Importance of Human Resource Management
Mar 14th, 2022

Importance of Human Resource Management

?What is Human Resources?

Human resources simply put is human capital, the expertise, abilities and skills that the individuals command. It refers to the people who make up a company's workforce and help achieve organizational goals. and are hence important assets to a company. Human resources also mean the department of a business or organization that deals with the recruitment, administration, and training of staff.

What is Human Resource Management?

Human resource management is the calculated approach to the functional and structural management of people in a company resulting in their business gaining a competitive advantage. These systems and processes are designed to augment employee performance in service of an employer's strategic goals and objectives.

Organizations benefit immensely from managing their employees effectively. What is the importance of human resource management to a company?

Importance of Human Resource Management to Organizations.

Human resources are the most important asset a company can have. Human resources actualize the company’s vision and goals into reality. It is the fabric that holds an organization together.

Here are some of the importance of Human resources management to organizations:

Hiring and onboarding

Acquiring the right talent to work in your business can be an uphill task. The hiring process can take up so much of your time and failure to get it right can cost you a lot. HRs however will save you the hassle and bassle of finding a good fit for your organization.

Onboarding of new employees is also an important part of recruitment that should not be ignored. Onboarding refers to recruiting, welcoming, orienting and engaging a new hire. This simply helps the recruit adapt to your company’s culture. When done well, onboarding amplifies employee engagement and retention.

Building and maintaining company culture

A positive work culture is a must have for every organization. It drives employee engagement, job satisfaction and employee retention. HR plays a key role in shaping, reinforcing and changing the company culture of any business.

Getting culture right can prove to be hard. It calls for a skilled and structured approach coupled with consistent nurturing. Through research and examination of the employees, the HR can set the right tone for organizational culture.

Conflict Resolution through effective communication

The HR always holds the middle ground between employees and management of the organization. Effective communication enables the HR to mitigate conflicts between the management and it’s employees. This in turn increases employee engagement, forms better client relationships, encourages innovation, creativity and a positive work culture.

Legal and regulatory compliance

HR professionals have a full understanding of employment law and the regulatory requirements of a business associated with staff. Employers shouldn’t act oblivious of the consequences of their actions. Issues such as an unfair dismissal claim can be a costly affair for the company. The HR will ensure that due process is followed when handling employees, saving the company from legal battles.

Performance Appraisal

The human resource department gives sufficient commentary on employee performance. This feedback serves as a basis for adjusting behavior toward better working habits, and provides data to managers for refashioning future job assignments and remuneration. The concept of performance evaluation is important for effective workforce management.


Effective and efficient human resource practices in an organization such as training, motivation, planning, and proper communication channels generally improve employee performance. This means high levels of productivity and more profits. Hiring a whole HR department for Small and Medium Sized enterprises can be way out of budget. However, solutions such as ?Crew HR& Payroll software are designed for this very purpose!

Let us take care of your HR needs at a very affordable price as you focus on the core of your business. Talk to us on 0714004596 to book a demo today.

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