Human Resource Management | BBA,BIM,BBS | Notes

A Complete Note of Human Resource Management

Definition :
“Human Resource Management is concerned with the “people” dimension in management”. - DeCenzo & Robbins

Human Resource Management is the process of accomplishing organizational objectives by acquiring,retaining, terminating, developing and properly using the human resources in the organization.” - Ivancevich, Donnely

Human resource management is the process of acquiring, training, appraising, and compensating
employees, and of attending to their labor relations, health and safety, and fairness concerns.

The policies and practices involved in carrying out the “people” or human resource aspects of
management position, including recruiting, screening, training, rewarding, and appraising.

It is a subject related to human. For simplicity, we can say that it is the management of humans or people. HRM is a managerial function that tries to match an organization’s needs to the skills and
abilities of its employees. Human Resource Management is responsible for how people are managed in the organizations. It is responsible for bringing people in organization helping them perform their
work, compensating them for their work and solving problems that arise.

Human Resource Management is a process of bringing people and organizations 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 organization in an effective and efficient manner.

NATURE/FEATURES OF Human Resource Management:

1) Pervasive force: HRM is pervasive in nature. It is present in all enterprises. It permeates all levels of management in an organization.

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 organization. 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 organization meet its goals in the future by providing for competent and well-motivated 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 organizational goals.

7) Integrating mechanism: HRM tries to build and maintain cordial relations between people working at various levels in the organization. In short, it tries to integrate human assets in the best possible manner in the service of an organization.

8) Comprehensive function: HRM is, to some extent, concerned with any organizational 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 organizational hierarchy but the basic objective of achieving organizational 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 organization.

9) Inter-disciplinary function: HRM is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology, sociology, anthropology, economics, etc. unravel (to explain) the mystery surrounding the human brain, managers, need to understand and appreciate the contributions of all such soft disciplines.

10) 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.

OBJECTIVE Of Human Resource Management:

1) Achieve high productivity: The extent to which an organization is able to get productivity goal is
achieved, depends largely on how effectively it uses its human resources. HRM continuously
develops employees through training and other opportunities. Better quality of human resources
results in improved productivity through team work.

2) To help the organization reach its goals: HR department, like other departments in an
organization, exists to achieve the goals of the organization first and if it does not meet this
purpose, HR department (or for that matter any other unit) will wither and die.

3) To employ the skills and abilities of the workforce efficiently: The primary purpose of
HRM is to make people’s strengths productive and to benefit customers, stockholders and

4) To provide the organization 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 organization.

5) To increase to the fullest the employee’s job satisfaction and self-actualization: It tries to
prompt and stimulate every employee to realize his potential. To this end suitable programmes
have to be designed aimed at improving the quality of work life (QWL).

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, noncustomers, regulators and other external public as well as understanding the views of internal
human resources.

7) To develop and maintain a quality of work life: It makes employment in the organization a
desirable, personal and social, situation. Without improvement in the quality of work life, it is
difficult to improve organizational performance.

8) To be ethically and socially responsive to the needs of society: HRM must ensure that
organizations manage human resource in an ethical and socially responsible manner through
ensuring compliance with legal and ethical standards.

9) Increase workforce commitment: Increasing level of commitment means people are interested to
be involved in work mentally and physically in order to achieve organizational objectives. This is
achieved by the people commitment for increase in efficiency and productivity.

10) Providing supporting environment for employee for employees’ creativity: For this purpose
HRM focuses on effective management mechanisms such as team work, management by objectives
and total quality management.

11) Making organizational system flexible: HRM aims to train and develop workforce in order to
adjust in a quickly and frequently changing environment. It follows other flexible HR practices to
motivate workforce to work to keep organization more flexible to respond changing elements of
the environment.

12) Management of organizational culture: Organization culture refers to the widely shared beliefs,
values and norms of organizational members and other stakeholders. It guides the behavior of
people working organization. By knowing these cultures, which also represent unwritten feeling
part of the organization, workforce can learn on how to behave, respond, and react in different

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