Nature of HRM:
HRM is a management function that helps manager’s to recruit, select, train, and develop members of an organization. HRM is concerned with people’s dimensions in organizations. The following constitute the core of HRM
- 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.
- Decision Relating to Employees must be Integrated. Decisions on different aspects of employees must be consistent with other human resource (HR) decisions.
- Decisions Influence the Effectiveness of an Organization. The effectiveness of an organization will result in betterment of services to customers in the form of high-quality products supplied at reasonable costs.
- HRM Functions are not confined to Business Establishments Only but are also applicable to nonbusiness 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.
The scope of HRM is really vast. All major activities n the working life of a worker – from the time of his or her entry into an organization until he or she leaves it comes under the purview of HRM. 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:
- a) Human Resource Planning
- b) Design of the Organization and Job
- c) Selection and Staffing
- d) Training and Development
- e) Organizational Development
- f) Compensation and Benefits
- g) Employee Assistance
- h) Union/Labour Relations
- i) Personnel Research and Information System
a) Human Resource Planning: The objective of HR Planning is to ensure that the organization has the right types of persons at the right time and at the right place. It prepares human resources inventory with a view to assess present and future needs, availability, and possible shortages in human resources. Thereupon, HR Planning forecast demand and supplies and identify sources of selection. HR Planning develops strategies both long-term and short-term, to meet the man-power requirement.
b) Design of Organization and Job: This is the task of laying down organization structure, authority, relationship and responsibilities. This will also mean definition of work contents for each position in the organization. This is done by “job description”. Another important step is “Job specification”. Job specification identifies the attributes of persons who will be the most suitable for each job which is defined by the job description.
- Personnel Research and Information System
- Human resource planning
- Design of the Organization and Job
- Selection and Staffing
- Training and Development
- Organizational Development
- Employee Assistance
- Compensation and Benefits
- Union/Labour Relations
- Human resource management
c) Selection and Staffing: This is the process of recruitment and selection of staff. This involves matching people and their expectations with which the job specifications and career path available within the organization.
d) Training and Development: This involves an organized attempt to find out the training needs of the individuals to meet the knowledge and skill which is needed not only to perform the current job but also to fulfill the future needs of the organization.
e) Organizational Development: This is an important aspect whereby “Synergetic effect” is generated in an organization i.e. healthy interpersonal and inter-group relationships within the organization.
f) Compensation and Benefits: This is the area of wages and salaries administration where wages and compensations are fixed scientifically to meet fairness and equity criteria. In addition, labour welfare measures are involved which include benefits and services.
g) Employee Assistance: Each employee is unique in character, personality, expectation and temperament. By and large each one of them faces problems every day. Some are personal, some are official. In their case he or she remains worried. Such worries must be removed to make him or her more productive and happy.
h) Union-Labour Relations: Healthy Industrial and Labour relations are very important for enhancing peace and productivity in an organization. This is one of the areas of HRM.
i) Personnel Research and Information System: Knowledge on behavioral science and industrial psychology throws better insight into the workers’ expectations, aspirations and behaviour. Advancement of technology of product and production methods have created working environment which are much different from the past.
Globalization of economy has increased competition many fold. Science of ergonomics gives better ideas of doing a work more conveniently by an employee.
Thus, continuous research in HR areas is an unavoidable requirement. It must also take special care for improving exchange of information through effective communication systems on a continuous basis especially on moral and motivation. HRM is a broad concept; personnel management (PM) and Human resource development (HRD) are a part of HRM.
Objectives of HRM:
The primary objective of HRM is to ensure the availability of competent and willing workforce to an organization. The specific objectives include the following:
1) Human capital : Assisting the organization in obtaining the right number and types of employees to fulfill its strategic and operational goals
2) Developing organizational climate: Helping to create a climate in which employees are encouraged to develop and utilize their skills to the fullest and to employ the skills and abilities of the workforce efficiently
3) Helping to maintain performance standards and increase productivity through effective job design: providing adequate orientation, training and development; providing performance-related feedback; and ensuring effective two-way communication.
4) Helping to establish and maintain a harmonious: Employer/employee relationship
5) Helping to create and maintain: A safe and healthy work environment
6) Developing programs: To meet the economic, psychological, and social needs of the employees and helping the organization to retain the productive employees
7) Ensuring that the organization is in compliance with provincial/territorial and federal laws affecting the workplace (such as human rights, employment equity, occupational health and safety, employment standards, and labour relations legislation). To help the organization to reach its goals
8) To provide organization with well-trained and well-motivated employees
9) To increase the employees satisfaction and self-actualization
10) To develop and maintain the quality of work life
11) To communicate HR policies to all employees.
12) To help maintain ethical polices and behavior.
The above stated HRM objectives can be summarized under four specific objectives: societal, organizational, and functional and personnel.
1) Societal Objectives: It seeks 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. The failure of the organizations to use their resources for the society’s benefit in ethical ways may lead to restriction.
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. The HR department exists to serve the rest of the organization.
3) Functional Objectives: To maintain the department’s contribution at a level of appropriate to the organization’s needs. Human resources are to be adjusted to suit the organization’s demands. The department’s value should not become too expensive at the cost of the organization it serves.
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.
For citing this article use:
- Rudrapogu, C. (2016). Training and development A comparative study of sbi and icici bank.