Human Resource Management or HRM refers to the strategic process of employment, development and well-being of the people working in an organisation. Human Resource Management involves all the decision making process which affects the relationship between organisation and employees. It’s main aim is to make an optimum utilisation of human resources and to develop individuals. It’s aim is also to manage people within any working conditions to achieve the goals and mission and vision of the organisation.
There are certain objectives of human resource management. A few of them are as follows:
- HRM should help the organisation to achieve it’s goals and plans by employing right people for the right job.
- It should ensure that there is efficient utilization of skills and abilities of their employees.
- HRM should ensure that it’s employees receive proper training and should ensure effective communication of the company policies, procedures, rules, etc.
- It should ensure that employees have a high satisfaction and a good quality of life. It will ensure that employees perform well.
- HRM should also consider employees’ social activities and challenges and should be fair and just.
- All the functions of an organisation should be guided to employees and HRM should ensure that these functions are adhered to for the smooth functioning of the organisation.
There are different processes of human resource management. It will be discussed now:
- Recruitment- Recruitment refers to the process of hiring or acquiring a large amount of candidates having a particular skill set suitable for the required job position in the organisation. Recruitment can be internal or external. Internal recruitment refers to the recruitment of workers who are already working in the organisation. It takes in the form of promotion or transfers in the organisation. It can also be in the form of re-employment of ex-employees. External recruitment refers to the recruitment of candidates from outside the organisation. Various sources of external recruitment include advertisements in newspapers and employment journals, radios, internshala recruitment, employment of casual callers or even employment exchanges. These types of recruitment pool in a large amount of candidates which have a huge amount of talent in them. It is a positive process as there is no elimination and it pools in a large amount of candidates.
- Selection- Selection is the process of eliminating candidates who do not fit into the organisation and it’s working environment and to carefully choose candidates who best fit the working environment. Selection basically involves two things, eliminating candidates who do not fit into the organisation and selecting candidates who best fit into the organisation. It is a negative process as it aims in eliminating candidates which do not qualify for selection into the organisation.
- Training and Development- Training and development of employees post selection is a very important process. It outlines the various tasks which every employee has to perform on a regular basis. Training involves increasing the skills, knowledge and capabilities of employees to perform a particular job or task. Training helps in reducing time to perform a job and helps in increasing standaridization of the job to be performed.
- Performance management- This process assesses the performance of the employees and includes goal-setting, continuous feedback and makes employer employee communication a high prority for smooth functioning of the organisation.
- Compensation management- This process involves compensating employees for their work in the form of wages, salaries, bonus, commission,etc. Employees here can be compensated on the basis of their job based performance or their amount of products and services produced ie, either on time rate system or the piece rate system. The time rate system is mostly followed in the corporate world and the piece rate system is followed at the factories.
- Employee relations- Employee relations is a very important aspect. It refers to the healthy relationship which an employer builds and maintains with the employee and vice versa for employee retention. Factors which affect employer-employee relations include work environments, labour laws and relations, compensation, etc. Employers should ensure that all of these factors are taken into consideration to build strong relationships between them.
Importance of Human Resouce Management- The importance or significance of HRM is as follows:
- HRM helps in maintaining a good quality of life.
- HRM are the sources of attracting good amount of profits and productivity in the business or organisation.
- HRM helps in attracting employees who are adaptible to changes happening around them.
- HRM also helps in striking a balance between the demand and supply of workforce.
- HRM helps in maintaing a team spirit and belongingness amongst the employees.
- HRM helps in developing corporate image.