Importance of Human Resource Management


Significance of HRM can be discussed at four levels which are as follows:

  1. Corporate Level

    For an enterprise effective HRM leads to attainment of its goal efficiently and effectively. HRM helps enterprise in the following ways.

    a. Hiring required skill set and retaining them through effective human resource planning, recruitment, selection, placement, orientation and promotion policies.


    b. Development of employees by enhancing necessary skills and right attitude among employees through training, development, performance appraisals etc.


    c. HRM also takes care of optimum utilization of available human resource.


    d. HRM also ensures that organization has a competent team and dedicated employees in future. 

  2. Significance at Professional Level

    a. HRM also leads to improved quality of work life, it enables effective team work among employees by providing healthy working environment. It also contributes to professional growth in various ways such as


    b. By providing opportunities for personal development of an employee

    Enabling healthy relationships among teams and allocating work properly to employees as well as teams.

  3. Significance at Social Level

    a. HRM plays important role in the society, it helps labour to live with pride and dignity by providing employment which in turn gives them social and psychological satisfaction.


    b. HRM also maintains balance between open jobs and job seekers.

  4. Significance at National Level

    HRM plays a very significant role in the development of nation. Efficient and committed human resource leads to effective exploitation and utilization of a nations natural, physical and financial resources. Skilled and developed human resource ensures the development of that country. If people are underdeveloped then that country will be underdeveloped. Effective HRM enhances economic growth which in turn leads to higher standard of living and maximum employment.