Human Resource Management- Definition, Objectives and Functions

Concept

HRM refers to the process of selecting, developing, motivating, and maintaining human resources within organisations. It first selects the right human resources or staff. It trains and develops them. It motivates them by giving them recognition and rewards.

Definition

According to Decenzo and Robbins, “Human Resource Management is a process consisting of four functions - acquisition, development, motivation and maintenance of human resources.”

Societal Objectives

HRM ensures that the company follows labour laws and ethical practices in hiring, safety and employee rights. It helps in reducing unfair treatment, discrimination, and unsafe working conditions.

Organisational Objectives

HRM ensures employees contribute to productivity and profitability. HRM hires skilled people, trains them well, make sure they perform effectively.

Functional Objectives

HRM aims to make use of available human resources by placing the right person in the right job and avoiding overstaffing or understaffing.

Personal Objectives

HRM should help employees achieve their personal goal, like career growth or skill development. When employees feel valued and supported, they perform better and stay with the company longer.

Development of Human Resources

HRM should focus on developing employees’ skills, knowledge, and abilities through the training and development programs.

Planning

HRM plans for the future manpower of the organisation. This includes deciding how many employees are needed, what kind of skills they should have, and how to recruit or train them. It also includes setting goals, policies, and budgets for the HR department.

Organising

Once planning is done, HRM assign duties and responsibilities. It creates a proper structure by forming the HR or personnel department and deciding who will do what.

Directing

Directing involves guiding, motivating, and supervising employees to achieve organisational objectives.

Controlling

HR monitors attendance, turnover, training results and overall employee performance to ensure everything is going as planned.

Recruitment

Recruitment refers to obtaining the right type of employees in the required number at the right time. Wrong recruitment leads to low productivity and high labour turnover.

It includes:

• Recruitment

• Selection

• Placement

• Induction (orientation)

Development

Development refers to improving employees’ skills, knowledge, abilities and attitudes. Development improves the current efficiency and future growth of employees.

It includes:

• Training

• Skill Development

• Career Planning

• Management Development

Compensation

Compensation refers to providing fair and adequate remuneration to employees for their work. Unfair compensation leads to demotivation and labour turnover.

It includes:

• Wages and salaries

• Incentives

• Bonus

• Allowances

Maintenance

Maintenance refers to maintaining or protecting the physical, mental, and emotional well-being of employees. Maintenance reduces absenteeism and accidents.

It includes:

• Employee welfare measures

• Health and safety

• Working Conditions

• Social security benefits