Importance of HRM: A Detailed Discussion
Business management requires several aspects to be taken care of in order to gain profits. One such important department of management that has a significant contribution to the growth of an organisation is human resource management. Let us have a look at the importance of HRM and how it helps in the expansion and development of a business.
The basics of human resources management should be well known by all the managers of an institution. It is essential because it helps the manager understand how to handle people in a better way. The knowledge about HRM is therefore highly essential for successful operation in a business setting and most importantly for effective management. However, there are also certain limitations in human resource management which have been discussed below. The following article is all about the importance and limitations of HRM.
Importance of Human Resource Management
In simple words, Human Resource Management (HRM) is a management function that helps line managers to select, hire, train and develop employees for an organization. The following constitutes the core of HRM:
An organization is not mere brick and mortar, inventories or machinery. It is people who make it run.
HRM involves acquiring, training and developing, maintaining and remunerating best talents for an organization.
HRM’s decisions relating to employees must be integrated.
Decisions should influence the effectiveness of the organizations which is manifested in the form of good-quality products and services.
HRM functions are not restricted to business entities only. These are applicable to education, recreation, healthcare, etc.
HRM aims to achieve justice and efficiency in terms of management as stated by Indian Institute of Personnel Management regarding the importance of performance management in HRM. This means that there should be a certain amount of coordination and understanding between employees which is only achieved by efficient management of the team by the human resource management department. Such coordination among employees enables an organization to have a smooth flow of operations and promotion of healthy work culture. Further, they also build a comfortable work relationship by working together.
The importance of human resource management in an organization is in laying down strategies that not only benefit the future objectives of the company but it also attracts the interest of the employees. Such management is required for all kinds of organisations, big or small so that they can generate the optimum amount of productivity from these satisfied workers which ultimately contributes to gaining profit for the organisation. This also states the importance of HRM planning. Therefore, it can be stated that the achievement of objectives by HRM is based on strategies that facilitate a company’s employees in achieving their collective goals.
Explain the Importance of Human Resource Management
The significance of human resource management is myriad. The most important role of HRM is to manage people in an organization. It helps in development, utilisation, acquisition and most importantly maintenance of human resources. It is an oriented approach of involving the employees in the operations of the company by elevating their performance standard with the right activities and approach. This not only helps in the individual growth of the employee but also helps in the growth of the organisation. The importance of HR management lies in the fact that it is getting increasingly popular, having a significant contribution towards producing a team of experts and maintaining them. Here lies the significance of HRM and the importance of the HR department.
Limitations of HRM
Like any other management functions in an organization, HRM also has its limitations. There is no denying the importance of HRM in the organization but many times, it fails to fulfil the objectives of the enterprise by hiring the wrong person for the wrong job role. Also, the job of HR is largely non-quantifiable; hence, the cost and ROI associated with it cannot be calculated accurately.
The five major limitations of human resource management are as follows:
It has originated recently. So, the domain is still evolving.
It often receives little support from the top management.
Non-availability of information is a constraint.
Improper actualisation
Developmental programmes are often inadequate.
The future of all business organizations cannot be predicted because it largely depends upon financial, technological, political and social factors. If any of these factors are affected, the future of the business is likely to get affected. This means that there is a certain amount of uncertainty, difficulties of surplus staffing, expense and time. To know more about the limitations of HRM, one can refer to the solved questions on limitations of HRM.
FAQs on Why Consumer Protection Matters
1. What is the core concept of consumer protection?
Consumer protection refers to the practice of safeguarding the rights and interests of consumers against unethical and unfair trade practices. Its primary goal is to ensure that consumers are not exploited by sellers and receive goods and services that meet the promised quality, quantity, and price, thereby creating a fair and balanced marketplace.
2. Why is consumer protection important from a consumer's point of view?
From a consumer's perspective, protection is crucial as it empowers them and safeguards their interests. It ensures they are protected from unsafe products, provides them with complete information to make informed decisions (combating consumer ignorance), and gives them access to effective redressal forums if they are cheated or exploited by businesses.
3. What are the key reasons why consumer protection is important for businesses?
For businesses, consumer protection is vital for several reasons:
- Long-term Interest: Satisfied customers lead to brand loyalty and repeat sales, securing the business's future.
- Moral Justification: It is the ethical duty of a business to protect the interests of its stakeholders, including consumers.
- Social Responsibility: Businesses use society's resources and have a responsibility to supply products and services that do not harm the community.
- Avoids Government Intervention: Proactively adopting fair trade practices can prevent the imposition of strict government regulations.
4. Who is considered a 'consumer' under the Consumer Protection Act, 2019?
According to the Consumer Protection Act, 2019, a 'consumer' is any person who buys goods or hires/avails of services for a consideration (payment). This also includes any user of such goods or beneficiary of such services. However, it explicitly excludes a person who obtains goods for resale or for any commercial purpose.
5. What are the main rights granted to a consumer under the Consumer Protection Act, 2019?
The Consumer Protection Act, 2019 grants several fundamental rights to consumers:
- Right to Safety: To be protected against goods and services which are hazardous to life and property.
- Right to be Informed: To be informed about the quality, quantity, purity, standard, and price of goods or services.
- Right to Choose: To be assured access to a variety of goods and services at competitive prices.
- Right to be Heard: The right to have consumer's interests receive due consideration at appropriate forums.
- Right to Seek Redressal: To seek remedy against unfair trade practices or exploitation.
- Right to Consumer Awareness: The right to acquire the knowledge and skill to be an informed consumer.
6. What are some key responsibilities of a consumer?
While consumers have rights, they also have responsibilities to ensure their own protection. Key responsibilities include being aware of their rights, reading labels and product information carefully, insisting on a cash memo or bill as proof of purchase, checking for quality marks like ISI or AGMARK, being honest in their dealings, and filing a complaint only for genuine grievances.
7. How does protecting consumers benefit the economy as a whole?
Protecting consumers has a significant positive impact on the entire economy. It fosters fair competition among businesses, which drives innovation, improves product quality, and keeps prices reasonable. Furthermore, when consumers feel confident and protected, they are more likely to participate in the market, which stimulates demand and supports sustainable economic growth.
8. What is the difference between a consumer's right and a consumer's responsibility?
A consumer's right is a legal guarantee or entitlement provided by law, such as the Right to Safety or the Right to Seek Redressal. It is a protection that can be legally enforced. In contrast, a consumer's responsibility is the expected duty or conduct of the consumer, such as reading labels or asking for a bill. While rights are legally granted, fulfilling responsibilities is necessary for a consumer to effectively exercise those rights and for the protection system to function properly.
9. Why was the Consumer Protection Act of 1986 replaced by the Act of 2019?
The Consumer Protection Act, 1986 was replaced to address the challenges of a modernised marketplace, particularly the rise of e-commerce, digital transactions, and misleading advertisements, which were not adequately covered by the old law. The 2019 Act introduced key improvements such as the establishment of a Central Consumer Protection Authority (CCPA) to proactively protect consumer rights, provisions for product liability, and the inclusion of specific rules for e-commerce platforms to increase accountability.
10. Besides legal action, what role do consumer organisations and NGOs play in protecting consumer interests?
Consumer organisations and NGOs play a vital, non-legal role as advocates and educators. They actively work to educate the general public about consumer rights through seminars and workshops. They also publish periodicals and journals, like comparative test results of consumer products, to help people make informed choices. By acting as a collective voice, they can also put pressure on businesses to avoid malpractices and resolve consumer grievances without formal legal proceedings.
