Human Resource Management

What is Human Resource Management?

Many great scholars had defined human resource management in different ways and with different words, but the core meaning of the human resource management deals with how to manage people or employees in the organization.

Edwin Flippo: 

Human Resource Management as “planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.”

Human: refers to the skilled workforce in an organization.

Resource: refers to limited availability or scarce.

Management: refers how to optimize and make best use of such limited or scarce resource so as to meet the organization goals and objectives.

The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner and The second definition of HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function.

HRM Functions:

1. Human Resource Planning
2. Selection & Recruitment
3. Performance Management
4. Learning & Development
5. Rewards & Recognition
6. Compensation & Benefits
7. Policy Formulation
8. Employee Engagement
9. Health & Safety
10. Growth & Succession Planning

Now let's talk about the first function i.e. Human Resource Planning

Human resource planning begins with an analysis of the organization's strategy and the work that needs to be done to support that strategy. The organization's human resources requirements are then determined based on the work that needs to be done. Then the human resources requirements are matched with the skills and competencies of the people in the organization.

The organization can identify the people's sources as human resources requirements are known. Human capital can be internal or external to the organization. The internal sources of the people are those already employed by the organization. On the other hand, external sources of the people are those who the organization does not employ and need to recruited.

The importance of Human Resource Planning:

1. Estimating future demand for human resources – HRP determines the future requirement of personnel on the pace of development, expansion and diversification of business. It also deals with surplus and deficit workforce of the organization.

2. Bridging the gap – HRP plays an important role in bridging the gap between the demand and supply of workforce in an organization.

3. Enhancing workforce – HRP advocates for training and development of workforce to cater to the future demand for workforce.

4. Coping with changes – HRP facilitates to cope with changes. As the changes are inevitable, HRP focuses on change in nature of workforce, technological change, organizational change, demographic changes, legality and ethicality in dealing with workforce.

5. Determining the cost of human resources – Out flow of money is involved in every process of HRM. HRP takes into account the money spent on every activity of HRM and facilitates cost control and cost reduction.

6. Cost of hiring and training – HRP minimizes the cost of hiring and procurement. It is simple to understand that money unspent is money saved.

7. Diversification and expansion of business – Diversification and expansion of business results in demand for workforces. HRP determines the qualitative and quantitative workforce requirement for an organization.

8. Management development programs – HRP decides upon the need for management development programs and facilitates to conduct the same more effectively and efficiently.

9. Optimal utilization of human resources – Effective Human Resource Planning will help ascertain the adequate workforce and facilitate to use them optimally. It also prevents disguised unemployment and overloading, leading to job stress.

10. Essential for strategic planning – Strategic plans are the long-term plans of the organization. In the absence of HRP, strategic planning will become ineffective.