Chapter:1 HRM : Concept, Nature, Objectives, Scope

Here we will discuss Meaning ,Nature of HRM ,etc

Concept of HRM

Human Resource Management is a management function that deals with recruiting,selecting,training and developing human resources in an organisation.It is concerned with people dimension in an organisation.

Nature of HRM

The nature of Human Resource Management are as follows:

1. People as “Human Capital”

Human Resource function is concerned with the management of Human Resource of an organisation in contrast to the material or financial resources .

2. Human Objective

The main object of HRM is to help employees to develop their capabilities to the full,so that they can derive the greatest satisfaction from their work.

3. Staff Function

HRM is a supportive and service function.Gary says,”Service to line management is the “bread and butter” of the personal manager’s job.”

4. Pervasive Responsibility

HRM function is all pervasive ,transcendes all other managerial functions .In this sense,every manager is unavoidably a personal manager.

4. Action Oriented

It focuses on “Action” rather than on records or procedure.It solves personnel problems to acheive both organisational and employees personal goals.

The more points around nature of HRM are as follows:-

  1. People-oriented: HRM focuses on managing and developing the organization’s most valuable asset—its people. It recognizes that employees are the driving force behind achieving organizational goals and emphasizes their well-being, growth, and satisfaction.
  2. Strategic function: HRM plays a strategic role in aligning human resources with the organization’s overall objectives. It involves developing HR strategies that support the organization’s vision, mission, and long-term plans. HRM contributes to strategic decision-making by ensuring that the workforce is capable, motivated, and engaged.
  3. Employment lifecycle management: HRM covers the entire employment lifecycle, from recruitment and selection to retirement or separation. It involves activities such as workforce planning, job analysis, recruitment and selection, training and development, performance management, employee relations, compensation and benefits, and employee engagement.
  4. Employee development and training: HRM is responsible for identifying the training and development needs of employees and designing programs to enhance their skills and knowledge. It focuses on fostering a learning culture and creating opportunities for continuous growth and career development.
  5. Compliance with laws and regulations: HRM ensures compliance with labor laws, regulations, and organizational policies. It manages issues related to employment contracts, labor relations, equal employment opportunity, workplace safety, and other legal and ethical requirements.
  6. Employee relations and conflict management: HRM plays a critical role in fostering positive employee relations and managing conflicts within the organization. It promotes open communication, handles grievances, resolves disputes, and promotes a harmonious work environment.
  7. Performance management: HRM establishes systems and processes to effectively manage employee performance. It includes setting performance expectations, conducting performance appraisals, providing feedback, recognizing achievements, and addressing performance issues.

Objectives of HRM

The objectives of Human Resource Management are as follows:

Procurement of the personnel:

The first objective of Human Resource Management is to obtain capable people who can produce,sell and distribute the products manufactured.

Maximum Individual Development:

HRM provides opportunities for advancements to employees through training and job educations.

To create disciplined atmosphere

Human Resource Management aims to develop a sense of discipline among the human force engaged in an organisation.

Maintaining Good Relations

HRM tries to provide best satisfaction to the employees .It also follows the principle of “minimum cost and maximum profit” for the employer too.

Scope of HRM

The scope of Human Resource Management are as follows:

Personnel Aspect

This is concerned with manpower ,planning,recruitment,selection,placement,transfer and so on.

Welfare Aspect

It deals with working conditions and amenities such as canteens,creeches,rest and lunch room,medical assistance and so on.

Industrial Relations Aspect

This covers union management relations,joint consultation,collective bargaining,grievances and so on.

We will cover all the topics of HRM unit-1 part-wise .

Download Free PDF Notes HRM Unit-1

Importance of Human Resource Management

The significance of Human Resource Management can be outlined through the following factors:

Importance for an enterprise

Human Resource Management aids an enterprise in efficiently achieving its goals through various means:

  • Attracting and retaining the necessary talent is facilitated through effective Human Resource Planning, Recruitment, Selection, Placement, and related processes.
  • Utilising effectively the available human resources
  • Ensuring that the enterprise will possess a team of competent and dedicated employees in the future.

Social Importance

Sound Human Resource Management holds significant importance for society as it enhances the dignity of labor in the following ways:

  • Offering appropriate employment that provides social and psychological satisfaction to individuals.
  • Maintaining equilibrium between the available jobs and job seekers in terms of quantity.
  • Eliminating the wastage of Human Resource .

National Importance

Human Resource and its management play a vital role in the development of a nation. Efficient and committed manpower is essential for the effective exploitation and utilization of a nation’s natural, physical, and financial resources.

Functions of Human Resource Management

The responsibilities of Human Resource Management include the following functions:

1. Managerial Functions

The essence of being a manager lies in effectively managing people. Similar to other managers, a human resource manager carries out the functions of planning, organizing, directing, and controlling.

2. Operative Functions

The operational or service functions of Human Resource Management involve tasks delegated to the personnel department. These functions revolve around specific activities related to the acquisition, development, compensation, and maintenance of personnel.

3. Compensation Functions

It pertains to offering fair and equitable remuneration to employees for their contributions to the achievement of organizational objectives. This includes activities such as job evaluation, wage and salary administration, bonuses, and other related components.

Role of Human Resource Managers

The functions of Human Resource Managers include the following:

1. Specialist and Counselor

A specialized HR manager provides guidance to various functional heads on diverse aspects of personnel functions, including manpower planning, recruitment, selection, orientation, training, appraisal, compensation, and more.

2. Liaison Man

He coordinates the personnel activities of various departments, serving as a connecting link and acting as a liaison between different departments within an organization.

3. Controller

The HR manager aids line managers in the effective implementation of personnel policies and programs, retaining control over the personnel matters of the organization.

4. Problem Solver

He is problem solver in respect of issues involving Human Resource Management.In union management relations he acts as a fire fighter as a shock absorber

5. Strategic partner

It is a crucial role where he aligns HRM strategies with business strategies, ensuring that the company can effectively execute its competitive strategies.

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