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Human Resources Management - An Overview

Significance of HRM - An Overview

   Posted On :  30.05.2018 07:39 am

Human resources are the most precious asset of an organization. They are the activators of non-human resources, means for developing competitive advantages and sources of creativity.

Significance of HRM
 
Human resources are the most precious asset of an organization. They are the activators of non-human resources, means for developing competitive advantages and sources of creativity. Ghoshal outlines the role of HRM in managing an organization in the following lines.
 
“Indian Companies have spruced up their strategic thinking; they have even moved a generation ahead with their organisations. But they still have managers who have been shaped by old models. They are essentially a group of first generation managers whose definitions of roles and tasks, personal skills and competencies, ideas and beliefs about management have been shaped by an earlier model. You cannot manage third generation strategies with second generation organizations and first generation managers to meet the needs of second generation organisations and third generation’s strategic thinking.
 
The above view indicates the role of HRM in Indian industry. Significance of HRM can be viewed in three contexts; organizational, social and professional.

Organizational significance


1. Effective utilization of human resources to motivate them and to change their attitudes to work and the organization.

2. To develop personnel to meet the demands of the work effectively; and

3. To ensure proper recruitment and to retain the personnel in the organization so that right people are available.

Social significance


This aspect aims in achieving the need satisfaction of personnel in the organisation. It is often said that a happy worker is not only happy in his work place but also at home and in society also.
 
Hence HRM seeks to achieve the following

1. Maintaining balance between jobs and job-seekers, taking into consideration job requirements, job seekers’ abilities and aptitudes

2. Providing most productive employment from which socio-psychological satisfaction can be derived.

3. Utilizing human capabilities effectively and matching with government rewards.

4. Eliminating wasteful organizational and individual practices.

Professional Significance


This aspect involves developing people and providing appropriate environment for effective utilization of their capabilities and involves the following.

1. Developing people on a continuous basis to meet the challenges of their jobs.

2. Maintaining the dignity of personnel at the work place.


3. Providing proper physical and social environment at the work place to create a congenial working atmosphere.

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