Human-resources management (HRM) is a key business operations practice for managing

personnel within a company. Utilizing skills including communication, business

administration, workforce planning and technical proficiency, HRM is an important part of
business planning and development, encompassing more than 10 areas of focus. Human-
resources and labor-relations jobs in general are expected to grow by 17 percent from 2006
through 2016, according to the Bureau of Labor Statistics.

Function

1. People are considered one of the most important assets in any business.
HRM strategy is focused on the effective use of that asset. HRM tools and
practice control a company's ability to recruit, hire, track, promote and
compensate employees. Providing HR metrics or HR trends and analysis, this
department projects the future growth of a company by managing the
workforce practice for all departments across the organization

Human resource management (HRM) is the strategic and coherent approach to the
management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the
business.[1] The terms "human resource management" and "human resources" (HR) have
largely replaced the term "personnel management" as a description of the processes
involved in managing people in organizations.[1] In simple words, HRM means
employing people, developing their capacities, utilizing, maintaining and compensating
their services in tune with the job and organizational requirement.

Definition - Edwin Flippo defines HRM as “planning, organizing, directing, controlling of procurement,

development, compensation, integration , maintenance and separation of human resources to the end that

individual, organizational and social objectives are achieved.”

Features of HRM or characteristics or nature

HRM involves management functions like planning, organizing, directing and controlling

It involves procurement, development, maintenance of human resource

It helps to achieve individual, organizational and social objectives

HRM is a multidisciplinary subject. It includes the study of management psychology communication,

economics and sociology.

It involves team spirit and team work.

It is a continuous process.

Evolution of HRM

The evolution of HRM can be traced back to Kautilya’s Artha Shastra where he recommends that

government must take active interest in public and private enterprise. He says that government must provide

a proper procedure for regulating employee and employee relation.

In the medieval times there were examples of kings like Allaudin Khalji who regulated the market and

charged fixed prices and provided fixed salaries to their people. This was done to fight inflation and provide

a decent standard of living.

During the pre independence period of 1920 the trade union emerged. Many authors who have given the

history of HRM say that HRM started because of trade union and the First World War.

The Royal commission in 1931 recommended the appointment of a labour welfare officer to look into the

grievances of workers. The factory act of 1942 made it compulsory to appoint a labour welfare officer if the

factory had 500 or more than 500 workers.

The international institute of personnel management and national institute of labour management were set

up to look into problems faced by workers to provide solutions to them. The Second World War created

awareness regarding workers rights and 1940’s to 1960’s saw the introduction of new technology to help

workers.

The 1960’s extended the scope of human resource beyond welfare. Now it was a combination of welfare,

industrial relation, administration

together it was called personnel management.

With the second 5 year plan, heavy industries started and professional management became important. In

the 70’s the focus was on efficiency of labour while in the 80’s the focus was on new technology, making it

necessary for new rules and regulations. In the 90’s the emphasis was on human values and development
of people and with liberalization and change in style of working people became more and more important

there by leading to HRM which is an advancement of personnel management.

Scope of HRM/ Functions of HRM

The scope of HRM refers to all the activities that come under the banner of HRM. These activities are as

follows

Human resources planning :-

Human resource planning or HRP refers to a process by which the company to identify the number of jobs

vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage.

Job analysis design :-

Another important area of HRM is job analysis. Job analysis gives a detailed explanation about each and

every job in the company. Based on this job analysis the company prepares advertisements.

Recruitment and selection :-

Based on information collected from job analysis the company prepares advertisements and publishes them

in the news papers. This is recruitment. A number of applications are received after the advertisement is

published, interviews are conducted and the right employee is selected thus recruitment and selection are

yet another important area of HRM.

Orientation and induction :-

Once the employees have been selected an induction or orientation program is conducted. This is another

important area of HRM. The employees are informed about the background of the company, explain about

the organizational culture and values and work ethics and introduce to the other employees.

Training and development :-

Every employee goes under training program which helps him to put up a better performance on the job.

Training program is also conducted for existing staff that have a lot of experience. This is called refresher

training. Training and development is one area were the company spends a huge amount

Performance appraisal :-
Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR

department checks the performance of the employee. Based on these appraisal future promotions,

incentives, increments in salary are decided.

Compensation planning and remuneration :-

There are various rules regarding compensation and other benefits. It is the job of the HR department to

look into remuneration and compensation planning.

Motivation, welfare, health and safety :-

Motivation becomes important to sustain the number of employees in the company. It is the job of the HR

department to look into the different methods of motivation. Apart from this certain health and safety

regulations have to be followed for the benefits of the employees. This is also handled by the HR

department.

Industrial relations :-

Another important area of HRM is maintaining co-ordinal relations with the union members. This will help the

organization to prevent strikes lockouts and ensure smooth working in the company.

E-HRM is the (planning, implementation and) application of information technology for

both networking and supporting at least two individual or collective actors in their shared
performing of HR activities.[1]

E-HRM is not the same as HRIS (Human resource information system) which refers to
ICT systems used within HR departments.[2] Nor is it the same as V-HRM or Virtual
HRM - which is defined by Lepak and Snell as "...a network-based structure built on
partnerships and typically mediated by information technologies to help the organization
acquire, develop, and deploy intellectual capital."[3]

E-HRM is in essence the devolution of HR functions to management and employees.

They access these functions typically via intranet or other web-technology channels. The
empowerment of managers and employees to perform certain chosen HR functions
relieves the HR department of these tasks, allowing HR staff to focus less on the
operational and more on the strategic elements of HR, and allowing organisations to
lower HR department staffing levels as the administrative burden is lightened. It is
anticipated that, as E-HRM develops and becomes more entrenched in business culture,
these changes will become more apparent, but they have yet to be manifested to a
significant degree. A 2007 CIPD survey states that "The initial research indicates that
much-commented-on development such as shared services, outsourcing and e-HR have
had relatively little impact on costs or staff numbers".[4]