HRM Human Resource Management

THE CONCEPT OF HUMAN RESOURCE MANAGEMENT AND HUMAN CAPITAL, HRM, Human Resource Management (HRM) is the process of managing an organization’s human resources, including recruiting, hiring, training, and developing employees. HRM plays a critical role in an organization’s success as it is responsible for ensuring that the right people with the right skills are in the right jobs at the right time. In this blog post, we will discuss the concept of HRM in detail, its functions, and its importance in today’s competitive business environment.

The Evolution of HRM

The concept of HRM has evolved over the years from a traditional personnel management approach that focused on administrative tasks such as payroll, benefits administration, and compliance with labour laws. Personnel management was primarily concerned with maintaining employment records, ensuring that employees were paid on time and that they received their benefits.

However, the traditional personnel management approach was insufficient to address the challenges faced by organizations in the rapidly changing business environment. As a result, HRM emerged as a strategic approach to managing an organization’s workforce. HRM emphasizes the strategic importance of managing people as a valuable asset for the organization’s success.

Functions of HRM

HRM performs several critical functions that are vital to an organization’s success. These functions can be broadly categorized into four main areas: staffing, development, motivation, and maintenance.


Staffing is the process of acquiring and retaining qualified employees to fill the organization’s job vacancies. Staffing includes job analysis, recruitment, selection, and placement.

Job Analysis

Job analysis is the process of identifying the knowledge, skills, and abilities required to perform a job effectively. Job analysis helps organizations to develop job descriptions, which provide information about the duties, responsibilities, and requirements of a particular job.


Recruitment is the process of identifying and attracting qualified candidates to fill job vacancies in the organization. Recruitment methods include job postings, employee referrals, and social media recruiting.


Selection is the process of choosing the best candidate from a pool of applicants. The selection process includes screening resumes, conducting interviews, and administering tests and assessments.


Placement is the process of assigning new employees to specific job positions in the organization. Placement involves matching the employee’s skills, knowledge, and abilities to the job requirements.


Development is the process of enhancing employee skills and knowledge to improve their job performance. Development activities include training, mentoring, coaching, and career development.


Training is the process of imparting knowledge and skills to employees to improve their job performance. Training programs can be conducted in-house or externally, and they can be formal or informal.

Mentoring and Coaching

Mentoring and coaching involve providing guidance and support to employees to help them develop their skills and advance their careers. Mentoring and coaching programs are often informal and involve a senior employee or manager mentoring a junior employee.

Career Development

Career development involves planning and managing an employee’s career progression within the organization. Career development activities include job rotations, cross-functional training, and leadership development programs.


Motivation is the process of inspiring and encouraging employees to perform their best at work. Motivation involves creating a positive work environment, providing opportunities for growth and development, and recognizing and rewarding employee performance.

Creating a Positive Work Environment

Creating a positive work environment involves fostering a culture of respect, teamwork, and collaboration. A positive work environment can increase employee morale and motivation, leading to improved performance and productivity.

Opportunities for Growth and Development

Providing opportunities for growth and development can motivate employees by giving them a sense of purpose and meaning in their work. Opportunities for growth and development can include training programs, career development programs, and leadership development programs.

Recognition and Rewards

Recognizing and rewarding employee performance can motivate employees to perform at their best. Recognition and rewards can include bonuses, promotions, and non-monetary rewards

Human resources are the use of humans in the manufacture of goods in an industry rather than the use of machines. Even if there is total automation in an industry, the organization will require a person to on the button. This shows how important manpower is to any kind of organization.

All organizations, irrespective of size or extent of its resource, commercial or not-for-profit, have people i.e they have human resources. Organizations survive and thrive only because of the concept of Human Resource Management (HRM).

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The history of HRM is as old and complex as the history of work and organization. HR is the most important asset possessed by any organization. The strategists talk about sustainable competitive advantage. It is HR which helps to hold the advantage

Human Resource management is a process and philosophy of acquisition, development, utilization, and maintenance of competent human force to achieve the goals of an organization in an efficient and effective manner.

The concept of HRM contains two versions – the hard version and the soft version. The hard version or variant emphasizes the need to manage people in ways that will obtain added value from them and thus achieve competitive advantage.

On the other hand, the soft version is concerned with treating employees as valued assets, a source of competitive advantage through their commitment, adaptability and huge; quality. Today’s HRM is a combination of the versions. HRM is management: “Tamar energy and capabilities.

     Characteristics of Human Resource Management
  1. It is an art and a science: The art and science of HRM is indeed very complex. HRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well because of the precision and rigorous application of theory that is required.

It is pervasive: Development of HRM covers all levels and all categories of people, and management and operational staff. No discrimination is made between any levels or categories. All those who are managers have to perform HRM. It is pervasive also because it is required in every department of the organization. All kinds of organisations, profit or non-profit making, have to follow HRM.

It is a continuous process: First, it is a process as there is a number of functions to be performed in a series, beginning with human resource planning to recruitment to selection, to training to performance appraisal.

To be specific, the HRM process includes acquisition (HR planning, recruitment, selection, placement, socialisation), development (training and development, and career development), utilisation (job design, motivation, performance appraisal and reward management), and maintenance (labour relations, employee discipline, grievance handling, welfare, and termination). Second, it is continuous, because HRM is a never-ending process.

HRM is a service function: HRM is not a profit centre. It serves all other functional departments. But the basic responsibility always lies with the line managers. HRM is a staff function – a facilitator. The HR Manager has line authority only within his own department but has staff authority as far as other departments are concerned.

HRM must be regulation-friendly: j The HRM function has to be discharged in a manner that legal dictates are no: violated. Equal opportunity and equal pay for all, the inclusion of communities in employment, the inclusion of tribal’s (like ) Posco or Vedanta projects) and farmers 1 in the benefits and non-violation of human rights must be taken care of by the HRM.

Interdisciplinary and fast-changing: It encompasses welfare, manpower, and personnel management,

and keeps close association with the employee and industrial relations. It is a multi-disciplinary activity. utilising knowledge and inputs from. psychology, sociology, economics, etc It is changing itself in accordance with the changing environment. It has I travelled from the exploitation of workers to treating them as equal partners in the task.

Focus on results: HRM is performance! oriented. It has its focuses on results, rather than on rules.

           It encourages people to 1 give their 100%. It tries to secure the I best from people by winning wholehearted cooperation. It is a process c| bringing people and organizations together so that the goals of each are met. It is commitment oriented.

People-centred: HRM is about people at work both as individuals and a group. It tries to help employees to develop their potential fully. It comprises people-related functions like hiring, training and development, performance appraisal and working environment.

HRM has the responsibility of building human capital. People are vital for achieving organizational goals. Organizational performance depends on the quality of people and employees.

Human relations philosophy: HRM is a philosophy and the basic assumption is that employees are human

beings and not a factor of production like land, labour or capital. HRM recognises individuality and individual differences. For every manager to be successful, he must possess social skills to manage people with differing needs.

  • An integrated concept: HRM in its scope includes the Personnel aspect, Welfare aspect and Industrial relations aspect in itself. It is also integrated as it is concerned with not only acquisition, but also development, utilization, and maintenance.

Human capital is very important in business because of the following reasons:

  1. Provision of personnel: Human capital provides the required skills or personnel needed during the process of production.
  2. It influences other factors of production: Human capital plays an active role in other factors of production like land and capital because, without human capital, other factors will remain idle.
  • Production of goods and services: Human capital especially the active working population provide goods and services needed by the populace including the aged and the children.
  • Operation of machines: Human capital is required in industries to operate machines and carry out the various production processes.
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  • It improves the efficiency of work: Human capital especially the highly skilled and experienced one do guarantee the efficiency of work in all organizations.
  • It promotes productivity: Good and efficient human capital is well known to ensure maximum productivity in all organizations.
  • It ensures profitability: The combined effort of human capital in the area of qualitative education, experience and training enable the organization to turn out quality products which are offered to sales in order to make good profits.