Knowledge Bank

Human Resource - Importance

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Human Resource Management has a place of great importance. According to Peter F. Drucker, ?The proper or improper use of the different factors of production depend on the wishes of the human resources. Hence, besides other resources human resources need more development. Human resources can increase cooperation but it needs proper and efficient management to guide it


  • It helps management in the preparation adoption and continuing evolution of personnel programmes and policies.
  • It supplies skilled workers through scientific selection process.
  • It ensures maximum benefit out of the expenditure on training and development and appreciates the human assets.
  • It prepares workers according to the changing needs of industry and environment.
  • It motivates workers and upgrades them so as to enable them to accomplish the organisation goals.
  • Through innovation and experimentation in the fields of personnel, it helps in reducing casts and helps in increasing productivity.
  • It contributes a lot in restoring the industrial harmony and healthy employer-employee relations.
  • It establishes mechanism for the administration of personnel services that are delegated to the personnel department.

Thus, the role of human resource management is very important in an organisation and it should not be undermined especially in large scale enterprises. It is the key to the whole organisation and related to all other activities of the management i.e., marketing, production, finance etc.

Human Resource Management is concerned with the managing people as an organizational resources rather than as factors of production. It involves a system to be followed in business firm to recruit, select, hire, train and develop human assets. It is concerned with the people dimension of an organization. The attainment of organizational objectives depends, to a great extent, on the way in which people are recruited, developed and utilized by the management. Therefore, proper co-ordination of human efforts and effective utilisation of human and others material resources is necessary.