduce the chance of low employee morale, give confidence to work in teamwork and a positive attitude for new challenges, generally employees with high level of motivation work hard to achieve the objectives and helps the organisation reach its objectives and improve its operation. .(Ehow, 2010)

When a organisation realise that employees are unmotivated means a productivity decline, employees that cannot reach its goals successfully, delivering poor-quality work and sometimes may affect another employees performance. .(Ehow, 2010)

The strategic that companies using to try to reduce the risk of low motivation for its employees is a combination of different activities and tactics that can help to improve employees’ morale. Companies that has a focus on motivated employees has a high return such as more productive, positive attitudes, and commit to their roles and duties and maintain a strong work ethic.(Ehow, 2010)


Objective of the reward system

Organisation to retaining important key staff in its quandro de employees is creating global rewards plan to keep them it and to attract new employees and to achieve the HR objectives. Reward management is a key tool for an effective relationship with the employees, reward system may have influence at least in two import factors, the membership behaviour and conflict behaviour, which one that can bring dissatisfaction with the reward system.


Factors affecting HRM

The HRM is direct impact by various issues of internal and external factors, the internal factor can be affect an organisation such as culture, size, finance and structure, strategic plans, geographic dispersion, and perhaps the relationship between paid employee and volunteers are critical for HRM activities. The external environment has a important function on HRM and can also be affect by government, polices and legislation, trade union, anti-discrimination and equal opportunities. These are some factor that can affect a HRM on organisation.

Sarah Leberman, Chris Collis and Linda Trenberth. (2006) Sport Business Management in Aotearoa/ New Zealand, second edition,

Strategy Human Resource Management (SHRM)

Normally in the organisation HRM function is basic recruitment and selection, training and development, Job Satisfaction, Motivation and rewards, however, all those HRM functional must be aligned and correlated to the organisation goals.

According to (CIPD, 2010) strategic Human Resource Management is concerned in explain how HRM influence organisation performance. It also affirm that strategic is not the same as strategic plan, because strategic planning it is a regular process that general larger companies use to defined how things going to be done. Strategic HRM is based on HRM principal and incorporating the concept of strategic, in order to this, strategic HRM mean doing the task in organised and planned way that integrates organisation objectives with policies and action sequences.

SHRM is responsible for the decision and action that determine the long-term performance of a corporation.

In the majority of organisations people are now the biggest asset. The knowledge, skills and abilities have to be deployed and used to the maximum effect if the organisation is to create value.

It is therefore too simplistic to say that strategic human resource management stems from the business strategy. The two must be mutually informative. The way in which people are managed, motivated and deployed, and the availability of skills and knowledge will all shape the business strategy. It is now more common to find business strategies which are inextricably linked with and incorporated into strategic HRM, defining the management of all resources within the organisation.

SHRM is a pattern of planned HR development and activities intended to enable an organization to achieve its goals and objectives in future.(Allignment)The term, Strategic Human Resource Management, conveys the sense of human resource management in a strategic context. In order for this to take place there has to be some connection made with the strategic process through which the aims of an organization are managed, that is, its strategic management. If a global company is to function successfully, strategies at different levels need to inter-relate. Throughout the first half of our century and even into the early eighties, planning with its inevitable companion, strategy- has always been a key word, the core, and the near-ultimate weapon of good and true management. In this lecture we examined the theoretical debates on the nature and significance of the new HRM model. Strategic Human Resource Management is an approach to making decisions on the intentions of the organization concerning people-essential components of the organizations business strategy. It is about the relationship between HRM and Strategic management in the organization. Strategic HRM refers to the overall direction the organization wishes to pursue in achieving its objectives through people. Strategic HRM can be regarded as an approach to dealing with longer-term people issues as part of the strategic management thrust of the business. It covers macro-organizational concerns relating to structure and culture, organizational effectiveness and performance, matching resources to future business requirements, and the management of change.

SHRM is the pattern of planned human resource developments and activities intended to enable an organisation to achieve its goals (Wright and McMahan). This means accepting the HR function as a strategic partner in both the formulation of the company’s strategic, as well as in the implementation of those activities through HR activities.

While formulating the strategic plan HR management can play a vital role, especially in identifying and analysing external threats and opportunities. (Environmental scanning) that may be crucial to the company’s success. HR management can also offer competitive intelligence (like new incentive plans being used by competitors, data regarding customer complaints etc.) that may be helpful while giving shape to strategic plans. HR function can also throw light on company’s internal strengths and weaknesses.


Human resource it is an important department of organisation that is directly influence in all department because they are responsible part for motivation employees, for make all recruitment and selection for all department.

Human Resource Management may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organisation in an effective and efficient manner. The principal objectives of HRM include to help the organisation reach its goals, to employ the skills and abilities of the workforce efficiently. HR has a great role to play in the execution of strategies. HR can help strategy implementation in other ways. It can help the firm carry out restructuring and downsizing efforts without rubbing employees on the wrong side- say, through outplacing employees, linking rewards to performance, reducing welfare costs, and retraining employees.

The role of HRM has undergone a dramatic change over the years. From control and direction of employees, HR department is expected to move toward clarifying goals and paths and creating a supportive and growth oriented environment. We have also discussed factors influencing future of HRM , emerging trends in 21st century affecting HRM and different types of organisation of HR department


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