Why Do Companies Need a Human Resources Department?

Introduction:
In order to understand the vitality of the Human Resource department in an organization one must first understand what the Human Resource department is about.
Human resource management (HRM), or human resource development, entails planning, implementing, and managing recruitment, as well as selection, training, career, and organizational development initiatives within an organization. The goal of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees while simultaneously improving the work life of employees and treating employees as valuable resources. Consequently, HRM encompasses efforts to promote personal development, employee satisfaction, and compliance with employment-related laws (Walker, 1998). The main objective of Human Resources is to maximize the return on investment from the organization’s human capital. According to Schwind Das & Wagner, “Human resource management aims to improve the productive contribution of individuals while simultaneously attempting to attain other societal and individual employee objectives” (2007).
HRM is also the new frontier in developing competitive advantages. “…[F]irms can develop sustained competitive advantage only by creating value in a way that is rare and difficult for competitors to imitate. Although traditional sources of competitive advantage such as natural resources, technology, economies of scale, and so forth, create value, the resource-based argument is that these sources are increasingly easy to imitate, especially in comparison to a complex social structure such as an employment system. If that is so, human resource strategies may be an especially important source of sustained competitive advantage” (Becker, and Gerhart 779-801). Human Resources can also hinder a company and provide a