Human Resource Management Meaning, Definition, Nature, Scope of HRM

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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.


Meaning of Human Resource Management – HRM 

Meaning of HRM

HRM Meaning: HRM 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 such as material, money, human resource, and machinery among which human resources is believed to be the most important factor. This is because the use of physical resources like tools, land, machines,  and capital is dependent on how the human factor is used in various operations. 

All the resources in the environment depreciate with time, except for human beings, the human resource does not depreciate with time. Human beings are the most valuable resource which appreciate with time if a suitable environment is given to them they improve more as time passes. Human resources consist of those people who are ready to share their skills and services for the interest of the organization.

Definition of Human Resource Management – HRM

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 planning,  organising, 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.

Organizational objectives can only be accomplished through the talent and skills of people. 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.

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 can be defined as obtaining the right talent by training, developing, and motivating them to sustain themselves in the workforce to effectively achieve the organization’s objectives. 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:

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. The issues of employees at the workplace are resolved with the help of rational policies.

3) Focused on People Dimension: HRM is basically focused 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. Training is also offered to employees to discover and develop their potential. Job rotation is also used 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. HR manager is required to be very careful while controlling and dealing without hurting their sentiments.

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: The function of HRM cannot be restricted to a particular time and date. It is present in every department. Therefore, it is continuous in nature and is practised every second, hour, day, and year in the organization.

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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:

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. This is followed by the generalization and settlement of people in 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. The employees are encouraged to participate in organizational plans, which 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: Compensation is given to employees 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, the welfare aspect is focused on 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.

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