• 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.
• Therefore, human resource management is meant for proper
utilisation of available skilled workforce and also to make
efficient use of existing human resource in the organisation.
• Today many experts claim that machines and technology are
replacing human resource and minimizing their role or effort.
However, machines and technology are built by the humans
only and they need to be operated or at least monitored by
humans and this is the reason why companies are always in
hunt for talented, skilled and qualified professionals for
continuous development of the organization.
• Therefore humans are crucial assets for any organisation,
although today many tasks have been handing over to the
artificial intelligence but they lack judgement skills which
cannot be matched with human mind.
• There is no best way to manage people and no manager has
formulated how people can be managed effectively, because people
are complex beings with complex needs. Effective HRM depends very
much on the causes and conditions that an organizational setting
would provide. Any Organization has three basic components,
People, Purpose, and Structure.
• In 1994, a noted leader in the human resources (HR) field made the
following observation: Yesterday, the company with the access most
to the capital or the latest technology had the best competitive
• Today, companies that offer products with the highest quality are the
ones with a leg up on the competition;
• But the only thing that will uphold a company’s advantage tomorrow
is the caliber of people in the organization.
• The goal of HRM is to maximize employees’
contributions in order to achieve optimal productivity
and effectiveness, while simultaneously attaining
individual objectives (such as having a challenging job
and obtaining recognition), and societal objectives
(such as legal compliance and demonstrating social
• 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.
Nature of HRM
• HRM involves the application of Management
Functions and Principles
• Decision relating to Employees must be integrated
• Decisions made Influence the Effectiveness of an
• HRM functions are not confined to Business
Scope of HRM
1. Human Resource Planning: Ensure that right person at the right
time at the right place. Assess present and future needs of human
resources. Develop strategies to meet the man-power requirements.
2. Design of Organisation and Job: Lay down organization structure,
authority, relationship and responsibilities. Define work contents of
3. Selection and Staffing: Process of recruitment and selection.
Matching people with job specifications and career path in the
4. Training and Development: Find out training needs of the
individuals to meet knowledge and skills to fulfil future needs of the
5. Organisational Development: Healthy interpersonal and inter-group
relationship within the organization.
6. Compensation and Benefits: Wages and compensations are
fixed scientifically to meet fairness and equity criteria. In addition
labour welfare measures are involved which includes benefits
7. Employee Assistance: Each employees faces problems
everyday (Personal & Official). Such problems (worries) must be
removed to make them more productive and happy.
8. Union-Labour Relations: Healthy Union and Labour relations
enhance peace and productivity in an organization.
9. Personnel research and Information System: Continuous
research in HR areas is an unavoidable requirement. Take
special care for improving exchange of information through
effective communication system on a continuous basis especially
on moral and motivation.
Objectives of HRM
The primary objective of HRM is to ensure the availability of right people for right
jobs so as the organisational goals are achieved effectively. This primary objective
can further be divided into the following sub-objectives:
1. To help the organisation to attain its goals effectively and efficiently by
providing competent and motivated employees.
2. To utilize the available human resources effectively.
3. To increase to the fullest the employee’s job satisfaction and self-actualisation.
4. To develop and maintain the quality of work life (QWL) which makes
employment in the organisation a desirable personal and social situation.
5. To help maintain ethical policies and behaviour inside and outside the
6. To establish and maintain cordial relations between employees and
7. To reconcile individual/group goals with organisational goals.
The above stated HRM objectives can be summarized under four specific
objectives: societal, organizational, and functional and personnel.
1) Societal Objectives: Seek to ensure that the organization becomes
socially responsible to the needs and challenges of the society while
minimizing the negative impact of such demands upon the organization.
2) Organizational Objectives: It recognizes the role of HRM in bringing
about organizational effectiveness. HR department exist to attain
3) Functional Objectives: Maintain the department’s contribution at a
level appropriate to the organization’s needs. Human resources are to be
adjusted to suit the organization’s demands.
4) Personal Objectives: It is to assist employees in achieving their
personal goals, at least as far as these goals enhance the individual’s
contribution to the organization.
Characteristics of HRM
1. It is an art and a science:
2. It is pervasive:
3. It is a continuous process:
4. HRM is a service function:
5. HRM must be regulation-friendly:
6. Interdisciplinary and fast changing:
7. Focus on results:
9. Human relations philosophy:
10. An integrated concept:
Functions of HRM
Strategic HR Management:
Equal Employment Opportunity:
Talent Management and Development:
Risk Management and Worker Protection:
Employee and Labour Relations:
Qualities of Good HR Manager
•Good Communication Skills
Role of HR Manager
The role of HRM is to plan, develop and administer policies and
programs designed to make optimum use of an organizations human
resources. The primary responsibilities of Human Resource managers
• To develop a thorough knowledge of corporate culture, plans and
• To act as an internal change agent and consultant
• To initiate change and act as an expert and facilitator
• To actively involve in company’s strategy formulation
• To keep communication line open between the HRD function and
individuals and groups both within and outside the organization
• To identify and evolve HRD strategies in consonance with overall business
• To facilitate the development of various organizational teams and their
working relationship with other teams and individuals.
• To try and relate people and work so that the organization objectives are
achieved efficiently and effectively.
• To diagnose problems and determine appropriate solution particularly in
the human resource areas.
• To provide co-ordination and support services for the delivery of HRD
programmes and services
• To evaluate the impact of an HRD intervention or to conduct research so as
to identify, develop or test how HRD In general has improved individual and
Key Roles of HR
According to Dave Ulrich HR play’s four key roles:
1. Strategic Partner Role- turning strategy into results by
building organizations that create value;
2. Change Agent Role- making change happen, and in
particular, help it happen fast
3. Employees Champion Role— managing the talent or the
intellectual capital within a firm
4. Administrative Role— trying to get things to happen better,
faster and cheaper.
Difficulties and Challenges faced by HR
1. Recruitment and Selection:
2. Emotional and Physical Stability of Employees:
3. Balance Between Management and Employees:
4. Training, Development and Compensation:
5. Performance Appraisal:
6. Dealing with Trade Union:
HRM in the new Millennium
1. HR Can Help in Dispensing Organizational Excellence:
2. Human Resource Should be a Strategy Partner:
3. HR Accountability Should be Fixed to Ensure
4. The New HR Must Become a Change Agent:
5. Improving the Quality of HR:
6. Change in Employment Practices:
7. Benchmarking Tool Must be Mastered by HR
8. Aligning Human Resources to Better Meet Strategic
9. Promote From Within and Invest in Employees:
10. Review the Recruitment and Selection Process:
11. Communicate Mission and Vision:
12. Use Teams to Achieve Synergy: