What is the Importance of Studying Human Resource Management and Important Factors that Affect It

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Table of Contents

  • Introduction
  • Importance of Human Resource Management
  • Internal and external factors Costco should consider for HRP
  • Internal factors
  • References


According to Armstrong, (2006) human resource management is outlined as a strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of its objectives. Moreover, as reported by Saleemi, (2016) Richard Calhoon (2016) states that human resource management involves the task of handling the human problems of an organisation and is devoted to acquiring, developing, utilizing and maintaining an efficient workforce. Furthermore Armstrong, (2014) states that HRM can be regarded as a philosophy about how people should be managed, which is underpinned by a number of theories relating to the behaviour of people and organizations.

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Importance of Human Resource Management

Armstrong, (2006) notes that human resource management intends to boost motivation, job engagement by investigating how content the employees of Costco are with their jobs through introducing steps and procedures that will assure that their employees are recognised for their job and thus the importance of human resource management as a motivated work force is more productive and efficient, which will lead to Costco being a profitable firm in the long run.

Internal and external factors Costco should consider for HRP

Internal factors


Gsenviro, (2015) argues that the budget will conclude how human resources are handled. The total budget will establish the number of individuals that can be hold on to, appointed, or promoted. And thus since ‘Costco’s labour expenses are seventy % of the budget and thus explains how they are able to hire more people and they believe that even though their labour costs are seventy % of the budget all this investment is at last worth it because it all changes revenues which lead to profits in the long run.

Level of growth

According to Joseph (2018) businesses that are undergoing aggressive growth and expansion may call on their human resource unit to concentrate on recruitment and selection. This therefore shows that level of growth affects workforce planning as Costco Company may need to plan for more staff as they expand their organisation as their company grows.

Type and strategy of the organisation

This determines the production process involved the sum and type of employees required, and the controlling workforce needed. For instance, if Costco has a strategy of organic growth the human resource department will need to appoint more employees and if at all Costco decides to merge with another firm the human resource will need to plan on dismissal of other employees so as to get rid of duplicate departments.


  1. Armstrong, M., 2006. A Handbook of Human Resource Management. 10th Edition ed. London: Kogan Page Limited.
  2. Armstrong, M. a. T., 2014. Armstrong's handbook of human resource management. 13 ed. London: Kogan page limited.
  3. Gsenviro, 2015. enotes. [Online] Available at: [Accessed 15 october 2019].
  4. Joseph, C., 2018. bizfluent. [Online] Available at:
  5. Saleemi, N., 2016. personnel management simplified. 2nd ed. Nairobi: saleemi publications ltd.

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