The Importance of Human Resource Management (HRM):

As the central sub-system, HRM interacts closely and continuously with all other sub-systems of an organisation. 

The importance of HRM can be discussed at four levels – Enterprise(corporate), Professional, Social and National (Gupta, 1997)

1. Enterprise (Corporate): 

HRM helps enterprise in achieving its goals in below ways:

1. Attracting and retaining the required talent through effective human resource planning, recruitment, selection, placement, orientation, compensation and promotion policies.
2. Developing the necessary skills and right attitudes among the employees through training, development, performance appraisal, etc.
3. Securing willing co-operation of employees through motivation, participation, grievance handling, etc.
4. Utilising effectively the available human resources.
5. Ensuring that the enterprise will have in future a team of competent and dedicated employees.

2. Professional Significance:

1. It contributes to professional growth in the following ways:
2. Providing maximum opportunities for personal development of each employee.
3. Maintaining healthy relationships between individuals and different work groups.
4. Allocating work properly.

3. Social Significance:

1. Sound human resource management has a great significance for the society. It helps to enhance the dignity of labour in the following ways:
2. Providing suitable employment that provides social and psychological satisfaction to people.
3. Eliminating waste of human resources through conservation of physical and mental health.

4. National Significance:

1. Human resources and their management plays a vital role in the development of a nation. 
2. The effective exploitation and utilisation of a nation’s natural, physical and financial resources require an efficient and committed manpower. 
3. 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.

Reference & Source: Indira Gandhi National Open University, School of Management studies- Study Material on Management of Human Resources