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Human Resource Management - Nature,

Scope, Objectives And Function
Published by ankur | July 24, 2009 - 1 year 15 weeks ago

Human resources may be defined as the total knowledge, skills, creative abilities,
talents and aptitudes of an organization's workforce, as well as the values,
attitudes, approaches and beliefs of the individuals involved in the affairs of the
organization. It is the sum total or aggregate of inherent abilities, acquired
knowledge and skills represented by the talents and aptitudes of the persons
employed in the organization.

The human resources are multidimensional in nature. From the national point of
view, human resources may be defined as the knowledge, skills, creative abilities,
talents and aptitudes obtained in the population; whereas from the viewpoint of the
individual enterprise, they represent the total of the inherent abilities, acquired
knowledge and skills as exemplified in the talents and aptitudes of its employees.

Human Resource Management: Defined

Human Resource Management has come to be recognized as an inherent part of
management, which is concerned with the human resources of an organization. Its
objective is the maintenance of better human relations in the organization by the
development, application and evaluation of policies, procedures and programmes
relating to human resources to optimize their contribution towards the realization of
organizational objectives.
In other words, HRM is concerned with getting better results with the collaboration
of people. It is an integral but distinctive part of management, concerned with
people at work and their relationships within the enterprise. HRM helps in attaining
maximum individual development, desirable working relationship between
employees and employers, employees and employees, and effective modeling of
human resources as contrasted with physical resources. It is the recruitment,
selection, development, utilization, compensation and motivation of human
resources by the organization.

Human Resource Management: Evolution

The early part of the century saw a concern for improved efficiency through careful
design of work. During the middle part of the century emphasis shifted to the
employee's productivity. Recent decades have focused on increased concern for the
quality of working life, total quality management and worker's participation in
management. These three phases may be termed as welfare, development and
empowerment.
Human Resource Management: Nature
Human Resource Management is a process of bringing people and organizations
together so that the goals of each are met. The various features of HRM include:
• It is pervasive in nature as it is present in all enterprises.
• Its focus is on results rather than on rules.
• It tries to help employees develop their potential fully.
• It encourages employees to give their best to the organization.
• It is all about people at work, both as individuals and groups.
• It tries to put people on assigned jobs in order to produce good results.
• It helps an organization meet its goals in the future by providing for competent
and well-motivated employees.
• It tries to build and maintain cordial relations between people working at various
levels in the organization.
• It is a multidisciplinary activity, utilizing knowledge and inputs drawn from
psychology, economics, etc.
Human Resource Management: Scope
The scope of HRM is very wide:
1. Personnel aspect-This is concerned with manpower planning, recruitment,
selection, placement, transfer, promotion, training and development, layoff and
retrenchment, remuneration, incentives, productivity etc.
2. Welfare aspect-It deals with working conditions and amenities such as canteens,
creches, rest and lunch rooms, housing, transport, medical assistance, education,
health and safety, recreation facilities, etc.
3. Industrial relations aspect-This covers union-management relations, joint
consultation, collective bargaining, grievance and disciplinary procedures,
settlement of disputes, etc.
Human Resource Management: Beliefs
The Human Resource Management philosophy is based on the following beliefs:
• Human resource is the most important asset in the organization and can be
developed and increased to an unlimited extent.
• A healthy climate with values of openness, enthusiasm, trust, mutuality and
collaboration is essential for developing human resource.
• HRM can be planned and monitored in ways that are beneficial both to the
individuals and the organization.
• Employees feel committed to their work and the organization, if the organization
perpetuates a feeling of belongingness.
• Employees feel highly motivated if the organization provides for satisfaction of
their basic and higher level needs.
• Employee commitment is increased with the opportunity to dis¬cover and use
one's capabilities and potential in one's work.
• It is every manager's responsibility to ensure the development and utilisation of
the capabilities of subordinates.
Human Resource Management: Objectives
• To help the organization reach its goals.
• To ensure effective utilization and maximum development of human resources.
• To ensure respect for human beings. To identify and satisfy the needs of
individuals.
• To ensure reconciliation of individual goals with those of the organization.
• To achieve and maintain high morale among employees.
• To provide the organization with well-trained and well-motivated employees.
• To increase to the fullest the employee's job satisfaction and self-actualization.
• To develop and maintain a quality of work life.
• To be ethically and socially responsive to the needs of society.
• To develop overall personality of each employee in its multidimensional aspect.
• To enhance employee's capabilities to perform the present job.
• To equip the employees with precision and clarity in trans¬action of business.
• To inculcate the sense of team spirit, team work and inter-team collaboration.
Human Resource Management: Functions
In order to achieve the above objectives, Human Resource Management undertakes
the following activities:
1. Human resource or manpower planning.
2. Recruitment, selection and placement of personnel.
3. Training and development of employees.
4. Appraisal of performance of employees.
5. Taking corrective steps such as transfer from one job to another.
6. Remuneration of employees.
7. Social security and welfare of employees.
8. Setting general and specific management policy for organizational relationship.
9. Collective bargaining, contract negotiation and grievance handling.
10. Staffing the organization.
11. Aiding in the self-development of employees at all levels.
12. Developing and maintaining motivation for workers by providing incentives.
13. Reviewing and auditing man¬power management in the organization
14. Potential Appraisal. Feedback Counseling.
15. Role Analysis for job occupants.
16. Job Rotation.
17. Quality Circle, Organization development and Quality of Working Life.
Human Resource Management: Major Influencing Factors
In the 21st century HRM will be influenced by following factors, which will work as
various issues affecting its strategy:
• Size of the workforce.
• Rising employees' expectations
• Drastic changes in the technology as well as Life-style changes.
• Composition of workforce. New skills required.
• Environmental challenges.
• Lean and mean organizations.
• Impact of new economic policy. Political ideology of the Govern¬ment.
• Downsizing and rightsizing of the organizations.
• Culture prevailing in the organization etc.
Human Resource Management: Futuristic Vision
On the basis of the various issues and challenges the following suggestions will be
of much help to the philosophy of HRM with regard to its futuristic vision:
1. There should be a properly defined recruitment policy in the organization that
should give its focus on professional aspect and merit based selection.
2. In every decision-making process there should be given proper weightage to the
aspect that employees are involved wherever possible. It will ultimately lead to
sense of team spirit, team-work and inter-team collaboration.
3. Opportunity and comprehensive framework should be provided for full
expression of employees' talents and manifest potentialities.
4. Networking skills of the organizations should be developed internally and
externally as well as horizontally and vertically.
5. For performance appraisal of the employee’s emphasis should be given to 360
degree feedback which is based on the review by superiors, peers, subordinates as
well as self-review.
6. 360 degree feedback will further lead to increased focus on customer services,
creating of highly involved workforce, decreased hierarchies, avoiding
discrimination and biases and identifying performance threshold.
7. More emphasis should be given to Total Quality Management. TQM will cover all
employees at all levels; it will conform to customer's needs and expectations; it will
ensure effective utilization of resources and will lead towards continuous
improvement in all spheres and activities of the organization.
8. There should be focus on job rotation so that vision and knowledge of the
employees are broadened as well as potentialities of the employees are increased
for future job prospects.
9. For proper utilization of manpower in the organization the concept of six sigma
of improving productivity should be intermingled in the HRM strategy.
10. The capacities of the employees should be assessed through potential appraisal
for performing new roles and responsibilities. It should not be confined to
organizational aspects only but the environmental changes of political, economic
and social considerations should also be taken into account.
11. The career of the employees should be planned in such a way that
individualizing process and socializing process come together for fusion process and
career planning should constitute the part of human resource planning.
To conclude Human Resource Management should be linked with strategic goals
and objectives in order to improve business performance and develop
organizational cultures that foster innovation and flexibility. All the above futuristic
visions coupled with strategic goals and objectives should be based on 3 H's of
Heart, Head and Hand i.e., we should feel by Heart, think by Head and implement
by Hand.
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COMMENTS
1stukgent444 | August 9, 2010 - 13 weeks 4 days

Recruiting superstars are fairly common,IT Jobs London though it to be on a team

with one can feel like a unique experience. These internal recruiters are great at
filling open requisitions, but have a bad habit of neglecting every other area of the
recruiting . Management, fellow recruiters and hiring managers tend to have a love-
hate relationship with these folks; they love the numbers, love the time-to-fill and
celebrate the placements but loathe the unavoidable clean up of everything left in
each placement's wake.
• reply

nivedita_newar | June 8, 2010 - 22 weeks 3 days

It should include international human resource management..

• reply

nivedita_newar | June 8, 2010 - 22 weeks 3 days

It should include international human resource management..

• reply

seductive | January 26, 2010 - 41 weeks 2 days

already written in my HR book, ahhm, copy paste

• reply

zahragurmani | January 16, 2010 - 42 weeks 6 days

nice thing!
• reply

morningrose | January 16, 2010 - 42 weeks 6 days

HRM in a nutshell. nice view.

• reply

ankur | January 11, 2010 - 43 weeks 3 days

Hi This Ankur,

If you liked this article, please click on "" ads "", so that i can keep writing.

• reply

guddo | December 19, 2009 - 46 weeks 6 days

The retention part of HR spectrum is left out. I wish if you could have added that
part of HR as it is more relevant in the current scenario and obviously HR
professionals need to focus on that aspect more than any other right now!
Otherwise a nice write up!

• reply

AMATESHE | December 10, 2009 - 48 weeks 1 day

quite Informative

• reply

alfablue | December 5, 2009 - 48 weeks 6 days

It is a good opportunity for people to find out about a lot of cultural and
administrative institutions

• reply

Cashmere Lashkari | October 10, 2009 - 1 year 4 weeks

Will do that!

• reply

ankur | October 10, 2009 - 1 year 4 weeks

@cashmere , So now you can refer students to read this column. :)

• reply
 Cashmere Lashkari | October 10, 2009 - 1 year 4 weeks

You have covered the full syllabus of the HR theory paper here for the first year
MBA student.

• reply

snigdha | September 8, 2009 - 1 year 9 weeks

very nice article,.,

• reply

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