Question

Explain why Human Resource Management is of strategic importance to modern firms.

Answer 1

The role of Human Resource has changed to write an extent today and it has also transformed to be an integral part of any organization because along with playing the role of employees advocates, they play the role of strategic partners as well. They have certain targets and if they are not maintaining the same the organization may actually incur quite an amount of loss. Employee retention is a major target because if the turn over ratio is quite high the organization incurs huge operational costs involved in recruitment and training and development of newly hired employees. If an organization constantly losses employees at a regular interval, the strategic initiatives plannee to be implemented may actually not work out for the betterment as well and the organization may lose market share and brand image as well. Hence, it can be stated that HR is quite an effective unit for organizations today.