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Human Resource Management (HRM)

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This document will provide a full detailed description about human resource management for business major students in short and simple language.

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INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

INTRODUCTION
HRM is the study of activities regarding people working in an organization. It is a
managerial function that tries to match an organization’s needs to the skills and abilities of its
employees.
Human resources management (HRM) is a management function concerned with hiring,
motivating and maintaining people in an organization. It focuses on people in organizations.
Human resource management is designing management systems to ensure that human talent is
used effectively and efficiently to accomplish organizational goals.

According to D. A. Decenzo and P.Robbins, “Human resource management is a process
consisting of four function:- acquisition, development, motivation and maintenance of human
resources.


Nature of HRM
HRM is a management function that helps manager’s to recruit, select, train and develop
members for an organization. HRM is concerned with people’s dimension in organizations.
The following constitute the core of HRM
1. HRM Involves the Application of Management Functions and Principles. The functions
and principles are applied to acquiring, developing, maintaining and providing remuneration to
employees in organization.
2. Decision Relating to Employees must be Integrated. Decisions on different aspects of
employees must be consistent with other human resource (HR) decisions.
3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an
organization will result in betterment of services to customers in the form of high quality
products supplied at reasonable costs.
4. HRM Functions are not Confined to Business Establishments Only but applicable to non-
business organizations such as education, health care, recreation and like.
HRM refers to a set of programmes, functions and activities designed and carried out in order to
maximize both employee as well as organizational effectiveness.
Scope of HRM
The scope of HRM is indeed vast. All major activities in the working life of a worker – from the
time of his or her entry into an organization until he or she leaves the organizations comes under
the purview of HRM. The major HRM activities include HR planning, job analysis, job design,
employee hiring, employee and executive remuneration, employee motivation, employee
maintenance, industrial relations and prospects of HRM.
The scope of Human Resources Management extends to:
□All the decisions, strategies, factors, principles, operations, practices, functions, activities and
methods related to the management of people as employees in any type of organization.
□All the dimensions related to people in their employment relationships, and all the dynamics
that flow from it.

American Society for Training and Development (ASTD) conducted fairly an exhaustive study
in this field and identified nine broad areas of activities of HRM.
These are given below:
□Human Resource Planning
□Design of the Organization and Job
□Selection and Staffing

,□Training and Development
□Organizational Development
□Compensation and Benefits
□Employee Assistance
□Union/Labour Relations
□Personnel Research and Information System

Objectives of HRM
1) Societal Objectives: seek to ensure that the organization becomes socially responsible to the
needs and challenges of the society while minimizing the negative impact of such demands
upon the organization.
2) Organizational Objectives: it recognizes the role of HRM in bringing about organizational
effectiveness. It makes sure that HRM is not a standalone department, but rather a means to
assist the organization with its primary objectives.

, 3) Functional Objectives: is to maintain the department’s contribution at a level appropriate to
the organization’s needs.
4) Personnel Objectives: it is to assist employees in achieving their personal goals, at least as
far as these goals enhance the individual’s contribution to the organization. Personal objectives
of employees must be met if they are to be maintained, retained and motivated. Otherwise
employee performance and satisfaction may decline giving rise to employee turnover.

Functions of Human Resource Management
Human resource management has two function. The first one is managerial function and the
second one is staffing function.
Managerial Function
a)Planning
b)Organising
c)Directing
d)coordinating
e)Controlling
Staffing/Operating Function
a)Acquisition & Absorption
b)Development & Utilisation
c)Maintenance & Retention
d)Motivation & Empowerment

SELECTION
INTRODUCTION
Human resource selection is the process of choosing qualified individuals who are
available to fill positions in an organization. In the ideal personnel situation, selection involves
choosing the best applicant to fill a position. Selection is the process of choosing people by
obtaining and assessing information about the applicants with a view to matching these with the
job requirements. It involves a careful screening and testing of candidates who have put in their
applications for any job in the enterprise. It is the process of choosing the most suitable persons
out of all the applicants. The purpose of selection is to pick up the right person for every job.
It can be conceptualised in terms of either choosing the fit candidates, or rejecting the unfit
candidates, or combination of both. Selection involves both because it picks up the fits and
rejects the unfits. In fact, in Indian context, there are more candidates who are rejected than those
who are selected in most of the selection processes. Therefore, sometimes, it is called a negative
process in contrast to positive programme of recruitment.

According to Dale Yoder, “Selection is the process in which candidates for employment are
divided into two classes-those who are to be offered employment and those who are not”.
According to Keith Davis, “Selection is the process by which an organisation chooses from a
list of screened applicants, the person or persons who best meet the selection criteria for the
position available.”

Thus, the selection process is a tool in the hands of management to differentiate between the
qualified and unqualified applicants by applying various techniques such as interviews, tests etc.

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