The Importance of Human resources

Management
HRMA340

King Abdulaziz University

Faculty of Economics & Administration

Lames Alshaikhi | 1705266

 The Importance of Human Resource Management

Table of Content:
Index………………………………………………………………………………………...…2
Introduction…………………………………………………………………….…………..…3
The Concept of HR, HRM, HRD………….…………………………………...
……………..4
1- The Concept of Human Resource (HR)…………………………...…………………
4
2- The Concept of Human Resource Management (HRM)………………...
………….4
3- The Concept of Human Resource Development (HRD)………………...
…………..4
Features of HRM………………………………………………………………...……………5
Functions of Human Resource Management……………………………...
………………...5
1- Managerial Functions………………………………………………..……….…….5-6
2- Operative Functions……………………………………………...…………………6-
7
3- Advisory Functions………………………………………………...
………………….7
Scope of Human Resource Management…………………………….………………………
7
1- HRM in Personnel Management…………………………….
…………………….....8
2- HRM in Employee Welfare…………………………………………………….
……..8
3- HRM in Industrial Relations…………………………………………………………9
Factors that Affect Organization’ HR
Practices…………………………………………….9
1- Technology…………………………………………………………………………….9
2- Budget…………………………………………………………………………………9
3- Employee Loyalty…………………………………………………………….……9-
10
4- Senior Leadership……………………………………………………………...
…….10
Tasks Performers at the HRM……………...………………………...
…………………......10
The Importance of HRM for Organizational Success………………..……………...…10-
11
10 Reasons HR is Important the Organization……………………………………..…..11-
13
HRM Important for all Managers………………….………………………………….......13
1- Oversee Stuff Recruitment…………………………………………………………13

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2- Complete Induction of New Employee…………………………………………13-14

3- Focus on Employee Satisfaction………………………...………………………….14
HRM Contribute to the Success of Organization………………………..……………14-15
Challenges and Issues in HRM…...…………………………………………………….15-18
Conclusion…………...………………………………………………………………………19
References……...……………………………………………………………………………20

Introduction

Human Resource Management (HRM) is an operation in companies designed to

maximize employee performance in order to meet the employer's strategic goals and
objectives. More precisely, HRM focuses on management of people within companies,
emphasizing on policies and systems.
The HRM is the process of recruiting, selecting employees, providing proper
orientation and induction, imparting proper training and developing skills. So Its function
tend to be the most important role in hole the organization. We can classified the function of
HRM into three categories, which are managerial function, operative function, and advisory
function.
Human resources is important to organizations in myriad areas, ranging from strategic
planning to company image. HR practitioners in a small business who have well-rounded
expertise provide a number of services to employees. The areas in which HR maintains
control can enhance an employees’ experience throughout the workforce while strengthening
business operations. There are many reasons that human resource management important for
the all organization, and for the managers in particular.
Clearly, there are many factors can affect the HR management practices in positive
way or even negatively, which include technology, budget, employee loyalty, and senior
leadership.

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The scope of HRM is very wide. It consists of all the functions that come under the
banner of human resource management. The people who in charge to perform that function or
the HR department are changing if the job need that. And some organizations continue to
perform the majority of HR functions within the firm, and some HR tasks Can performed
more efficiently by line managers or outside vendors .
On the other hand, human resource management, as a main pillar of the any
organization, faces allot of challenges which may influence the performance of the
employees and effect the organization position in the market as well as in financial terms.

The Concept of HR, HRM, HRD

1- The Concept of Human Resource (HR):

Human resources (HR) is the department within a business that is responsible for all
things worker-related. That includes recruiting, vetting, selecting, hiring, onboarding,
training, promoting, paying, and firing employees and independent contractors. HR is also the
department that stays on top of new legislation guiding how workers need to be treated
during the hiring, working, and firing process.i

2- The Concept of Human Resource Management (HRM):

Human Resource Management, shortly known as HRM refers to a systematic branch
of management that is concerned with managing people at work so that they can give best
results to the organization. It is the application of management principles to the people
working in the organization. It aims at improving the performance and productivity of the
organization by finding out the effectiveness of its human capital. Therefore, HRM is an art
of placing the right person at the right job, to ensure the best possible use of organization’s
manpower.

3- The Concept of Human Resource Development (HRD):

The term Human Resource Development or HRD  refers to the development of people
working in an organization. It is a part of HRM; that aims at improving skills, knowledge,

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competencies, attitude and behavior of employees of the organization. The purpose of the

HRD is to empower and strengthen the abilities of the employees so that their performance
will get better than before.
Human Resource Development involves providing such opportunities to the
employees that will prove beneficial in their all-around development. Such opportunities
include training & development, career development, performance management, talent
management, coaching & mentoring, key employee identification, succession planning and
so on. Nowadays, there are many organizations work for the human resource development of
employees from the day they join the enterprise, and the process continues, until the end of
their employment term.ii

Features of HRM
Human Resource Management as a discipline includes the following features −
 It is pervasive in nature, as it is present in all industries.
 It focuses on outcomes and not on rules.
 It helps employees develop and groom their potential completely.
 It motivates employees to give their best to the company.
 It is all about people at work, as individuals as well as in groups.
 It tries to put people on assigned tasks in order to have good production or
results.
 It helps a company achieve its goals in the future by facilitating work for
competent and well-motivated employees.
 It approaches to build and maintain cordial relationship among people working
at various levels in the company.iii

Functions of Human Resource Management

Human Resource Management functions can be classified in following three categories.

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Managerial
OperativeFunctions
Advisory Functions
Functions

1- The Managerial Functions of Human Resource Management are as follows:

a) Human Resource Planning
In this function of HRM, the number and type of employees needed to accomplish
organizational goals is determined. Research is an important part of this function,
information is collected and analyzed to identify current and future human resource
needs and to forecast changing values, attitude, and behavior of employees and their
impact on organization.
b) Organizing 
In an organization tasks are allocated among its members, relationships are identified,
and activities are integrated towards a common objective. Relationships are
established among the employees so that they can collectively contribute to the
attainment of organization goal.
c) Directing 
Activating employees at different level and making them contribute maximum to the
organization is possible through proper direction and motivation. Taping the
maximum potentialities of the employees is possible through motivation and
command.
d) Controlling 
After planning, organizing, and directing, the actual performance of employees is
checked, verified, and compared with the plans. If the actual performance is found
deviated from the plan, control measures are required to be taken. 

2- The Operative Functions of Human Resource Management are as follows:

a) Recruitment and Selection 

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Recruitment of candidates is the function preceding the selection, which brings the
pool of prospective candidates for the organization so that the management can select
the right candidate from this pool.
b) Job Analysis and Design 
Job analysis is the process of describing the nature of a job and specifying the human
requirements like qualification, skills, and work experience to perform that job. Job
design aims at outlining and organizing tasks, duties, and responsibilities into a single
unit of work for the achievement of  certain objectives.
c) Performance Appraisal 
Human resource professionals are required to perform this function to ensure that the
performance of employee is at acceptable level.
d) Training and Development 
This function of human resource management helps the employees to acquire skills
and knowledge to perform their jobs effectively. Training and development programs
are organized for both new and existing employees. Employees are prepared for
higher level responsibilities through training and development.
e) Wage and Salary Administration 
Human resource management determines what is to be paid for different type of jobs.
Human resource management decides employees compensation which includes -
wage administration, salary administration, incentives, bonuses, fringe benefits, and
…etc.
f) Employee Welfare 
This function refers to various services, benefits, and facilities that are provided to
employees for their well-being.
g) Maintenance 
Human resource is considered as asset for the organization. Employee turnover is not
considered good for the organization. Human resource management always try to
keep their best performing employees with the organization.
h) Labor Relations 
This function refers to the interaction of human resource management with employees
who are represented by a trade union. Employees comes together and forms an union
to obtain more voice in decisions affecting wage, benefits, working condition, etc.,.
i) Personnel Research 

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Personnel researches are done by human resource management to gather employees'

opinions on wages and salaries, promotions, working conditions, welfare activities,
leadership, …etc. Such researches helps in understanding employees satisfaction,
employees turnover, employee termination, …etc.
j) Personnel Record 
This function involves recording, maintaining, and retrieving employee related
information like - application forms, employment history, working hours, earnings,
employee absents and presents, employee turnover and other data related to
employees.

3- The Advisory Functions of Human Resource Management are as follows: 

Human Resource Management is expert in managing human resources and so can
give advice on matters related to human resources of the organization. Human
Resource Management can offer advice to:
a) Advised to Top Management
Personnel manager advises the top management in formulation and evaluation of
personnel programs, policies, and procedures.
b) Advised to Departmental Heads
Personnel manager advises the heads of various departments on matters such as
manpower planning, job analysis, job design, recruitment, selection, placement,
training, performance appraisal, etc.iv

Scope of Human Resource Management

Human resources are undoubtedly the key resources in an organization, the easiest
and the most difficult to manage! The objectives of the HRM span right from the manpower
needs assessment to management and retention of the same. To this effect Human resource
management is responsible for effective designing and implementation of various policies,
procedures and programs. It is all about developing and managing knowledge, skills,
creativity, aptitude and talent and using them optimally.
Human Resource Management is not just limited to manage and optimally exploit
human intellect. It also focuses on managing physical and emotional capital of employees.
Considering the intricacies involved, the scope of HRM is widening with every passing day.
In other words, we can say that it’s about developing and managing harmonious
relationships at workplace and striking a balance between organizational goals and individual

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goals. The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to
define it concisely. However, we may classify the same under following heads:
1- HRM in Personnel Management
 This is typically direct manpower management that involves manpower planning, hiring,
training and development, induction and orientation, transfer, promotion, compensation,
layoff and retrenchment, employee productivity.
 The overall objective here is to ascertain individual growth, development and effectiveness
which indirectly contribute to organizational development.
 It also includes performance appraisal, developing new skills, disbursement of wages,
incentives, allowances, traveling policies and procedures and other related courses of actions.
2- HRM in Employee Welfare
 This particular aspect of HRM deals with working conditions and amenities at workplace.
This includes a wide array of responsibilities and services such as safety services, health
services, welfare funds, social security and medical services.
 It covers appointment of safety officers, making the environment worth working, eliminating
workplace hazards, support by top management, job safety, safeguarding machinery,
cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits,
employment injury benefits, personal injury benefits, maternity benefits, unemployment
benefits and family benefits.
 It also relates to supervision, employee counseling, establishing harmonious relationships
with employees, education and training..
 In addition to this, it also takes care of canteen facilities, crèches, rest and lunch rooms,
housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

3- HRM in Industrial Relations:

 Since it is a highly sensitive area, it needs careful interactions with labor or employee unions,
addressing their grievances and settling the disputes effectively in order to maintain peace
and harmony in the organization.
 It is the art and science of understanding the employment (union-management) relations, joint
consultation, disciplinary procedures, solving problems with mutual efforts, understanding
human behavior and maintaining work relations, collective bargaining and settlement of
disputes.

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 The main aim is to safeguarding the interest of employees by securing the highest level of
understanding to the extent that does not leave a negative impact on organization.
 It is about establishing, growing and promoting industrial democracy to safeguard the
interests of both employees and management.v

Factors that Affect Organizations' HR Practices

To help ensure success of organizational goals, human resources departments must be
business partners at a strategic level. In some cases, company managers may consider HR
professionals as a roadblock to get around and not respected as informed decision makers.
Therefore, it is increasingly important that HR professionals recognize some of the factors
that affect their ability to contribute effectively.
1. Technology
Although there are many advantages to modern technology, one major factor to consider for
HR is the work-life conflict for technical employees. With the advent of pagers, cellphones,
tablets and laptops, employees could be on the job even if they are away from the office. It is
incumbent upon HR departments to develop practices that encourage a healthy balance
between work and social life.
2. Budget
Viewing HR as a non-revenue generating department can lead to a low budget allocation for
HR activities. However, with little money for training and recruiting, retaining good
employees may be more difficult. Companies also may choose to outsource certain functions,
such as payroll, resulting in a loss of direct control of the payroll process.
3. Employee Loyalty
An August 2011 study conducted by Cornell University's Center for Advanced Human
Resource Studies reports that appreciated employees, recognized for performance, provided
challenging assignments and obtaining promotions based on contribution and performance
may be more likely to remain loyal to the company. HR practices encouraging open-door
policies, candid communication, morale building activities and problem-solving solutions
represent a commitment to employee satisfaction.
4. Senior Leadership
HR departments may set policies based on senior management input, but if senior managers
believe that HR professionals are not educated in certain areas such as finance, budgets and
operations issues, HR can be the last to know about implemented policies. Attempts from HR

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for involvement in the decisions affecting policies and procedures sometimes can be ignored,
leaving HR to enforce policies that may negatively affect employee morale.vi

Tasks Performers at the HRM

The person or units who perform the HRM tasks have changed dramatically in recent
years. This restructuring has often resulted in a shift in who carries out each function, not an
elimination of the previously identified HR functions. Some organizations continue to
perform the majority of HR functions within the firm, and some HR tasks Can performed
more efficiently by line managers or outside vendors .
As a shift is made from Human Resource Manager (an individual who normally acts
in an advisory or staff capacity, working with other managers regarding human resource
matters),
in allocating who will perform the human resource function, many HR departments continue
to get smaller because others are now accomplishing certain functions.vii

The Importance of HRM for Organizational Success

 Human Resource Management (HRM) is the integrated use by an organization of
systems, policies and management practices to recruit, develop and retain employees who
will help the organization meet its goals.
HRM plays an important role in assuring employee satisfaction, improving
performance and productivity. This can further an organization’s competitive advantage, and
directly contribute to the organization’s success.
HRM provides managers with skills and tools to enhance their own performance and
the performance of their employees. By using these tools and working closely with HR
professionals, managers can help build their employees’ capabilities and strengthen employee
commitment to the organization. This in turn will strengthen individual and organizational
performance, and further the organization’s ability to meet its goals according to performance
objectives and standards. That’s why HRM gained its importance over last few decades.
Managers now can realize that the effectiveness of HR function has a substantial impact on
the bottom line performance of the organization.
HRM contributes to Organizational success by ensuring:
1- Recruitment and selection of best qualified candidates
2- Resolving increased legal complexities
3- Improving productivity and
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4- Minimizing cost.viii

10 Reasons HR Is Important to an Organization

1. Strategic Management

HR improves the company's bottom line with its knowledge of how human capital affects
organizational success. Leaders with expertise in HR strategic management participate in
corporate decision-making that underlies current staffing assessments and projections for
future workforce needs based on business demand.

2. Wages and Salaries

HR compensation specialists develop realistic compensation structures that set company

wages competitive with other businesses in the area, in the same industry or companies
competing for employees with similar skills. They conduct extensive wage and salary surveys
to maintain compensation costs in line with the organization's current financial status and
projected revenue.

3. Analyzing Benefits

Benefits specialists can reduce the company’s costs associated with turnover, attrition and
hiring replacement workers. They are important to the organization because they have the
skills and expertise necessary to negotiate group benefit packages for employees, within the
organization's budget and consistent with economic conditions. They also are familiar with
employee benefits most likely to attract and retain workers. This can reduce the company’s
costs associated with turnover, attrition and hiring replacement workers.

4. Safety and Risk Management

Employers have an obligation to provide safe working conditions. Workplace safety and risk
management specialists from the HR area manage compliance with U.S. Occupational Safety
and Health Administration regulations through maintaining accurate work logs and records,
and developing programs that reduce the number of workplace injuries and fatalities.
Workplace safety specialists also engage employees in promoting awareness and safe
handling of dangerous equipment and hazardous chemicals.

5. Minimizing Liability Issues

HR employee relations specialists minimize the organization's exposure and liability related
to allegations of unfair employment practices. They identify, investigate and resolve

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workplace issues that, left unattended, could spiral out of control and embroil the
organization in legal matters pertaining to federal and state anti-discrimination and
harassment laws.

6. Training and Development

HR training and development specialists coordinate new employee orientation, an essential

step in forging a strong employer-employee relationship. The training and development area
of HR also provides training that supports the company's fair employment practices and
employee development to prepare aspiring leaders for supervisory and management roles.

7. Employee Satisfaction

Employee relations specialists in HR help the organization achieve high performance, morale
and satisfaction levels throughout the workforce, by creating ways to strengthen the
employer-employee relationship. They administer employee opinion surveys, conduct focus
groups and seek employee input regarding job satisfaction and ways the employer can sustain
good working relationships.

8. Recruitment and Onboarding

HR recruiters manage the employment process from screening resumes to scheduling

interviews to processing new employees. Typically, they determine the most effective
methods for recruiting applicants, including assessing which applicant tracking systems are
best suited for the organization's needs.

9. Hiring Processes

HR professionals work closely with hiring managers to effect good hiring decisions,
according to the organization's workforce needs. They provide guidance to managers who
aren't familiar with HR or standard hiring processes to ensure that the company extends
offers to suitable candidates.

10. Maintaining Compliance

HR workers ensure that the organization complies with federal state employment laws. They
complete paperwork necessary for documenting that the company's employees are eligible to
work in the U.S. They also monitor compliance with applicable laws for organizations that
receive federal or state government contracts, through maintaining applicant flow logs,
written affirmative action plans and disparate impact analyses.ix

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HRM Important for all Managers

The remit of the Human Resources department encompasses an entire organization and plays
an increasingly important strategic role. As well as that, it is also an invaluable resource for
time-poor managers who can rely on HR professionals for a wide variety of tasks.
This broader range of responsibilities, as well as a deeper understanding of an organization’s
most important asset – its people – means the HR department has emerged as a true support
for all managers. Here are four critical areas where HR management helps managers.     
1. Oversee staff recruitment
This is a key area where HR helps managers. The HR oversees the recruitment process, from
the initial job posting, setting of salary and benefits package and screening of applicants to
scheduling and participating in interviews. The HR team can take the burden off management
in these early stages by filtering down the applicants to a select few through various methods,
including interviews and assessments. HR staff have the necessary experience to identify
qualified candidates who are best suited to the organization. 
They will also be well vetted in standard hiring processes and will have the knowledge to
complete any necessary paperwork. At the latter stages, managers can become involved in the
interviews, confident that they are speaking with the top candidates for the job. This saves
managers considerable time and effort and ensures that offers are being made to the most
suitable candidate for the job. 
2. Complete induction of new employees
The HR team also oversees the onboarding of new staff, ensuring they are brought up to
speed on the organizational structure, specific corporate guidelines and ways of working.
They will typically conduct induction with new staff, helping them to become familiar with
their role and the wider organization. Again, this is a significant help for managers, not only
do they save the time in familiarizing new staff, they will also know that new employees who
have completed HR onboarding will understand the way in which the company works, and
what is expected of them. This ensures new employees hit the ground running and managers
can take over, guiding them on the specific aspects of their role.  
3. Focus on employee satisfaction 
The HR department plays an important role in this area: HR specialists work with managers
to create training and development programs that are essential to fostering a good employer-
employee relationship, they guide managers on nurturing staff morale and satisfaction levels,
they act as the liaison between employees and an organization – organizing focus
groups, conducting employee surveys, assessing employee feedback on their role, their
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manager, the organization. In short, they work hard to promote employee engagement within
the organization and ensure that any hints of dissatisfaction are identified early so that a
resolution can be found. 
4. Ensure fair employment practices
The HR team also work to reduce an organization’s exposure to unfair employment practices.
This is an invaluable role, and a specialist one. Managers may not be aware of the finer
details of employment law, and not fully understanding the minutiae, they could fall foul of
legislation. The HR team will have a specialist who works to identify, investigate and resolve
workplace issues that, if unnoticed, could see an organization running afoul of anti-
discrimination or harassment laws.x

HRM Contribute to the Success of Organization

Human resource management concerns itself about humans in the firm. It has
developed from the personnel department. The main idea of HRM is to distribute the
functions of personnel department over a large amount of people making everybody
responsible for something and decreasing the costs.
The human resource management is very useful for firms to achieve their goals.
It helps firm to improve its performance by authorizing the right people of doing some
exercises (production man. knows better how to train new workers than people in a separate
HRM office).
It helps the firm to increase the motivation f its workers, thus increase the performance. The
main idea here is to make firm goals to individual ones.
One very important thing is also finance. HRM deals with wages etc. (Line managers know
better whom to pay extra bonuses). HRM helps to save a great deal of money and already its
developing instead of personnel dept. saved money.
HRM helps to develop organisation structures, because they have usually overview of the
whole business. This point cannot usually be transferred to individuals and it's very important
to business in the long term.
It helps also to improve productivity. Its tasks include training, induction, recruitment, job
description and redundancy, which all help to make the product better, thus increasing
consumers' satisfaction. All these determine the goodwill and reputation of the company.
HRM is included in record keeping, which helps the company with taxes and increases its
performance (the data can be found quickly).

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As seen HRM helps businesses in many ways. It helps to save money and increase the
reputation of the business. It deals with one of the most important things in business - with its
work force. So no firm can be without HRM and the better and more efficient it is the more
firm can benefit, by reducing its costs and increasing its goodwill.xi

Challenges and Issues in HRM

Human resource management (HRM) is adopted by many companies because of its
benefits. But at the same time, various challenges and issues may emerge in front of
managers of human resource department while performing their duties.
Any capable HR manager would work on these issues and challenges to prevent the
organizational activities from being obstructed. But they must first identify these issues. Such
issues and challenges are described here.
1.Recruiting new staff
Companies sometimes need to recruit new talent for various reasons such as an increase in
project scope, operations. While recruiting, HRM faces major challenges i.e. selecting the
best candidate and making the hired candidate familiar with the environment and culture.
HRM has to select such candidates which are not only technically expert but socially too
because the company cannot receive expected output from employees who are unable to
socialize. This affects the productivity of the company.
2.Retention
Hiring employees is not only the challenge that HRM faces; retaining them is also one.
Retention of employees is essential to minimize employee turnover rate. This is a major
challenge for HRM because of following reasons:
i. Contingent workforce
The contingent workforce includes part-time, temporary contract and work-at-home
employees. Maintaining such employees in the company is a challenge because they are less
attached to the company. So it becomes a major duty of HRM to make such employees feel
that they are a part of the company in order to retain them for a long term.
ii. Demand of expert employees
Personnel with greater professional and technical knowledge are highly demanded in the job
market as such employees have the ability to keep their company ahead in the race. Such
employees are an invaluable asset for any company and HRM should focus on maintaining
them.
3.Training
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Skilled workers are the key to the smooth functioning of the organization. Therefore, HRM
should manage on-site (within the workplace) as well as off-site (outside the workplace) job
training for employees.
So how is training a challenge to HRM? Before organizing training programs, HRM should
answer following questions:
 What kind of training programs are currently required?
 What is the objective of the training?
 How to make them effective?
 Who are the target groups?
 How much do the programs cost the company?
Not always, are these questions easy to answer. Finding out all the factors affecting the
training like time, location, cost, etc. and making a clear roadmap in establishing an impactful
event can be a big issue and working it out, a big challenge.
4.Productivity
Maximizing profit and minimizing cost is the essence of productivity. Higher the productivity
level, more successful will be the company. HRM should always focus on maintaining high
productivity level.
Despite HRM’s continuous effort, the company might sometimes get an unsatisfactory result.
In such case, it should thoroughly analyze the situation and make a proper conclusion i.e.
whether it is the result of inefficient employee or inadequate resources. If an inefficient
employee is the case, HRM should look forward to train employee, or even recruiting new
staffs while it should find alternative resources for sufficient input if inadequate resources are
the case.
5.Health and safety
It is one of the essential functions of HRM to collect its staff’s complete information,
including health information. It is necessary for employee’s personal safety. Keeping health
information about employees help the company in knowing what kind of tasks or activities
are safe for their employees to participate in.
Maintaining health information is also necessary to avoid the risk of legal complications.
Several companies at present provide health insurance to its employees as a fringe benefit. In
lack of proper health information about employees, various legal issues may arise when such
insurance is claimed.
6.Workforce diversity

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The composition of the workforce is getting diverse at present situation. Here diversity is not
only created by age, gender, educational background and religion but also by the nature,
personality and background of workers.
With more diversification of workforce, issues related to bullying, harassment,
discrimination, etc. may arise, to control which HRM should formulate and implement strict
rules and regulations.
7.Payroll
Payroll is a written document which provides information about the company’s employees
along with the amount of remuneration to be paid.
HRM has to conduct a number of tasks every day. In this process, HR manager might forget
to pay its employees, if not then he can forget the amount to be paid to the individual
employee.
With proper maintenance of payroll, HR manager will be able to pay right amount to right
employee at right time, which is essential for extracting satisfactory output from employees.
8.Globalization
Globalization is a process by which a business firm or organization starts operating on an
international scale, creating international influence.
Internationalization of firms is obviously a Sign of Success but it is a challenge at the same
time because globalization invites issues related to unknown language, laws, work ethics,
attitudes, management approach, culture and tradition.
A human resource manager will need to deal with more heterogeneous functions such as
scheduling meetings, holiday management, human resource outsourcing, etc to overcome the
challenge.
9.Discipline
Discipline is one of the important issues that HRM needs to handle at present days. Lack of
discipline causes various problems which ultimately affect the productivity of the company.
For an instance, when discipline is not maintained, employees neglect their responsibilities
and duties. They may procrastinate their tasks and may misbehave with co-workers, leading
to a conflict that consumes time as well as energy to resolve. The ultimate result of these
activities is decreased productivity of the company.
10.Advancement in technology
With rapid advancement in technology, companies nowadays require such human force that
has the ability to learn and cope with the changes at an opportune moment.

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Technological changes must be taken into consideration by any kind of company. It is

because the present world demands every firm to move along with the change, or else be left
behind and get extinct.
Technological changes influence overall nature of work and the company will need to find
out employees that are capable to adjust with the change. During this process, unemployment,
as well as employment opportunities, arise, creating new challenges for HRM.
11.Management of information
Up-to-date information is essential for the operation of any company. Information may be
collected internally as well as externally. Once collected, all the information should be safely
maintained so that they would be readily available when needed in future.
On the other hand, information is also essential to clear queries of employees. HRM should
be able to present relevant facts and data while clearing such queries.
Managing any kind of information is a challenge to HRM because it should know which
information are actually useful and which are not. After distinguishing this information, it
should select such method of storing information which is safe as well as reliable.xii

Conclusion
At this research we have knew the different between HRM and HRD in a sense that
HRM is associated with management of human resources while HRD is related to the
development of employees. Human Resource Management is a bigger concept than Human
Resource Development. The former encompasses a range of organizational activities like
planning, staffing, developing, monitoring, maintaining, managing relationship and
evaluating whereas the latter covers in itself the development part like training, learning,
career development, talent management, performance appraisal, employee engagement and
empowerment.
The goal of any HR Manager should be to ultimately help their company become an
employer of choice and encourage employee engagement. It is not simple and does not
happen overnight but your company can build a reputation as an employer of choice.

18
 The Importance of Human Resource Management

Leadership and vision are required from those heading the company and for everyone to
actively make an effort. And the practice of HRM needs to be integrated with the overall
strategy to ensure effective use of people and provide better returns to the organizations.
Unless the HRM practice is designed in this way, the firms stand to lose from not utilizing
people fully. And this does not bode well. The scope of HRM is extremely wide, thus, cannot
be written concisely. However, for the sake of convenience and developing understanding
about the subject, we divide it in three categories mentioned in the research.
Finally, any organization should be aware of the challenges that may face and all the
employee at the organization, not only the human resource department, work as a unit to
achieve the goal of the organization and maintain its reputation without financial losses.

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19
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