Human Resource Management (HRM)

What is HRM?

Human Resource Management (HRM) is the process of recruitment, selection of employees, providing proper orientation and induction, providing proper training and development skills, assessment of employees (performance of appraisal), providing proper compensation and benefits, motivating, maintaining proper relations with labor and with trade unions, maintaining employees safety, welfare and health by complying with labor laws of concern state or country.

Or in simple words, you can say human resource management is the process of proper and maximizing utilization of available limited skilled workforce. The core purpose of human resource management is to make efficient use of existing human resources in the organization.

HRM includes:

  • Conducting job analyses,
  • Planning personnel needs, and recruitment
  • Selecting the right people for the job
  • Orienting and training
  • Determining and managing wages and salaries
  • Providing benefits and incentives
  • Appraising performance
  • Resolving disputes, etc.

Definition of Human Resource Management (HRM)

Some important definition of HRM given by authors are discussed below:

HRM refers to:”… all those activities associated with the management of the employment relationship in the firm. The term ’employee relations’ will be used as an equivalent term as will the term ‘labour management’.

Boxall and Purcell’s

HRM as “planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.

Edwin Flippo

Characteristics of Human Resource Management (HRM)

Following are the characteristics of human resource management:

HRM is a Continuous Process

That transforms people into effective human beings. The such transformation includes both behavior transformation as well as competency transformation. HRM uses different methods for such transformation including training, counseling, performance appraisal, etc.

Concerned With Employees

HRM is concerned with employees both as individuals and as a group in attaining goals. It is equally concerned with the behavior, emotional, and social aspects of human resources.

HRM is a Management Function

HRM is a management function that helps managers recruit, select, train, and develop members of an organization. It is a process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health, safety, and fairness concerns.

Functions of HRM

The functions of hrm are as follow:

Human Resource Development

HRD is an important function of HRM. It is the process of improving and developing the skills, abilities, attitudes, and knowledge of the employees based on present and future job and organizational requirements.

Manpower Planning

Manpower planning is concerned with dealing with shortages and surpluses of manpower in the organization keeping in view the present goals of the organization and future plans of the organization.

Recruitment and Selection

Recruitment is the process of exploring or searching for prospective employees and providing them with a stimulus to apply for a specific job in an organization through various sources. Recruitment helps in the creation of a pool of available labor force to meet additional needs of manpower of an organization in the requisite number as and when they require it.

Selection on the other hand is a screening procedure to select the most appropriate employee for the job. Different organizations use different methods of screening depending upon the job description available. Selection helps an organization appoint the best employee for the organization.

Performance Appraisal and Feedback

Performance appraisal and providing timely and continuous feedback to the employee about their effectiveness is an important HRM function. This mechanism helps an employee identify his growth needs and redefine his future goals.

HRM should ensure a participative mode of performance appraisal. Such an open objective and participative appraisal and feedback mechanism will help develop better superior-subordinate relations and will help in the award of promotions, incentives, and training to the employees.

Training and Development

One of the important functions of HRM is to provide training and development to its employees to effect:

  • Improved performance of the employee in his present job.
  • Preparation of the employee for related jobs and future prospects
  • The general growth of the employee to assume greater responsibility in the future.

Potential Appraisal and Promotion

Another important function of HRM is potential appraisal which is concerned with identifying the potential of an employee for future development and promotion in the organization. Performance appraisal on the present job of an employee is no guarantee of success or failure of the employee in the next job.

So potential appraisal focuses on finding out those critical attributes in an employee which are needed for higher job positions and based on these attributes an employee is promoted. Hence promotion under HRM is based on possession of critical attributes and not performance on the present job.

Career Management

Today’s employee is more aware and concerned about his future prospects he believes in career planning and development to achieve his career goals. It may, therefore, be useful to help new employees become aware of their specific career paths.

Necessary help may also be given to the employees through training and development to make them ready for future job positions. Such career management initiatives by the organization help retain employees in the organization for a longer time duration while at the same time fulfilling their career aspirations.

Employee Compensation and Reward

HRM should ensure that employee compensation is based on job analysis. Job description or job specification should assess the worth of the job accordingly. The salary structure should be based upon those characteristic features of a job. Salary structure should assess an employee upon those characteristic features of the job.

However, the reward system should be fair, equitable, and based on the performance of an employee on the job and not his attributes like educational qualification, past experience, and closeness to his superior. Employee remuneration structure should be such that it motivates employees to achieve their goals.

Quality of Work Life and Employee

A good remuneration system is not enough to attract motivate and retain employees in the organization. A congenial working environment, good physical conditions, and motivating work are equally essential for employee welfare.


free flow of desired information at all levels ensures good governance and transparent management. Similarly, suggestions and new ideas of the employee should reach the top level for evaluation, acceptance, and implementation.

Counseling and Mentoring

HRM also aims at providing timely guidance to workers on problems relating to hand and heart. Many organizations employ trained counselors for the employee’s guidance. Senior employees can also act as mentors to the employees to help them decide their career growth path.

Importance of Human Resource Management

Importance of Human Resource Management:

Helps in HR Planning

It involves the estimation of present and future requirements and supply of manpower based on objectives and long-range plans of the organization. It also includes taking steps to mold; change and develop the strength of existing employees in order to meet future HR requirements.

Helps in Recruitment

It deals with the identification of existing sources of applicants and new sources of applicants and striking a balance between internal and external sources.

Induction and Orientation

These are the HRM techniques by which a new employee is rehabilitated in the changed surroundings and introduced to the practices, policies, purposes, and people of the organization. It introduces the employee to the people with whom he/she has to work as peers, supervisors, and subordinates.

Human Resource Engagement and Utilization

It includes motivating, involving, and leading the employees towards organizational missions and strategies. Engagement and utilization of human resources would be effective by communicating the organizational goals clearly and encouraging employees to participate in decision-making and implementation.

Helps in Training

It is the process of imparting the employee’s technical and operating skills and knowledge. It consists of the identification of training needs, developing suitable training programs, imparting requisite job skills and knowledge to the employees, and finally evaluating the effectiveness of training programs.

Helps in Organizing

An organization is a structure and a process by which a cooperation group of human beings allocates its task among its members identifies relationships and integrates its activities towards a common objective.

Helps in Controlling

It involves checking, verifying, and comparing the actuals with plans, identification of deviations, if any, and correcting those deviations. Thus action and operation are adjusted to predetermined plans and standards through control. Auditing training programs, directing morale surveys, and conducting existing interviews are some of the means of controlling.

FAQs Related to Human Resource Management

What is HRM?

Human Resource Management means, employing people, developing their resources, utilizing, maintaining, and compensating their services in tune with the job and organizational requirements.

What are the functions of hrm?

Functions of Hrm are:
1. Human Resource Development
2. Manpower Planning
3. Recruitment and Selection
4. Performance Appraisal and Feedback
5. Training and Development
6. Potential Appraisal and Promotion
7. Career Management
8. Employee Compensation and Reward
9. Quality of Work Life and Employee
10. Communication
11. Counseling and Mentoring

What is HRD?

HRD is an important function of HRM. It is the process of improving and developing the skills, abilities, attitudes, and knowledge of the employees based on present and future job and organizational requirements.

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