Last Updated 26 Mar 2021

The Importance of Human Resource Management

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Human Resource Department links the management, the subordinates and all the individuals within the organization. It is also responsible in performing the necessary recruitment and selection procedures to screen applicants. Through this, department could acquire only the competent ones who may help to increase the organization competitiveness, performance, and productivity and later develop as company assets rather than liabilities. The process include payments made for advertisements and agencies, which are referred as hard dollars, and payments that are made through commission revenue that are called as soft dollars.

Altogether, this contributes to achieve the organization objectives and goals. The Importance of Human Resource Management Human Resource Department plays a vital role in an organization. This department operates in order to acquire employees who are competent enough and match them to the jobs they are perfectly suited with. Through this department, large organizations are able to provide links between the top executive management and the subordinates within the organization. (U. S. Department of Labor Bureau of Labor Statistics, 2006).

Working in a Human Resource Department enables a person to improve one’s social skills. Furthermore, good personality judgment is being developed. Creativity is also being exercised since this particular department together with the top management formulates proposals that could help to increase the organizational efficiency. Having capable human resource personnel results on obtaining good hire employees. Producing competent employees is a desirable outcome that this department wishes to do.

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A good hire enables the organization to develop proficient asset in the company in the future. However, a bad hire may turn out as a bad investment of the company since instead of adding up to company’s advantage, this bad-hired employee adds to organization’s liability. Aside from being an able asset, good hires augment organization competitiveness, performance, productivity, and business results. Thus, it is much more desirable for an organization to generate able, skillful, and competent employees.

To do so, a set of procedure must be followed. In the Human Resources Department, the recruitment and selection procedure must be established. Different organizations follow different sets of procedures. In this case, the Human Resource Department starts the recruitment and selection process by advertising job opportunity announcements. The job publicity may be in the form of numerous employment agencies and offices, local publications and classified ads. In here comes the term hard dollar.

In this context, Hard Dollar is a term defined as the cash payment made by the organization to a brokerage firm in exchange with non-trading services consists of researches. (Hard Dollars, 2007). To put simply, it is the dollars used for advertisements and employment agencies. This helped in the promotion of the vacant positions in the organization. It is essential to include in the job advertisement the description of the offered position and the applicant’s minimum qualifications. When the applicants responded on the advertisement, it is time for the series of screening.

The applicants pass their application form, which includes basic information and qualifications. Through the application forms, human resource personnel can determine who among the applicants meet the minimum prerequisite. The analyst further evaluates those forms that passed the initial screening and those that would be picked will be invited for interview. If they passed the interview, the next thing would be the examination process, which may consist of written, performance and other specialized tests that the position required.

Sometimes, panel interview is included. The payment made by the organization to a brokerage service by means of commission revenue is termed as soft dollars, contrast to a hard dollar. Simply put, soft dollar is the extra money used in peoples time and salary to interview and sign-up for benefits to hire only competent people in the recruitment and selection process. (Soft Dollars, 2007) When through with the exam, it would be the job of the Department Head of the filling position to have selection interview.

After applicants are already chosen, they now have to accomplish pre-employment requirements such as medical examination, drug test, and other documents that provide their proper identification. It also requires them to present United States working permit and authorize a pledge of declaration of allegiance since it is a State Law mandatory.


City of Concord. (2007). Recruitment and Selection Process. Retrieved December 1, 2007 from http://www. ci. concord. ca. us/hr/recruitment. htm. Hard Dollars. (2007). In Answers. com. Retrieved December 1, 2007

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