Which area of management is involved in attracting training Developing and maintaining an excellent workforce?

HRM is central to management teaching and research. It has emerged in the last decade as a significant field from its earlier roots in personnel management, industrial relations, and industrial psychology.

People management and high-performance teams have become key functions and goals for managers at all organizational levels.

Management and human resources management are the same. Management is personnel administration.

Management has three jobs, two of which are directly related to personnel managing a business, managing managers, and managing workers and work. They should never be separated.

The word management has three syllables: Manage-Men-T. If T is taken for tact, then etymologically, management means how to manage men with tact. A man manages many men tactfully.

Definition and Meaning of Human Resource Management (HRM)

There exist many definitions of human resource management (HRM).HR experts define HRM from different perspectives.

Mary Parker Follett has rightly defined management as efficiently getting things done with and through others. It means that management is nothing but managing people at work. The staffing function of management is known as HRM.

HRM deals with designing formal systems in an organization to ensure the effective and efficient use of human talents to accomplish organizational goals (Mathis and Jackson, 2005).

Dessler (2003) defines HRM as a process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns.

One of the well-known definitions was offered by Michael Jucious (1984). He defined human resources management or personnel management “as the field of management involves planning, organizing, directing, and controlling the functions of procuring, developing, maintaining and motivating a labor force.”

Gary Dessler states, “Human resource management is the process of acquiring, training, appraising and compensating employees and attending to their labor relations, health & safety, and fairness concerns.”

“Human resource management is the set of organizational activities directed at attracting, developing and maintaining an effective workforce” – Ricky W. Griffin.

“Human resource management involves the acquisition, retention, and development of human resources necessary for organizational success.” – Robert Kreitner.

“Human resource management deals with recruitment, placement, training, and development of organization members.” – James A. F. Stoner.

Byars and Rue said, “Human resource management encompasses those activities designed to provide for and coordinate the organization’s human resources.”

Human Resource Management is the organizational function that deals with people-related issues, such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

Understanding HRM Definition

The acquisition function begins with human resource planning. It includes the job analysis, recruitment, selection, and socialization of employees.

The development function includes employee training, management development, and career development.

As jobs evolve, ongoing retraining is necessary to accommodate technological changes.

The motivation function begins with recognizing that individuals are unique, and the motivational techniques (job satisfaction, employee performance appraisal, and compensation) must reflect the needs of each individual.

The maintenance function is concerned with providing those working conditions to maintain employees’ commitment to the organization.

The relationship between managers and employees must be handled effectively if both the employees and the organization prosper together.

HRM pervades the organization.

Every person in an organization is involved with personnel decisions. The responsibility for human resource management activities rests with each manager.

It is concerned with managing people at work. It covers all types of personnel. If managers throughout the organization do not accept their responsibility, then human resources activities may be done only partially or not.

HRM is a continuous function.

HRM draws on several related disciplines, such as Industrial Psychology, Sociology, Social Psychology, Anthropology, and Economics.

HRM is the field of management that plans, organizes, and controls the functions of procurement, development, maintenance, and utilization of the workforce so that the goals of the individual employee, organization, and society can be accomplished.

Human resource management is a business-oriented philosophy concerned with managing people to obtain added value from them and achieve competitive advantage.

Historical Evolution of HRM

HR management history is fascinating. HRM is as old and complex as the history of work and organization. Human resource management is evolving rapidly.

Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques for managing a workforce (Panzyp, 2007: Reed and Gusdorf, 2010).

The History of Human Resource Management starts to be interesting with the evolution of large factories.

How HRM Begun

It was in the 18th century. The rapid development of a new industrial approach to work changed the world dramatically.

Quick and cheap production became a priority for many industries. The factories hired thousands of workers who worked up to 16 hours daily.

Soon, many entrepreneurs discovered that satisfied employees are more effective and can produce more than depressed employees.

Many factories introduced voluntary programs for employees to increase their comfort and satisfaction.

On the other hand, the government introduced some basic human rights and worker safety legislation.

Human resource management had its roots in the late and early 1900s when workers’ jobs became less labor-intensive and more worked with machinery. The scientific management movement began.

This movement was started by Frederick Taylor when he wrote about it in a book titled The Principles of Scientific Management.

The book stated, “The principal object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee.

Taylor believed that management should use the techniques used by scientists to research and test work skills to improve the workforce’s efficiency.

The industrial welfare movement also began around the same time. This was usually a voluntary effort by employers to improve the conditions in their factories.

The effort also extended into the employee’s life outside of the workplace. The human relations movement is the major influence on modern human resource management.

This movement was influenced by Hawthorne Studies and the belief that employees worked better in a social system. Employees were viewed as social men.

The second rapid development of human resources started at the beginning of the 20th century.

Most organizations introduced Personnel Management. The personnel department had large responsibilities.

It was dealing with issues and introducing the new law requirements. It was responsible for implementing different social and workplace safety programs.

Everything was focused on the productivity of employees. Regular productivity increments were the key measure for the management of employees.

A significant change was introduced after the II World War because the military developed many training programs for new soldiers.

After the war, the training became a respected process in the personnel department.

During this period, the trade unions evolved. The trade unions changed the rules of the game. The employer got a strong partner to discuss with.

Trade unions introduced many improvements at no high cost for the employer.

Today, trade unions are not as strong as they used to be, but many organizations still benefit or suffer from the strong presence of trade unions in their factories.

The real HR revolution began in the ’60s of the 20th century. Technology and globalization have changed the rules of the game.

Most HR functions run complex HRIS solutions, making information about employees available anywhere and anytime to managers and HR professionals.

Around the middle of the 1980s, human resources, as it is more often abbreviated, began to establish themselves.

It was quickly realized that the personnel department and training functions undertook work around the human element of the business and that putting these together formed a synergy.

It was also realized that there was a need to consider the workforce when planning business change, organizational changes, and restructuring.

There was a need to educate the staff to respond to such changes. In effect, the strategic direction of the business needed to consider and reflect the people as the largest asset of any business.

Human Resources Management and HR directors came into being, providing executive-level interaction or even higher.

The establishment of human resources was fully accepted by the 1990s and included all aspects of a business that apply to the people within that business.

In the latter part of the 1990s and into the early 2000s, there has been a further evolution to take the HR role back to the business managers.

The decisions and actions being taken near the people with the old-style HR divisions being streamlined into a more consultative role provided knowledge and best practice guidelines and only interacted strategically.

The economy of the wealthy western countries shifted towards the services economy. The quality of services became a crucial competitive advantage.

HR became necessary because the structure of the workforce changed. Leadership development was the right answer.

Managers and leaders have to think globally today; they have to understand different cultural backgrounds.

The corporate culture cannot be country-specific; it has to reflect many nations working for the organization. This is a fantastic opportunity for Human Resources.

Human Resources Management is global today. The global HR policies drive processes in different countries, but the processes produce comparable results.

The future of Human Resource Management is bright. Globalization cannot be stopped because nations collaborate.

The organizations become less country-specific, and they cannot identify with one country. New technologies will bring other revolutions to offices.

The commute working is standard today, but it will become a norm. The technology will connect employees as they would sit in the next cubicle.

New E-HRM technologies will allow quick and instant access to information about employees, and managers will make all decisions and approvals online.

However, the future of Human Resources will be about new networking methods.

Changing Role of HRM

The role of human resource management is changing very fast.

This change is required to help corporations achieve their goals. In recent years, it has been seen that HRM has undergone many phases.

Initially, the main focus of HRM was on hiring and firing.

However, HRM has much more responsibilities in the current corporate scenario, like relationship building and legislative roles. HR’s role is now shifting from protecting to a strategic partner.

As the business world changes, so do the role of HR professionals.

Since human resource is a business-driven function, effectiveness depends on a thorough understanding of the strategic corporate direction and the ability to influence key policies and decisions.

In addition, human resource management challenges must be defined and solutions determined to succeed.

Nowadays, most high-performing organizations are flattened with the least hierarchy, which requires highly skilled employees to gain a competitive edge in the market.

So the HR role has drastically changed to develop and implement company strategy to achieve its goals.

The late 20th and early 21st centuries saw some shifts that suggested changes like work in the future.

These include the growing use of contingent workers (people who are hired, as needed, to perform specific tasks but are not employed by the company), the use of virtual workers (those who may or may not work for the company but who are not physically located on the company’s premises), and the growing impact of technology on the need for certain types of employees, which causes increased need in some areas and declines need in others.

As HRM is concerned with people who work in an organization, it becomes imperative for HRM to hire good people, train them, and retain good employees to achieve the organization’s long-term objectives.

In recent years, all the above HR roles have been used strategically, so now HRM is termed SHRM.

I suggest you read our article on Strategic Human Resource Management (SHRM), where I discuss the definition, components, features, objectives, process, and approach of the strategic human resource management process.

6 Nature of Human Resource Management

Human Resource Management brings organizations and people together so that the goals of each are met. The

Human Resource Management is a Broader Function

Human Resource Management is a comprehensive function because it is about managing people in the organization.

Human Resource Management is People-oriented

HRM is the process that brings people and organizations together to achieve their goals.

Human Resource Management is Action-Oriented.

Human resource management believes in taking action to achieve individual and organizational goals.

Human Resource Management is Development-Oriented.

The development of employees is an essential function of human resource management to get maximum satisfaction from their work to give their best to the organization.

Human Resource Management is A Continuous Function.

Human resource is a living factor among all production factors; therefore, it requires continuous improvement and innovations to achieve excellence.

Human Resource Management is Future-Oriented.

HRM is a significant activity that will help the organization achieve its objectives by providing well-motivated and competent employees.

4 Objectives of Human Resource Management

The objective is a specific result that a person or system aims to achieve within a time frame and available resources. In general, objectives are more specific and easier to measure.

Objectives are basic tools that underlie all planning and strategic activities; they serve as the basis for creating policy and evaluating performance.

All the functions of the organization should contribute to the objectives of the organization. This means that determining objectives is of prime importance and is a prerequisite to most management problems.

Objectives are predetermined goals at which individual or group activity in an organization is aimed.

The formulation of the objectives of an organization is necessary for the following reasons:

1. Human beings are goal-directed. People must have a purpose for doing some work.
2. Objectives serve as standards against which performance is measured.
3. The objectives stand out as guidelines for organizational performance. They help in establishing the character of an organization.

The central focus for HR management must be on contributing to organizational success.

Social Objectives of Human Resource Management

HRM may contribute ethically and socially to the needs and challenges emerging in society. If an organization fails to use its resources for social benefits in ethical ways, it may restrict society.

Organizational Objectives of Human Resource Management

The main objective of HRM is to achieve organizational goals by bringing organizational effectiveness. HRM is not an end but a means to assist the organization in attaining its objectives.

Functional Objectives of Human Resource Management

The functional objective of HRM deals with the contributions of different departments regarding their needs and effectiveness to attain the organization’s goal.

Personal Objectives of Human Resource Management

HRM also deals with the personal objectives of the individuals so that personal and organizational objectives can be compatible with achieving maximum productivity and attaining competitive advantage.

These personal objectives are important to maintain, retain and motivate employees.

The specific objectives of human resources management can be described as follows:

• To maintain and sustain industrial peace. Without peace, prosperity is not possible. It is true for a nation as well as for a business organization. Without industrial peace, all resources remain underutilized.
• To improve the productive contribution of people to the organization. In a competitive environment, productivity improvement is very significant. Productivity is the function of ability and motivation. Training and education can improve ability. The HR managers must increase employees’ willingness to put in more effort. Excellent companies in the USA also encourage productivity through people.
• To attract and secure appropriate people capable of performing the organization’s specific tasks effectively and efficiently. This is important for obtaining and sustaining a competitive advantage.
• To generate maximum individual development of the people within the organization. Individuals get internally developed through training and experience. It is a motivating factor, according to human behavior experts Maslow and Herzberg. It should be kept in mind that today’s industries are knowledge-based and skill-intensive.
• To recognize and satisfy individual needs.
• To maintain high employee morale and better human relationships inside the organization.
• To promote employee discipline through performance-based incentives. It creates a healthy and friendly working environment through the appropriate work design and assignment of jobs.
• To provide a favorable environment for employees so that people working in the organization can work creatively.
• To bridge the gap between individual goals and organizational goals and thus results in good harmony.

M.W. Cumming (1989) has described the objectives of HR management in these words: HR management aims to achieve both efficiency and justice, neither of which can be pursued successfully without the other.

It seeks to bring together and develop into an effective organization the men and women who make up an enterprise, enabling each to make his own best contribution to its success both as an individual and as a working group member.

According to Mathis and Jackson (1999), the main goal of HR management is to enhance the organization’s human capital. Human capital is the total value of human resources to the organization.

It is composed of the people in the organization and their capabilities and can utilize in their jobs.

As a part of strategic roles, HR managers are often seen as responsible for expanding the capabilities of the human resources in the organization.

The Philosophy of Human Resource Management

Philosophy is an academic subject that exercises reason and logic to understand reality and answer fundamental questions about knowledge, life, morality, virtue, and human nature.

Philosophy is distinguished from other ways of addressing such problems by its critical, generally systematic approach and reliance on rational argument.

In more casual speech, by extension, “philosophy” can refer to “the most basic beliefs, concepts, and attitudes of an individual or group” (Blackburn, Simon 1994).

The basic guide to HR management action in any company derives from its philosophy toward people.

A philosophy exists in every company, although it is not written down. It guides personnel policies. There are two contrasting views regarding employees at work:

Labor is viewed as a technical factor of production.

They are treated as a commodity and can be bought and sold. They are considered cogs in the machine. They can be hired and fired at will. The writings of Taylor and Adam Smith reinforced these concepts.

Employees must be controlled and closely supervised by management to attain company goals. This approach treats employees with limited potential. This is consistent with Theory X, suggested by Douglas McGregor.

Labor has been viewed as a human factor with many positive potentials.

People are assets- not costs. So they must be treated with respect and dignity. Investment in people is advantageous. Management must develop and utilize the talent of people to achieve common goals.

Japan is the first country which realizes the importance of human beings in its attempt to improve productivity. When Japan realized this truth and recognized human values, it achieved unprecedented progress in all fields.

Although we are endowed with fertile land rich in natural gas, we possess a large population with a homogeneous background.

Significance of HRM

HRM plays a very significant role in developing an organization and a nation. Efficient and committed human resource leads to effective exploitation and utilization of a nation’s natural, physical and financial resources.

Skilled and developed human resource ensures the development of a country. If people are underdeveloped, then that country will be underdeveloped.

Effective HRM enhances economic growth, which, in turn, leads to a higher standard of living and maximum employment.

For an enterprise, effective HRM leads to the attainment of its goal efficiently and effectively. Many organizations say, “Our people are our most important asset.”

It acknowledges the important role that employees play in organizational success.

HRM helps an organization establish a sustainable competitive advantage. Managers should consider their employees as strategic business partners, not just as costs to be minimized or avoided.

HRM must be forward-thinking. They must not simply react to what management states. Rather, they must take the lead in assisting management with the people component of the organization.

The organization’s management team and human resources team should work together.

Check our article on “Management & Human Resource Management: Relationship & Differences,” where we find out there are many similarities and differences between management and human resources, but so share similarities.

One study reported that an organization’s high-performance work practices could increase its market value by as much as 30%.

High-performance work practices include

• self-directed work team,
• job rotations,
• high levels of skill training,
• problem-solving groups,
• quality management process,
• encouragement of innovative behavior,
• extensive employee involvement, implementation of employee suggestions,
• pay based on performance,
• coaching and mentoring,
• a significant amount of information sharing,
• cross-functional integration, and much more.

How Human Resource Management Helps an Enterprise

1. Hiring and retaining the required skill set through effective human resource planning, recruitment, selection, placement, orientation, and promotion policies.
2. Developing employees by enhancing necessary skills and the right attitude among employees through training, development and performance appraisals, etc.
3. Taking care of the optimum utilization of the available human resource.
4. HRM also ensures that the organization has a competent team and dedicated employees in the future.
5. Leading to improved quality of work-life and enabling effective teamwork among employees by providing a healthy working environment
6. Providing opportunities for the personal development of an employee.
7. Enabling healthy relationships among teams and allocating work properly to employees and teams.
8. HRM plays an important role in society; it helps laborers live with pride and dignity by providing employment which, in turn, gives them social and psychological satisfaction.
9. Maintaining the balance between job openings and job seekers.

Conclusion: Human Resource Management (HRM) Is A Continuous Process of Managing The Workforce Efficiently

Human Resource Management (HRM) is a continuous process of acquisition, development, motivation, maintenance, and workforce utilization for the effective and timely achievement of organizational goals.

Human resources management involves hiring, motivating, and maintaining an organization. It focuses on people in an organization.

In other words, we can say that Human resources management is the planning, organizing, directing, and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the end that individual organizational and social objectives are accomplished.

HRM is increasingly used to refer to the philosophy, policies, procedures, and practices of managing people within an organization.