Importance of HRM, Functions of HRM and Introduction to HRM

Importance of HRM, Functions of HRM with Introduction – Detailed Guide

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Let’s Learn Introduction to HRM, Importance of HRM, Functions of HRM and other Important Facts of Human Resource Management

Hello and Welcome to all. In this article I will be explaining the complete details of HRM, it’s Importance, Functions of HRM, Human Resource Department, and everything you need to know about HRM. HRM done by the Human Resource Department is a very important function of any Organisation which helps in building a strong team of employees by hiring good candidates for different positions, then monitoring their performance, giving instructions and training to improve their skills and overall increase the productivity of the Company. So let’s start discussing.

Importance of HRM

First, let me explain the importance of HRM in any Organisation. HRM is a way of effectively managing employees. It is the way to cultivate maximum potential by monitoring the performance of all the employees regularly and giving training and feedback so as to improve the efficiency of each employee. This is why all companies have HR Departments which helps in developing business in a more professional way. The importance of HRM are listed below:

  1. Build up the performance of the employees
  2. To create a quality workplace
  3. Appointment of employees of superior quality
  4. Increase the business profit

1) Building up the Performance of the employees:

The performance of the employees can be improved by building an intellect relationship between the employees in the Organisation. Human Resource Management helps to amplify the relationship between employees and thereby exponentially increasing the teamwork between them and enhancing the workplace experience. Human Resource Manager has to utilize the maximum potential of the employees inside the Organisation.

2) Creating Quality Workplace:

How does HRM help in creating a quality workplace which results in business profit? The answer to this question is by providing a good and proper work environment for the employees to work. There will be many issues that might arise when this thing goes wrong such as problems that might arise between employees and even between employees and Management. The Human Resource Manager has to build up a strong relationship with the employees in all Departments by providing proper Quality Workplace which is very important.

3) Hiring Employee of superior quality:

It is one of the important functions of the Human Resources Department. They have to make sure that the employees hired for all departments are of the best profiles and quality. The recruitment process in the hr department of any Company should be pipelined in such a way that good quality candidates are hired. It also has to be made sure by the HRM Team that there has to be a supply of quality employees across all departments. The HR Department team also has to make sure to retain good employees in the Organization for a long time.

4) Increase in the business profit:

The main goal of Human Resource Management (HRM) is to improve the quality in the work done by a team which makes an upside curve in the profit of the Organisation. Nowadays Companies have identified the importance of building good teams across all departments which can directly make a great impact on the profits of the Organisation. Therefore they have started funding investing in recruitment so as to build a better group of employees.

Functions of HRM (Human Resource Management)

Now let’s discuss the main functions of the HRM. Human Resources Department is one of the fundamental parts of any Organization or Company. The functions of the Human Resource Management Team plays an important role in the company’s profit. The functions of HRM are filtered as follows:

  1. Planning
  2. Organizing
  3. Directing
  4. Controlling

1) Planning:

Human Resource Management Team must have a planned strategy to cultivate maximum potential from employees to accomplish the Organization’s goals. HR Department has to spend a large amount of time on Planning. Planning and establishing good plans such as setting hiring needs and the requirement for each opening, planning proper job descriptions for the employees for each department and designation, planning training programs for the employees to increase the efficiency of each employee as and when needed, etc., will help to meet up with the Organization’s goal faster.

2) Organizing:

After the planning of things, the main responsibility is to manage the manpower resource is to finish the set goals on time. Human Resources Department has to come with a structure to organize the team. The structure includes:

• Grouping of individual activities into an assignment

• Diversify the work to the team members.

• Commissioning the team according to the work.

• Organizing the work of different employees to build a strong team.

3) Directing:

In simple words directing means to bring the enthusiasm within the employees to get the work done fast and smooth. It is one of the important functions of the HRM Team. The HRM Team has to come with a plan to direct the team under them through the Head of the Department to build a better output. This can be done by team administration, taking care of employees, construct a strong belief towards the Organisation, and through salary boost and providing perks. HR Department should come with a strong welfare plan for the employees as well.

4) Controlling:

Controlling is about monitoring the work of the employees and providing step by step instructions to improve the work quality. This is done to get better results for the Organisation. The HRM Team constantly collates the work to improve the quality of the work. Further, the HR Department clarifies the variations in the work for better accuracy.

Controlling helps the organization to evaluate the team’s performance and bring in the essential changes to improve the work efficiency of each employee which is another important function of HRM Team.

Introduction to HRM

Now I will be giving an overall introduction to HRM, why it is very important, and why it is inevitable to any Organisation. HRM is a department which administrates the function of the employees to improvise the quality of the work to bring in better results for the Organisation. It looks after the recruitment process, deciding salary package, allocation of employees, maintaining the report on employees, etc. The HR also looks after the needs of employees, coming up with a safe environment, nurturing a strong relationship between the employees and with the Organisation. HR includes payroll activities such as allocating bonuses to the employees, promotions, etc. HRM acts as the bridge between employees and the Organisation. HR team includes people who can come with strategic plans and who can create a happy environment for the employees. They have good communication and management skills to manage the employees. From globalization, the role of HR became inevitable to harvest the maximum potential out of the employees. Human resource development helps to develop and manage the talent among the employees. HR helps to build confidence among them. Human resource development also concentrates on personality development, communication skills, workplace culture, and maintaining healthy relationships between the employees and the Organisation. Human resource management’s main goal is to reduce the turnover of employees and maintaining good employees in the Organisation.

Difference between HRM and Personnel Management

We have received many questions asking for the main difference between HRM and Personnel Management. So I will be explaining that in this section. HRM is a present-day approach of adding, establishing, maintaining, and talent usage of the workforce. Personnel Management is nothing but what is related to employees. Personnel Management is nothing but making sure that good employees are in the right position. But Human Resource Management is a modern-day approach whereas personnel management is a classic and standard approach. HRM is talent-based and Personnel Management is performance-based. HRM concentrates on the strategies and the Personnel Management concentrates on the overall performance. HRM diversifies the employees based on their talent. Personnel Management is on overall workforce management. Personnel management is based on the goals of the company and HRM is about the rules and needs of the Organisation. Personnel Management is to maintain the discipline among the employees whereas HRM is to develop the talent and build up confidence among the employees. Human resource management is team development based. Personnel management is individual work development based and also based on disciplined employees but HRM is more focused on quality in work-life, performance as well as increased profits for the business.

Difference between Human Resource Management, Personnel Management, and HRD

We have also received many queries related to the difference between Personnel Management and HRD. So in this section, I will be explaining the same. HRM is the management of the employees or the workforce with the motive of Organization Policies. Human Resource Development (HRD) is the development of individual skills or the talent of the employees to enhance the performance of the overall team. HRD is a sub-function of HRM. Human Resource Management is a management function. Human Resource Management is a reaction to organization policies. Human Resource Development is based on the policies which have to be consistently applied to bring in a change. It is not objective to organizational policies. Human Resource Management aims to enhance the overall development of the team or the workforce.

HRD aims to improve individual abilities thereby improving the overall performance of the Organisation. HRD deals with only the improvisation of employees. Human Resource Management deals with the recruitment processes, payroll activities, allocating bonuses, track on the employee’s details, etc. HRD goes in the way of mentorships and coaching employees. In simple words, HRM focuses on the overall development of the team or workforce whereas HRD focuses on individual skill development to enhance the team relationship and performance. For details regarding Personnel Management please refer to the previous paragraph where I have completely explained Personnel Management.

Full form of HRM

The full form of HRM is Human Resource Management. After you have read this much of the article let me give a brief description of HRM. It manages the workforce to provide efficient results for the organization.It keeps track of the overall development of the employees in all aspects. It also provides the necessary training to enhance the relationship between employees. It creates the plan to utilize the maximum potential of the workforce and thereby resulting in the overall development of the enterprise. It involves in the activities like recruitment of employees, the orientation that contains training, development of skill, appraisal of performance, building healthy relationship among the employees, maintaining the workplace ethics, feedback, initiating the necessary changes in the management, improving the human resources to contribute to the overall working of the enterprise.

Challenges of HRM

There are many challenges faced by HRM Team. The challenges are mainly

1. Adherence to laws and regulations.

The HRM has to adapt to the changing laws and the environment. It has to adapt to the new regulations forced by the government.

2. Changes in Management.

The changes which are implemented in the Management side as and when needed by the Organisation will, in turn, disturb the cycle of work done by HRM.

3. Concerns on leadership.

Leadership is a very important aspect of any Enterprise. May it be the team leader or a branch manager or CEO of a company the big concern for HRM is leadership qualities.

4. Development and training of the workforce.

The problem faced by HRM is the training session which has to be given to all the front line workers. The HRM has to come with a plan to make sure everyone is equipped with proper training.

5. Remodeling for the innovation.

The workforce has to adapt to the innovation taking place in the industry. It is where the HRM plays a major role. The problem is to remodel the employees according to the current trend.

6. Payroll and Performance Related Activities.

This is where the HRM has to be careful. It has to allocate salary to every single employee by evaluating their skills. It has to provide compensation and promotions to the employees at the right time to the apt employees.

I hope that you have learned a lot regarding HRM, its importance, and its functions. If you have any doubts regarding this article or on any specific HRM-related topic apart from what I have explained here you can ask me by email at If you are planning to join an Advanced HR Training which is Practical oriented hr training covering all HR Softwares and with International Certification in India, we highly recommend you to join IHRA ( This is one of India’s best providers of the Advanced HR Training Course. You can click on the link to get all details regarding this course.

I will be back shortly with more HR Related study articles to help you know, teach, and provide more information about HRM. Bye and See you soon.

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