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What is Human Resource Management

Human Resource Management is the process of managing employees in order to achieve desired results through their use as human capabilities. It is concerned with the management of people and their performance by applying a variety of tasks, functions and resources which enable them to establish objectives.

The goal in Human Resources Management is to plan work activities, assign responsibilities, set timetables and deadlines, provide training, monitor progress and evaluate results. In this process, human resources can be utilized more effectively.

Need for Human Resources Management

Growth of organizations brought the human resource management function into existence. Increasing manpower utilization, performance and productivity are reasons for the necessity of human resource management. Since every organization has a limited staff and financial resources, investment in employees is necessary. The purpose of investing in employees is to obtain maximum benefit from the employees with minimum expenditure on their salaries.

 Types of Human Resource Management includes;

1 Staffing Management

Staffing management involves the selection, placement, and development of employees to meet the future needs of an organization to achieve its objectives . Effective staffing is a key factor in achieving the goal of effective human resource management.

2 Training and Development

It is believed that training is the means to achieve personal growth and to increase productivity . And employee development is one of the ways of enhancing the competitive strength of an organization .Training provides a knowledge and skill base for employees in their present job but for the betterment of their careers, on-the-job training is sufficient .

3 Compensation Management

Payment for employee is significant factor in motivating, developing and retaining employees. Compensation plan has a key role in the efficient operation of business. Effective pay structure can make all the difference between a good and poor performer .Provide rewards for performance enhances the motivation of employees to perform better .

4 Performance Evaluations

Performance evaluation is a process of rating, comparing and evaluating the performance of an employee. Timely and systematic evaluation is necessary. Performance evaluation is a means to assess and improve work performance .

5 Job Analyses

Job analysis involves identifying current job duties by analyzing job descriptions, checklists and rating scale .The term “”job analysis” has two meanings. It means first, the process of analyzing and describing the jobs in which employees perform, and second, the systematic process of deciding the number of jobs to be created to meet business needs.

6 Job Design

Job Design is one of the most important elements in Human Resource Management. It is a very complicated technique that must be done well or it can cause serious problems in an organization.

Importance of Human Resource Management

The importance of Human Resource Management lies in the fact that it is the most important management discipline. It is a comprehensive human resource management tool.

  1. It represents its greatest source of competitive advantage and its greatest potential liability. – Human resources are the most important factor in the success of a business or an organization and all other physical and financial factors are in reality a means to an end.
  2. It is the source of new knowledge and skills which keep an organization competitive and responsive to changes, both internal and external, that affect it . Human resources supply the essential skills and abilities needed for an organization’s success. Unlike other factors of production, people can learn new skills as conditions change.
  3. It is the source of competitive advantage and its greatest potential liability .- Human resources are the most important factor in the success of a business or an organization . All other physical and financial factors are in reality a means to an end .
  4. It is an organization’s most valuable asset.- Human resources are the lifeblood of organizations and they enter into virtually every activity of an enterprise, whether it be manufacturing, marketing, personnel management or research and development that occupies so much attention in management literature.
  5. It is the factor that determines the success or failure of business . – Companies that use people right will have a competitive advantage over those who don’t . If you have the right people, you have the means to survive and prosper in this coming decade.
  6. It is the source from which new knowledge and skills are developed .- Human resources supply the essential skills and abilities needed for an organization’s success . Unlike other factors of production, people can learn new skills as conditions change.
  7. It promotes efficient use of resources. – Effective human resource management promotes efficient use of resources by providing managers with the information and skills needed to make sound decisions about recruitment, employee behavior, training and development, compensation, performance evaluation and job design.

Units / Courses Studied Under Human Resource Management Includes;-

  1. Human Resource Management
  2. Management of Human Resources
  3. Labour Market Policies and Job Creation
  4. Human Resource Development
  5. Recruitment and Selection
  6. Research Methods for Human Resources Management
  7. Personnel Administration in Marketing
  8. Basic Economics of Business
  9. Psychology Of Employment
  10. Human Resource Planning and Development
  11. Human Resource Technology
  12. Training and Development
  13. Performance Evaluation
  14. Employee Benefits and Compensation Management
  15. Case Studies in HRM

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