Part-2 HRM: Importance, Functions of HRM and HR Manager’s role

Importance of Human Resource Management

The importance of Human Resource Management are as follows:

Importance for an enterprise

Human Resource Management help an enterprise in acheiving its goals in an efficient manner in several ways:

  • Attracting and Retaining the required talent through effective Human Resource Planning,Recruitment,Selection,Placement etc.
  • Utilising effectively the available human resources
  • Ensuring that enterprise will have in future a team of competent and dedicated employees.

Social Importance

Sound Human Resource Management has a great importance for society.It enhance the dignity of labour in following ways:

  • Providing suitable employment that provides social and psychological satisfaction to people.
  • Maintaining a balance between the jobs available and jobseekers in terms of number.
  • Eliminating the wastage of Human Resource .

National Importance

Human Resource and their management plays a vital role in the development of a nation.The effective exploitation and utilization’s of a nations natural, physical and financial resources require an efficient and committed manpower

Functions of Human Resource Management

The functions of Human Resource Management are as follows:

Managerial Functions

Managing people is the essence of being a manager.Like other managers, a human resource manager performs the functions of planning,organising,directing and controlling.

Operative Functions

The operative or service functions of a Human Resource Management are tasks which are entrusted on the personnel department .These functions are concerned with specific activities of procuring,developing,compensating, and maintaining an efficient workforce.

Compensation Functions

It refers to providing equitable and fair remuneration to employees for their contribution to the attainment of organisational objectives.It consists of activities like job evaluation,Wage and salary administration Bonus and maintainance functions

Role of Human Resource Managers

The role of Human Resource Managers are as follows:

Specialist and Counselor

A specialists HR manager advices the different functional heads on various aspects of personnel function such as manpower planning,recruitment,selection,orientation,training,appraisal,compensation,etc.

Liaison Man

He coordinated the personnel activities of various departments.He serves as connecting link.He acts as a linking pin between different departments of an organisation.


The HR manager assists line managers in effective execution of personnel policies and programmes.The personnel matters of the organisation remain under his control

Problem Solver

He is problem solver in respect of issues involving Human Resource Management.In union management relations he acts as a fire fighter as a shock absorber

Strategic partner

It is an important role in which he aligns HRM Strategies to business strategies,so that the company can execute its competitive strategies.part-3 is here.

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