Every organization, large or small, uses a variety of capital to make the business work. Capital includes cash, valuables, or goods used to generate income for a business. For example, a retail store uses registers and inventory, while a consulting firm may have proprietary software or buildings. No matter the industry, all companies have one thing in common: they must have people to make their capital work for them. This will be our focus throughout the text: generation of revenue through the use of people’s skills and abilities.

Human resource management (HRM) is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them. As a field, HRM has undergone many changes over the last twenty years, giving it an even more important role in today’s organizations. In the past, HRM meant processing payroll, sending birthday gifts to employees, arranging company outings, and making sure forms were filled out correctly—in other words, more of an administrative role rather than a strategic role crucial to the success of the organization.



1.Planning: Research and plan about wage trends, labour market conditions, union demands and other personnel benefits. Forecasting manpower needs etc.

2. Organizing: Organizing manpower for the achievement of organizational goals and objectives.

3. Staffing: Recruitment & Selection

4. Directing: Issuance of orders and instructions, providing guidance and motivation to managers and employees.

5. Controlling: Regulating personnel activities and policies according to plans. Observations and comparisons of deviations.


1. Procurement: Planning, Recruitment and Selection, Induction and Placement

2. Development: Training, Development, Career planning and counselling.

3. Compensation: Wage and Salary determination and administration

4. Integration: Integration of human resources with organization.

5. Maintenance: Sustaining and improving working conditions, retentions, employee communication

6. Separations: Managing separations caused by resignations, terminations, lay offs, death, medical sickness etc.


1. Humanitarian Role: Reminding moral and ethical obligations to employees.

2. Counsellor: Consultations to employees about marital, health, mental, physical and career problems.

3. Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals and groups or management.

4. Spokesman: To represent the company in Media and other forums because he has better overall picture of his company’s operations.

5. Problem Solver: Solving problems of overall human resource management and long-term organizational planning.

6. Change Agent: Introducing and implementing institutional changes and installing organizational development programs

7. Management of Manpower Resources: Broadly concerned with leadership both in the group and individual relationships and labour-management relations.


The scope of HRM is, indeed, very vast and wide. It includes all activities starting from manpower planning till employee leaves the organisation. Accordingly, the scope of HRM consists of acquisition, development, maintenance/retention, and control of human resources in the organisation.

Labour or Personnel aspect-

This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, lay-off and retrenchment, remuneration, incentives, productivity, etc.

Welfare aspect-

It deals with working conditions, and amenities such as canteen, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

Industrial aspect-

This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary actions, settlement of disputes, etc.


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.

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