Importance and Challenges of Human Resource

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About this sample


Words: 738 |

Pages: 2|

4 min read

Published: Jan 30, 2024

Words: 738|Pages: 2|4 min read

Published: Jan 30, 2024

Table of contents

  1. Definition and Functions of Human Resource
  2. Importance of Effective HR Practices
  3. Challenges and Issues in Human Resource Management
  4. The Future of Human Resource
  5. Conclusion

Human Resource (HR) is a critical aspect of organizational management, playing a pivotal role in shaping the culture, performance, and success of businesses. This essay aims to explore the definition, functions, and importance of Human Resource, as well as the challenges faced by HR departments and the future of HR in the evolving workplace.

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Definition and Functions of Human Resource

Human Resource can be defined as the department within an organization responsible for managing employees and ensuring compliance with employment laws and regulations. The primary functions of HR include recruitment, training, performance management, and employee relations. HR also plays a crucial role in strategic planning, organizational development, and fostering a positive work environment.

Effective HR practices are indispensable for organizational success, as they contribute to enhanced employee productivity, satisfaction, and retention. Furthermore, HR is instrumental in aligning the workforce with the company's strategic goals and objectives, thereby driving growth and profitability.

Importance of Effective HR Practices

Effective HR practices have a direct impact on employee satisfaction and performance. Studies have shown that organizations with well-implemented HR strategies experience higher levels of employee engagement and motivation, leading to improved productivity and overall performance. For instance, a Gallup survey revealed that companies with highly engaged employees outperform their peers by 147% in earnings per share.

In addition, HR plays a crucial role in talent acquisition and retention. A SHRM study found that the average cost-per-hire is $4,129, highlighting the significant investment required for recruiting new talent. Thus, effective HR practices that emphasize employee development, job satisfaction, and career advancement are essential for retaining top talent and reducing turnover costs.

Furthermore, HR practices are closely linked to organizational culture. Research has shown that a positive organizational culture contributes to higher levels of employee satisfaction, lower turnover rates, and improved overall performance. According to a study by Deloitte, 94% of executives and 88% of employees believe a distinct workplace culture is essential to business success. HR's role in shaping and maintaining a positive organizational culture is therefore paramount.

Challenges and Issues in Human Resource Management

Despite its significance, Human Resource management faces various challenges, including but not limited to, adapting to technological advancements, legal and ethical compliance, and managing diversity and inclusion in the workplace. For instance, the rapid evolution of technology presents HR departments with the challenge of incorporating digital tools for recruitment, training, and performance management, while ensuring data privacy and security.

Moreover, legal and ethical issues such as discrimination, harassment, and wage disparities pose significant risks to businesses, highlighting the importance of HR's role in mitigating these issues through policy development, training, and enforcement. Additionally, fostering diversity and inclusion in the workplace is a priority for HR, as it contributes to a more innovative, engaged, and competitive workforce.

The Future of Human Resource

The future of Human Resource is characterized by emerging trends and technologies that are reshaping traditional HR practices. As automation and artificial intelligence (AI) continue to revolutionize the workplace, HR professionals must adapt to new ways of managing talent, data analytics, and employee experience. Deloitte's 2017 Global Human Capital Trends report revealed that 41% of companies are actively redesigning their HR programs to leverage digital and mobile tools.

The potential impact of automation and AI on HR functions includes streamlining administrative tasks, enhancing predictive analytics for talent management, and optimizing employee engagement through personalized experiences. Furthermore, HR professionals should focus on developing their digital skills and embracing a data-driven approach to decision-making, as these capabilities will be crucial for future success.


In conclusion, Human Resource is a vital element of organizational success, with its functions directly impacting employee satisfaction, talent acquisition, and organizational culture. Despite facing challenges related to legal compliance, diversity, and technological advancements, HR professionals have the opportunity to adapt and thrive in the evolving workplace. It is essential for HR departments to stay abreast of emerging trends, leverage digital tools, and foster an inclusive and innovative workplace culture to drive organizational success.

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As we look to the future, HR professionals must continue to evolve and embrace new technologies and practices to remain competitive and effectively manage the workforce. The success of organizations hinges on the ability of HR to attract, develop, and retain top talent, while fostering a culture of diversity, inclusion, and innovation. Ultimately, the role of Human Resource in organizations is indispensable, and its impact reverberates throughout the entire business.

  1. Gallup. (2017) Employee Engagement. Retrieved from
  2. Society for Human Resource Management (SHRM). (2016) Human Capital Benchmarking Study. Retrieved from
  3. Deloitte. (2016) Organizational Culture Strategy. Retrieved from
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Importance and Challenges of Human Resource. (2024, January 30). GradesFixer. Retrieved June 13, 2024, from
“Importance and Challenges of Human Resource.” GradesFixer, 30 Jan. 2024,
Importance and Challenges of Human Resource. [online]. Available at: <> [Accessed 13 Jun. 2024].
Importance and Challenges of Human Resource [Internet]. GradesFixer. 2024 Jan 30 [cited 2024 Jun 13]. Available from:
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