INTRODUCTION TO HUMAN RESOURCE MANAGEMENT – MBA Notes

Introduction to Human resource management

A Textbook Definition Bratton and Gold define HRM as:

“… a strategic approach to managing employment relations which emphasises  that leveraging people’s capabilities is critical to achieving sustained competitive  advantage, this being achieved through a distinctive set of integrated employment  policies, programmes and practices”.

Human Resource Management may be defined as the art of procuring, developing nad maintaining  competent workforce to achieve organizational goals efficiently.

According to  Invancevich and Glueck, “HRM is concerned with the most effective use of people to achieve organizational and individual goals”.

According to Byars and Rue, “HRM  encompasses those activities that are designed to provide for and coordinate  the human resources of an organization”.

According to Flippo, HRM is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the objectives are accomplished”

Nature of HRM

Broader function : Human Resource Management is a comprehensive function because it is about managing people in the organization. It covers all types of people in the organization from workers till the top level management.

People oriented : Human resource is the core of all the processes of human resource management. So HRM is the process which brings people and organizations together so that their goals can be achieved.

Action oriented : Human resource management believes in taking actions in order to achieve individual and organizational goals rather than just keeping records and procedures.

Development oriented: Development of employees is an essential function of human resource management in order to get maximum satisfaction from their work so that they give their best to the organization.

Integrating Mechanism : HRM tries to build and maintain cordial relations between people working at various levels in the organization.

Continuous function : As human resource is a living factor among all factors of production therefore it requires continuous improvement and innovations in order to get excellence. So it requires a constant alertness and awareness of human relations and there importance in every day to day operations.

Future oriented : HRM is very important activity which helps organization to achieve its objectives in future by providing well motivated and competent employees.

FEATURES OF HRM

1.         Management Discipline : It is not a discipline in itself, but a part of the Management discipline. As it  is a discipline of Management studies, it describes the management concepts , principles and techniques and apply these in the management human resources.

2.         As a Process : HRM is a process of four functions :-

Acquisition of human resources : This function includes Human Resource Planning, Recruitment, Selection, Placement and Induction of staff.

Development of human resources : This function includes Training and Development and Career development. The knowledge, skills, attitudes and social behavious of the staff are developed.

Motivation of human resources : This function includes giving recognition and rewards to the staff. It also includes Performance Appraisal and handling the problems of staff.

Maintenance of human resources : This function includes providing the best working conditions for employees. It also looks after the health and safety of the staff.

Continuous Process : HRM is not a one-time process. It is a continuous process. It has to continuously change and adjust according to the changes in the environment, changes in the expectations of the staff, etc. HRM has to give continuous training and development to the staff due to changes in technology.

Concerned with  people : HRM is concerned with all types of personnel in the organization. It deals with top level to the  supervisory and operatives. HRM is not only concerned with people in the organization but also with the people having potential to be bought in the organization.

Achievement of Objectives : Achievement of goals of an organization can be obtained by providing proper tools and techniques of HRM.

Universal function

HRM can be applied in business as well as other organizations organisations such as schools, colleges, hospital, religious organisations, etc.

Integrated use of Subsystems

HRM involves the integrated use of sub-systems such as Training and Development, Career Development, Orgnisational Development, Performance Appraisal, Potential Appraisal, etc. All these subsystems increase the efficiency of the staff and bring success to the organisation.

Developes Team Spirit

HRM tries to develop the team spirit of the full organisation. Team spirit helps the staff to work together for achieving the objectives of the organisation. Now-a-days more importance is given to team work and not to individuals.

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.

Long Term Benefits

HRM brings many long term benefits to the individuals (staff), the organization and the society. It gives many financial and non-financial benefits to the staff. It improves the image and profits of the organization. It also provides a regular supply of good quality goods and services at reasonable prices to the society.

Scope of the HRM

The scope of HRM is very immense.  HRM plays a vital role of a worker from the time he enters into any organization till he leaves. HRM activities include –

1.  Procurement : It the placement of right kind of personal to the right post. It includes, determination of manpower requirements. Job analysis, Nature and scope of requirement, employee selection and placement of employment.

2. Training and Development : Training    and Development is a must in any organization. It prepares the worker to the actual situations in the orgnisation.

3. Job Analysis  and Job Description : Job analysis and job description involves the studies of job requirements of the enterprise and assignment of well defined functions to jobs so that qualified employees may be hired. It also forms the basis of wage determination.

4.Remuneration : Providing proper remuneration to the employees for the job done through job analysis and job description. It includes determining wage rates, incentives, wage payment, rewards and benefits and performance appraisal.

5. Welfare and Industrial Relations : It includes health and safety program, sanitary facilities, recreational facilities etc.