As the central sub-system, HRM interacts closely and continuously with all Concept and Introduction 3) National Significance:

Significance: Human resources and their management plays a 1) The Labour or Personnel Aspect: It is concerned with manpower Concept and
Evolution of to Human Evolution of
other sub-systems of an organisation. The quality of people in all sub-systems Human Resource
vital role in the development of a nation. The effective exploitation and planning, recruitment, selection, placement, induction, transfer, Human
depends largely upon the policies, programmes and practices of the HRM Resource Management promotion, demotion, termination, training and development, layoff and Resource
sub-system. Management an efficient and committed manpower. There are wide differences in retrenchment, wage and salary administration (remuneration), incentives, Management

development between countries with similar resources due to differences productivity, etc.
The quality of human resources determines in turn the success of an in the quality of their people. Countries are underdeveloped because their
organisation. 2) The Welfare Aspect: This aspect is concerned with working conditions
people are backward. The level of development in a country depends and amenities such as canteens, creches, rest rooms, lunch rooms,
The importance of HRM can be discussed at four levels corporate, primarily on the skills, attitudes and values of its human resources.
housing, transport, education, medical help, health and safety, washing
professional, social and national (Gupta, 1997). Effective management of human resources helps to speed up the process
facilities, recreation and cultural facilities, etc.
of economic growth which in turn leads to higher standards of living and
Significance for a Corporate: Human resource management can help an fuller employment. 3) The Industrial Relations Aspect:
enterprise in achieving its goals more efficiently and effectively in the relations with the employees. It includes union-management relations,
following ways: Activity C: Enlist the objectives of HRM in an organisation that you are joint consultation, negotiating, collective bargaining, grievance handling,
familiar with. disciplinary actions, settlement of industrial disputes, etc.
a) Attracting and retaining the required talent through effective human
resource planning, recruitment, selection, placement, orientation, All the above aspects are concerned with human element in industry as
compensation and promotion policies. distinct from the mechanical element.
b) Developing the necessary skills and right attitudes among the employees
through training, development, performance appraisal, etc.
c) Securing willing co-operation of employees through motivation, Human Resource Management is a process of bringing people and
participation, grievance handling, etc. organizations together so that the goals of each are met. It tries to secure the
d) Utilising effectively the available human resources. best from people by winning their wholehearted cooperation. In short, it may
be defined as the art of procuring, developing and maintaining competent
e) Ensuring that the enterprise will have in future a team of competent and
According to Dale Yoder, the scope of human resource management is very workforce to achieve the goals of an organisation in an effective and efficient
dedicated employees.
manner. It has the following features:
wide.
1) Professional Significance: Effective management of human resources
It consists of the following functions: 1. Pervasive force: HRM is pervasive in nature. It is present in all
helps to improve the quality of work life. It permits team work among
enterprises. It permeates all levels of management in an organisation.
employees by providing a healthy, working environment. It contributes
i) Setting general and specific management policy for organisational
to professional growth in the following ways: 2. Action-oriented: HRM focuses attention on action, rather than on
relationships, and establishing and maintaining a suitable organisation
record-keeping, written procedures or rules. The problems of employees
a) Providing maximum opportunites for personal development of each for leadership and co-operation.
at work are solved through rational policies.
employee. ii) Collective bargaining, contract negotiation, contract administration and
3. Individually oriented: It tries to help employees develop their potential
b) Maintaining healthy relationships between individuals and different grievance handling.
fully. It encourages them to give their best to the organisation. It
work groups. iii) Staffing the organisation, finding, getting and holding prescribed types motivates employees through a systematic process of recruitment,
c) Allocating work properly. and number of workers. selection, training and development coupled with fair wage policies.

2) Social Significance: Sound human resource management has a great iv) Aiding in the self-development of employees at all levels providing 4. People-oriented: HRM is all about people at work, both as individuals
significance for the society. It helps to enhance the dignity of labour in opportunities for personal development and growth as well as for and groups. It tries to put people on assigned jobs in order to produce
the following ways: acquiring requisite skill and experience. good results. The resultant gains are used to reward people and motivate
v) Developing and maintaining motivation for workers by providing them toward further improvements in productivity.
a) Providing suitable employment that provides social and
incentives. 5. Future-oriented: Effective HRM helps an organisation meet its goals in
psychological satisfaction to people.
vi) Reviewing and auditing manpower management in the organisation. the future by providing for competent and well-motivated employees.
b) Maintaining a balance between the jobs available and the jobseekers
vii) Industrial relations research carrying out studies designed to explain 6. Development-oriented: HRM intends to develop the full potential of
in terms of numbers, qualifications, needs and aptitudes.
employees. The reward structure is tuned to the needs of employees.
employee behaviour and thereby effecting improvement in manpower
c) Eliminating waste of human resources through conservation of Training is offered to sharpen and improve their skills. Employees are
management.
physical and mental health. rotated on various jobs so that they gain experience and exposure. Every
The Indian Institute of Personnel Management (IIPM) has described the attempt is made to use their talents fully in the service of organisational
15 scope of human resource management into the following aspects: goals. 17
16