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Human resource management concerns itself about humans in the firm. It has developed from the personnel department. The main idea of HRM is to distribute the functions of personnel department over a large amount of people making everybody responsible for something and decreasing the costs.
The human resource management is very useful for firms to achieve their goals.
It helps firm to improve its performance by authorizing the right people of doing some exercises (production man. knows better how to train new workers than people in a separate HRM office).
It helps the firm to increase the motivation f its workers, thus increase the performance. The main idea here is to make firm goals to individual ones.
One very important thing is also finance. HRM deals with wages etc. (Line managers know better whom to pay extra bonuses). HRM helps to save a great deal of money and already its developing instead of personnel dept. saved money.
HRM helps to develop organisation structures, because they have usually overview of the whole business. This point cannot usually be transferred to individuals and it's very important to business in the long term.
It helps also to improve productivity. Its tasks include training, induction, recruitment, job description and redundancy, which all help to make the product better, thus increasing consumers' satisfaction. All these determine the goodwill and reputation of the company.
HRM is included in record keeping, which helps the company with taxes and increases its performance (the data can be found quickly).
As seen HRM helps businesses in many ways. It helps to save money and increase the reputation of the business. It deals with one of the most important things in business - with its work force. So no firm can be without HRM and the better and more efficient it is the more firm can benefit, by reducing its costs and increasing its goodwill.