Importance of Human Resources Management

20 Aug 2015

Human resources is considered one of institution’s most important assets, A lot of money spent on developing it for it’s great importance in achieving the institution’s goals. Nowadays in the era of technical development, HR represents a huge part of the assets, where it reaches more than 80% in IT companies, for that, senior management gives HR great attention and spends massive budgets annually on its development, to help eventually in growing and achieving the institution’s goals.

Human resources definition

The simplest definition for Human Resources is the set of individuals who make up the workforce of an organization. However, human resources management is a functional department within the organization that focuses on everything related to managing individuals, and it’s an independent department such as any other department like technical support, procurement, etc.

The importance of having human resources management

Institution wouldn’t be able to build a team of professionals without having a competent HRM department, and those who run HRM department must deal with employees as a value and assets for the organization not liabilities, dealing with an employee as one of the company’s assets makes the human capital management process much easier as well as human resources management.

The role of Human resources management

handles many tasks, the most important are:

  1. Jobs analysis (description and specification).
  2. Planning the institution’s needs of workforce.
  3. Recruiting new staff members.
  4. Training and guiding new staff members.
  5. Wages and salaries.
  6. Rewards and incentives.
  7. Performance evaluation.
  8. Development and training.


What is the solution for not having Human resources management within the organization?

Having a Human resources management within the organization means having experiences and competencies in this field, consequently spending high costs and salaries monthly for this purpose.

Outsourcing is the solution

Human resources management outsourcing is considered the perfect solution for small organizations, where it could get distinguished services from great experts with limited contracts and lower costs, outsourcing in HRM is preferred over recruiting special staff in HRM for a certain period then laying them off, the thing that would increases the turnover rate and therefore gives a bad evaluation which effects it’s future image.

  HRM position in the organizational structure

Human resources management occupies an important position within the organizational structure, where it diverges and interferes with all the different departments, and characterized by its direct correlation with the senior management, in the medium and large organizations HRM is divided to several divisions, such as training division and development division.


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