Physical and monetary resources, by themselves, cannot improve efficiency or contribute to an increased rate of return on investment.
It is through the combined and concerted efforts of people that monetary and material resources are harnessed to achieve organisational goals.
But these efforts, attitudes and skills have to be sharpened from time to time to optimise the effectiveness of human resources and to enable them to meet greater challenges.
3. Social, and
Good human resource practices can help in attracting and retaining the best people in the organisation.
Planning alerts the company to the types of people it will need in short, medium and long run.
HRM can help an enterprise in achieving its goals more efficiently and effectively in the following ways:
(a) Attracting and retaining talent through effective human resource planning, recruitment, selection, compensation and promotion policies.
(b) Developing the necessary skills and right attitudes among the employees through training.
(c) Securing willing co-operation of employees through motivation.
(d) Utilising effectively the available human resources.
Effective management of human resources helps to improve the quality of work life. It contributes to professional growth in the following ways:
(a) Providing maximum opportunities for personal development of each employee.
(b) Allocating work properly and scientifically.
(c) Maintaining healthy relationships between individuals and groups in the organisation.
Sound human resource management has a great significance for the society. The society, as a whole, is the major beneficiary of good human resource practices.
(a) Employment opportunities multiply.
(b) Scarce talents are put to best use.
(c) Organisations that pay and treat people well, always race ahead of others and deliver excellent results.
(d) A balance between the jobs available arid job seekers in terms of numbers, qualifications, needs and aptitudes is maintained.
(e) Provides suitable employment that gives social and psychological satisfaction to people.
Human resources and their management play a vital role in the development of a nation. There are wide differences in development between countries with similar resources due to differences in the quality of their people.
Rate of development in a country depends primarily on the skills, attitudes and values of its human resources.
Effective management of human resources helps to speed up the process of economic growth which in turn leads to higher standards of living and fuller employment.