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Importance of the human factor

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT - The importance of human factor can be discussed as follows:

Importance of the human factor


         Proper utilization of other resources


–   Help transform lifeless factors of production into useful products


         Capable of enlargement


–   produce extraordinary things when inspired


–   Can help organisation achieve results quickly, efficiently & effectively.


         The secret of their success is ―The way they treat their employees‖ - Sony


         Nestle CEO ―Every single person in the organization should ask himself or herself is there anything I can do to add a little more value to our organization


         How important are people treated in the Organization.‖


         Organization – acquires the services from the Employees, Develop their Skills and motivate them to achieve the organization objectives.


         HR - Productivity , Quality Work Life & Profit.


         The Enterprise is People‖ , ―Organization need people and People need Organization.‖




The importance of human factor can be discussed as follows:


a) Social Significance:


Proper management of personnel, enhances their dignify by satisfying their social needs. This it does by i) maintaining a balance between the jobs available and the jobseekers, according to the qualifications and needs; ii) providing suitable and most productive employment, which might bring them psychological satisfaction; iii) making maximum utilization of the resource in an effective manner and paying the employee a reasonable compensation in proportion to the contribution made by him; iv) eliminating waste or improper use of human resource, through conservation of their normal energy and health; and v) by helping people make their own decisions, that are in their interests.


b) Professional Significance:


By providing a healthy working environment it promotes teamwork in the employees. This it does by i) maintaining the dignity of the employee as a ‗human-being‘; ii) providing maximum opportunities for personal development; iii) providing healthy relationship between different work groups so that work is effectively performed; iv) improving the employees‘ working skill and capacity; v) correcting the errors of wrong postings and proper reallocation work.


c) Significance for Individual Enterprise:


It can help the organisation in accomplishing its goals by: i) creating right attitude among the employees through effective motivation; ii) utilizing effectively the available human resources; and iii) securing willing co-operation of the employees for achieving goals of the enterprise and fulfilling their own social and other psychological needs of recognition, love, affection, belongingness, esteem and self-actualisation.


Dynamic and growth-oriented organisations do require effective management of people in a fast-changing environment. Organisations flourish only through the efforts and competencies of their human resources. Employee capabilities must continuously be acquired, sharpened and used. Any organisation will have proper human resource management i) to improve the capabilities of an individual; ii) to develop team spirit of an individual and the department; and iii) to obtain necessary cooperation from the employees to promote organisational effectiveness.


It is the human resource, which is of paramount importance in the success of any organisation, because most of the problems in organisational settings are human and social rather than physical, technical or economic. Failure to reorganize this fact causes immense loss to the nation, enterprise and the individual. In the words of Oliver Sheldon, ―No industry can be rendered efficient so long as the basic fact remain unrecognized that it is principally human. It is not a mass of machines and technical processes, but a body of men. It is not a complex matter, but a complex of humanity. It fulfills its function not by virtue of some impersonal force, but a human energy. Its body is not an intricate maze of mechanical devices but a magnified nervous system‖.


‗People at work‘ comprise a large number of individuals of different sex, age, socio-religious group and different educational or literacy standards. These individuals in the work place exhibit not only similar behaviour patterns and characteristics to a certain degree, but they also show dissimilarity. Each individual who works has his own set of needs, drives, goals and experiences. Each has his own physical and psychological traits. Each human being is not only a product of his biological inheritance but also a result of interactions with his environment. Family relationships, religious influences, racial or caste backgrounds, educational accomplishment, the application of technological innovations, and many other environmental-experimental influences affect the individual as he works.


People come to work with certain specific motives to earn money, to get employment, to have better prospect in future, to be treated as a human being while at the place of work. They sell their labour for reasonable wage / salary and other benefits. It is these people who provide the knowledge and much of the energy through which organisational objectives are accomplished.


The management must, therefore, be aware not only of the organisational but also employee needs. None of these can be ignored

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