What is Human Resource Management?
HRM is the study of activities regarding people working in
an organization. It is a managerial function that tries to match an
organization’s needs to the skills and abilities of its employees.
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| The concept of human resource management |
Definitions of
Human resources
management (HRM) is a management function concerned with hiring, motivating, and maintaining people in an organization. It focuses on people in
organizations. Human resource management
is designing management systems to ensure that human talent is used
effectively and efficiently to accomplish organizational goals.
HRM is the personnel function that is concerned with
procurement, development, compensation, integration, and maintenance of the
personnel of an organization to contribute toward the
accomplishments of the organization’s objectives. Therefore, personnel
management is the planning, organizing, directing, and controlling of the
performance of those operative functions (Edward B. Philippo).
According to Invancevich and Glueck, “HRM is concerned with the most effective use of
people to achieve organizational and individual goals. It is the way of
managing people at work so that they give their best to the organization”.
According to Dessler
(2008) the policies and practices involved in carrying out the “people” or
human resource aspects of a management position, including recruiting,
screening, training, rewarding, and appraising comprise HRM.
Generally, HRM refers to the management of people in
organizations. It comprises the activities, policies, and practices involved
in obtaining, developing, utilizing, evaluating, maintaining, and retaining the
appropriate number and skill mix of employees to accomplish the organization’s
objectives. The goal of HRM is to maximize employees’ contributions to
achieve optimal productivity and effectiveness, while simultaneously attaining
individual objectives (such as having a challenging job and obtaining
recognition), and societal objectives (such as legal compliance and
demonstrating social responsibility).
In short Human Resource Management (HRM) can be defined as
the art of procuring, developing, and maintaining a competent workforce to achieve
the goals of an organization effectively and efficiently.
1.4 Nature of HRM
HRM is a management function that helps managers recruit, select, train, and develop members of an organization. HRM is
concerned with people’s dimensions in organizations.
The following constitute the core of HRM
1. HRM Involves the Application of Management
Functions and Principles. The functions and principles are applied to
acquiring, developing, maintaining, and providing remuneration to employees in an organization.
2. Decision Relating to Employees must be
Integrated. Decisions on different aspects of employees must be consistent
with other human resources (HR) decisions.
3. Decisions Made Influence the Effectiveness
of an Organization. The effectiveness of an organization will result in the betterment of services to customers in the form of high-quality products
supplied at reasonable costs.
4. HRM Functions are not Confined to Business
Establishments Only but apply to non-business organizations such as
education, health care, recreation, and the like.
HRM refers to a set of programs, functions, and activities
designed and carried out to maximize both employees as well as
organizational effectiveness.
1.5 Scope of HRM
The scope of HRM is indeed vast. All major activities in
the working life of a worker – from the time of his or her entry into an
organization until he or she leaves the organization come under the purview
of HRM.
The major HRM activities include HR planning, job analysis,
job design, employee hiring, employee and executive remuneration, employee
motivation, employee maintenance, industrial relations, and prospects of HRM.
The scope of Human Resources Management extends to:
• All
the decisions, strategies, factors, principles, operations, practices,
functions, activities, and methods related to the management of people as
employees in any type of organization.
• All the dimensions related to people in their employment relationships, and all the dynamics that flow from it.
Figure 1.1: Scope of HRM
The scope of HRM is really vast. All major activities n the
working life of a worker – from the time of his or her entry into an
organization until he or she leaves it to come under the purview of HRM. American
Society for Training and Development (ASTD) conducted a fairly exhaustive
study in this field and identified nine broad areas of activities of HRM.
These are given below:
• Human
Resource Planning
• Design
of the Organization and Job
• Selection
and Staffing
• Training
and Development
• Organizational
Development
• Compensation
and Benefits
• Employee
Assistance
• Union/Labour
Relations
• Personnel
Research and Information System
a) Human Resource Planning: The objective
of HR Planning is to ensure that the organization has the right types of
persons at the right time at the right place. It prepares human resources
inventory intending to assess present and future needs, availability, and
possible shortages in human resources.
Thereupon, HR Planning forecast demand and supplies and
identify sources of selection. HR Planning develops strategies both long-term
and short-term, to meet the manpower requirement.
b) Design of Organization and Job: This is
the task of laying down organization structure, authority, relationship, and
responsibilities. This will also mean the definition of work contents for each
position in the organization. This is done by “job description”. Another
important step is “Job specification”.
Job specification identifies the attributes of persons who
will be most suitable for each job which is defined by the job description.
c) Selection and Staffing: This is the
process of recruitment and selection of staff. This involves matching people
and their expectations with which the job specifications and career path
available within the organization.
d) Training and Development: This involves
an organized attempt to find out the training needs of the individuals to meet the
knowledge and skill which is needed not only to perform their current job but also to
fulfill the future needs of the organization.
e) Organizational Development: This is an
important aspect whereby the “Synergetic effect” is generated in an organization
i.e. healthy interpersonal and inter-group relationships within the
organization.
f) Compensation and Benefits: This is the
area of wages and salaries administration where wages and compensations are
fixed scientifically to meet fairness and equity criteria. In addition, labor
welfare measures are involved which include benefits and services.
g) Employee Assistance: Each employee is
unique in character, personality, expectation, and temperament. By and large, each one of them faces problems every day. Some are personal some are official.
In their case, he or she remains worried. Such worries must be removed to make
him or her more productive and happy.
h) Union-Labour Relations: Healthy
Industrial and Labour relations are very important for enhancing peace and
productivity in an organization. This is one of the areas of HRM.
i) Personnel Research and Information System: Knowledge
of behavioral science and industrial psychology throws better insight into the
workers' expectations, aspirations, and behavior. Advancements in the technology of
product and production methods have created a working environment that is much
different from the past. Globalization of the economy has increased competition
manyfold. The science of ergonomics gives better ideas for doing work more
conveniently by an employee. Thus, continuous research in HR areas is an
unavoidable requirement. It must also take special care for improving the exchange
of information through effective communication systems continuously, especially
on morals and motivation.
HRM is a broad concept; personnel management (PM) and Human resource development (HRD) are a part of HRM.
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