Concept and Functions, Scope and Significance of Human Resource Management

Concept and Functions,
Scope and Significance of
Human Resource
Submitted By – Kriti Sachita

Definition
Human Resource Management (HRM) is an operation in
companies designed to maximize employee performance in order
to meet the employer's strategic goals and objectives. More
precisely, HRM focuses on management of people within
companies, emphasizing on policies and systems.
In short, HRM is the process of recruiting, selecting employees,
providing proper orientation and induction, imparting proper
training and developing skills
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Features of HRM
Human Resource Management as a discipline includes the following features –
 It is pervasive in nature, as it is present in all industries.
 It focuses on outcomes and not on rules.
 It helps employees develop and groom their potential completely.
 It motivates employees to give their best to the company.
 It is all about people at work, as individuals as well as in groups.
 It tries to put people on assigned tasks in order to have good production or
results.
 It helps a company achieve its goals in the future by facilitating work for
competent and well-motivated employees.
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“ Human resource management means
management of people at work. HRM is
the process which binds people with
organizations and helps both people and
organization to achieve each other's goal.
Various policies, processes and practices
are designed to help both employees and
organizations to achieve their goal.
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Objectives of HRM
 Tohelp the organization reach its goals.
 Toemploy the skills and abilities of the work force efficiently
 Toprovide the organization with well trained and well motivated
employees
 Toincrease to the fullest the employee’s job satisfaction
and self actualization.
 Todevelop and maintain a quality work Life.
 Tocommunicate HR policies to all employees
 Tobe ethically and socially responsive to the needs of the society.
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Functions of HRM
 Human Resources management has an important role to play in equipping
organizations to meet the challenges of an expanding and increasingly
competitive sector. Increase in staff numbers, contractual diversification and
changes in demographic profile which compel the HR managers to
reconfigure the role and significance of human resources management.
 The functions are responsive to current staffing needs but can be proactive
in reshaping organizational objectives. All the functions of HRM are
correlated with the core objectives of HRM . For example, personal
objectives are sought to be realized through functions like remuneration,
assessment etc.
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The functions of HRM can be broadly
classified into two categories:
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Functions of HRM
Operative Functions
Managerial Functions.

1. Managerial Functions:
The HR manager is basically a manager and as such must perform the basic
functions of management which are:
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Planning Organizing Staffing Directing Controlling
Managerial
functions

2. Operative Functions:
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Employment HR Development Compensation Mgt
Employee
Relations
HR Planning
Recruitment
Selection
Placement
Induction
Performance
Appraisal
Training
Management
Development
Career Planning
and Development
Job Evaluation
Wage and SalaryAdmn
Incentives
Bonus
Fringe Benefits
Operational

According to the Indian Institute of Personnel Management
(IIPM), the scope of HRM is :
a. Personnel Aspects:
This is concerned with
manpower planning,
recruitment, selection,
placement, transfer,
promotion, training and
development, lay-off and
retrenchment,
remuneration, incentives,
productivity, etc.
b. Welfare Aspects:
It deals with working
conditions and amenities
such as canteen,
crèches, rest and
lunchrooms, housing,
transport, medical
assistance, education,
health and safety,
recreational facilities, etc.
c. Industrial Relations
Aspects:
This covers union-
management relations;
join consultation,
collective bargaining,
grievance and
disciplinary procedures,
settlement of disputes,
etc.
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___________________________________

Scope of HRM – Developed by American
Society for Training and Development
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 Human resources planning
 Job analysis design
 Recruitment and selection
 Orientationand induction
 Training and development
 Performance appraisal
 Compensation planningand remuneration
 Motivation, welfare, health, and safety
 Industrialrelations
___________________________________

The Significance of HRM
An organization cannot build a good team of working professionals without good Human Resources. The
significance of HRM can be seen in three contexts: social , professional and Individual Enterprise.
Social Significance:
Proper management of personnel enhances their dignity by satisfying their social needs. This is done by:
 Maintaining a balance between the jobs available and the jobseekers, according to the qualifications
and needs
 Providing suitable and most productive employment, which might bring them psychological satisfaction
 Making maximum utilization of the resources in an effective manner and paying the employee a
reasonable compensation in proportion to the contribution made by him
 Eliminating waste or improper 19 use of human resource, through conservation of their normal energy
and health
 And by helping people make their own decisions, that are in their interests.
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2. Professional Significance
By providing healthy working environment it promotes team work in the employees. This is done by:
 Maintaining the dignity of the employee as a ‘human-being’;
 Providing maximum opportunity for personal development;
 Providing healthy relationship between different work groups so that work is effectively performed;
 Improving the employees’ working skill and capacity;
 Correcting the errors of wrong postings and proper reallocation of work.
3. Significance for Individual Enterprise:
It can help the organization in accomplishing its goals by:
 Creating right attitude among the employees through effective motivation
 Utilizing effectively the available goals of the enterprise and fulfilling their own social and other
psychological needs of recognition, love, affection, belongingness, esteem and self-actualization.
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Concept and Functions, Scope and Significance of Human Resource Management

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