HR Knowledge

Free Letters

Importance of Human Resource or why are Human Resources Important in an organization?

The importance of Human resource in an organization is considered very high and effective management of people in an organization is the task which is always on priority. Managing the human resources is that part which develops the human aspects of the organization. They directly or indirectly contribute in achieving organizational goals and thus increases the importance of human resource. In other words, management of human resources is concerned with employee engagement at all levels.

In this article we will try to analyze how human resource importance is a significant part for an organization apart from its basic functions of recruitment, staffing, directing and organizing.

Why are human resources important?

Let us have a look at the importance of Human Resources in an organization at different level.

At the organizational level it helps achieve the goals and objectives. It ensures efficient and effective working environment through policies and certain set of rules. The main job of the HR is to hire talented and skilled workforce for the organization.  The answer why are human resources important is that the HR requires to sustain such workforce for a long period of time and avoid high labor turnover, the HR comes up with various things policies such as training and development, attractive salaries and compensation, incentives, promotion policies, etc.

The other human resources importance is to keep its employees happy and motivated. This happens through stress free work environment, various activities be it cultural, festive, sports or social ones for some change. For Example, Golden Hippo provides gyms with showers and lockers and also offers yoga and meditation classes to its employees. For those who can’t afford, fitness subsidies are given and the employees also have the freedom to explore other options. TripAdvisor provides 100% coverage on insurance and sees to every employee and its family are provided the medical attention they need.

Secondly, it also ensures that various positions are filled by the right and competent person. As we move up the hierarchy, no of positions decrease and responsibilities increase. A person who is capable of handling such work burden can only be moved up. And let us not to forgot its ultimately the job of hr to identify the right person, therefore increasing human resource importance from the smallest task to the biggest challenge. Hence, proper implementation and practicing of such policies can give the organization successful results, from organizational and individual perspective.

A person joins a company with certain basic expectations such as a good job in a reputed organization, good pay, healthy environment and for his personal growth and development.

First things first, HR tries to maintain the respect/dignity of every individual, certainly because people have emotions and cannot work as machines ignoring everything around them. It always tries to provide maximum growth opportunities to employees by identifying who is good at what work. Not necessary always in the form of promotions. It can be simply by offering the right person the right job.

It is a big group of people who work in coordination with each other to run the organization. As mentioned above, a person has emotions and these emotions can sometimes develop a disliking for something, unsatisfactory or conflict with the fellow worker. The role of HR is to see that every such aspect is covered in its policies and if not then has that capability to resolve them.

The concept of managing the human resources believes in effective and optimum utilization of its resources. Be it human or non-human resources. It helps build individual person to person relations ensuring proper communication and coordination in work. And also facilitates better relations between the union and the management.

When coordination is there among individuals, it helps to create better teams for projects. The team building work is also assigned to the HR; thus, increasing the overall importance of human resource management.

At the individual/professional, the other major importance of Human Resource in an organization is in introduction of technology. It is not always necessary that a highly skilled worker is always aware of the latest technology. HR becomes important here as it ensures swift introduction of anything new or a change. It will try to organize demo classes for a few days and motivate everyone to participate. It will also make sure that the new change is easily adaptable and collects feedback from individual employees to identify the time taken and response given by each one of them.

Nowadays, many foreign companies have started investing to different countries apart from their home country. The company might hire the foreign national, but initially will always transfer its most efficient and trustworthy employee for the higher position to streamline the working process. Such transfers take place through the help of hr, as they are always aware of individual talent and competencies and suggests accordingly to the organization. It will also help the employee to set up everything there through constant communication and coordination in-sync with other departments as well.

Thus, such helpful natures of the HR department increases its utmost importance even at the individual level and that is why are human resources important.

By recruiting a talented workforce, and with training and development master them into various skills, the HR department creates an asset of skilled workforce for the nation which increases the human resource importance in an organization. It is like a growth process. Strong economies see a contribution from big multinational companies who have a dedicated workforce. As the company expands to other countries, it brings in foreign investments and contributes to FDI of the other nation.

For instance, in 2017 Apple announced it would invest a huge amount in china for research and development purposes. China is Apple’s third-largest market after its home country USA and Europe. This led to a rapid increase in the economies of USA and China and also provided employment to many of them. India receives huge investments in industry and infrastructure from Canada thus boosting its FDI growth.


Coming to the conclusion, the maintaining the importance of human resource in an organization is a need of an hour because it provides jobs to eligible candidates, provides them suitable and productive employment, utilizes the resources to the fullest, it also eliminates improper usage of resources, help people in individual growth and development and overall boosts the growth of the organization and of the nation at the bigger level. One can say HR and HR Policies plays a crucial role in almost every aspect in the role of an employee and working of the organization to contributing to nation’s economy.

Subscribe for Newsletter


Learn more about Sub Category


01 Dec, 2023
Career & Education
Starting a New Career

New Beginnings: Strategies for Starting a New Career  Introduction It can be exciting when you want to start a new career. ...Read More

01 Dec, 2023
HR Process
Measuring Onboarding Experienc...

Beyond First Impressions: Measuring Onboarding Experience for Performance Review Insights Onboarding is a pivotal transitional ...Read More

29 Nov, 2023
Human Resource
Difference between HRD and HRM

Difference between HRD and HRM While HRM (human resource management) is an established and essential discipline within the real...Read More

20 Nov, 2023
Performance management
Best Performance Management Sy...

Best Performance Management System for Small Business and Startup Companies Small business companies and startups come across m...Read More

17 Nov, 2023
Human Resource
Integrating Work-Life Balance ...

Integrating Work-Life Balance to Support Talent Retention A health work-life balance is important for the well-being and job sa...Read More

19 Oct, 2023
HR software & Technology
Human Resource Software for Sm...

Best Human Resource Software for Small Business and Startups Running a business is not as simple as it seems to be. Situations ...Read More

13 Sep, 2023
Letter Writing
How to Write a 2 Week Notice &...

How to Write a 2 Week Notice & What Does it Means In a professional world, "Two weeks notice is a most commonly used term which...Read More

28 Jun, 2023
Jobs & Recruitment
Best Job Sites in India

Best Job Sites in India 2023 for Job search & Job Post In today's competitive job market, finding the right job can be a da...Read More

27 Jun, 2023
HR software & Technology
Mastering the Art of Virtual A...

Mastering the Art of Virtual Assistance: A Guide to Becoming a Successful Virtual Assistant In today digital age, the demand fo...Read More

23 Jun, 2023
Organization Culture
The Secret of Getting Honest E...

The Secret of Getting Honest Employee Feedback I was at a coffee shop with a friend. She started the conversation with: “I’...Read More

19 May, 2023
Human Resource
Looming Layoffs? Stay in Contr...

Looming Layoffs? Stay in Control with These Job Survival Strategies from Experts Are you feeling the heat at work? Are your col...Read More

26 Apr, 2023
Human Resource
Why Do Employees Leave Their J...

Why Do Employees Leave Their Jobs? The Resignation of employees quitting their jobs in search of power position and money conti...Read More