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Why Human Resource Management Is a Necessity

Every business has a certain number of skilled manpower required to carry out the business-related activity. All business activities need manpower or human resource so that these human resources make use of the best of their abilities, knowledge, and skills. They make the most efficient and optimal utilization of the natural resources available in a given period of time and in a particular setup to produce the goods and services. These business enterprises or organizations or industries earn profits by making these goods and services available to consumers at a certain fixed cost.

To initiate the business activity, every business organization must have the need of the manpower for their goal achievement. The process of obtaining the right manpower or human resource is discussed as under.

Human resource management or HRM basically comprises of three words Human, Resource, and Management. Let’s discuss the whole concept of HUMAN RESOURCE MANAGEMENT in detail.

Human: when we relate the word human with business, we mean all the employees or staff which works together for the achievement of goals set by the organization they are employed with.

Resource: when we say resource me mean all the raw material which can be physical and non-physical materials like land, labor, water, fuel and others, also the manpower skills which is non-physical in nature. All these together are called the resources. Human is also a resource to the organization without which nothing can be achieved nor performed.

Management: it is referred to the administration of any organization whether it’s a profit or non-profit making business. It is carried out by planning, controlling, organizing and leading the goals by any business or non-business entity.


  • Optimal utilization of the existing available resources, both material and human resources.
  • To define a clear hierarchy of the organization of employer and employee.
  • To assign the roles, tasks, and duties to each and every manpower working in the organizations to achieve a common goal.
  • To assess and arrange for the training and development program for the employees to derive the maximum output and make the learning conducive environment.
  • To address the needs of the employees by designing a good compensation plan for the less employee turnover and retaining the skillful manpower in the organization.
  • To make the communication flow easy among the employees and

employers to encourage the free flow of ideas, thoughts and build a comfortable environment for both.

  • To maintain and retain the employees, i.e. by designing the right incentive plan for them and creating satisfaction among them.
  • To create a healthy and friendly working environment through appropriate work design and assignment of jobs.
  • To focus on achieving higher production and most effective utilization of available resources.

Human resource management can be best described as the planning, organizing, procurement and controlling of the human resource or manpower in an organization/ industry in a particular setup, working towards achievement of a common goal set by applying their skills, knowledge and utilizing their experiences related to the work assigned. The human resource management is basically hiring or recruiting the most suitable candidates through different methods and then making the best possible utilization of the skills and knowledge of the employees and this can only be achieved if the manpower or the human resource of that organization is given the learning conducive environment where they are motivated and developed by various means and methods.


  • To identify the need for manpower required by the organization for carrying out different roles and responsibilities.
  • To hire the right men for the right job by exercising different

tools of recruitment.

  • To design their compensation in such a way that the work was done and risk involved is calculated on the monetary basis. Also, the employee and organization relationship isn’t hampered. HR should be happy with what they are paid.
  • To make the increment plan of their compensations to help them stay self-motivated.
  • HRM has to look for other compensations and benefits other than salaries. Like bonuses, layoffs etc.
  • The training needs of the HR of the organization to keep them updated with the latest trend and technologies and work culture.
  • To arrange the development program for the overall development of their manpower hired. This induces their mind with the feeling of belonging. This gives a boost to their morale and the employee turnover ratio reduces.
  • The HRM also makes sure that the work-life of employees is balanced. This can be done best by carefully designing the work-off days and leaves to their employees.

HRM should, of course, be a separate body in an organization because all the issues and problems related to the human resource of every organization need to be addressed carefully. The atmosphere and culture of an organization have a direct influence on the performance and behavior of the employees.


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