Scope of HRM

Human Resource Management Meaning, Definition, Nature, Scope

Table of Content:-

  1. Meaning of Human Resource Management
  2. Meaning of HRM
  3. Definition of HRM
  4. Definition of Human Resource Management
  5. Nature of HRM 
  6. Scope of  HRM 
  7. Importance of human resource management
  8. Process of Human Resource Management
  9. Components of Human Resource Management

Meaning of Human Resource Management

HRM Meaning: Human resource management is a process that is involved in every function of the company. The organization is constituted of people and it functions through them, without people organization’s existence is not possible. There are various factors on which an organization is dependent; among these are material, money, human resource, and machinery, with human resources being believed to be the most important factor. The utilization of physical resources like tools, land, machines, and capital depends on how individuals apply the human factor in different operations.

All the resources in the environment depreciate with time, except for human beings, the human resource does not depreciate with time. If a suitable environment is provided, human beings improve with time, making them the most valuable resource that appreciates over time. Human resources consist of those people who are ready to share their skills and services for the interest of the organization.

Meaning of HRM 

HR Meaning – Human resource is a whole consisting of interdependent, interrelated components. It is one of the most crucial attributes that define the company.

It is a fundamental aspect that defines the success of a company. The effective management of human resources can lead to employee satisfaction, increased productivity, and overall organizational growth. As such, it is necessary for companies to prioritize their human resources and invest in strategies that promote a positive work environment and boost employee development. By doing so, companies can attract and retain top talent, eventually leading to the long-term success of the business.


Definition of HRM

According to Michael J. Julius, “Human resource is a whole consisting of inter-dependent, inter-related, and interacting physiological, sociological, psychological, and ethical components”. 

According to Glueck and Invance vich, “HRM is concerned with the most effective and efficient use of the people to achieve organizational goals and individual goals”.

According to Rue and Byars, “HRM encompasses those activities that are designed for providing and coordinating the human resources of an organization”.

According to Edwin Flippo, “Human resource management is the planningorganising, coordinating, directing and controlling of maintenance, procurement, compensation, integration, development, and separation of human resources to the end that organizational, individual,  and social objectives are achieved”.

According to Boudreau and Milkovich, “Human resource management is a series of interrelated and interdependent, integrated decisions that form the employment relationship; their quality contributes to the ability of the employees and the organization to achieve their objectives”.

Human resource always remains central to organizations as energetic and effective people can construct a dynamic environment in the organization. Only efficient workers are capable and have the inspiration to turn their dreams into reality.

People’s talent and skills are essential for accomplishing organizational objectives. Therefore, to remain competitive in this dynamic environment, it should be a constant attempt of the organization to help, motivate, energize,  and train their employees to maintain maximum efficiency and productivity.

Definition of Human Resource Management – HRM

Human resource is both unique as well as important for the organization. An organization should try to obtain and make the best use of this resource. The most challenging and crucial task for the organization is to manage the people of the organization. 

Therefore human resource management is concerned with recruiting, hiring, selecting, deploying, and managing the employees of an organization. Before the 1900’s it was known as personnel management and then in the 1960s, the term human resource was first used to describe the people who work for the organization.

HRM involves acquiring the appropriate talent through training, development, and motivation, ensuring sustainability in the workforce, and effectively accomplishing the organization’s goals. One of the aims of this process is to overpass the gap between the organization and its employees. The purpose is to make an individual deliver his best and contribute a supportive hand to the organization.

Nature of HRM – Human resource management 

The nature of human resource management – HRM is explained as follows:

Nature of HRM

1) Universal in Nature

HRM practices are common in every organization whether it is government and nongovernment, public or private, educational or non-educational, corporate, etc. in almost every area. Its existence is not only limited to the personnel functions preferably it is common to all the functional areas, i.e. marketing, sales, production, finance, etc.

2) Action-Oriented

The focus of HRM is on action rather than on keeping records, written procedures, or rules. Rational policies help resolve the issues of employees at the workplace.

3) Focused on the People Dimension

HRM primarily focuses on developing people at work, both at individual and group levels. It seeks to correlate the capabilities of employees with the requirement of the job. It constantly tries to motivate people to better performance and higher productivity.

4) Growth-Oriented

The main concern of HRM is to fully develop the capabilities of the employees and maintain the reward system according to the expectation of the employees. The reward system should constantly motivate the employees to achieve standard performance. Employees are also provided with training to uncover and nurture their potential. Organizations also use job rotation to analyze the overall performance of the job.

5) Cordial Integration

The function of developing and re-structuring harmonious relations among human resources in the organization is performed by HRM. It coordinates and controls the human resources in the organization in such a manner as to produce maximum results.

6) Challenging Function

The nature of people is very complex and dynamic. Hence, the management of human resources demands very close supervision of the employees in the organization. It is a very critical task to control and coordinate employees because of human factors. The HR manager needs to be very careful while controlling and dealing with employees’ sentiments to avoid any hurt.

7) Supplementary Service

HR also plays a supportive role by assisting and advising operational/functional managers. As specialist advisors, they supervise and guide other managers to achieve their personnel tasks more effectively.

8) Multi-Disciplinary Function

HRM is crucial to an organization and so is the constitution of its concept. It derives ideas, concepts, practices, and principles from various soft disciplines such as sociology, anthropology, economics, psychology, etc. Understanding these disciplines is essential because, like them, HRM also relates to and deals with human beings.

9) Ongoing Process

You cannot restrict the function of HRM to a particular time and date. It is present in every department. Therefore, the organization practices it continuously every second, hour, day, and year.

Scope of  HRM – Human Resource Management

The applicability and scope of human resource management are very wide. HRM encompasses all the areas during the service of an employee starting from the time he enters till he quits. 

Scope of Human Resource Management – HRM includes the following areas:

Scope of  HRM

1) Procurement

It protects the organization from risks, it consists of the recruitment of employees and then selecting the most suitable candidate for the desired post in the organization. After the generalization, people settle into their jobs.

2) Training and Development

HRM is concerned with the training and development facilities provided to new employees as well as for existing employees those who are already experienced. It is important for employees as a training program can increase their performance in the workplace. Training helps the employees to cope with the dynamic environment of the organization. Training leads to the development of an organization and the employee himself. Encouraging employees to participate in organizational plans results in their development.

3) Job Analysis and Job Description

It provides a clear picture of the job, skills, and abilities required to perform the job, duties, and responsibilities of an employee towards the job. It creates boundaries for employees. These are prepared for staffing qualified employees by studying the job requirements of an organization and assigning definite functions to jobs. They also act as a base for deciding the salaries of employees.

4) Compensation/Rewards

Employees receive compensation as a result of the work they have done. Compensation includes both monetary and non-monetary benefits monetary benefits include overtime pay, sales commission, bonus, rewards, etc., and non-monetary benefits include company-paid car, flex time, health insurance, company-paid housing, stock opportunities, etc. The amount of compensation that is to be given to employees is determined through job analysis and job evaluation. It involves determining wage rates, methods of wage payment, and performance appraisal.

5) Employee Records

Employee records include personal information such as the employee’s full name, address, birth date, phone number, training, performance, achievements, absenteeism, wages, salary, and performance, etc. are maintained. The objective of storing the record is not only to keep the information about the employees but to analyze their performance, evaluation, termination, improvements and solve problems.

6) Employee Welfare

In HRM, we focus on the welfare aspect by providing good working conditions for workers. It includes programs for health and safety, sanitation facilities, entertainment facilities, accommodations, education, security, etc.

7) Industrial Relations

HRM helps in maintaining pleasant relationships in the industry. It comprises aspects such as collective bargaining, workers participation in management, dispute resolution, grievance management, etc.

Importance of Human Resource Management 

Importance of hrm: The importance of human resource management lies in creating a positive work environment, attracting and retaining top talent, and driving organizational growth. By adopting effective HRM practices, companies can enhance job satisfaction and foster a healthy work environment.

The success of any organization depends on the effectiveness of its human resource management. HRM is responsible for recruitment, selection, transfer, promotion and training to manage disputes, which maintains a healthy work-life balance, and all payroll responsibilities. Therefore, the importance of human resource management in an organization is immense.

Human resource management is the process of strategically aligning and integrating the work of human and organisational resources to achieve the desired result. 

Human Resource Management is the control of resources needed to make an organization a prosperous enterprise.

Importance of Human Resource Management

Importance of HRM – Human Resource Management

The Importance of Human Resource Management  exists at four different levels, which are as follows:

1) Corporate Level

2) Professional Level

3) Social Level

4) National Level

1) Corporate Level

An organization needs to perform their work effectively and efficiently, hence they need human resource management to do so. Human resource management helps an organization in the following manner described as follows : 

i) Gaining voluntary cooperation from the employees by motivation, participation, grievance handling, etc. 

ii) Strengthening employees by building and improving their skills, correcting their attitude by motivation, performance appraisaltraining, and development, etc.

iii) With the use of HRM an organization can make the optimum use of the organization’s most valuable human resource training and development programs.

iv) HRM grants a team of talented, loyal and devoted employees to an organization for the future. 

v) HRM is fully focused on the recruitment and selection of those employees who are eligible and skilled in their work and can therefore contribute completely to the growth of the industry and also hold them for a long period through manpower planningcompensation, rewards, effective recruitment procedure, selection and fair policies of promotion.

2) Professional Level

HRM ensures a better quality of work life. It helps in professional growth in the following ways: 

i) Building enthusiasm in employees by giving them a congenial working atmosphere. 

ii) Creating opportunities for employees so that they can develop their calibre.

iii) Ensuring that healthy relationships are maintained among team members and work is assigned properly to both employees and teams.

3) Social Level

HRM plays an important role in society in the following ways:

i) Enabling employees to live with dignity by providing them employment that gives them mental and social satisfaction. 

ii) Maintaining equilibrium between job openings and applicants in terms of number, qualification, need, and aptitude.

iii) Utilizing human resources effectively by conserving their physical and mental health.

4) National Level

HRM plays a very significant role in the development of a country in the following ways: 

i) Competent and dedicated human resources result in inefficient use of the physical, natural, and economic resources of the country.

ii) A nation’s development depends on the skills, attitudes, and values of its manpower. Less skilled and less competent people signify an underdeveloped country, HRM ensures that the human resources of the country are skilled and developed.

iii) HRM improves the economic growth of the country. This accordingly leads to increased living standards and employment.

HRM Process and Components

Process of Human Resource Management

Processes of human resource management HRM

HRM Process

Processes of Human Resource Management – HRM are as follows:

1. Recruitment, Selection, and Placement – ​​In this step recruitment, selection and appointment are done. The recruitment process depends on Human Resource Management (HRM) and the job of HRM is to issue recruitment information through websites, newspapers, and articles. It is a process of inviting eligible candidates to join the organization through various means.

2. Training – Training comes after the selection to promote knowledge and enhance the skills of the selected candidates. If the employees are to get good and right work then they should be systematically trained. It is the responsibility of Human Resource Management (HRM) to identify the training needs, prepare and implement the training program and develop new skills. Helps to prepare employees. One of the main roles of Human Resource Management is to provide the best possible training at a low cost and select candidates.

3. Assessing Performance – Both the company and the employee should benefit from the performance management process, which allows the company to know about the skills of its employees from time to time, Due to which the quality of work of the company is maintained. Companies used to set annual performance metrics and targets, according to which employees are given salary increases, rewards, etc.

4. Compensation and Benefits – Human Resource Management (HRM) determines what is to be paid for different types of jobs which include – Salary Administration, Salary Administration, Incentives, Bonuses, Benefits, etc., one of the basics is compensation and benefits. This is the area of ​​wage and salary administration where fairness is decided by scientific methods. Fair compensation is important in motivating and retaining employees.

5. Health and Safety – One of the important functions of HRM is to formulate and enforce health and safety regulations.

Components of Human Resource Management – HRM

Components of Human Resource Management – HRM

1. Acquisition

It is related to internal and external recruitment and planning for an organization or company. This ensures that the company has the right number of people at the right place and at the right time to be able to complete the required work. And it also ensures estimating the demand and supply of manpower.

2. Development

​​It is related to imparting knowledge and skills to do the job properly. This can be done through technical or non-technical training, assignments, professional programs, skill development, management development, career development, etc. 

Therefore, all the employees of any organization or company need some initial training or orientation while starting a new job. Because the ultimate goal of the company is to enhance the future performance of the organization through skilled employees.

3. Motivation

When the training is over, the manager must motivate the employees to do better work. The motivation here means an activity that motivates the employee to perform well in actual live projects and includes performance appraisal, rewards, performance, compensation benefits, discipline, constructive feedback, job design, etc.

4. Maintenance

It is related to the process of maintaining the employees in the organization or company. It helps the company to retain good employees. For example, the company should give a good work environment.

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