First Stop - Glimpse of HRM

What is Personnel Management?

Before Human Resource Management took place in the industry the Personnel Management was a major part of management that focused on recruiting, hiring, staffing, developing, and compensation of the workforce and their relationship with the organization to achieve its objectives. The key functions of the personnel management can be divided into two categories as follow,

•   Operative Functions: The activities that are concerned with procurement, development, compensation, job evaluation, employee welfare, utilization, maintenance, and collective bargaining.

•      Managerial Function: Planning, Organizing, Directing, Motivation, Control, and Coordination are the basic managerial activities performed by Personnel Management.

With the technological evolution and the process of replacing the machines by human power, simultaneously this branch of management also has been taken over by Human Resource Management (HRM).

Human Resource Management (HRM)

When considering the terms ‘Human Resources’(HR) and HRM have naturally elevated the concept of a ‘Personnel Management’ as an explanation of the functions involved in managing people and organizations.

HRM is an important function in an organization to achieve the objective, goals, mission, vision of the organization. HRM helps the organization to achieve its sustainability effectively and efficiently in the long run.

Human resource management is defined as a strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of its objectives. (Armstrong, 2006)

The human resource management is a major part of the success of an organization. There must be effective management of human resources. The significance of human resources and people as the most important asset of any organization is emphasized. (Gratton, et al., 1999)

Functions of HRM

Aims Of HRM

• Achieve Effective and Efficiency in the Organization

An Organization can achieve its effectiveness, efficiency, and productivity by implementing policies, procedures, knowledge and talent management through HRM. HRM aims to create a great place to work and a clear vision for HR strategies with the development of consistent and continues improvement and customer relation policies.

• Knowledge Management

Another aim of HRM is to support the growth of firm-specific knowledge and skills that are the result of organizational learning processes.

• Reward Management

Employee satisfaction and motivation towards the work can be significantly increased by the proper reward system, performance-based reward systems, achievement base tasks. Also, mentor, train, appraisal systems can be implemented for reward systems, also policies and procedures for HRM.

• Employee Relations

The aim is to create a climate in which productive and harmonious relationships can be maintained through partnerships between management and employees and their trade union

• Human Capital Management

Human capital management is important because they are assets to any organization. HRM must make sure that they have recruited the proper skilled, trained, committed, self-motivated workforce to the organization. It involves the operation of recruitment and selection procedures, performance-contingent incentive compensation systems, and management development and training activities linked to the needs of the business.

References

Armstrong, M., 2006. Human Resource Management Practice. 10th ed. London: s.n.

Gratton, L., Hailey, V. H., Stiles, P. & Truss, C., 1999. Strategic Human Resource Management. 1st ed. s.l.: Oxford University Press.

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