HRM : Meaning, Nature, Scope / Functions of scope, Objectives, Importance.

HRM : Meaning, Nature, Scope / Functions, Objectives, Importance.

Hello friends, let's talk about "What is Human Resource Management?". We always want that you should not only depend on theory or textbook knowledge. Students should understand both theoretical and practical learning. In this post, we will learn:

1. What is HRM?

2. Nature of HRM.

3. Scope of HRM / Functions of HRM.

4. Objectives of HRM.

5. Importance / Significance of HRM.

HRM : Meaning, Nature, Scope/ Functions, Objectives, Importance.

Meaning

So, HRM has two major words, "Human resource" and "Management". Let's take a look at the first one.

All business organizations have four types of resources and those are also famous as 4m's - Men, Machine, Money and Materials. But there is another resource which has gained importance in recent decades and that is "Information". 

So, out of those five resources, everyone has its own importance. If anyone of them removed, the whole process of business cannot be operated. But Human resource has different value among all resources because Optimum Utilization of other resources depends on Human efforts. That is because :

# The effective use of Financial resources is done by HR of the company.

# Proper functioning of Machines or Physical resources depend on HR. 

# Efficiently Material handling depends on HR efforts.

# "Information" resource is also Collected, Gathered, Analyzed,  and Reported by HR of the company.

Wow...., HR does so much. Anyway, that's why HR is vital. If you are able to manage this element effectively, then it will lead to optimum utilization of all resources. What ? Manage? We forgot to understand the second major word of HR"M". 

Let's see the Second major word in HRM is "Management", and simply it is a function of effectively operating any task / process. So, Human Resource Management is simply effective operation of all Human related activities. Now we understand what it is!!!! It was nice to analyse something. 

Now let's see a definition: According to Flippo, ― "HRM is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are achieved."

HRM : Meaning, Nature, Scope/ Functions, Objectives, Importance.

Nature of HRM

1) Management process

Human resource management is a Management process, which consists of Acquisition fuction (Human resource planning, Recruitment, Selection, Induction), Development function (Training & development), Compensation function, Motivation function.

2) Universal application

Human resource management is all pervasive. Every type of organization need HRM practices whether it is commercial organization or non-commercial organization. It is required at all levels and in all activities and thats why it is universal applicable.

3) Dynamic in nature

Friends, everything changes, and just like business environment, HRM aspects also change. Many practices, labour laws, methods keep change and organizations should keep adapt to those changes for survival and success.

4) Continuous in nature

In the third point, we saw that Human resource management is dynamic in nature, and companies should adapt with changes. So, organizations can survive and achieve goals only when they do all those processes on continuous basis. Therefore human resource management is a continuous activity. 

5) Interdisciplinary

HRM is related to all human activities, therefore it aims to improve individual, group and organizational performance and efficiency. Therefore HRM takes help from many disciplines like psychology, sociology, economics, philosophy, communication, and organization behavior.

6) Development of team spirit

Human resource management aims at developing team spirit throughout the organization. If all groups and departments have team spirit, it will lead to integrated performance and achievement of objectives. 

7) Long term benefits

HRM gives long term benefits to business, individuals and to society as well. Society gets benefit in the form of quality products and services, employment. Individual gets benefits in the form of monetary and non monetary compensation. Organization gets benefit in the form of higher returns.

HRM : Meaning, Nature, Scope/ Functions, Objectives, Importance.

Scope of HRM/ Functions of HRM :

Now, scope in general english means boundary. Any government's scope will be the boundaries of that nation. Outside the boundary government's law can't be applied. Just like that Scope of HRM refers to all the Dicision making areas on which HR manager has power to take dicisions, make strategies, and implementing them for fulfilling overall organizational objectives. Following points are in the Scope or functions of HRM :

(1) Human Resource Planning

HRP refers to forecasting future HR requirements and making sure that organization will have that kind of HR in future.

(2) Job Analysis

It refers to collecting and analyzing all the information about the jobs in the organization to make Job description i.e. details about the job and Job specification i.e. qualities and qualifications necessary for doing the job.

(3) Recruitment

It is the process of finding and attracting capable people to apply for the job. It is considered as a positive process as it invites applicants to apply for the vacant posts.

(4) Selection

It is the process of picking most suitable persons among all the applicants. It is considered as a negative process, as it differentiates all candidates in two parts, one in those who have given job and second is those who are not.

(5) Training and Development

Training is a short term process of enhancing skills in employees who need. And Development is a long term process of learning opportunities to help employees to grow, to be prepared for higher positions.

(6) Performance Appraisal

It is the process of evaluating the performance of employees on the job for the purpose of promotions, training, motivation, etc.

(7) Job Evaluation

It is the process of analyzing all the information of various jobs to know their relative worth in organization.

(8) Compensation policies

Policies related to compensation to all employees according to their position in the job structure.

(9) Motivation

Organization can motivate employees through monetary and non monetary factors.

(10) Employee safety and welfare

Organization is responsible for making policies and facilities for employee safety and welfare.

(11) Employee - Employer relation

HR manager has to ensure relationship between the company and trade unions.

(12) Ethics in HRM

HR manager must ensure all the activities are operating in ethical way. Ethics policy should be made.

HRM : Meaning, Nature, Scope/ Functions, Objectives, Importance.

Objectives of HRM

Following are the objectives of human resource management:

1) To utilize the current human resources optimally and effectively. Optimum utilization of human resource is vital for enhanced performance

2) To provide skilled, competent, and loyal human resource to the organization to achieve its goals and objectives.

3) To create and maintain a healthy relationship among all employees and management. This will boost the efficiency and productivity.

4) To continuous development of human resources by regular training and development opportunities.

5) To satisfy employees needs such as wages and salaries, healthy working condition, motivation, recognition, security, belongingness, etc.

6) To ensure proper leadership to the employees and providing them opportunities for participation in management decisions. It is one of the importance of HRM.

7) To create an environment of integration of individual interest and organizational interest, which lead to cooperation and fulfillment of objectives.

8) To help in maintaing ethical policies, behavior and communicate HR policies to all employees

HRM : Meaning, Nature, Scope/ Functions, Objectives, Importance.

Importance of Human Resource Management

1) Competitive workforce

Human resource management is a powerful tool and process which helps organization to recruit, develop and retain the skilled, loyal and competitive workforce. In today's quick changing environment, having competitive human resource is a plus point for success and to consistently repeating that performance.

2) Effective utilization

If the process of HRM is properly and continuously followed, it will lead to optimum utilization of human resource. It reduces the wastage of efforts of individual and groups.

3) Motivated manpower

Human resource management helps organization to regularly motivate employees. They can use monetary or non monetary or both factors. It is essential for organization to have motivated workforce to evolve and performance improvement.

4) Organisational structure

HRM helps organization to give itself a proper organisational structure. Organization structure states clearly defined authority and responsibilities of each member of the organization which is essential.

5) Development of HR

Organizations make policies about training and development of employees. Employees are given some opportunities to learn some skills and behavioral aspects of higher positions. It also boosts employee's confidence and loyalty.

6) Corporate image

Companies which operate human resource management policies effectively, it's corporate image improve in the minds of stakeholders like customers, suppliers, investors, employees, government etc. It helps them to maintain their position in the market.

7) Importance of HRM to Nation

Human resource management is also an important factor in national point of view. Optimum utilization of all natural, technological, physical resources depends on the people of the country. HRM helps people to upgrade their skills, desired behaviour, increase productivity.

Summary

In this article, we learned the meaning of human resource management. We saw and understand two terms as "Human Resource" and "Management".

Then we saw the Nature of HRM. HRM is a management process, it us universally applicable, it is dynamic in nature, continuous in nature, it develps team spirit, it is interdisciplinary, etc.

Then we studied scope/ functions of HRM, in which we saw points like Human resource planning, recruitment, selection, training and development, performance appraisal, compensation, motivation, etc. 

After that we understood about objectives of HRM. Then we saw some importance of it like Competitive manpower, effective utilization, organization structure, development of human resource, corporate image, etc.

Every time this kind of talk encourages us to share more knowledge with you and we will keep posting for your learning and awareness. Thank you for reading. We will talk again in next post.

You May Like:

Marketing Research: Definition, Nature, Process, Objectives, Importance.