Human Resource Management (HRM) (IEM Mgt 19May 2021)

Human Resource Management (HRM)

Human Resource Management (HRM) is an operation in companies designed to maximize employee performance in order to meet the employer's strategic goals and objectives. More precisely, HRM focuses on management of people within companies, emphasizing on policies and systems.

 

The first definition of HRM is that it is the process of managing people in organizations in a structured manner.

 

The second definition of HRM managing people in the form of a collective relationship between management and employees.

 

Human Resource Planning

Human Resource Planning (HRP) is the process of forecasting the future human resource requirements of the organization and determining as to how the existing human resource capacity of the organization can be utilized to fulfill these requirements.

It, thus, focuses on the basic economic concept of demand and supply in context to the human resource capacity of the organization.

 

HR Planning help the organization in many ways as follows:

§  HR managers are in a stage of anticipating the workforce requirements rather than getting surprised by the change of events.

§  Prevent the business from falling into the trap of shifting workforce market, a common concern among all industries and sectors.

§  Work proactively as the expansion in the workforce market is not always in conjunction with the workforce requirement of the organization in terms of professional experience, talent needs, skills, etc.

§  Organizations in growth phase may face the challenge of meeting the need for critical set of skills, competencies and talent to meet their strategic objectives so they can stand well-prepared to meet the HR needs.

§  Considering the organizational goals, HR Planning allows the identification, selection and development of required talent or competency within the organization.

 

Process of Recruitment:

(i) Searching out the sources from where required persons will be available for recruitment. If young managers are to be recruited, then institutions imparting instructions in business administration will be the best source.

 

(ii) Developing the techniques to attract the suitable candidates. The goodwill and reputation of an organization in the market may be one method. The publicity about the company being a professional employer may also assist in stimulating candidates to apply.

 

(iii) Using of good techniques to attract prospective candidates. There may be offers of attractive salaries, proper facilities for development, etc.

 

(iv) The next stage in this process is to stimulate as many candidates as possible to apply for jobs. In order to select a best person, there is a need to attract more candidates.

 

Difference between personnel management and human resource management

Human resource management is a new version of personnel management. However, there are some differences in the following matters:

 

§  Personnel management is a traditional approach to managing people in the organization. Human resource management is a modern approach to managing people in the organization.

 

§  Personnel management focuses on personnel administration, employee welfare, and labor relation. Human resource management focuses on acquisition, development, motivation, and maintenance of human resources in the organization.

 

§  Personnel management assumes people as input for achieving the desired output (Goal). Human resource management assumes people as an important and valuable resource for achieving the desired output (Goal).

 

§  Under personnel management, personnel function is undertaken for employee satisfaction. Under human resource management, the administrative function is undertaken for goal achievement.

 

§  Under personnel management, job design is done on the basis of division of labor. Under human resource management, job design function is done on the basis of group work / teamwork.

 

§  Under personnel management, employees are provided with less training and development opportunities. Under human resource management, employees are provided with more training and development opportunities.

 

§  In personnel management, decisions are made by the top management as per the rules and regulation of the organization. In human resource management, decisions are made collectively after considering employee’s participation, authority, decentralization, competitive environment, etc.

 

§  Personnel management focuses on increased production and satisfied employees. Human resource management focuses on effectiveness, culture, productivity and employee’s participation.

 

§  Personnel management is concerned with the personnel manager. Human resource management is concerned with all levels of managers from top to bottom.

 

§  Personnel management is a routine function. Human resource management is a strategic function.