It is very important for an organisation without this department they can’t start their work because all work from planning , staffing , organising , controlling and directing functions are done through this department. What is to be done ,when is to be done and who perform the work is done by this department in the organisation. This is very essential of growth in organisation.
Human resource management is the practice of recruiting, hiring, deploying and managing an organisation’s employee. A company or organization’s HR department is usually responsible for creating, putting into effect and overseeing policies governing workers and the relationship of the organization with its employees.
HRM is really employee management with an emphasis on those employees as assets of the business. In this context, employees are sometimes referred to as human capital. As with other business assets, the goal is to make effective use of employees, reducing risk and maximizing return on investment (ROI).
As a practice, businesses and organizations depend on three key resources: physical resources, such as materials and equipment; financial resources, including cash, credit, and debt; and people. There can be no doubt that people play a vital role in an organization or business as a resource.The human resource function of every defines their success as an organization. An organisation’s HR function plays a major role in the growth of its bottom line and the success of its business strategy.
why do we call it Human Resource Management ?
Human – referred to the skilled workforce in an organisation
Resource- refers to limited availability or scares
Management- refers how to optimize and make best use of such limited or scare resources so as to meet organisational goals and objectives.
Nature of HRM: It is the process of bringing people and organisation together so that the each of goals are met. It is focus on results rather than rules. It tries to help employees develop their potential fully. It encourages employees to give their best to the organisation. It helps an organisation meet its goals in future by providing for competent and well- motivated employees. It tries to build and maintain cordial relations between people work at various levels in the organisation.
objectives of HRM: To procure right type person for right job at right time. To ensure effective utilisation of human resources. To ensure development of human resources. To maintain high morale in organisation. To provide them right kind of training to increase their productivity.
HRM refers to the management of all decisions within an organization that are related to people.
To understand HRM, the functions of HRM must be taken into consideration. The functions of HRM are managerial, operative and advisory.
Managerial functions of HRM:
▪︎ Planning
▪︎ Organising
▪︎ Directing
▪︎Controlling
Operative functions of HRM:
▪︎ Recruitment and Selection
▪︎Job analysis and Design
▪︎Performance Management
▪︎Learning and Development
▪︎Compensation Management
▪︎Employee Welfare
▪︎Policies
▪︎Personal records
▪︎Labour relations
Advisory Functions:
▪︎ Top management advisory : One of the critical HRM functions is to advise the top management in formulating policies and procedures. The advisory function of HRM also advise the top management on appraisal of manpower. This function also involves advice regarding maintaining high-quality human relations and improving employee morale.
▪︎Departmental Head Advice : Under thi HRM function, HRM advices the head of various departments of policies related to job design , job description, recruitment, selection and appraisal.
DO YOU KNOW IT ?
The U.S. office of Personnel Management is the world’s largest HR department . OPM provides Human Resource service for the federal governments workforce of nearly 2.8 million workers. It’s staff carry out the tasks to recruit, interview and promote employees oversea merit pay, benefits and retirement programs ; and ensure that all employees and applicants are treated fairly and according to the law.
The following reasons highlight the importance of HRM.
Recognizing and valuing individuals: HRM acknowledges every employee’s worth within the organization, suggesting that the organization recognize and value individual contributions. The empathy monitor study by the Businessolver states that 93% of employees say they’re more likely to stay at an organization with an empathetic employer. Also, the happywork study by Ultimate Software says that 75% of employees would stay longer at an organization that listens to and addresses their concerns.
People bring ideas: HRM manages people, and people bring new new skills and ideas into the organization and fuel the growth of business.
Upskilling is long term interest : HRM recognizes the need for continuous learning; talents and skills must be continually refined in the long-term interests of the organization.
Employee satisfaction: People have a right to be satisfied by their work, and organizations have a responsibility, and a profit motivation, to try to match their skill DecisionWise via Human Resource Today 64% of workers globally feel their job gives them a sense of meaning and purpose.
Beyond technical training: HRM has a much broader scope than technical training—employees need to know more than the requirements of a specific task in order to make their maximum contribution.
These are major role of HRM department in an organisation’s growth. If their employees are happy they become more productive and effectively perform their work towards organisation which help in organisation’s growth and achieve their objectives.
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