Importance of HR Function in Organizations 

Business Organizations should be aware of the HR functions that allow the organization to run smoothly

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Human resources management evolved from the task-oriented nature of personnel administration in the 1980s and 1990s to a strategy-focused extension of the organization in the 2000s. 

The transition into a strategic partnership role supports an effective HR management system. HR management is driven by HR functions and several HR principles.

Human Resource Management (HRM) is a collective term for all the formal systems created to help manage employees and other stakeholders within a company. 

Each organization has its human resources, which should be managed effectively because the success of the organization in the competitive environment is dependent on human resource factors. Other resources (financial, technological, and so on) are common to almost every organization. 

The HR department plays a central role in managing the employees of the organization. For this purpose, it performs key functions of HRM. 

Businesses should be aware of such functions: Employment, recruitment, selection, training and development, employee services, salary and wages, industrial relations, health and safety, education, working conditions, appraisal and assessment, compensation and benefits, employee and labour relations, and human resource research.  

The HR department thrives on specific principles.


One aspect that the HR department tries to deal with is job security. To guarantee job security, many employees know that they need to show commitment to the company and their job duties.

The HR management implements measures that ensure that staffing levels correspond to the company’s needs, and in the process, assure employees of their long-term positions within the organization. 


The success of a firm depends on the competence of its employees. The HR department tries to sustain workforce competency by providing training opportunities.

It also schedules orientation programs, which provide avenues to enlighten new employees on a company’s mission and objectives.


Firms must ensure that they compensate their workers accordingly. The worker reward system must be able to sustain the firm or the organization.


All methods undertaken by an organization or a company in the management of human resources should be in consonance with the firm’s vision and mission. In like manner, Human resource managers must direct their concentration on what the firm needs and the abilities of its employees.


This covers the efficient management of all aspects of the individuals working, keeping in consideration that human resources are actually the most essential resource the firm possesses.

In other words, in terms of health, financial needs, or transportation, anything that workers require must be properly taken care of. 

Recruitment to retirement

HR is all about dealing with employees from recruitment to retirement. It includes manpower planning, selection, training and development, placement, wage and salary administration, promotions, transfers, separation, performance appraisal, grievance handling, welfare administration, job evaluation, merit rating, and exit interview.

People behind the machine count -- previously, it used to be the machine behind the people that counted. Today, people are the real power to drive organizations forward. Machines only assist people. 

Hire for attitude, recruit for skills 

Attitude is the key to employee engagement and success. Hence, HR leaders must emphasize attitude rather than experience. It is better to hire a new job-seeker with a good attitude and no experience, than one with a rotten attitude and years of experience.

Appreciate attitude but respect intelligence 

It is true that both attitude and intelligence are essential to improving the organizational bottom line.

If HR leaders find it is tough to get both, they should choose attitude over intelligence, as it helps accomplish organizational goals and objectives.

Hire slow, fire fast

HR leaders must be slow in hiring the right talent for their organizations. They must look for the right mindset, skill set, and tool set in job seekers during recruitment.

If they find that bad apples entered into their basket, they must be removed quickly to contain further damage to their organizations.

Shed complexity, wed simplicity

People today prefer to work in flat organizations rather than tall ones. Tall organizations often have hierarchies with a bureaucratic mindset that doesn’t work in the present context.

Staff are happy to work with partners rather than with bosses. So shed complexity and wed simplicity to achieve organizational excellence and effectiveness.

HR leaders are the masters in makers

HR leaders are masters of their trades, not jacks of other trades. They know everything about HR, but they don’t necessarily know much about other aspects in the organization.

CEOs are masters in their own domains and jacks of other domains. They are masters in their areas and know something about others areas. 

To serve is to lead and live 

HR leaders must serve people with pleasure without any pressure. They must become torch-bearers of human capital and knowledge. They must learn, unlearn, and relearn to stay relevant.

Human resource management does not just handle the recruitment of new employees; it also oversees other business-related matters for companies that want to downsize.