Importance of Human resource Management

Plant, Machine, Equipment, Financial, assets are no doubt important resource of any business organization but
its employees the human resource are particularly important for at least a number of reason. We discuss them
below one by one:-

First, human resource affect/influence the effectiveness and efficiency of organizations It is human beings that
is employees Who
 Design and produce the goods and service
 Control quality
 Market products
 Use and utilize financial and other resources to the benefit of the company
 And above all set goals, objectives, policies and strategic direction of the company

In short, without skilled and effective employees (human resources) it is simply impossible to achieve the
objectives of a business organization.
2nd, Human resources of a company account for about 20% to 50% of its total cost of doing business therefore
if human resources are not managed result ending in insolvency.
3rd, human resources have great effect on productivity of a company. If a garments factory takes training
program for its workers may benefit the company in the following way. Suppose each of 100 workers stays with
the company for five years. If each trained worker produces an extra tk.1000 of productivity per year then the
company gains in productivity may be as follows:-
100 employees × 5 years= 500 person years
500 persons years × benefit in productivity tk. 1000= 500×1000= tk. 500000
Thus we see that a single training program of employees can result in high gains to the company. It is clear that
man management is no less important than materials management

4th, Human Resources is not like other assets such as plant machinery and capital. It is unique human resource
are living beings they have choices expectation, likings and disliking. They expect equal and fair treatment they
dislike injustice and discrimination. For that reason government and law regulates employment rules payment
systems security and safety measures pension and retirement benefits etc.
5th, all types of executives have to perform some human resource management functions. They play roles in
selection training, motivating and disciplining the employees.

6th, recently a number of new problem in human resource management have appeared. These problem or
development are:-
a) Great changes in the nature of work
b) Availability of required manpower
c) Changes in workers expectations
d) Changing nature of organizations
e) Influence of cheaper immigrant workers
f) Increasing number of women workers
In western countries, there are workers or employees holding two full time jobs at a time. Many workers have
babies at home without mother or father to look after ( single parent family). Employees age composition
increasing showing an upward trend making training difficult for changing work and technology. HRM must
address these new problems. Finally, in an inflationary society of today, employees always try to minimum
employee cost by substitution of technology and capital equipments for employees. Machine takes the work of

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man. As a consequence the management, the employer has to innovate new manpower programs and work
design.

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