JARETA, JIRAH L.

18, 2013

2LM3

TTh 10-11:30

JUNE

What is Human Resource Management?

HRM is that management function concerned with making sure that the
human component of the organization is able to achieve the goals assigned
to it. There are five Ms in management; men, money, machines, materials
and methods. HRM addresses the concern about the first M which is men. It
is the organizational function that deals with issues related to people such as
compensation, hiring, performance management, organization development,
safety, wellness, benefits, employee motivation, communication,
administration, and training
What is the role or function of HRM?
The purpose of Human Resource Management (HRM) is to hire, train and
develop staff and where necessary to discipline or dismiss them. Through
effective training and development, employees at Enterprise achieve
promotion within the company and reach their full potential.
There are also central functions of HRM. They are as follows:
1.
2.
3.
4.

Staffing
Training and Development
Motivation
Maintenance

What is the scope of HRM?

The scope of HRM refers to all the activities that come under the banner of
HRM. The activities are as follows:
1.

Human resources planning: - Human resource planning is a process

by which the company to identify the number of jobs vacant.

2.

Job analysis design: - Job analysis gives a detailed explanation

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

3.

Recruitment and selection: - 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 areas of HRM.

4.

Orientation and induction: - Once the employees have been

selected an induction or orientation program is conducted. The
employees are informed about the background of the company.

5.

Training and development: - Every employee goes under training

program which helps him to put up a better performance on the job.

6.

Performance appraisal: - Once the employee has put in around 1

year of service, performance appraisal is conducted i.e. the HR
department checks the performance of the employee. Based on these
appraisal future promotions, incentives, increments in salary are
decided.

7.

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.

8.

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.

9.

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.

Brief history and development of HRM.

The evolution of HRM, once called personnel has followed the history of
business in the United States during the Industrial Revolution. From the dawn
of the said revolution, the personnel departments role in the organizations
centered around administrative duties. During those times, the personnel
department emphasized their role in meeting employee needs to achieve
economic security. In the late 1950s, corporate personnel departments were
founded to coordinate such increasingly specialized functions as benefits,
wages, recruitment and labor relations. The business and social dynamics of
1960s and 1970s brought increased attention within the personnel
department to human relations which emphasized supervisory trainings. The
transformation of personnel management to HRM was affected by a parallel
trend: the emergence of the human resource development field from the
training and development field. The shift taking place, apparently in the
1980s, may have resulted from the convergence of traditional personnel
specialists with the HRD practitioners. At that point, personnel officially
became HRM to reflect its emphasis on employees as valued organizational
resources.

SOURCES:

http://humanresources.about.com/od/glossaryh/f/hr_management.htm
http://www.websukat.com/HRM-nature-and-scope-of-HRM.htm
http://businesscasestudies.co.uk/the-role-of-human-resourcemanagement.html
Personnel and Human Resource Management by Roberto G. Medina
Human Resource Transformation by W.J. Rothwell, R.K. Prescott, M.W. Taylor