Title: The Role of Human Resource Management in Modern Organizations: A Comprehensive Overview
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Course
Level 3 Business Management Unit 1 - P5
Institution
University Of East London (UEL)
Human Resource Management (HRM) plays a critical role in the success and sustainability of organizations in today's dynamic business environment. This abstract provides a comprehensive overview of the key components and functions of HRM and their significance in achieving organizational objectives....
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.
1.1.1 Definitions of HRM
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.
HRM is the personnel function which is concerned with procurement, development, compensation, integration
and maintenance of the personnel of an organization for the purpose of contributing towards the
accomplishments of the organization‘s objectives. Therefore, personnel management is the planning,
organizing, directing, and controlling of the performance of those operative functions (Edward B. Philippo).
According to the Invancevich and Glueck, ―HRM is concerned with the most effective use of
people to achieve organizational and individual goals. It is the way of managing people at work, so that they
give their best to the organization‖.
According to Dessler (2008) the policies and practices involved in carrying out the ―people‖ or human
resource aspects of a management position, including recruiting, screening, training, rewarding, and
appraising comprises of HRM.
1.1.2 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.
SCE 7 DEPARTMENT OF MANAGEMENT SCIENCES
,BA7204
HUMAN RESOURCE MANAGEMENT
1.1.3 Features of HRM or characteristics or nature
1. HRM involves management functions like planning, organizing, directing and
controlling
2. It involves procurement, development, maintenance of human resource
3. It helps to achieve individual, organizational and social objectives
4. HRM is a mighty disciplinary subject. It includes the study of management
psychology communication, economics and sociology.
5. It involves team spirit and team work.
1.1.4 Significance/importance/need of HRM
HRM becomes significant for business organization due to the following reasons.
1. Objective :-
HRM helps a company to achieve its objective from time to time by creating a
positive attitude among workers. Reducing wastage and making maximum use of
resources etc.
2. Facilitates professional growth :-
Due to proper HR policies employees are trained well and this takes them
ready for future promotions. Their talent can be utilized not only in the company in
which they are currently working but also in other companies which the employees
may join in the future.
3. Better relations between union and management :-
Healthy HRM practices can help the organization to maintain co-ordinal
relationship with the unions. Union members start realizing that the company is also
interested in the workers and will not go against them therefore chances of going on
strike are greatly reduced.
4. Helps an individual to work in a team/group :-
Effective HR practices teach individuals team work and adjustment. The
individuals are now very comfortable while working in team thus team work improves.
5. Identifies person for the future :-
Since employees are constantly trained, they are ready to meet the job
requirements. The company is also able to identify potential employees who can be
promoted in the future for the top level jobs. Thus one of the advantages of HRM is
eparing people for the future.
6. Allocating the jobs to the right person :-
If proper recruitment and selection methods are followed, the company will be
able to select the right people for the right job. When this happens the number of people
leaving the job will reduce as the will be satisfied with their job leading to decrease in
labour turnover.
SCE 8 DEPARTMENT OF MANAGEMENT SCIENCES
,BA7204
HUMAN RESOURCE MANAGEMENT
7. Improves the economy:-
Effective HR practices lead to higher profits and better performance by
companies due to this the company achieves a chance to enter into new business
and start new ventured thus industrial development increases and the economy
improves.
Scope 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:
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
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 at the right place. It prepares human
resources inventory with a view to assess present and future needs, availability and possible
shortages in human resource.
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 most suitable for each job
which is defined by job description.
c) Selection and Staffing:
SCE 9 DEPARTMENT OF MANAGEMENT SCIENCES
, BA7204
HUMAN RESOURCE MANAGEMENT
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 training needs
of the individuals to meet the knowledge and skill which is needed not only to perform current
job but also to fulfil 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 relationship 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 everyday. 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.
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.
SCE 10 DEPARTMENT OF MANAGEMENT SCIENCES
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