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Sunday, May 19

What is Human resource Management (HRM)? – Definition, Characteristics, Principles

What is Human Resource Management ?

 Definition: Human resource management (HRM) can be defined as a set of interrelated and integrated functions, processes and systems that focus on the effective utilization of people working in an organization with strategic, coherent and unified approaches so as to best achieve the goals of the organization as well as the goals and needs of its individual employee.

what is Human Resource Management
what is human resource management

                We see from the definition that human resource management (HRM) refers to the management of people (in an organization) which involves an integrated set of processes, policies, programs and practices in obtaining developing, utilizing, evaluating, maintaining and retaining the night number and skill mix of employees. The goal of this approach is to maximize employee’s contribution so as to accomplish the organization’s objectives (achieving optimal productivity and effectiveness) and at the same time attaining the individual employee’s goals and needs as well as societal objectives (achieving legal compliance and demonstrating social responsibility). 

              HRM is the process of recruitment, development and retention of skilled personnel to achieve organizational objectives with efficiency and effectiveness. The part of management that deals with the employees and human related issues in the organization is known as human resource management. Human resource management deals with the recruitment, selection, development, motivation and retention of employees in the organization. Human resources are the driving forces of the organization. Therefore, the process of selection, recruitment, training and development, payment of salaries and wages, distribution of incentives and facilities, settlement of staff shortages and complaints, establishment of worker’s rights etc. can be termed as human resource management. Human resource management is concerned with the organization’s personnel performance, management policies and procedures aimed at creating better human relations.

Characteristics of Human Resource Management (HRM)

Every department in the organization has entitled to some unique characteristics. Similarly, human resource management has some distinctive features. 

The main characteristics of the Human Resource Management are: 

Charecteristics of HRM
Characteristics of HRM

1. Strategic Integration: The HRM approach is strategic in nature. Because of this nature, this approach fits between the business strategy and the human resource strategy. This is done by linking the HRM strategy with business strategy i.e. human resource management (strategy) aims to provide the organization with an effective workforce while meeting the needs of its members.

2. Commitment: It is commitment oriented. Human resources’ commitment to the achievement of the organization’s goals and mission is stressed here.

3. Human Capital: The people working in the organization are viewed as assets and human capital, which can be invested in through their skill development.

4. Competitive Advantage: Human resources are also thought to be the sources of competitive advantage in line with the concept of resource based strategy. The advocates of resource based strategic HRM believes that, competitive advantage is achieved if a firm can obtain the type of human resources who can learn faster and apply their learning’s more effectively than its rivals.

5. Unitarist Approach: Its approach is unitarist rather than pluralist. The HRM approach holds the goals of the organization and its employees are compatible and mutually inclusive rather than to be separate and distinct. One set of goals need not be gained at the cost of the other. A win-win situation results when this occurs.

6. Policy determination: Human resource management acts as a policy determinant. Human resource management is concerned with the organization’s personnel performance, management policies and procedures aimed at creating better human relations. It also helps in determining general management policies.

7. Developing efforts: Based on some principles of human resource management, For the implementation of the said policy, the staff development measures are taken. Personnel development is instrumental in institutional development. It is easier to achieve the desired goals of the organization.

8. Strengthen labor-management relationship: Good labor-management relationship plays a leading role in achieving the goals of the organization. Human resource management works with the employees and see what they need for their job satisfaction. Human resource management determines the relationship of management with workers.

9. Establishment: Selection and collection of human resources in human resource management, skills properly Performs proper placement of individuals in appropriate positions. It is the proper organization of manpower. Encourages asset management.

10. Inspiration: Human resource management deals with incentives, proper wages, proper promotions, performance and job evaluations to motivate employees. This motivation motivates the workforce properly in organization by which an organization can achieve organizational goals.

11. Impartiality: A successful human resource manager must be impartial. If there is any kind of intransigence in the manager, it will create dissatisfaction among the departmental staff and even in the entire organization. To maintain discipline of employees the functions of human resource manager must be impartial.

12. Maximum Uses of Human Resources: HRM takes some special measures to get maximum results from human resource. To get the higher effort from the human resources HRM takes some strategies like motivation, right wages, giving incentive, creating a good workplace etc.

Principles of Human Resource Management

Among the approaches such as traditional approach, scientific approach, human relations approach; human resource approach is the latest approach to manage people at work. A number of principles provide the basis for a human resource approach:

Charecteristics of HRM
Principles of HRM

1. Treatment: As employees are called human capital, Employees must be treated as investments and as such they are managed and developed accordingly. This will provide a long-term reward to the organization in the form of greater productivity.

2. Policies: HRM determines management policies and procedures aimed at creating better human relations. Policies and programs must be prepared and practiced that satisfy both the economic and emotional needs of employees.

3. Environments: Working environment can affect the day to day work of an employee. A good Working environment must be created so that employees are encouraged to develop and utilize their skills to the maximum extent.

4. Balance: The organizational goal and personal goal of an employee are always different from each other. Human resource policies and programs must be implemented with the goal of balancing the needs and requirements of both the organization and the employees.

5. Dignity: The quality or state of being worthy of honor and respect in the working environment in an organization is important. Every job and every jobholder must be treated with dignity and respect. By these an organization will get maximum effort from the employees.

6. Scientific Selection: F. W. Tailor the father of scientific management also said about scientific selection. Principles of scientific selection should be followed so that the right person for the right job can be selected.

7. Communication: To increase the productivity of employee a good communication among all the department in the organization should needed. Free flow of communication should be ensured to keep all channels of communication open and to encourage every jobholder to communicate freely (upward, downward, horizontal, formal and informal communication).

8. Principle of grouping: Grouping or building team can easily solve any task of the organization. In this case, the appropriate attitude of human resource management is creating group or team.

9. Remuneration and wages structure policy: The result of work is remuneration or wages. Proving its suitability brings peace of mind to a large extent in the organization. Therefore, the organization has to rationalize the decision-making process regarding wages, salaries and other economic remuneration. Which is paid in exchange for human resources.

10. Principle of training: The main objective of training is to familiarize the workers with the work. Enhancing performance, enhancing efficiency and providing full information. In particular, human resource training enhances the efficiency and craft of quality resource management functions.

11. Proper uses of manpower policy: No matter how well proper selection and training policies are planned and implemented, the absence of proper utilization of manpower will destroy the purpose of the organization. So a strategic policy has to formulate on proper use human resource.

The above principles are the principles of human resource management. Based on these principles, the organization manages its daily operations properly.