The importance of human resource management in an organization

The Importance Of Human Resource Management In Any Organization

Rarely have HR teams and executives been given the appreciation they deserve, despite playing one of the most influential roles required for an organization’s success.  

Imagine, walking into your office tomorrow and instead of a calm buzz of the morning, there is a chaotic frenzy about how things should be run?

Or, imagine your employees exceeding their leaves and still receiving their full salary.

Or, that new hire who’s joined and has no idea what to do next?

This is where your HR team takes the pressure of worrying about these things of you by being the silent enforcer to make sure the culture is maintained, payouts are made without errors, and the entire organization is aligned towards a common goal. And, it’s not limited to just that. Below I’ve mentioned 10 reasons why your HR team is critical to your organization.

  1. Align everyone towards a common goal.

    An organization’s success is never the result of one man’s hard work but, the joined effort of each and every member of the team. Though a founder or a team of founders establish the vision of the organization, it needs every member to work hard consistently to reach the goal. While it’s easier to align a smaller team to a common goal, it gets increasingly hard as a team starts to grow.

    Your HR team is who makes sure that no matter the headcount within the organization all team members are aligned towards the organization’s vision and wholeheartedly believe in it.  

  2. Hiring the right talent.

    Just as important it is for everyone to believe in the bigger vision, it is to hire the right talent who could take your organization to new heights. And, it’s the responsibility of your HR team to hire the right employee.

    From the posting of job openings to scanning resumes to scheduling interviews to presenting an offer letter, your HR team is involved at every step to ensure a smooth hiring process. Your HR team is also responsible to gauge whether a new hire would be a good cultural fit for the organization as no organization would want to hire someone whose beliefs are not aligned with those of the organization’s.

  3. Training and development of new hires.

    Once a new hire is on-boarded, he/she needs to be given adequate training to get to speed with their job responsibilities. This training entails operation of the company, policies followed, and any/all training required in their field of work.

    The onus of developing a training program that’s effective, not too long and profitable to the organization is on your HR team.

  4. Creating a happy and healthy work culture.

    Culture, in a nutshell, can be defined as your organization’s personality. It is the sum of your organization’s vision, beliefs, behaviors, and interactions. And, at any cost, any business owner or CEO would want to avoid building a culture that’s toxic and demoralizing for its employees.

    It is the responsibility of your HR team to make sure that the culture is always maintained and enforce practices that ensure your employees are constantly engaged, motivated and thrive in your organization.

  5. Resolving conflicts between employees or employees and management.

    As mentioned earlier, at any cost you wouldn’t want your organization’s culture to turn toxic and make it harder for people to be productive, and conflicts are a sure way to make the atmosphere sour.

    It is the responsibility of your HR team to address any conflicts between internal team members and resolve them in a swift and just manner, to ensure employee morale is not diminished, and no employee feels they’ve been done wrong by.

  6. Managing employee perks and benefits.

    While there are many factors that influence your employees’ morale and motivation, providing them with benefits that make their lives simpler and better, is a sure way to make them feel cared and valued.

    Your HR teams, therefore, finalize the required employee benefits for your organization and how your employees could use them. Furthermore, these benefits need to be regularly upgraded or changed to cater to your employees changing needs.

  7. Guaranteeing appropriate and fair performance reviews.

    I’m sure, just like me, you would have come across friends or colleagues who’ve been highly demotivated after a performance review. After working hard all year round, to recognize what they had done wasn’t adequate or required, is certainly demoralizing.

    Your HR team needs to make sure your employee goals are well defined and communicated to the employees. On the basis of these goals, your HR team needs to evaluate the employees during the appraisal cycle and provide appraisals accordingly.

  8. Proper and effective tracking of employee leave and attendance.

    Imagine one of your employees taking over a week of holidays spread across the month yet ends up receiving his full pay, in such a scenario your business incurs a loss every day your employee was on leave and on the overpaid salary.

    Therefore, ensuring there are no errors in tracking employee attendance/leaves and the onus to achieve that is on your HR team. While manual tracking of attendance can still be done at a smaller scale, it would be impossible to track attendance of 1000+ employee scattered across locations or even 50 employees for that matter of fact, equipping your HR team with a powerful HRMS can help simplify their task as well. Even if your team size is small today, automating attendance and leave management can simplify payroll processes which are linked with employee attendance.

  9. Ensuring a smooth exit to employees leaving the organization.

    Just as critical it is for your HR team to ensure the talent is on-boarded efficiently, it is crucial to ensure all paperwork – experience certificate, relieving letter – are all in place.

    Your HR team needs to make sure all the required documents are in place at the time of your employee leaving and reduce the requests for particular documents after an employee leaves.

  10. Compliance with state and central regulations.  

    Finally, failure to comply with state and central statutory guidelines can leave your business vulnerable to punitive damages. These can further harm your business and increase your losses.

    Your HR team ensures your business is compliant with all necessary regulations and free of any vulnerabilities.


As evident, any organization that doesn’t have an HR team in place is bound to face troubles, then whether that be in hiring new talent or maintaining compliance or on deciding employee benefits. HR teams are an integral part of today’s workforce and critical to the success of any organization.

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