Effective human resource management (HRM) ensures that organizations can operate efficiently and that employees are able to work in a safe environment. According to the Human Resource Excellence website, HRM is important because it is used to recruit people, train them, implement performance appraisals, ensure workplace safety and motivate employees as well as workplace communication.
HRM reduces the costs associated with employee turnover and hiring new workers to fill job positions. The goal of HRM is not only to ensure that employees receive fair compensation for their work, but also to build a strong employer-employee relationship and increase the level of employee satisfaction within the company.
HRM is also used to protect an organization from any accusations or legal action that may be taken against it by an employee. Effective HRM can identify work issues before they escalate and resolve internal issues related to discrimination or other unethical treatment reported by employees. HRM makes sure that the organization complies with provincial and federal laws regarding necessary employee paperwork, affirmative action plans and disparate impact analyses.
HRM may also take steps to manage the public relations of a firm by forming strategic relationships through business meetings, seminars and various other official gatherings on behalf of the company.