Why are Human Resources Important? Planning and Management

By: Job Hai | December 6, 2022 4 min read
Why are Human Resources Important? Planning and Management

Human resources, or HR, is in charge of managing the employee life cycle. HR professionals oversee a variety of responsibilities that are essential to an organization’s performance. Whether you are an employee or manager, knowing the benefits of HR inside a firm will help you approach them for workplace difficulties, complaints, and challenges.

The human resources department of a company strives to increase employee satisfaction and engagement. According to HR, every employee should be able to work in a productive and healthy setting. As part of managing the employee life cycle, these professionals are in charge of recruiting, hiring, training, offering benefits, and resolving conflicts.

The importance of human resources to any organization can be demonstrated by the fact that it keeps employees happy and productive.

What are Human Resources?

The company’s department responsible for discovering, vetting, hiring, and training job applicants is known as human resources (HR). It also thinks about employee benefit plans.

Human Resources are crucial for organizations to cope with a fast-changing business environment and a rising demand for qualified people.

Read this: What is HR? Full Form, Salary and Functions of HR?

What is Human Resources Management?

Human resource management includes creating personnel policies and processes that support organizational objectives and strategic plans. Achieving this goal requires creating an environment where core values are reflected and equipping employees with the resources they need to be as productive as possible.

What is Human Resource Planning?

The continuous practice of proactively planning forward to make the most of a company’s most valuable resource—qualified employees—is known as human resource planning (HRP). Planning for human resources ensures the best possible match between employees and positions while preventing labor shortages or surpluses.

Planning for human resources enables companies to guarantee a steady stream of skilled staff. Businesses use the procedure to assess their needs and create plans for the future to meet those needs.

There are four crucial steps in the HRP process. They include assessing the labor market, forecasting future labor needs, achieving supply-and-demand equilibrium, and furthering organizational goals. Any company should consider investing in HRP because it allows for continuing profitable and effective operations.

Why are Human Resources Important?

Organizations use human resources for various purposes, including brand awareness and strategic planning. HR specialists with a range of expertise provide multiple services to employees in small organizations. The areas that HR still has control over can boost company operations while raising overall employee happiness.

Human Resources is important for the following reasons:

  • Planning Strategically
  • Pay and Benefits
  • Analysing Benefits 
  • Safety and Risk Management 
  • Minimizing Liability Issues
  • Training and Development 
  • Employee Satisfaction 

Human Resource Interview Questions 

What do you understand by Human Resources?

Human resources refer to a department within a business that handles all matters relating to employees (HR). Finding, selecting, onboarding, training, promoting, rewarding, and dismissing employees and independent contractors are also included.

What do you mean by Human Resource Management?

All formal methods created to aid in managing stakeholders inside a firm, including employees, are collectively referred to as “human resource management” (HRM). The three primary duties of human resource management are labor assignment, pay, and recruitment.

What is the need for Human Resource Planning?

Human resource planning, which aids organizations in having the correct mix of personnel in terms of accessible skill sets and employee numbers, allows human resource managers to anticipate and develop the abilities that are most beneficial to their firm and satisfy staffing needs. By cultivating a talent pool of people qualified to occupy leadership positions, good planning also paves the way for future progress.


Employing a specialized HR consultant is not a luxury but rather a need for SMEs. Entrepreneurs occasionally begin their businesses by taking on the role of HR, but managing HR and the complexities of employment law takes a lot of time and can be expensive for the business when something goes wrong.


Q1: What do you mean by Human Resources?

A. Human resource refers to the administration and education of employees inside a business (HR). The key is raising employee performance.

Q2: What qualifications are needed to become a human resource manager?

A. You must earn a grade of at least 60% in your graduation or an equivalent course to work as an HR manager. You can also enroll in human resource management certificate programs to learn more about the industry and how it functions.

Q3: What do Human Resources do?

A. HR facilitates the enhancement of employee productivity and engagement as well as the development of a positive business culture. The HR division is also in charge of the well-being and personal development of the workforce.