Human Resource Management, Functions, and Importance

Human resource management (HRM) is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns (Dessler, 2014).

Human resources management is part of management as a process. The management as a process takes care of the five basic functions of management as listed below:


Functions of management

Planning. Establishing goals and standards; developing rules and procedures; developing plans and forecasting.

Organizing. Giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; coordinating subordinates’ work.

Staffing. Determining what type of people you should hire; recruiting prospective employees; selecting employees; training and developing employees; setting performance standards; evaluating performance; counseling employees; compensating employees.

Leading. Getting others to get the job done; maintaining morale; motivating subordinates.

Controlling. Setting standards such as sales quotas, quality standards, or production levels; checking to see how actual performance compares with these standards; taking corrective action, as needed.

Functions of Human resource management (HRM)

Conducting job analyses

Planning labor needs and recruiting job candidates

Selecting job candidates

Orienting and training new employees

Managing wages and salaries (compensating employees)

Providing incentives and benefits Appraising performance

Communicating (interviewing, counseling, disciplining)

Training and developing managers Building employee commitment


Importance of Human Resources Management

Human resources management helps the management to avoid the following mistakes:

Hire the wrong person for the job

Experience high turnover

Have your people not doing their best

Waste time with useless interviews

Have your company taken to court because of your discriminatory actions

Have your company cited under federal occupational safety laws for unsafe practices

Have some employees think their salaries are unfair relative to others in the organization

Allow a lack of training to undermine your department’s effectiveness

Commit any unfair labor practices


The president of one company had to say this concerning human resource management………

For many years, it has been said that capital is the bottleneck for a developing industry. I don’t think this any longer holds true. I think it’s the workforce and the company’s inability to recruit and maintain a good work force that does constitute the bottleneck for production. I don’t know of any major project backed by good ideas, vigor, and enthusiasm that has been stopped by a shortage of cash. I do know of industries whose growth has been partly stopped or hampered because they can’t maintain an efficient and enthusiastic labor force, and I think this will hold true even more in the future

Due to intense competition, the HRM managers use the human resources strategy to boost their competition



Dessler, Gary. Human Resource Management, Student Value Edition, Pearson; 14 edition (January 16, 2014)