MODULE-1 HUMAN RESOURCES MANAGEMENT

Introduction To HRM
Meaning:
Human Resource Management was originally known as personnel or
people management. It is a process of employing people, training
them, compensating them, developing policies relating to them, and
developing strategies to retain them. It is defined as the art of
procuring, developing, and maintaining a competitive workforce to
achieve organizational goals effectively and efficiently.
Definition
According to Armstrong “HRM is concerned with the employment,
development, and reward of people in organizations and the conduct
of relationships between management and the workforce”.
NATURE OF HRM
1. Pervasive Force: Human Resource Management is an inherent part
of an organization. It is pervasive in nature and present in all
enterprises at all levels of management. It is the responsibility of each
manager to select the right candidate under him and pay attention to
the development and satisfaction of each subordinate.
2. People Oriented: Human Resource Management focuses on and
values people at work both as individuals and groups. It encourages
people to develop their full potential and in return give the best to the
organization.
3. Action-Oriented: Human Resource Management does follow
rules, records, and policies but it stresses the action. The focus is on
providing an effective and timely solution to employees for any
problems, tensions, or controversies faced by them.
4. Future-Oriented: To sustain and grow in this competitive
environment organizations follow long-term strategic planning.
Effective Human Resource Management prepares people for current
as well as future challenges, especially working in an environment
characterized by dramatic changes.
5. Development Oriented: HRM continuously works towards the
development of employees. There are various tools used to make
employees reach their maximum potential. Training programs are held
to help employees enhance their skills and knowledge. Monetary and
nonmonetary reward structures are tuned to motivate the employees.
6. Enhance Employee Relations: HRM helps to build healthy
relationships between employees at various levels. It encourages
mentoring and counseling to help employees in times of need. It aims
at creating a culture in the organization that is conducive to learning
and growth.
7. Interdisciplinary Function: The knowledge that has influenced
Human Resource Management is interdisciplinary in nature. It drives
knowledge from five major bodies: education, system theory,
economics, psychology, and organizational behavior.
SCOPE OF HRM
The scope of Human Resource Management (HRM) encompasses all
activities and processes related to managing people within an
organization. It includes a wide range of responsibilities and functions
that are designed to maximize the effectiveness and efficiency of an
organization's workforce. The scope of HRM includes;
1. Recruitment and Selection: HRM is involved in attracting,
identifying, and hiring qualified individuals for job positions within
the organization. This includes developing job descriptions,
advertising vacancies, screening resumes, conducting interviews, and
making job offers.
2. Training and Development: HRM is responsible for identifying
the training and development needs of employees and implementing
programs to enhance their knowledge, skills, and abilities. This may
involve organizing workshops, seminars, on-the-job training, and e-
learning initiatives.
3. Performance Management: HRM establishes performance
management systems and processes to evaluate employee
performance, set goals, provide feedback, and recognize
achievements. It may also involve conducting performance appraisals
and establishing performance improvement plans.
4. Compensation and Benefits: HRM is responsible for designing
and administering compensation and benefits programs that are fair,
competitive, and aligned with the organization's goals and budget.
This includes salary administration, incentive plans, health insurance,
retirement plans, and other employee benefits.
5. Employee Relations: HRM plays a crucial role in fostering positive
employee relations and maintaining a healthy work environment. It
involves developing and implementing policies and procedures,
handling employee grievances and disputes, and promoting effective
communication and teamwork.
6. Employee Engagement and Motivation: HRM focuses on
strategies to engage and motivate employees to perform at their
best. This may involve creating a positive organizational culture,
implementing recognition programs, fostering career development
opportunities, and promoting work-life balance.
7. Legal Compliance: HRM ensures compliance with labour laws,
regulations, and employment standards. It involves keeping up-to-
date with changes in legislation, taining employee records, managing
work permits and visas, and handling legal issues related to
employment.
IMPORTANCE OF HRM
1. Talent Acquisition and Retention: HRM plays a crucial role in
attracting and hiring the right talent for the organization. By
implementing effective recruitment and selection strategies, HRM
ensures that the organization has a skilled and competent workforce.
Additionally, HRM also focuses on employee retention strategies to
reduce turnover and retain high-performing employees.
2. Employee Development and Engagement: HRM is responsible
for developing and enhancing the skills, knowledge, and abilities of
employees through training and development programs. These
initiatives not only improve individual performance but also
contribute to employee satisfaction and engagement. Engaged
employees are more likely to be productive, committed, and loyal to
the organization.
3. Performance Management: HRM establishes performance
management systems that set clear expectations, provide feedback,
and evaluate employee performance. By effectively managing
performance, HRM helps in aligning individual goals with
organizational objectives, identifying areas for improvement, and
rewarding exceptional performance.
4. Organizational Culture and Employee Relations: HRM plays a
crucial role in creating and maintaining a positive organizational
culture. This includes promoting ethical behavior, diversity and
inclusion, teamwork, and a supportive work environment. HRM also
handles employee relations, resolves conflicts, and ensures fair
treatment of employees, which fosters a positive and harmonious
work environment.
5. Compensation and Benefits: HRM designs and administers
compensation and benefits programs that attract and motivate
employees. Competitive and fair compensation packages are
essential to attract and retain top talent. HRM ensures that
employees are rewarded appropriately for their contributions, which
enhances job satisfaction and reduces turnover.
6. Legal Compliance: HRM ensures that the organization complies
with labor laws, regulations, and employment standards. This
includes maintaining accurate employee records, managing work
permits and visas, handling legal issues, and promoting a safe and
healthy work environment. Compliance with laws and regulations
helps the organization avoid legal risks and potential liabilities.
7. Strategic Planning and Decision-making: HRM contributes to
the strategic planning process by providing insights into workforce
capabilities, skill gaps, and future talent needs.
8. Change Management: HRM plays a vital role in managing
organizational change and transitions. During periods of
restructuring, mergers, or acquisitions, HRM ensures effective
communication, manages employee concerns, and facilitates the
smooth integration of employees into new structures and processes.