Importance of Human Resource

Importance of Human Resource

Insight on Importance of Human Resource

Human resource is the department responsible for managing resources related to the employees in an organization. They are tasked with overseeing all things related to managing an organization’s human capital. The HR team develops and administers programs which helps boost the effectiveness of an organization.

A good HR department is critical to an employee-oriented, productive workplace in which they develop various programs that are designed to increase the effectiveness of an organization by keeping the employees motivated and engaged. An organization cannot develop a good team of working professionals without good Human Resources. The areas in which HR preserves control can improve an employees’ experience throughout the workforce while solidifying business operations. Companies are increasingly seeking the outsourcing features of HR recruitment companies. The focus on HRM is now shifted to the strategic utilization of employees and the measurable impact of employee programs over business. Nowadays successful companies must be adaptive, robust, swift to alter direction and customer-centered. Within such a situation the efficiency of HRM is critical to business success. HR professionals create systems for performance improvement, career succession planning and employee growth. This keeps people inspired, content, personally involved and adding to company success. Furthermore, the HR professional aids the growth of organizational culture and climate in which employees have the ability, interest and dedication to help customers well.

An organization cannot create a good lineup of thriving professionals without good Human Resources. Key tasks of the Human Resources Management (HRM) team include recruiting people, training them, performance appraisals, motivating employees as well as workplace communication, workplace safety, and much more. (humanresourcesedu, 2018) The beneficial effects of these functions have been discussed further:

Recruitment and Training

It is one of the primary responsibilities of an HR department to hire the correct people for organization by coming up with plans and various strategies to evaluate them properly. They design the criteria which is the most appropriate for the defined job description. Their other responsibilities related to the enrollment comprise devising the commitments of an employee and the extent of tasks which might be assigned to them. Based on these two factors, they prepare the contract between the company and the employee. If required, they also provide training to the employees according to the requirements of the company. Consequently, the organization members obtain the opportunity to refine their existing abilities or acquire dedicated skills which in turn, will help them to take up some new roles.

Performance Appraisals

HRM encourages the people working in the organization to give their maximum effort and to their full potential, while also giving them suggestions that can help them bring improvement in their work. The team maintains constant communication with each of the individual staff from time to time and provide them with all the vital information concerning their performances and outlines their tasks. This will prove helpful for the employees as it will help them gain a clear outline on their anticipated goals which will enable them to execute the goals with the best feasible efforts. Performance appraisals motivate the employees if it is done on a regular basis.

Maintaining Work Atmosphere

This is a crucial aspect of HRM because the output of an employee in an organization is mainly determined by the work environment or work culture that predominates in an office environment. An efficient human resource team is always expected to provide a good working condition as one of the benefits for the employees. A safe, clean and healthy work atmosphere can draw out the best in an employee. Job satisfaction is also provided to the staff members because of a friendly work environment.

Managing Disputes

In an organization, there are various issues on which disagreements may arise between the staff, either with each other or with the employers. It can be said that it is almost inevitable. In such a case, it is the responsibility of the human resource department to resolve those issues in an effective method by acting as a mediator or a consultant. They must listen to what the employees have to say and then they come up with appropriate resolutions to settle those problems. It can be said that they take suitable action and avert the issue from getting out of hands.

Developing Public Relations

The responsibility of forming good public relations falls with the human resource team. They are tasked with organizing seminars, business conferences, and other numerous official congregations on behalf of the organization to develop relations with other business sectors. From time to time, the HR department performs an active part in making the business and marketing plans for the organization too. (Human Resource Excellence, 2017)

Global HRM is very challenging in front of HRM. If one can strike the right chord in designing structures and controls, the job is half done. Subsidiaries are held together by Global HRM, different branches can function consistently only when it is supported by efficient structures and controls. An organization can choose to hire according to any of the staffing policies mentioned below:


Here the key management positions are occupied by the parent country individuals. All HRM operations are directed from the parent company and all strategic decisions are made by the key managers from the domestic offices.


In polycentric staffing policy the host country nationals handle subsidiaries whereas the headquarter positions are retained by the parent company nationals. This offers more decision-making space and responsibilities to subsidiaries and host managers. Polytechnic approach is usually exercised when a need for product or services adaptation occurs.


In this staffing policy positions are occupied regardless the nationalities but considering skills and achievements of the personnel. Geocentric staffing policy seems is the best when it comes to Global HRM. The human resources are positioned productively, and it also helps develop a strong cultural and informal management network. The flip side is that human resources become a bit expensive when employed on a geocentric basis. Besides the national immigration policies may restrict implementation.


The last approach, regiocentric, approach is grounded on the regional headquarters. Managers are carefully chosen from a certain region by skills and experience. Autonomy of subsidiaries in this case is relatively large and all the policies and processes are organized by headquarters located in each region. (Golubeva, 2016)

The concept of HRM has still not much advanced and applied in Nepalese organizations in the way it has advanced and applied in some developed countries. However, things are changing recently. Nepali companies are now trying to catch up with the global practices in managing human resources in order to better to meet their organizational objectives, although at a slow pace. Organizations are now creating separate HR departments, delegating managers to manage HR activities, involved in making HR and business strategies. Nowadays, some of the top organizations of Nepal have been efficiently practicing modern HR techniques for enhancing their productivity. The Multinational Companies which have been operating in Nepal have been executing HR management at remarkable levels. But in most of the organizations, HRM is still in a primitive stage. Any organization, without a proper system for Human Resource will inevitably suffer from serious difficulties while managing its regular activities. Because of this reason, various organizations have realized the importance of HRM and have been putting a lot of effort and energy to create a strong and effective HRM.