Importance of Human Resource Management

Organization resources can be divided into three categories. Material resources, human resources, and organizational capital resources. Material capital is an asset other than a person used in the organization's production process, such as machinery, infrastructure and other raw materials. Human resources include skills, knowledge, practical experience, and insights of everyone in the business. The organization's capital resources include the formal reporting structure of the organization, systematic planning, management and coordination, and interpersonal relationships formed within the work community (Barney, 1991, p. 102).

Human Resources Management (HRM) plays an important role in the management of all organizations. The importance of human resources management is to improve the productivity of human resources and it is an element of strategic management of the organization. It gradually improves human capital and organization performance through effective management (Delaney et al., 1997). Personnel management must provide guidance to train well-trained skilled workers, conduct training, and improve workforce and organizational efficiency.

Strategic personnel management includes the strategic management of human resources / capital within the organization. Human resources are increasingly important to the success of all organizations, as compared to the technical human resources management associated with the rise of strategic human resources management as a global research area. Walker (1992) argues that strategic human resource management "is a means of combining business strategy and human resource management within an organization" (Walker, 1992 p. 78). Strategic human resource management ensures that resource management within the organization is fully integrated with the organization's strategic plan and that human resource management policies are consistent with the scope of the results and policies.

Human resource management has various fields, but here we select two areas of human resource management. The selected fields of human resource management are "recruitment" and "selection". Both are important areas of human resources management. It is because we can not get the desired result from the candidate unless we select the candidate suitable for the correct position. Through the example of the company, we further emphasize the importance of these two areas. The company that I chose for this evaluation is "wi-tribe Pakistan limited". I will explain how tribal internal and external factors affect the recruitment and selection process.