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The objectives of HRM 
It is possible to identify 
four main objectives of HRM
. 
(a) 
To develop an effective human component for the organisation which will respond effectively to 
change. 
(b) 
To obtain and develop the human resources required by the organisation and to use and motivate 
them effectively. 
(c) 
To create and maintain a co-operative climate of relationships within the organisation. 
(d) 
To meet the organisation's social and legal responsibilities relating to the human resource. 
1.8.2 Why is HRM important? 
Effective human resource management and employee development are strategically necessary for the 
following reasons. 
(a) To
 
increase productivity
.
Developing employee skills might make employees more productive, 
hence the recent emphasis on public debate on the value of training. 
(b) To
 
enhance group learning
. 
Employees work more and more in multi-skilled teams. Each 
employee has to be competent at several tasks. Some employees have to be trained to work 
together (ie in team working skills). 
(c) To
 
reduce staff turnover
.
Reducing staff turnover, apart from cutting recruitment costs, can also 
increase the effectiveness of operations. In service businesses, such as hotels or retail outlets, 
reductions in staff turnover can be linked with repeat visits by customers. As it is cheaper to keep 
existing customers than to find new ones, this can have a significant effect on profitability. 
(d) To
 
encourage initiative.
 
Organisations can gain significant advantage from encouraging and 
exploiting the present and potential abilities of the people within them.
1.8.3 The human resource cycle 
A relatively simple model that provides a framework for explaining the nature and significance of HRM is 
the human resource cycle (Fombrun et al 1984). 
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