What is HRM?

Human Resource Management (HRM) can be described as a process of acquiring employees and developing various strategies and policies to retain them as well. These strategies include:

• Recruitment and Selection.

• Training and Development.

• Compensation & benefits.

• Labor Relations.

Why is HR important to managers

There are several reasons why organizations and managers consider HR department essential.

• To avoid personnel mistakes: this includes avoiding hiring the wrong person for the job and inevitably face lower productivity.

• To maximize profits and performance: An organization can have the most sophisticated machinery and adequate plane but if they do not hire the right people for the right job, they cannot make profits. HR department ensures that the right people are being recruited.

Scope of HRM

The scope of HRM is divided into 3 categories, these include:

• HRM in Employee welfare: In this particular sector HRM deals with issues faced by employees such as their health and safety, medical care, employment injury benefits etc.

• HRM in Personnel management: HR takes care all aspects that related to man-power planning. This includes recruitment and selection, training and development, compensation, redundancies and layoffs.

• HRM in industrial relations: This where HR department or professionals act as a bridge between the employees and the employer. This includes addressing any kind of complains, grievances and settling conflicts and disputes so that the organizations functions smoothly.

Line and Staff Aspects of Human Resource Management

There are basically two types of authority, namely line authority and staff authority.

• Authority: This term can be defined as the power to give orders, make decisions and reinforce obedience.

• Line authority: this authority gives the power to managers who can issue orders to other managers or employees within the organization. For example: The President of Marketing tells her sales manager to get her ‘Presentation’ ready by Monday, she is using her line authority being as the president.

• Staff authority: this kind of authority can be described as a kind of relationship between managers and employees that is pure advisory. This gives managers the power and authority to advice employees. For example: A cost accountant of an organization may advice the sales manager in marketing as to which products are going to yield the highest profit margins and thus are more valuable.

• Line Manager: line manager is the one who directs the work of employees and has the responsibility of accomplishing goals of the organization.

• Staff Manager: This is the manager who is responsible to advice as well as assist line managers.

Processes of Human Resource Management

Every successful firm would consider their employees their greatest asset because their productivity is directly proportional to the organization’s productivity. The HR department of any organization has to ensure that proper strategic planning is taking place. In order for the organization to run smoothly there are certain HR processes that play key role.

• HR planning: HR planning includes all the processes of hiring the right person for the right kind of job, this includes recruitment, selection, interviews and hiring. Apart from that it also includes improving employee skills through training and development.

• Remuneration to employees: One of the key roles for the HR department or professionals is to provide with a fair amount of salary to employees. Being rewarded for their hard-work motivates employees and thus maintains their productivity.

• Employee relations: It is essential for any firm to run smoothly to have cooperation and peaceful relationship between employee and employer. Therefore, HR department has to make sure that the organization provides employees with safety, security, fair compensation and good working conditions so that they stay satisfied and motivated.

• Performance management: HR department is also responsible in appraising performance of employees so that they gain confidence and work-had for the organization.