The Concept of Human Resource Management

When we talk about human resources (HR) in a business situation it

means the workforce, i.e., the employees of a company and what skills
and energy they bring. This includes any ideas, creativity, knowledge,
and talents that employees bring with them and use to help the
organization be successful. In other words, the resources a person has
or the knowledge and experience developed over the years.

Human Resource Management (HRM) was originally known as

personnel or people management. Within any organization, HRM is a
formal way of managing people. It is a fundamental part of any
organization and its management.
Basically, Human Resources Management deals with:
 Anything related to managing people within an organization. This
means decisions, strategies, principles, operations, practices,
functions, activities, and the methods used to manage employees.
 The type of relationships people have in their places of
employment and anything that affects those relationships in a
positive or negative way.
 Ensuring that employees are satisfied with the conditions of their
employment. This leads to better services and production of goods
and helps the company’s success.
 HRM focuses on bringing in (recruiting) new employees with new
talents for the organization and managing employees.

Accordingly, in a large organization, with a lot of people, it is

important to have a department that specifically focuses on staff
issues. These issues are things like hiring, performance evaluation
management, organizational development, training, occupational
health and safety, motivation incentives, compensation, workplace
culture, and environment.
It helps with increasing the morale of workers by working on relations
between employees and their employers and constantly striving to
make them better. The HR department also provides any support
employees need to assist them improve their performance.
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The HRM function extends to assessing the productivity and/or success
of every department in an organization. It assists each department and
helps them improve their work. It also mediate when necessary to help
solve any problems that might arise with regards to employees’ work.
Getting better results from the company’s workers is another job of
HRM.

Objectives of HRM:
1. To establish and use a workforce that is able and
motivated, in order to achieve the goals of an organization.
2. To create the desirable organizational structure and
working relationships among all the members of the organization.
3. To integrate individuals and/or groups within the
organization by matching their goals with those of the organization.
4. To ensure individuals and groups have the right
opportunities to develop and grow with the organization.
5. To ensure wages are fair and adequate and provide
incentives and benefits thereby satisfying both individuals and
groups. Also, to ensure ways of allowing recognition for challenging
work, prestige, security and status.
6. To have continual high employee morale and good human
relations by establishing and improving conditions and facilities
within the organization.
7. To improve the human assets by providing appropriate
training programs on a continual basis.
8. To try to effect socio-economic change in areas such as
unemployment, under-employment and inequality by distributing
income and wealth. This way society can benefit. Added
employment opportunities for women and the disadvantaged will
also be impacted in a positive way.
9. To ensure that the organizational leadership works in a
fair, acceptable and efficient manner.
10. To ensure a good working atmosphere and employment
stability by having proper facilities and working conditions.

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Functions of Human Resource Management (HRM)
Human resource management must plan, develop, and administer
policies and programs that can make the best use of an organization’s
human resources. This is the part of management’s role which deals
with people at work and their relationships within the organization. Its
aims are:
1. To use human resources as effectively as possible;
2. To ensure the best possible working relationships among all
members of the organization; and
3. To assist individuals to reach their highest potential.

In Human Resource Management, there are four major areas:

1. Planning
2. Staffing
3. Employee development, and
4. Employee maintenance.
These four areas and any associated functions share a common aim.
That is to have enough competent employees with the skills, abilities,
knowledge, and experience needed to achieve further organizational
objectives. Each HR function (above) can be appointed to one of the four
areas of personnel responsibility but there are also other functions that
are designed for different purposes.

Human Resource Planning

The human resource planning function serves to determine the number
and type of employees needed to achieve the organizations’ goals.
Research is performed in this function because planning requires
information to be collected and analyzed for the forecasting of human
resource supplies and the prediction of future human resource needs.
Staffing and employee development are HR planning strategies.

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Job Analysis
Job analysis is deciding on the job description and the human
requirements that are needed for said job. The job description should
include the skills and experience needed to perform the job. A job
description clearly sets out work duties and activities that employees
will be expected to perform. Job descriptions are essential because the
information they provide to employees, managers, and personnel
people influences personnel programs and practices.

Staffing
Recruitment and selection of human resources (people) is what staffing
is mostly concerned with. Human resource planning and recruiting is
done before selecting people for positions. Recruiting is the personnel
function of finding and hiring the best qualified applicants to fill job
vacancies.
The selection function is used to choose the most qualified applicants
for hiring from those attracted to the organization by the recruiting
function.

Orientation
Orientation aims to introduce a new employee to the new job and the
employer. It is a way for new employees to get to know more intimate
aspects of their job, including pay and benefits, working hours, and
organizations’ policies and expectations.

Training and Development

Training and development is used as a means of providing employees
with the skills and knowledge to do their jobs well. It must be provided
to all employees. In addition to providing training for new or
inexperienced employees, organizations often provide training for
experienced employees as well. This may be because their jobs are
undergoing change or the organization needs them to work more
effectively. Development programs are also done to equip employees for
higher level responsibilities. Training and development programs are

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ways of making sure that employees can handle the stresses of their
jobs and perform well.

Performance Appraisal
Performance appraisal is an evaluation of an employee and his/her
performance to make sure that said employee is working well and at
acceptable levels. HR departments are usually responsible for
developing appraisal systems. The actual assessment of employee
performance is done by supervisors and managers. Performance
appraisal is necessary because the results of the appraisal can be used
to motivate and guide employees’ performance. It also provides a basis
for pay, promotions, and any disciplinary action if necessary.

Career Planning
Career planning is a process where an employee explores his/her
interests and abilities and strategically works towards job goals. It has
come about partly because many employees’ feel the need to grow in
their jobs and to advance in their careers.

Compensation
It is the HR department that determines how much employees should
be paid for certain jobs using a system of assessment. Compensation
costs organizations a lot so it is something that needs serious attention
in the human resource planning stage. Compensation affects staffing
because people generally want to work for an organization that offers
more pay in exchange for the work done. It provides an important
motivation for employees to achieve more in their jobs and reach higher
levels. As such, it is related to employee development.
Benefits
Work benefits are also referred to as fringe benefits. They are non-wage
compensation that employees get in addition to their usual wages.
Benefits are legally required items but employers can also more at their

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discretion. The cost of benefits is so high that they have become a huge
consideration in human

Labor Relations
Labor relations relates to the practice of managing employees who are
members of a union. Unions provide employees with strength in
numbers and have representatives who can advocate on their behalf if
necessary, to deal with any discrepancies in pay, benefits, working
conditions, and other work aspects. HR personnel are responsible for
negotiating with unions and resolving any disputes.

Record-keeping
Record-keeping is essential and the most basic function of HR.
Recording, maintaining and retrieving employee information when
needed is done by the HR personnel. The type of records kept are
related to the employees and include employment history, resumes,
medical records, promotions, transfers, working hours, and lateness,
etc. Keeping records up-to-date is a vital HR function. Employees today
want to know what is in their personnel records and why certain things
are there or not there.
Personnel records provide the following:
a) Up-to-date information about employees.
b) Procedures for comparing employees and their work to other
employees.
c) Procedures for recruiting new employees, e.g. by showing the rates of
pay.
d) Record of previous action taken regarding employees.
e) Statistics which check and guide personnel policies.
f) Information regarding legal requirements and how to comply with
them.

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Personnel Research
Research activities are an essential function of HR personnel. Research
is done with the aim of obtaining personnel specific information in
order to develop programs that work for an organization. Planning and
reviewing are vital. Areas, such as recruitment, employee turnover,
training, and terminations are all important areas to be researched.
Employee opinions are also very important and can be obtained
through surveys about wages, promotions, welfare services, conditions,
job security and the like.
Even though research is so important, many organizations neglect it
because personnel people are too busy dealing with other more
immediate problems.
Research is not done to deal with problems but to prevent them from
occurring in the first place. The responsibility for research lies initially
with the HR department but line supervisors and executives at all levels
of management should assist. Trade unions and other organizations can
give some assistance also and it should be made use of.
HR functions also include managing change, introducing new
technology, innovation and diversity. Regular social audits of HR
functions are necessary because of the large role HR plays within any
organization. HR’s ultimate goal is to provide a link between the
organization and the employees because the organization needs
employees’ commitment. Employees need to be made aware of things
like sales growth, restructuring plans, sharp price movements and any
challenges facing the country and their organization in particular. This
can be done by videos, films, lectures and booklets.
n recent years, Human Resource Management has received increasing
attention. Its importance has been recognized and its role has changed
from the traditional personnel management role to a more human
resource management role.