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Management Essay on Importance of Human Resource Functions

Importance of Human Resource Functions


Human resource management outlines different practices of management that lead to utilization of the value of company employees. It can also mean an organized and logical way of managing workforce in a company and relationships that occur from regular interactions amongst them. HR management idea is becoming increasingly important as many companies are investing in their employees as a way of maintaining exceptional abilities while devising effective and efficient hiring process of talented personnel (Yeung, 2004).

Through effective human resource management, organizations are in a position to control workers turnover and in the end, it leads to reduced hiring and training of new work force related expenses. To ensure successful human resource practices, companies also need to plan consistently, scrutinize and evaluate the requirements of the existing workforce. This is to ascertain any pressing issue that many prevent quality performance. This is similarly an indication that a company should gather sufficient resources to help its human resource team to effectively carry out their duties (Lawler &Boudreau, 2009).

The Importance of Various Human Resource Functions

Human resource management concept centers around effective achievement of different functions aimed at enhancing realization of an organization’s short and long term goals. Recruitment of employees and the selection process are vital functions assumed by human resource managers and they include choosing the best employees in an organization.

It also defines an organization and systematic strategy through which a company can identify and employ different individuals to replace outgoing employees or to fill in new positions. The process begins when a company realizes the need to hire  a person intended to fill in a vacant post and ends when the chosen individuals gets the position (Lawler & Boudreau, 2009).

Selection is additionally a very significant recruitment process component through which, an ideal candidate is selected from many applications to fill in a given position in an organization. To ensure maximum benefit is realized in the selection and recruitment process, the organization should always ensure an efficient, effective and just strategy is adhered to, to enable the company to employ competent workforce that is capable of accomplishing given duties effectively.

Such a move ensures that there is no wastage of resources in the organization and to reduce any if there is while enhancing the productivity of the organization. By employing an ideal selection and effective recruitment strategy, the organization will be in a position to cut down on employee replacement costs in the event where they are deemed to be ineffective in carrying out their duties (Mohrman, 2007).

This process also ensures that an organization employs whole round employees thus, enhancing flexible adjustment of company operations without sabotaging the workforce. The flexibility of employees similarly enable the company to embraced advanced technologies without incurring extra expenses, which, reduces expenditure level incurred by a company in an effort to utilize new advancements (Yeung, 2004).

Human capital resource utilization is also another component of human resource management. It is focused on utilizing employee’s full potential in an organization. Human capital resources refer to creativity, capabilities, skills and talents of employees that can bring forth monetary value to the company. Human resource management also enables companies to utilize their human capital efficiently to realize full potential and in the end help the company to achieve its long term goals (Yeung, 2004).

The practice also ensures that employees who are deemed to be crucial assets for the company are always in a position to deliver expected results to enhance productivity and profitability in the organization. This can also be realized by equipping employees with essential skills, via training on regular basis and offering them opportunities to further their educational experiences.

In return, such a move enables employees to offer their expertise and skills towards enhancing company profitability and productivity. Human resource capital utilization also gives an organization an opportunity to identify special talents amongst employees as well as abilities to ensure they are allocated duties based on their abilities and skills (Lawler & Boudreau, 2009). This would also prove that the company is a position to hire relevant skills as employees are assigned the most ideal roles to help them accomplish their duties easily while generating maximum benefits to the company.

Consumption of human capital resource also enables a company to arm effective individuals with ideal skills to maximize on their potential while cutting down on the number of unproductive personnel, which, also reduces costs related to having incompetent workforce by ensuring the organization only has few but efficient and skilled employees that contribute positively towards overall success of the organization (Mohrman, 2007).

Balancing the requirements of the larger company with that of individual employees is additionally a very crucial human resource manager’s function, which is in most cases tasked with ensuring smooth implementation of the practice. It also involves offering employees flexible operational shifts including accessing different types of leaves, time off work and working from home for those who wish to attend to personal matters (Yeung, 2004).

Research studies, have revealed that many companies are looking for effective ways to help them achieve the best results by ensuring employees are contended and happy. Hence, it makes many companies to create friendly working environments for employees as it is intended to motivate employees thus enabling the company to achieve productivity of the highest level.

Human resource managers on this note offer freedom to their respective employees to undertake their assignments based on preferred strategies, thus, allowing them to be flexible and highly innovative in accomplishing their duties (Lawler & Boudreau, 2009). Additionally, advising the leadership of an organization in all human resources aspects is also a crucial function of the human resource department. This is because it is designed to equip the leadership of the organization with better understanding of the dynamics of employees.

It equally enables the human resource management team to ensure the leaders are equipped with the right and quality knowledge relating to current trends as well as legal requirements of human resources that need to be adhered to ensure the company competes effectively in the industry. This also improves top management and organizational workforce relationships and in the end, it ensures accomplishment of assignments without any form of sabotage (Mohrman, 2007).

The role therefore enables an organization to employ the right measures that guarantee submission to legal requirements in relevance to employees. The organization will also be in a position to operate smoothly without any legal tussle. Top management is equally important in implementing different proposals recommended by human resources management with regard to the needs of employees.

It includes training, hiring and daily operational expenses of running the workforce. This calls for top management’s approval to help the human resources management team to accomplish its duties efficiently. This function of the human resources management also enables the leadership of a company to comprehend the best and ideal practices that should be employed in the organization to keep employees productive and motivated at all times. In return, it will increase dedication and devotion of employees in regards to their duties thus, enhancing their output ultimately (Lawler & Boudreau, 2009).

Another significant function of the human resource management is performance appraisal. It involves reviewing of employee performance on regular basis to determine whether they meet set targets or not. It also involves evaluation of present performance level in relation to anticipated levels; it allows an organization to recommend solutions where employees are endorsed to undergo training to enhance their performance while others are relieved their tasks (Susan, 2007).

Similarly, the company is in a position to recommend different awards for employees when their performance surpasses the expectations. It is a process that helps a company to adopt strategies of creating awareness amongst the employees of the organization’s goals and objectives as well as how they should enhance their performance continually.

It is also a function that enables employees to work towards achievement of company goals and profitability, while seeking for the most significant ways of enhancing their personal growth or development (Lawler & Boudreau, 2009).


It is with no doubt that the human resource functions are focused on enhancing achievement of organizational goals. Hiring and selection of employees is a major function of human resources management that allows an organization to identify a person who will contribute positively to the success of the organization’s operations.

Human capital resources application is additionally another vital human resource management function that enables a company to explore competencies, abilities and talents of its workforce. Balancing organizational needs with that of the workforce enables employees to feel appreciated by the company thus, enhancing their performance.

It is also evident that organizational management needs to be aware of the most ideal practices that will help it to promote the performance of its employees in order to advance efficient strategies to enable it enhance the overall productivity of the company.



Lawler, E. E. III, & Boudreau, J. W. (2009). Achieving excellence in human resources management: An assessment of human resource functions. Stanford, CA, Stanford Business Books.

Mohrman, S. A. (2007). Designing organizations for growth: The human resource contribution. Human Resource Planning, 30(4): 50-75.

Yeung, A. (2004). Lower cost, Higher Value: Human resource Function in Transformation, Human Resource Planning, 17(3): 22-44.


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