Human resource management (HRM or HR) is the strategic
approach to the effective management of people in a company or
organization such that they help their business gain a competitive
advantage. It is designed to maximize employee performance in
service of an employer's strategic objectives.
Human Resource Management
Human Resource Management is the process of
recruiting, selecting, inducting employees, providing
orientation, imparting training and development, appraising the
performance of employees, deciding compensation and providing
benefits, motivating employees, maintaining proper relations with
employees and their trade unions, ensuring employees safety,
welfare and healthy measures in compliance with labour laws of
the land and finally following the Orders / Judgements of the
concern High Court and Supreme Court, if any.
Human Resource Management – Objectives
The main objectives of HRM are as follows:
1. To help the organization attain its goals by providing well-trained and well-
motivated employees.
2. To employ the skills and knowledge of employees efficiently and effectively.
3. To enhance job satisfaction and self-actualization of employees by
encouraging and assisting every employee to realize his/her full potential.
Human Resource Management: Nature
Human ResourceManagement is a process of bringing people and organizations together so that the
goals of each are met. The various features of HRM include:
It is pervasive in nature as it is present in all enterprises.
Its focus is on results rather than on rules.
It tries to help employees develop their potential fully.
It encourages employees to give their best to the organization.
It is all about people at work, both as individuals and groups.
It tries to put people on assigned jobs in order to produce good results.
It helps an organization meet its goals in the future by providing for competent and well-motivated
employees.
It tries to build and maintain cordial relations between people working at various levels in the
organization.
It is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology,
economics, etc.
Human Resource Management: Scope
The scope of HRM is very wide:
1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement,
transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives,
productivity etc.
2. Welfare aspect-It deals with working conditions and amenities such as canteens, cr?ches, rest
and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation
facilities, etc.
3. Industrial relations aspect-This covers union-management relations, joint consultation, collective
bargaining, grievance and disciplinary procedures, settlement of disputes, etc.
Approaches of Human Resource
Management
There are many different approaches to human resource
management. HRM may be discussed from the different
approaches.
These approaches define HRM from different perspectives.
1. Strategic approach.
2. Management approach.
3. Human resource approach.
4. Commodity approach.
5. Proactive approach.
6. Reactive approach.
7. System approach.
1 Strategic Approach
People are the strategic asset of an organization. People have
corecompetencies, the basis of competitive advantage. Human
resources are the combination of talent and skills; some of them are
inborn and other skills they have acquired through learning and
education. The strategic HRM approach focuses on people
management programs and long-term solutions.
It stresses organizational development interventions, achieving
employee organizational fit, and other aspects that ensure
employees add value to the organization.
2 Management Approach
HRM is a part of general management. Management is nothing
but managing people in the workplace. Managers at all levels
are responsible for managing their employees or subordinates.
3 Human Resource Approach
People are human beings with a lot of potentials and intellectual
abilities. It is
important to treat people with respect and dignity.
4 Commodity Approach
People are a commodity. They are viewed as a cog of a machine.
People can be hired and fired through money. It is money that
matters most. There is a saying, “money is sweeter than honey.”
This approach views people as an economic man.
5 Proactive Approach
HR managers must anticipate the challenges or problems before
they arise. Prevention is better than cure. In a perfect world every
startup would take the proactive approach and build their company
from the beginning by identifying not only
the mission, vision, values, goals, objectives, etc., but will
determine where they want to go in the short- and long-term and
build a holistic, aligned organization beginning at the founder level
where they can attract, hire, and retain the top talent to get them
where they want to go.”
6 Reactive Approach
It occurs when decision-makers respond to problems. If efforts are
reactive only, problems may be compounded, and opportunities
may be missed, and organizations may suffer loss.
Companies may lose time and money if they take a reactive
approach.
7 System Approach
A system is a set of interrelated but separate elements or parts
working together for a common goal. For example, HRM is a system
that may have parts such as procurement, training, performance
appraisal and reward, etc. One part affects and is affected by the
other.