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.

According to Edwin B Flippo:

“Human Resource Management is the planning ,organising , directing and controlling of the procurement ,development ,compensation, integration, maintainance and separation of human resources to the end that individual ,organisational and societal objectives are accomplished”

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 importance of Human Resource Management are as follows:

Importance for an enterprise

Human Resource Management help an enterprise in acheiving its goals in an efficient manner in several ways:

  • Attracting and Retaining the required talent through effective Human Resource Planning,Recruitment,Selection,Placement etc.
  • Utilising effectively the available human resources
  • Ensuring that enterprise will have in future a team of competent and dedicated employees.

Social Importance

Sound Human Resource Management has a great importance for society.It enhance the dignity of labour in following ways:

  • Providing suitable employment that provides social and psychological satisfaction to people.
  • Maintaining a balance between the jobs available and jobseekers in terms of number.
  • Eliminating the wastage of Human Resource .

National Importance

Human Resource and their management plays a vital role in the development of a nation.The effective exploitation and utilization’s of a nations natural, physical and financial resources require an efficient and committed manpower

Functions of Human Resource Management

The functions of Human Resource Management are as follows:

1. Managerial Functions

Managing people is the essence of being a manager.Like other managers, a human resource manager performs the functions of planning,organising,directing and controlling.

2. Operative Functions

The operative or service functions of a Human Resource Management are tasks which are entrusted on the personnel department .These functions are concerned with specific activities of procuring,developing,compensating, and maintaining an efficient workforce.

3. Compensation Functions

It refers to providing equitable and fair remuneration to employees for their contribution to the attainment of organisational objectives.It consists of activities like job evaluation,Wage and salary administration Bonus and maintainance functions

Role of Human Resource Managers

The role of Human Resource Managers are as follows:

1. Specialist and Counselor

A specialists HR manager advices the different functional heads on various aspects of personnel function such as manpower planning,recruitment,selection,orientation,training,appraisal,compensation,etc.

2. Liaison Man

He coordinated the personnel activities of various departments.He serves as connecting link.He acts as a linking pin between different departments of an organisation.

3. Controller

The HR manager assists line managers in effective execution of personnel policies and programmes.The personnel matters of the organisation remain under his control

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 an important role in which he aligns HRM Strategies to business strategies,so that the company can execute its competitive strategies.

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