OVERVIEW OF HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT (HRM) - is the body of knowledge and a set of practices
that define the nature of work and regulate the employment relationship. HRM is the function
within an organization that focuses on recruitment, management and providing direction for the
people who work in the Organization.
Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. HRM can also be performed by line managers.
HRM is the organizational function that deals with issues related to people such as
compensation, hiring, performance management, organization development, safety, wellness,
benefits, employee motivation, communication, administration, and training.
HRM is also a strategic and comprehensive approach to managing people and the
workplace culture and environment. Effective HRM enables employees to contribute effectively
and productively to the overall company direction and the accomplishment of the organization's
goals and objectives.
HRM is moving away from traditional personnel, administration, and transactional roles, which
are increasingly outsourced. HRM is now expected to add value to the strategic utilization of
employees and that employee programs impact the business in measurable ways. The new role
of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.
What is HRM?

HRM is concerned with the peoples dimension in the organization

Facilitating the competencies and retention of skilled force
Developing management systems that promote commitment
Developing practices that foster team work
Making employees feel valued and rewarded.

Definition of HRM refers to acquisition, retention, motivation and maintenance of Human

Resources in an organization. HRM is the planning, organizing, directing & controlling of the
procurement, development, compensation integration, maintenance and separation of human
resources to the end that individual, organizational and social objectives are accomplished. Edwin B. Flippo

WHY STUDY HRM?

Taking a look at people is a rewarding experience

People possess skills, abilities and aptitudes that offer competitive advantage to any firm

No computer can substitute human brain, no machines can run without human
intervention & no organization can exist if it cannot serve peoples needs.
HRM is a study about the people in the organization-how they are hired, trained,
compensated, motivated & maintained.

HRM and 3 Ps
People core strength of an organization
o Any resource can be replaced but not HR
Processes evolve over a period of time
o IT enabled environment facilitates engineering effortlessly
Performance the pillars of performance are people and IT
o Organizational performance in terms of value creation and return on investment
Functions of HRM include:

Facilitating the retention of skilled and competent employees

Building the competencies by facilitating continuous learning and development
Developing practices that foster team work and flexibility
Making the employees feel that they are valued and rewarded for their contribution
Developing management practices that endanger high commitment
Facilitating management of work force diversity and availability of equal opportunities to
all.

OBJECTIVES OF HRM
The primary objective of HRM is to ensure the availability of right people for right jobs so as the
organizational goals are achieved effectively.
This primary objective can further be divided into the following sub-objectives:
1. To help the organization to attain its goals effectively and efficiently by providing competent
and motivated employees.
2. To utilize the available human resources effectively.
3. To increase to the fullest the employees job satisfaction and self-actualization.
4. To develop and maintain the quality of work life (QWL) which makes employment in the
organization a desirable personal and social situation.
5. To help maintain ethical policies and behavior inside and outside the organization.
6. To establish and maintain cordial relations between employees and management.
7. To reconcile individual/group goals with organizational goals.

Werther and Davis have classified the objectives of HRM into four categories as shown in table
1.2.
Table 1.2: HRM Objectives and Functions:

Societal Objectives
To be ethically & socially responsible to the needs of the society while minimizing the
negative impact of such demands upon the organization.
Organizational Objectives
To recognize the role of HRM in bringing about organizational effectiveness
Functional Objectives
To maintain the departments contribution at a level appropriate to the organizations
needs
Personal Objectives
To assist employees in achieving their personal goals in a manner that their personal goals
enhance the individuals contribution to the organization.