THE CONCEPT OF HUMAN RESOURCE MANAGEMENT

INTRODUCTION

Human Resource Management (HRM) refers to the strategic approach to the effective
management of people within an organization to help the business gain a competitive advantage.
It involves recruiting, hiring, training, managing, and retaining employees to ensure that an
organization operates efficiently and effectively.

According to Edwin B. Flippo, “Human resource management is the planning, organizing,

directing, and controlling of the procurement, development, compensation, integration,
maintenance and separation of human resources to the end that individual, organizational
and societial objectives are accomplished.”

The Indian Institute of Personnel Management defines HRM as, “Human resource
management is a responsibility of all those who manage people as well as being a description of
the work of those who are employed as specialists. It is that part of management which is
concerned with people at work and with their relationships within an enterprise. It applies not
only to industry and commerce but to all fields of employment.”

According to Tead and Metcaff, “Human resource management is the planning, supervision,
direction and co-ordination of those activities of an organization which contribute to realising
the definite purpose of that organization, with an animating spirit of co-operation and with a
proper regard for the well-being of all the members of the organization.”

Milkovich and Boudreau view HRM as, “A series of integrated decisions that form the
employment relationship; their quality contributes to the ability of the organizations and the
employees to achieve their objective.”

A DEEPER DIVE INTO THE KEY CONCEPTS OF HRM

  Recruitment and Selection: Identifying staffing needs, attracting candidates, and
selecting the best individuals for positions within the organization.

 Training and Development: Providing employees with the skills and knowledge they
need to perform their roles effectively. It also includes career development and growth
opportunities.

 Performance Management: Continuous process of setting goals, monitoring progress,

and providing feedback to ensure employees meet organizational expectations.

 Compensation and Benefits: Developing pay structures, benefits, and rewards systems
that align with the organization’s goals and motivate employees.

 Employee Relations: Managing the relationship between the employer and the
employees, including handling grievances, fostering communication, and ensuring
compliance with labor laws.

 Workplace Health and Safety: Ensuring a safe and healthy work environment by
complying with legal standards and implementing safety protocols.

 Strategic HRM: Aligning HR practices with the long-term goals of the organization to
enhance overall business performance.

 Diversity and Inclusion: Promoting a culture that values diversity and creates an
inclusive environment where all employees feel respected and valued.

 Legal Compliance: Ensuring that all HR practices comply with labor laws and
regulations to avoid legal issues and promote fair treatment of employees.

EVOLUTION OF HUMAN RESOURCE MANAGEMENT

Human Resource Management has evolved significantly over time. This evolution reflects a
growing recognition of the strategic importance of human resources in achieving organizational
goals and objectives.

The evolution of Human Resource Management (HRM) can be outlined through several key
phases as below:

1. Pre-Industrial Era (Before 1800s)

In this period, formal HRM did not exist. Work was primarily agricultural or based on a model in
small workshops with employers taking a personal interest in workers' welfare.
2. Industrial Revolution (1800s - Early 1900s)

The rise of factories brought new challenges in managing large numbers of workers. This era
saw the emergence of "personnel management," focusing on worker efficiency and basic
employee needs. Key developments during this time were:

 Introduction of "welfare officers" to address worker concerns

 Establishment of personnel departments in some companies
 Focus on improving working conditions and reducing labor turnover

3. Scientific Management Era (1910s - 1920s)

Frederick Taylor's principles of scientific management emphasized efficiency and

standardization in work processes. This approach, while increasing productivity, often led to
worker dissatisfaction due to its mechanistic view of labor. Key characteristics during this period
were:

 Standardization of work processes

 Piece-rate pay systems – pay for equal work

4. Human Relations Movement (1930s - 1950s)

The Hawthorne studies led by Elton Mayo revealed the importance of social factors and worker
satisfaction in productivity. This era marked a shift towards considering the human aspect of
work. Key insights in the period were:

 Recognition of informal work groups

 Importance of worker motivation and job satisfaction
 Introduction of human relations training for managers

5. Personnel Administration (1940s - 1960s)

This period saw the development of more systematic approaches to employee management.
Personnel departments expanded their functions to include:

 Job analysis and design

 Performance appraisal systems
 Training programs
 Union negotiations
6. Human Resource Management (1970s - 1980s)

The term "human resource management" emerged, emphasizing the strategic importance of
employees to organizational success. This era saw a shift from viewing employees as costs to
seeing them as assets in fact most valuable asset in an organization, Key characteristics in the
period were:

 Integration of HRM with organizational strategy

 Focus on employee development and engagement
 Introduction of total quality management (TQM) principles

7. Strategic HRM (1990s - 2000s)

HRM became more closely aligned with overall business strategy. The focus shifted to how
human resources can contribute to competitive advantage. Key developments in the period were:

 Resource-based view of the firm

 High-performance work systems
 Talent management

8. Digital and Global HRM (2000s - Present)

Current HRM practices are characterized by the use of technology, emphasis on diversity and
inclusion, and adaptation to globalization. Key trends in the period are:

 HR analytics and big data

 E-HRM and HR information systems
 Focus on employee well-being and work-life balance
 Remote work and virtual team’s management
 Emphasis on diversity, equity, and inclusion

The evolution of HRM over time has been influenced by the following facts:

1. Recognition of human capital as a key competitive advantage

2. Increasing complexity of labor laws and regulations
3. Globalization and the need for managing diverse workforces
4. Rapid technological changes requiring continuous employee development
5. Shift towards knowledge-based economies emphasizing talent management
6. Growing awareness of the impact of employee engagement on organizational performanc
FUNCTIONS OF HRM

The are two categories of the functions of Humana Resource management

1. Managerial functions
2. Operational functions
The two functions in details

Managerial functions

Managerial functions are key activities used by managers to enable an organization achieve its
goals and objectives.

Like any other management function, HRM has the basic managerial functions as listed below;

I. Planning
II. Organizing
III. Directing
IV. Controlling
Operational functions

These are activities and processes that support day to day functioning of the human resource
department.

1. Job analysis and Design

2. Recruitment and selection
3. Training and Developments
4. Renumeration
5. Staff Welfare
6. Labor relation
7. Staff Retention
8. Performance appraisal
9. Succession planning

Planning

Looks at the human firm’s staffing requirement to ensure you have the right number of
employees for the job without overworking or wastages.

Involves setting up HR policies and goals to align with the company’s strategic agenda.
Organizing

Form an HRM perspective, this entails allocation of duties and responsibilities with proper job
descriptions and deliverables. It involves matching skills and job with the work.

Directing

Leading the staff to ensure they achieve their set objective through leadership, motivation and
communication.

Controlling

Ensuring the staff perform their functions as per the laid procedures and processes and to the
required standards.

Job analysis and design

Understanding the various roles to be played by each position. It involves designing of job
profiles with responsibilities.

Recruitment and selection

Job analysis, Candidate section and hiring of suitable candidates for the job. You get the right
employee for the job as per their right skill and capabilities.

Training and Development

Equipping the staff to handle their current roles and ensure they are well preparing for future
assignment. This is critical for the staff career development

Compensation / Renumeration

Entails rewarding the employees for their work. This can be both monetary and non-monetary
compensation.

Retention

Maintenance of the various staff within the organization. It is the desire of every organization to
retain their workforce for a long period of time

Performance appraisal
Continued review of the staff performance as per the set objectives and working on corrective
measures where there are actions to be taken form the appraisal review process.

Succession planning

Making sure in every position, we have one ready candidate to take over. This has to be
intentional, to train and develop a successor for the incumbent.

Staff welfare

In the contemporary management framework, the HRM has ensure that the staff are treated as
human being and not machines. To have a well engaged human resources the well-being of the
staff is critical

Labor relations

To ensure that the firm is operating within the legal framework of the labor laws.

DIFFERENCES BETWEEN HUMAN RESOURCE MANAGEMENT(HRM) AND

PERSONNEL MANAGEMENT(PM)

Human resource management is the whole administrative function focusing on acquisition,

development, motivation and maintaining the human resources of an organization. Personnel
management focuses on hiring and developing employees to be more resourceful at their
respective jobs.

Human Resource Management (HRM) and Personnel Management are terms often used
interchangeably but they have distinct differences. Here’s a comparison:

1. Focus and Scope

 HRM:
 Focuses on strategic management of an organization's workforce.
 Involves planning, recruiting, training, development, and performance
management.
 Aims to align HR strategies with business goals.

 Personnel Management:
  Primarily concerned with administrative functions.
 Focuses on hiring, payroll, benefits, and compliance with labor laws.
 More reactive in nature, dealing with employee issues as they arise.
2. Approach

 HRM:
 Proactive and strategic, emphasizing the development of employees and
organizational culture.
 Encourages employee participation and engagement in decision-making.
 Personnel Management:
 More administrative and transactional, often seen as a support function.
 Typically follows established procedures and policies without much flexibility.
3. Role of Employees

 HRM:
 Views employees as valuable assets and contributors to success.
 Focuses on career development and employee satisfaction.
 Personnel Management:
 Often sees employees as resources to be managed.
 Concentrates on administrative aspects rather than personal development.
4. Time Orientation

 HRM:
 Long-term perspective, focusing on future workforce needs and trends.
 Personnel Management:
 Short-term focus, addressing immediate staffing and administrative needs.
5. Skills and Competencies

 HRM:
 Requires a broad skill set, including strategic planning, change management, and
organizational behavior.
 Personnel Management:
  More focused on operational skills, such as record keeping and compliance.
Conclusion

While both HRM and Personnel Management aim to optimize the workforce, HRM adopts a
more strategic and holistic approach, whereas Personnel Management is more focused on
administrative tasks and compliance. As organizations evolve, HRM is increasingly recognized
as a critical component of overall business strategy.

References

Beer, M., Spector, B., Lawrence, P. R., Mills, D. Q., & Walton, R. E. (1984). Managing human
assets. Free Press.

Kaufman, B. E. (2014). The historical development of American HRM broadly viewed. Human
Resource Management Review, 24(3), 196-218.

Lengnick-Hall, M. L., Lengnick-Hall, C. A., Andrade, L. S., & Drake, B. (2009). Strategic
human resource management: The evolution of the field. Human Resource Management Review,
19(2), 64-85.