Human Resource Management – A Basic Overview
Define Human Resource Management
Human resource management (HRM) is the process of employee management that employs people, trains them, compensates them, develops policies relating to them, which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce to retain them.
As per The Harvard Model of HRM, “Human Resource Management is a long term approach to the employment, development, and wellbeing of the employee working in an organization. HRM includes all actions and management decisions that affect the connection between the organization and its employees.”
In Simple Words, Human Resource Management belongs to the management of all decisions in an organization that is related to employees.
HRM STANDS FOR
HRM is short form of three separate words Human, Resource, and Management.
“Human” represents the dimension of HRM that relates to the soft aspects like the commitment of staff through participation and also the most significant assets being the workers.
“Resource” represents the onerous aspects like the strategy link of HRM and therefore the importance of proficient usage of employees.
“Management” represents the role of HRM as a part of management that means that it’s not a regulatory function that carries out the developed policies but also a managerial function that contributes to strategy formulation.
Understanding of Human Resource Management
Each organization, either small or large utilizes a combination of capital to make the business work. Capital incorporates money, resources, or merchandise used to generate income for a business. For instance, a shopkeeper uses registers for accounts, pens, and other inventory, whereas a construction company has big machinery like bulldozers, crushers, materials like cement, stones, etc. Regardless of the business, all organizations make them think in like manner: they should have individuals to make their capital work for them. This will be our concentration all through the content: age of revenue using relationship-building abilities and capacities.
Objectives of Human Resource Management
There are four objectives of HRM:
To be morally and socially accountable to the requirements and challenges of society through reducing the negative impact of such demands upon the organization. Example – Legal compliance, union-management, benefits, etc.
To identify the role of HRM in carrying about organizational objectives. Example-HRP, Employee relation, Selection, TRD, PA, etc.
To keep the department’s involvement at a level appropriate to the organization’s needs. Ex-Recruitment, selection, PA, etc.
To contribute to employees in attaining their personal goals, as a minimum these goals improve the individual’s contribution to the organization. Ex-TRD, Placement, compensation, assessment.
The Role of Human Resource Management
It is relevant to mention here that functions of HRM may also be tasked to other department’s managers to perform, which makes it important for information, Despite the career path taken. Most authorities accepted seven chief roles that HRM plays in organizations. These are described in the following sections.
- Development of Workplace Policies
- Compensation and Benefits Administration
- Training and Development
- Dealing with Laws Affecting Employment
- Worker Protection
- Awareness of External Factors
Functions of HRM
Functions of HRM are classified into three categories.
- Managerial Functions
- Operative Functions
- Advisory Functions
There are four Managerial Functions:
Operative Functions of HRM are listed as follow:
- Recruitment and Selection
- Job Analysis and Design
- Performance Appraisal
- Training and Development
- Wage and Salary Administration
- Employee Welfare
- Labor Relation
- Personnel Research
- Personnel Record
Human Resource Management is expert in managing human resources and can give advice on matters of human resources of the organization. Advisory functions of HRM are as follow:
- Advise to Top Management
- Advise to Departmental Head
Importance of Human Resource Management
The importance of Human Resource Management lying in different aspects, some are given below.
Recognizing and valuing individuals
HRM brings every employee’s worth to the organization and suggesting the organization recognize and value individual’s contributions toward achieving the organization’s objectives.
People bring ideas
HRM manages people, and people fetch new ideas and skills into the organization and increase business.
People working in an organization have a right to be comforted and satisfied by their work, and organizations have a responsibility to match their skills with their job and, to motivate them.
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