1. PEOPLE -CENTERED:
HRM is about people at work
both as individuals and a group. It tries to help employees to develop
their potential fully.
It comprises people-related functions like
hiring, training and development, performance appraisal, working
environment, etc.
HRM has the responsibility of building human
capital. People are vital for achieving organizational goals.
Organizational performance depends on the quality of people and
employees.
2. A CONTINUOUS PROCESS:
It is a process as there
are number of functions to be performed in a series, beginning with
human resource planning to recruitment to selection, to training to
performance appraisal.
The HRM process includes
acquisition (HR planning, recruitment, selection, placement,
socialisation), development (training and development, and career
development), utilisation (job design, motivation, performance appraisal
and reward management), and maintenance (labour relations, employee
discipline, grievance handling, welfare, and termination).
It is
continuous, because HRM is a never-ending process.
3. A SERVICE FUNCTION:
HRM is not a profit centre. It
serves all other functional departments. The basic responsibility
always lies with the line managers.
HRM is a staff function – a
facilitator. The HR Manager has line authority only within his own
department, but has staff authority as far as other departments are
concerned.
4. AN INTEGRATED CONCEPT:
HRM in its scope includes
Personnel aspect, Welfare aspect and Industrial relations aspect in
itself. It is integrated as it concern with not only acquisition,
but also development, utilisation, and maintenance.
5. A DYNAMIC FUNCTION :
The principles and practices of HRM should not be rigid. Rather they
should be dynamic. It means HRM is a dynamic function whereby the
procedures and practices are influenced by the environmental factors.
Employees should gain an updated knowledge and ability to work in the
changing environment.
6. OBJECTIVE ORIENTED :
HRM gives a lot of importance to achievement of objectives.
The four main objectives HRM has to achieve are :-
- Individual objectives of the staff.
- Group or Departmental objectives.
- Organisational objectives.
- Societal objectives.
7. UNIVERSAL APPLICATION :
HRM has universal application. That is, it can be used for business as well as for other organisations such as schools, colleges, hospital, religious organisations, etc.8. DEVELOPS STAFF POTENTIALITIES :
HRM develops the potentialities of the staff by giving them training and development. This will make the staff more efficient, and it will give them more job satisfaction.
9. PROBLEM SOLVING :
Today, we have rapid technological, managerial, economic and social changes. These changes bring many problems. HRM continuously tries to solve these problems.
10. LONG TERM BENEFITS:
HRM brings many long term benefits to the individuals (staff), the organisation and the society. It gives many financial and non-financial benefits to the staff. It improves the image and profits of the organisation. It also provides a regular supply of good quality goods and services at reasonable prices to the society.
PURPOSE /IMPORTANCE OF HRM :
1. Effective Utilization Of Resources:
Human resource management ensures the effective utilization of
resources. HRM teaches how to utilize human and non-human resources so
that the goals can be achieved.
Organization aiming to utilize their
resources efficiently invites the HR department to formulate required objectives and policies.
2. Organizational Structure:
Organizational structure defines the working relationship between employees and management. It defines and assigns the task for each employee
working in the organization.
The task is to be performed within the
given constraints. It also defines positions, rights and duties,
accountability and responsibility, and other working relationships.
The human resource management system provides required information to timely and accurately. Hence, the purpose of human resource management is to maintain organizational structure.
3. Development Of Human Resources:
Human resource management provides favorable environment for employees
so that people working in organization can work creatively.
This
ultimately helps them to develop their creative knowledge, ability and
skill. To develop personality of employees, human resource management organizes training and development campaigns which provides an opportunity for employees to enhance their caliber to work.
4. Respect For Human Beings:
Another important purpose of human resource management is to provide a respectful environment for each employee.
Human resource management provides with required means and facilitates employee
along with an appropriate respect and focuses on developing good working relationships among workers and managers in organization. So, good human resource management system helps for respecting the employees.
5. Goal Harmony:
Human resource management bridges the gap between individual goal and organizational goal-thereby resulting into a good harmony. If goal difference occurs, the employees will not be willing to perform well.
Hence, a proper match between individual goal and organizational goal should be there in order to utilize organizational resources effectively and efficiently.
6. Employee Satisfaction:
Human resource management provides a series of facilities and opportunities to employees for their career development. This leads to job satisfaction and commitment. When the employees are provided with every kind of facilities and opportunities, they will be satisfied with their work performance.
7. Employee Discipline And Moral :
Human resource management tries to promote employee discipline and moral through performance based incentives. It creates a healthy and friendly working environment through appropriate work design and assignment of jobs.
8. Organizational Productivity:
Human resource management focuses on achieving higher production and
most effective utilization of available resources. This leads to an
enhancement in organizational goals and objectives.
SCOPE OF HRM :
1. HUMAN RESOURCE PLANNING (HRP)
HRP estimates the manpower demand and manpower supply of the
organisation.
It compares the manpower demand and manpower supply.
- If there is manpower surplus then it gives voluntary retirement, lay-off, etc. to some employees.
- If there is manpower shortage then it hires employees from outside, gives promotion to employees, etc.
2. ACQUISITION FUNCTION :
Acquisition function includes Human Resource Planning, Recruitment,
Selection, Placement and Induction of employees.
HRM uses the scientific
selection procedure for selecting the right man for the right post. The
"right man" is given proper placement and induction.
3. PLACEMENT FUNCTION :
HRM also performs the placement function. Placement is done after
selection of employees. It means to put the right man in the right place
of work. Proper placement gives job satisfaction to the employees, and
it increases their efficiency.
4. PERFORMANCE APPRAISAL :
Performance appraisal is a
systematic evaluation of the employees' performance at work.
It informs
the employees about their strengths and weakness. It also advises them
about how to increase their strengths and remove their weaknesses.
5. CAREER DEVELOPMENT :
HRM also helps the employees in planning and developing their
careers. It informs them about future promotions and how to get these
promotions. It helps them to grow and develop in the organisation.
6. TRAINING AND DEVELOPMENT:
Training
means to increase the knowledge and skills of the employee for doing a
particular job. Training given to managers is called development. So,
training is given to employees while development is given to managers.
7. QUALITY OF WORK LIFE (QWL) :
QWL is a technique for
improving productivity and quality of work. It involves labour
management co-operation, collective bargaining and participative
management.
QWL provides good working conditions, job security,
good pay and other facilities such as flexible working hours, freedom to
suggest changes or improvements, etc. This benefits the organisation as well as the individual employees.
8. EMPLOYEES WELFARE :
Welfare measures include paid
holidays, medical insurance, canteen facilities, recreation facilities,
rest room, transport facilities, etc.
Proper and timely welfare
facilities motivate the employees to work hard in the organisation.
9. COMPENSATION FUNCTION :
Employees must be rewarded and recognised for their performance. HRM
makes proper compensation packages for the employees.
These packages
motivate the employees and increase their morale.
Rewards are given to
individuals, and teams. The rewards may be in the form of higher pay,
bonus, other monetary incentives, and non-monetary incentives such as a
certificate of appreciation, etc.
10. LABOUR RELATIONS :
It includes union
management relations, joint consultations, negotiating, collective
bargaining, grievance handling, disciplinary actions, settlement of
industrial disputes, etc.
11. MAINTENANCE FUNCTION :
It means protecting and
promoting the health and safety of the employees. HRM introduces health
and safety measures.
It also provides other benefits such as medical
aid, provident fund, pension, gratuity, maternity benefits, accident
compensation, etc., to the employees.
OBJECTIVES OF HRM :
1. Organizational Objectives:
HRM is a means
to achieve efficiency and effectiveness. It serves other functional
areas, so as to help them to attain efficiency in their operations and
attainment of goals to attain efficiency.
Acquiring right man for the right job at right time in right
quantity, developing through right kind of training, utilizing the
selected workforce, and maintaining the workforce are the organizational
objectives of HRM.
Succession planning is an important issue to be
taken up as a contemporary organizational objective.
2. Functional Objectives:
HRM
performs so many functions for other departments. However, it must see
that the facilitation should not cost more than the benefit rendered.
3. Personal Objectives:
In
today’s world there is shortage of requisite talent. Employees are
encouraged by competitive firms to change the jobs. HRM has the
responsibility to acquire, develop, utilize, and maintain employees.
This
would be possible only when the HRM helps employees to achieve their
personal goals to get their commitment. Creating work-life balance for
the employees is a personal objective.
4. Societal Objectives:
HRM
must see that the legal, ethical, and social environmental issues are
properly attended to.
Equal opportunity and equal pay for equal work are
the legal issues not to be violated.
To help the
society through generating employment opportunity, creating schools and
dispensaries, helping women empowerment are the social responsibility
issues.
