 Human resources are one of the most important features of many businesses - especially in an economy where there is an increasing shift towards service-based industries. Human resources account for a large proportion of many businesses' costs and it is the people that invariably drive a business. Management of these resources therefore is an integral part of business success.

 One of the difficulties may be in pinpointing just what contribution the human resources in a business makes to any of the above measures, but there is no doubt that a business that does not involve management of human resources correct will experience a number of problems. Poor motivation leads to poor performance.

 Lower productivity levels  Poor quality products and services  High levels of complaints from customers  Loss of customers with subsequently lower revenues  Higher costs  Higher staff turnover  Poor industrial relations

 Teams may not function appropriately  Individuals may be placed in positions that do not maximise or utilise their skills  The culture of the business is not shared  Communication and decision making can be affected and mistakes occur