Unit 1: Human Resource Management: Scope

Unit 1
Concept, nature and Scope of HRM.

Before we define HRM, it seems pertinent to first define the term ‘human resources’. In common parlance, human resources
means the people. However, different management experts have defined human resources differently. For example, Michael J.
Jucius has defined human resources as “a whole consisting of inter-related, inter-dependent and interacting physiological,
psychological, sociological and ethical components”.
According to Leon C. Megginson “From the national point of view human resources are knowledge, skills, creative abilities,
talents, and attitudes obtained in the population; whereas from the view-point of the individual enterprise, they represent the
total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitude of its employees”.
SumantraGhosal considers human resources as human capital. He classifies human capita into three categories-intellectual
capitals, social capital and emotional capital. Intellectual capital consists of specialized knowledge, tacit knowledge and skills,
cognitive complexity, and learning capacity.
Social capital is made up of network of relationships, sociability, and trustworthiness Emotional capital consists of self-
confidence, ambition and courage, risk-bearing ability, and resilience. Now it is clear from above definitions that human
resources refer to the qualitative and quantitative aspects of employees working in an organisation.
Let us now define human resource management.
In simple words, HRM is a process of making the efficient and effective use of human resources so that the set goals are
achieved. Let us also consider some important definitions of HRM.
According to Flippo “Personnel management, or say, human resource management is the planning, organising, directing and
controlling of the procurement development compensation integrat
Objectives:
The primary objective of HRM is to ensure the availability of right people for right jobs so as the organisational goals are
achieved effectively.
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 organisation.
6. To establish and maintain cordial relations between employees and management.
7. To reconcile individual/group goals with organisational goals.
Scope:
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 refers to all the activities that come under the banner of HRM. The activities are as follows
1. Human resources planning: - Human resource planning is a process by which the company to identify the
number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this
excess or shortage.
2. Job analysis design: - Another important area of HRM is job analysis. Job analysis gives a detailed
explanation about each and every job in the company. Based on this job analysis the company prepares
advertisements.
3. Recruitment and selection: - Based on information collected from job analysis the company prepares
advertisements and publishes them in the news papers. A number of applications are received after the
advertisement is published, interviews are conducted and the right employee is selected thus recruitment
and selection are yet another important areas of HRM.
4. Orientation and induction: - Once the employees have been selected an induction or orientation program
is conducted. The employees are informed about the background of the company. They are told about the
organizational culture and values and work ethics and introduce to the other employees.
5. Training and development: - Every employee goes under training program which helps him to put up a
better performance on the job. Training program is also conducted for existing staff that have a lot of
experience. This is called refresher training. Training and development is one area were the company
spends a huge amount.
6. Performance appraisal: - Once the employee has put in around 1 year of service, performance appraisal is
conducted i.e. the HR department checks the performance of the employee. Based on these appraisal future
promotions, incentives, increments in salary are decided.
7. Compensation planning and remuneration: - There are various rules regarding compensation and other
benefits. It is the job of the HR department to look into remuneration and compensation planning.
8. Motivation, welfare, health and safety: - Motivation becomes important to sustain the number of
employees in the company. It is the job of the HR department to look into the different methods of
motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the
employees.
9. Industrial relations: - Another important area of HRM is maintaining co-ordinal relations with the union
members. This will help the organization to prevent strikes lockouts and ensure smooth working in the
company.
Unit 2
Definition: The Human Resource Planning is the process of finding the right number of
people for the right kind of a job, at a right time and the right place, by forecasting the
organization’s demand for and supply of human resources in the near future.
In other words, Human Resource Planning is responsible for arranging the right people for
the right job from all the available sources. And not only this, it also anticipates the vacancy
arising due to the promotion, transfer, retirement, termination, of an employee and thus,
plans for the manpower accordingly.
Immediate filling of vacancies reduces the idle time caused due to an employee turnover,
and hence the functioning of the business process remains unaffected.
This planning is generally done to enable an organization to move from the current
manpower position to the desired manpower position. The human resource planning begins
with the enterprise’s estimation for the manpower requirement and then sources are found
from where this need can be fulfilled.
The Human Resource Planning should not focus only on filling the vacant positions, but
should emphasize on hiring the right person for the right job. It also focuses on developing
the skills of an existing employee through an interactive training program, with the intention
to make them well equipped with the skills required in the future, for the attainment of the
organization’s objectives.

Unit 1: Human Resource Management: Scope

Uploaded by

Copyright:

Available Formats

Unit 1: Human Resource Management: Scope

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Unit 1: Human Resource Management: Scope

Uploaded by

Copyright:

Available Formats

Unit 1

Concept, nature and Scope of HRM.

Human Resource Management: Scope

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.