Concept of Human Resource Management

Human Resource Management

Employee Outsourcing, Induction And Placement

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Concept of Human Resources Management

Introduction of Human Resource Management

Among the various factors of production, which are used in an organisation, human resource management is the most important. This is because the efficient use of physical resources Human Resource Management(i.e. land, machinery, materials) ultimately depends on how the human factor is put to good use on various operations. The most efficient machinery in the world will not produce at an optimum level unless the people who operate the machinery know how to make it perform at its best and most importantly, are motivated to make their equipment produce efficiently.

Concept of Human Resource Management

Human Resource Management is a process of bringing people and organisations together so that the goals of each are met. It tries to secure the best from people by winning their wholehearted cooperation. In short, it may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organisation in an effective and
efficient manner.

Features of HRM

It has the following features:
1. Pervasive force:  HRM is pervasive in nature. It is present in all enterprises. It permeates all levels of management in an organisation.
2. Action oriented:  HRM focuses attention on action, rather than on record keeping, written procedures or rules. The problems of employees at work are solved through rational policies.
3. Individually oriented:  It tries to help employees develop their potential fully. It encourages them to give their best to the organisation. It motivates employees through a systematic process of recruitment, selection, training and development coupled with fair wage policies.
4. People oriented: HRM is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. The resultant gains are used to reward people and motivate them toward further improvements in productivity.
5. Future-oriented: Effective HRM helps an organisation meet its goals in the future by providing for competent and wellmotivated employees.
6. Development oriented: HRM intends to develop the full potential of employees. The reward structure is tuned to the needs of employees. Training is offered to sharpen and improve their skills. Employees are rotated on various jobs so that they gain experience and exposure. Every attempt is made to use their talents fully in the service of organisational goals.
7. Integrating mechanism: HRM tries to build and maintain cordial relations between people working at various levels in the organisation. In short, it tries to integrate human assets in  the best possible manner in the service of an organisation.
8. Comprehensive function: HRM is, to some extent, concerned with any organisational decision which has an impact on the workforce or the potential workforce. The term ‘workforce’signifies people working at various levels, including workers, supervisors, middle and top managers. It is concerned with managing people at work. It covers all types of personnel. Personnel work may take different shapes and forms at each level in the organisational hierarchy but the basic objective of achieving organisational effectiveness through effective and efficient utilisation of human resources, remains the same. “It is basically a method of developing potentialities of employees so that they get maximum satisfaction out of their work and give their best efforts to the organisation”. (Pigors and Myers)
9. Auxiliary service: HR departments exist to assist and advise the line or operating managers to do their personnel work more effectively. HR manager is a specialist advisor. It is a staff  function.
10. Inter-disciplinary function: HRM is a multi-disciplinary activity, utilising knowledge and inputs drawn from psychology, sociology, anthropology, economics, etc. To unravel the  mystery surrounding the human brain, managers, need to understand and appreciate the contributions of all such ‘soft’ disciplines.
11. Continuous function: According to Terry, HRM is not a one shot deal. It cannot be practiced only one hour each day or one day a week. It requires a constant alertness and awareness of human relations and their importance in every day operations.

Objectives of Human Resource Management

1. To help the organisation reach its goals: HR department, like other departments in an organisation, exists to achieve the goals of the organisation first and if it does not meet this purpose, HR department (or for that matter any other unit) will wither and die.
2. To employ the skills and abilities of the workforce efficiently: The primary purpose of HRM is to make people’s strengthsproductive and to benefit customers, stockholders and employees.
3. To provide the organisation with well-trained and well-motivated employees:  HRM requires that employees be motivated to exert their maximum efforts, that their performance be evaluated properly for results and that they be remunerated on the basis of their contributions to the organisation.
4. To increase to the fullest the employee’s job satisfaction and self-actualisation: It tries to prompt and stimulate every employee to realise his potential. To this end suitable programmes have to be designed aimed at improving the quality of work life (QWL).
5. To develop and maintain a quality of work life: It makes employment in the organisation a desirable, personal and social, situation. Without improvement in the quality of work life, it is difficult to improve organisational performance.
6. To communicate HR policies to all employees: It is the responsibility of HRM to communicate in the fullest possible sense; tapping ideas, opinions and feelings of customers,non-customers, regulators and other external public as well as understanding the views of internal human resources.
7. To be ethically and socially responsive to the needs of society: HRM must ensure that organisations manage human resource in an ethical and socially responsible manner through ensuring compliance with legal and ethical standards.

Importance of Human Resource Management

People have always been central to organisations, but their strategic importance is growing in today’s knowledge-based industries. An organisation’s success increasingly depends on the knowledge, skills and abilities (KSAs) of employees, particularly as they help establish a set of core competencies that distinguish an organisation from its competitors. With appropriate HR policies and practices an organisation can hire, develop and utilise best brains in the marketplace, realise its professed goals and deliver results better than others.
Human Resource Management helps an organisation and its people to realise their respective goals thus:

1. At the enterprise level:

(a) Good human resource practices can help in attracting and retaining the best people in the organisation. Planning alerts the company to the types of people it will need in the short, medium and long run.
(b) It helps in training people for challenging roles, developing right attitudes towards the job and the company, promoting team spirit among employees and developing loyalty and commitment through appropriate reward schemes.

2. At the individual level:

Effective management of human resources helps employees thus:
(a) It promotes team work and team spirit among employees.
(b) It offers excellent growth opportunities to people who have the potential to rise.
(c) It allows people to work with diligence and commitment.

3. At the society level:

Society, as a whole, is the major beneficiary of good human resource practices.
(a) Employment opportunities multiply.
(b) Scarce talents are put to best use. Companies that pay and treat people well always race ahead of others and deliver excellent results.

4. At the national level:

Effective use of human resources helps in exploitation of natural, physical and financial resources in a better way. People with right skills, proper attitudes and appropriate values help the nation to get ahead and compete with the best in the world leading to better standard of living and better employment.

Did u know?

What is meant for competitive advantage?

It is an ability of an organisation to perform activities exceptionally well (availing profitable opportunities and thereby maximising returns on investment) and gaining an
edge over rivals when competing. To attain competitive advantage firms need to add value to services and products offered to end consumers.


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