What is HRM? Why is HR Management Essential for Organisations?

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Have you ever pondered what keeps a company's heart pumping? It's HRM or Human Resource Management. Human resource management is akin to the underpinning of any organisation, ensuring that the appropriate people are in the right place at the right time.

But why is it so important, you may ask? Consider HRM the enigma behind the curtain that orchestrates every employee lifecycle stage. HRM wears several hats, from recruiting and training new employees to overseeing performance assessments and resolving workplace problems.

HRM acts as a compass in the volatile business world, where change is the only pervasive leading organisations through the chaotic waters of shifting employment regulations and market demands. Furthermore, HRM is more than simply recruiting and firing; it promotes a pleasant work environment by increasing staff engagement and morale. Employee happiness leads to higher productivity and creativity, leading to a better bottom line. 

HRM plays a major part in employee growth and achievement. It guarantees workers adequate instruction and development opportunities to improve their abilities and successfully contribute to the organisation. Furthermore, HRM procedures involving performance assessments and feedback systems assist employees in understanding their strengths and areas for improvement, resulting in ongoing growth and skill advancement.

In this guide, we delve into the details of HRM and its essentials. This guide will prove to be especially helpful if you are looking to study human resources online

What is HRM? 

Human Resource Management (HRM) is a profound organisational function that focuses on managing an organisation's most important asset: its people. Human resource management (HRM) spans a wide variety of actions intended to utilise human resources to meet organisational goals and objectives successfully. It entails several activities, including staff recruitment, training, development, and management, as well as maintaining compliance with labour laws and regulations.

Talent acquisition is a critical component of HRM. Human resource specialists are in charge of attracting and choosing qualified applicants for vacant positions within the organisation. This procedure involves drafting job descriptions, advertising job openings, reviewing resumes, conducting interviews, and evaluating candidates to figure out who is most suitable for the organisation. HRM ensures that the organisation has a competent workforce capable of fostering growth and innovation by hiring trained and competent employees.

HRM plays a critical role in all organisations given that it focuses on managing personnel efficiently and sustainably. HRM adds substantially to a company's success, sustainability, and edge in the ever-changing business landscape by recruiting, developing, and retaining the right talent, fostering a welcoming work environment, aligning HR strategies with organisational goals, and maintaining legal compliance.

Why is HRM important in organisations? 

If you're to take up a certification course in HR management, you'll gradually know why HRM is the bedrock of every organisation. It helps the organisation to run smoothly and creates an interlink between the workers and the management. 

To recognise and value individuals 

Individual recognition and appreciation are essential components of efficient human resource management. Recognising people's distinct abilities, talents, and contributions promotes a good work environment. It boosts morale, motivates employees, and fosters loyalty. Individuals who believe they are appreciated are more involved, productive, and devoted, which leads to overall organisational success and a vibrant, happy workplace.

To encourage people to bring in new ideas 

Fostering an innovative culture is critical in HRM. Encouragement of novel concepts not only boosts creativity but also encourages organisational progress. HR creates a dynamic workplace, optimises employee morale, and ensures the organisation stays ahead in a competitive market, eventually leading to long-term success by appreciating and adopting new proposals.

To improve work-life quality 

Improving work-life balance is critical to HRM since it promotes employee well-being and productivity. HR departments improve employee satisfaction and reduce stress by establishing flexible working hours, fostering a good work-life balance, and providing wellness programmes. This emphasis not only improves morale and loyalty but also attracts top talent. Work-life balance is critical for a motivated and engaged team.

To upskill for a long-term interest 

HRM has implications for businesses since it maximises employee potential while simultaneously boosting employee productivity and engagement. It guarantees proper recruitment, training, and retention, plus the alignment of individual aspirations with organisational objectives. Effective human resource management fosters a positive work culture, resolves problems, and adheres to legal requirements, eventually boosting organisational efficiency, creativity, and competitiveness.

To facilitate worker versatility

HRM ensures that qualified people are hired, trained, and driven, fostering pliability. Human resource management promotes a healthy work atmosphere, supports skill development, and resolves disagreements. HRM improves worker flexibility by connecting employee capabilities with organisational goals, allowing businesses to efficiently manage shifting market demands.

To achieve employee satisfaction 

Human resource management is integral to staff contentment and organisational success. It provides successful staff recruitment, training, and support, establishing a favourable work environment. HRM also supports equitable policies, handles issues, and gives possibilities for advancement. HRM improves work happiness, productivity, and overall organisational effectiveness by developing talent and addressing employee needs.

To work beyond technical training 

HRM constitutes an essential for organisations because it enables optimal worker utilisation, talent acquisition, and employee growth. Human resource management endorses a healthy workplace culture, increases employee engagement, and aligns individuals with organisational goals. HRM optimises productivity and maintains a motivated staff, which is critical for an enterprise's success, by coordinating relationships, resolving quandaries, and guaranteeing compliance.

Functions of HRM 

HRM is not just limited to recruiting, it has various functions to play. Be it managerial functions or advisory functions, HRM has a critical role to play in an organisation to nurture growth. 

  1. Managerial Functions 


Planning in human resource management entails estimating future workforce needs, formulating targets, and designing methods to attain organisational goals. It consists of workforce analysis, skill evaluation, and recruiting planning. Human resource planning that effectively connects human resources with business demands, ensuring optimal performance and responsiveness to changing organisational requirements.


HRM organising entails organising the personnel, tasks, and resources to fulfil organisational goals. It defines roles, duties, and hierarchies, resulting in an effective process. HRM improves efficiency, cooperation, and communication by successfully organising human resources, enabling a high-performing workplace.


In HRM, directing entails assisting people to meet organisational goals. Leadership, communication, motivation, and supervision are all included. HR managers give clear instructions, settle problems, and motivate cooperation, ensuring that individual efforts are aligned with organisational goals. Effective directing improves employee performance and fosters a productive workplace.


Controlling, a critical managerial job in human resource management, entails monitoring employee performance, analysing outcomes against objectives, and adopting remedial measures as needed. HRM control optimises efficiency, encourages responsibility, and increases overall productivity among the workforce by ensuring alignment with organisational goals and policies.

  1. Operative Functions 

Recruitment and Selection 

Recruitment and selection are key operational responsibilities in human resource management that involve analysing job requirements, locating qualified applicants, conducting interviews, and making hiring choices. These techniques guarantee that organisations hire the right people by matching abilities to job responsibilities. Recruitment and selection are critical for developing competent employees and improving organisational performance.

Job Analysis and Design 

In human resource management, job analysis and design comprise an organised evaluation of job roles, specifying functions, responsibilities, and qualifications. It ensures that jobs are aligned with organisational goals, which aids in recruiting, training, and performance evaluation. HRM improves employee efficiency, job satisfaction, and organisational productivity by optimising job structures.

Performance Management 

Setting specific objectives, monitoring employee performance regularly, offering feedback, and recognising accomplishments are all part of performance management in HRM. It aims to increase employee performance, coincide individual goals with organisational goals, and boost overall production. Performance management wholly effectively develops a motivated workforce and adds to organisational success.

Learning and Development 

Learning and development, a key operational activity in human resource management, focuses on improving employee skills and capacities. It entails training programmes, workshops, and ongoing education activities designed to empower employees and enable them to adapt to changing job responsibilities, assuring organisational success and competitiveness in an erratic business landscape.

Compensation Management

Compensation management, an operational HRM function, is concerned with creating equitable compensation structures, incentives, and amenities to recruit, retain, and inspire people. It assures competitive pay rates, equality, and labour law compliance, improving employee happiness and organisational performance while successfully controlling expenses for long-term growth.


Human resource management policies serve as operational norms guiding recruiting, employee behaviour, and workplace standards. These standard operating procedures promote cohesion, fairness, and legal compliance. Policies provide a stable work environment, build employee trust, and help organisational coherence and efficiency by articulating precise standards.

Employee Welfare 

Employee welfare, a core operational function in HRM, focuses on improving employees' well-being. It includes health benefits, safety measures, attempts to promote work-life balance and support initiatives. HRM ensures a motivated staff, decreases turnover, and creates a healthy organisational culture, resulting in higher productivity and happiness.


HRMS (Human Resource Management System) is a critical operational function in human resource management. It combines HR functions such as payroll, attendance monitoring, and employee information into a single software platform. This simplifies operations, improves data accuracy, and increases efficiency, ensuring HR duties are managed smoothly and precisely.

  1. Advisory Functions 

Top Management Services 

HR professionals offer strategic advising roles to senior leadership as part of top management services in HRM. This includes policy advice, recruiting, talent acquisition, and leadership development. These services enable informed decision-making by connecting HR strategy with company objectives, enabling a productive and harmonious work environment.

Departmental Head Advice

The advisory function of department heads is critical in HRM. They provide strategic advice on human resource management, team dynamics, and conflict resolution. They improve communication, establish a healthy work atmosphere, and help organisational growth by aligning HR policies with departmental demands, providing a cohesive and motivated team.

Benefits of HRM

HRM might seem daunting at first, but comes with various perks. Let's see they are: 

Strategic Management 

Strategic management employs HRM to improve organisational performance. HR practices that are aligned with corporate goals improve employee skills, motivation, and retention. This collaboration promotes creativity, productivity, and a competitive edge. Strategic human resource management ensures that the proper personnel is in place, allowing businesses to adjust to market changes, generate growth, and achieve long-term success.

Internal Branding 

Internal branding, an inherent HRM approach, promotes a unified business culture by aligning workers with the brand's values and goals. This boosts team morale, increases staff engagement, and boosts productivity. HRM improves overall organisational performance, loyalty, and consumer satisfaction by ensuring personnel understand and embrace the corporate identity, which is critical for long-term company success.

Mission, Vision, Value and Goals 

HRM aligns organisational goals by nurturing a competent and driven workforce. It aims to ensure effective personnel acquisition while also cultivating a collaborative culture. Vision drives growth by predicting future requirements and trends. Values build an inclusive atmosphere by upholding integrity, justice, and diversity. Goals drive productivity, employee well-being, and long-term performance, making human resource management critical to organisational greatness.

Creating Employee Awareness

HRM maximises employee potential while establishing a favourable work environment. It ensures equality, professional advancement, and work-life balance. HRM improves employee well-being by encouraging a balanced life decreasing stress and absenteeism. Efficient human resource management fosters a motivated staff, increasing productivity and corporate success. It is critical in fostering a peaceful workplace that benefits both individuals and organisations.

Maintaining a Conducive Work Environment 

HRM promotes an encouraging work environment by fostering collaboration, open communication, and employee well-being. HRM improves productivity and job happiness by resolving problems, enforcing fair policies, and developing talent. A healthy work environment fosters creativity, enhances morale, and attracts top talent, resulting in a motivated team and overall organisational success.

Talent Management 

Talent management, a critical component of HRM, ensures that employees' talents and abilities are used to their full potential. Organisations increase productivity and job satisfaction by encouraging talent through training, development, and incentive programmes. Individual abilities are aligned with corporate goals through effective personnel management, resulting in a motivated workforce. It also encourages innovation and long-term organisational performance, making it an important HRM advantage.

Organisational Culture Improvement 

Human resource management supports a harmonious working environment, increasing employee engagement, productivity, and creativity. HRM fosters a positive organisational ethos by encouraging open communication, cooperation, and respect. This results in improved employee morale, lower attrition, and increased organisational efficiency, resulting in a lively workplace where individuals flourish and contribute successfully to shared goals.

Conflict Management 

Effective conflict management is a critical advantage of human resource management. HR professionals promote resolution and encourage a pleasant work environment. HRM stimulates cooperation, raises morale, and increases production by resolving disagreements in a timely and unbiased manner. This proactive strategy reduces tension, resulting in a more pleasant work environment, higher employee satisfaction, and organisational success.

Importance of Human Resources Management In an Organisation 

  1. Plays a Key Role in Development 

HRM is critical to organisational development. It guarantees the acquisition, training, and retention of competent employees. HRM favours employee development by matching personal goals with organisational aims. This strategic approach augments productivity, creativity, and overall performance, making human resource management essential for organisational progress.

  1. Sustainability Within the Organisation 

The importance of human resource management in an organisation cannot be overstated. HR promotes sustainable practices by encouraging employee participation, training, and adherence to ethical principles. It guarantees a competent workforce, encourages innovation, and integrates organisational aims with environmental and social responsibility, resulting in long-term viability.

  1. Strategic Alignment 

Strategic HRM alignment ensures that organisational goals and HR efforts are in sync. It improves staff utilisation, increases employee engagement, and encourages innovation. HRM improves efficiency by integrating HR strategies with business objectives, allowing organisations to adjust quickly to change, assuring sustainable growth and competitive advantage.

  1. Policy Formulation 

Human Resource Management (HRM) relies on policy formation to define norms, guidelines, and processes. Human resource professionals develop policies to guarantee fair treatment, legal compliance, and organisational uniformity. Well-written policies promote a structured work environment, which promotes efficiency, conformity to standards, and overall organisational stability.

  1. Customer Service 

HR is responsible for personnel training, motivation, and contentment, which has a direct influence on the customer experience. Employees who are happy and engaged provide excellent service, increasing customer loyalty and driving corporate success. Human resource management is critical in connecting employee performance with consumer satisfaction.

  1. Ethics Speciality 

Ethics specialisation is essential in human resource management to ensure fair practises, compliance, and moral conduct. Maintaining ethical standards builds trust among employees, stakeholders, and customers as a whole, improving the business's reputation. Ethical HRM fosters a long-term, responsible business culture that drives long-term prosperity and social accountability.

  1. Workforce Planning 

Human resource management relies heavily on workforce planning. It synchronises organisational objectives with talent acquisition, ensuring that the appropriate people are in suitable jobs. This proactive strategy predicts future requirements, optimising manpower, skill sets, and productivity. It improves adaptability, efficiency, and overall corporate performance, resulting in long-term success.

  1. Employee Benefits 

Employee benefits are a critical component of human resource management. HR guarantees worker retention, job satisfaction, and psychological well-being by providing tempting benefits. Benefits packages that include healthcare and retirement programmes encourage financial stability and work-life balance. This promotes loyalty and productivity, both of which are critical for organisational stability and progress.

  1. Talent Development 

HRM relies heavily on talent development. It develops employee skills, knowledge, and talents while aligning them with organisational objectives. HRM improves worker capacities, creativity, and work-life balance by investing in personnel, assuring ongoing growth and competitiveness, and ultimately driving a company's success.

  1. Performance Management 

Human resource management relies on performance management to connect employee goals with organisational objectives. It improves accountability, identifies skill shortages, and develops talent. HR fosters staff growth through frequent feedback and assessment, which leads to higher productivity, employee engagement, and overall organisational performance.


HRM, or human resource management, is a systematic approach to workforce management that includes recruiting, training, and employee relations. It is necessary because HRM integrates employees with the aims of the organisation, develops a pleasant workplace culture, and supports talent development. In essence, it is the backbone of every successful organisation, generating productivity, engagement, and overall growth.

However, if you're wondering about doing an Human Resource management course online, check out Imarticus Learning's Professional Certificate in Human Resource Management and Analytics CEC at IIT Roorkee. This particular course is the amalgamation of both HRM and big data together which is now the driving force of any organisation. 

To know more, check out the website right away.

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