CHAPTER -1
Introduction of HRM
1) Definitions of HRM
There are two different definitions. The first definition of HRM is that “It is the process of
managing people in organizations in a structured and thorough manner. This covers the
fields of staffing (hiring people), retention of people, pay and perks setting and
Management, performance management, change management and taking care of exits
from the company to round off the activities. This is the traditional definition of HRM which
leads some experts to define it as a modem version of the Personnel Management function
that was used earlier.
The second definition of HRM encompasses “The management of people in organizations
from a macro perspective, i.e. managing people in the form of a collective relationship
between management and employees. This approach focuses on the objectives and
outcomes of the HRM functions
In simple words, Human resource management is management function that helps
manager to recruit, select, train and develop organization members. Or HRM is a process of
making the efficient and effective use of human resources so that the set goals are
achieved.
2) Nature of HRM
The following aspects constitute the core of HRM:
HRM Involves the Application of Management Functions and Principles. The
functions and principles are applied for acquiring, developing, maintaining and
providing remuneration to employees in organization.
Decision Relating to Employees must be integrated. Decisions on different aspects of
employees must be consistent with other human resource (HR) decisions.
Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an
organization will result in betterment of services to customers in the form of high
quality products supplied at reasonable costs.
HRM Functions are not confined to Business Establishments Only but applicable to
non-business organizations such as education, health care, recreation and like.
3) Objectives of HRM
The primary objective of HRM is to ensure the availability of competent and willing
workforce for an organization, there are other objectives too. Specifically, HRM objectives
are four fold: Societal, Organization, Functional and personal.
Personal Objectives: To assist Employees in achieving their personal goals, at least in so far
as these goals enhance the individual’s contribution to the organization. Personal objectives
of employees must be maintained, retained and motivated.
Functional Objectives: To maintain the contribution of department at an appropriate level
organization should fulfil the needs. Resources are wasted when HRM is either more or less
sophisticated to suit the organizations demands.
Organizational Objectives: To recognize the role of HRM in bringing about organizational
effectiveness, HRM is not an end in itself but it is only a mean to assist the organization with
its primary objectives organization.
Societal Objectives: To be ethically & socially responsible for the needs and challenges of
society while minimizing the negative impact of such demands upon the organization to use
their resources for society’s benefits in ethical ways may lead to restriction.
4) 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 comes
under the preview of HRM.
American Society for Training and Development (ASTD) conducted fairly an exhaustive study
in this field and identified nine broad areas of activities of HRM.
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 with a view to assess present and future needs,
availability and possible shortages in human resource. Moreover, HR Planning
forecast demand and supplies and identify sources of selection. HR Planning
develops strategies both long-term and short-term, to meet the man-power
requirement.
Design of Organization and Job: This is the task of laying down organization
structure, authority, relationship and responsibilities. This will also mean 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 job description
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.
Training and Development: This involves an organized attempt to find out training
needs of individuals to meet the knowledge and skill which is needed not only to
perform current job but also to fulfill the future needs of the organization
Organizational Development: This is an important aspect whereby “Synergetic
effect” is generated in an organization i.e. healthy interpersonal and inter-group
relationship within the organization.
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 labour welfare measures are involved which include benefits and
services.
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.
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.
Personnel Research and Information System: Knowledge on behavioral science and
industrial psychology throws better insight into the workers expectations,
aspirations and behavior. Advancement of technology of product and production
methods have created working environment which are much different from the past.
Globalization of economy has increased competition many fold. Science of
ergonomics gives better ideas of doing a work more conveniently by an employee.
Thus, continuous research in HR areas is an unavoidable requirement. It must also
take special care for improving exchange of information through effective
communication systems on a continuous basis especially on moral and motivation.
HRM is a broad concept; personnel management (PM) and Human resource
development (HRD) are the parts of HRM.