Introduction - HRM

Human Resource is the most complex and vulnerable among all the resources under the creation of nature. We can get best material, best machinery, and best method in the world but it is very difficult to get best Human Resource to run or use the other resources in an efficient and effective way. In this context of day to day complication, it becomes all the more important to manage the Human Resources. Human Resources have one unique feature; it is the only resource among all which appreciate with time if sufficient care is taken to impart skill and knowledge. Human Resources become an asset in the long run. It gives life to the structure and system of an Organization. In this unit, you will learn the definition, core elements and objectives of HRM, HRM in Retailing and HRM activities. You will further learn the roles of HR Manager and challenges of HRM in modern management.

HUMAN RESOURCE MANAGEMENT

HRM refers to people management in such a way that they are committed, integrated and contributing to the objectives of the Organization. It also makes sure that they stay with the Organization for fairly a long time (low attrition rate) though not wedded to the Organization. Let us see the process of defining HRM that leads us to two different definitions. The first definition of HRM is that it is the process of managing people in Organizations in a structured and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and perks setting and management, performance management, change management and taking care of exits from the Company to round off the activities. This is the traditional definition of HRM which leads some experts to define it as a modern version of the Personnel Management function.

The second definition of HRM encompasses the management of people in Organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary Organizations is concerned with the notions of people enabling, people development and a focus on making the “employment relationship” fulfilling for both the management and employees. Changes are happening at a faster pace rather exponentially in the business influencing the environment within the Organization. The human resources of an Organization should be capable of adopting and/or adapting to the changes quickly. This necessitates the Organizations to ensure that they have the right people capable of facing the business challenges effectively.

Management of these resources therefore is an integral part of business success. The efficient and effective management of human resources results in;

● High productivity - increased profits – growth - increased market value

● Enhanced company image - customer satisfaction

● Healthy organizational climate and culture - effective communication

● Competitiveness and development orientation