Some of the reasons for need of human resource management are: 1. For Good Industrial Relations 2. Create Organizational Commitment 3. Meeting with Changing Environment 4. Change in Political Philosophy 5. Enhanced Pressure On Employees and 6. Meeting Research and Development Requirements.
Human resource management tries to create a better understanding between management and employees.
It assists employees in attaining individual and organizational goals. This approach has been gaining the attention of management professionals in the last decade or so.
1. For Good Industrial Relations:
There is large spread unrest, labour- management disputes, lack of trust in each other, increasing expectations of workers, growing of militancy in trade unions etc. These factors have generated a gap among workers and managements. Both sides are blaming of exploitation by the other side. In the absence of cordiality in an organization, the performance of workers is adversely affected.
HRM approach is needed to bring proper understanding among workers and management. The workers are trained and developed to meet their individual and organizational objectives. The workers are made to understand that various managerial actions will assist them in achieving their aspirations and organization’s goal.
2. Create Organizational Commitment:
There is a humanization of work environment in industrially advanced countries like Japan, U.S.A., and Germany etc. Globalization of economy has exposed Indian industries to international competition. An improvement in efficiency and quality of work can come only when workers develop organizational commitment. HRM approach helps in creating a sense of pride for the organization among the employees.
3. Meeting with Changing Environment:
The business environment is changing rapidly. Technological improvements have revolutionised production processes. Automation has been introduced in office operations. Good communication methods have revolutionised important areas of business.
Therefore, there is a need to cope with new and changing situation. The operational efficiency of workers must cope up with a revolutionary change in the technology which necessitates a new approach to manpower.
4. Change in Political Philosophy:
Political philosophy has also undergone a substantial change all over the world. The new approach is to develop human resources properly for making their better use. In India, Central Government has created a separate ministry as Human Resource Development and put it under a Senior Cabinet Minister.
This shows the importance given to human resources in India, which opened up a door for a fresh approach to human resource development in the industrial sector too.
5. Enhanced Pressure On Employees:
The technological innovations have made possible the use of sophisticated machines. The installation, monitoring of machines, maintenance and controlling of operations etc., require large number of trained and skillful personnel.
Technicians, repairers and service people are also necessary. The more the technical development and automation, the more would be the dependence on human beings. There should, therefore, be greater need for humane approach to manpower. Similarly, use of more capital intensive methods would result in greater productivity of men necessitating greater motivating and greater human resources approach to management.
6. Meeting Research and Development Requirements:
Fresh initiatives and emphasis on research and development in the realm of industry also led to a new policy of human resource development to cope with the increasing demand for technically capable people. As a result of this, a need arose for a new approach to human resources.