HRM :

Its Nature, Scope,

Functions and Objectives
Chapter 1

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1.

HRM : ITS NATURE, SCOPE, FUNCTIONS AND OBJECTIVES

(i)

Define HRM

(ii)

Nature and Scope of HRM

(iii)

Objectives of HRM

(iv)

Functions of HRM

(v)

Importance of HRM

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Define HRM
Human resource management constitutes of two major terms: (i) Human resource and (ii)
Management.
HR simply means people at work. An organization cannot exist without human resource.
Management is a new discipline, it has drawn its concepts and principles from a number of
disciplines such as, psychology, economics, sociology and anthropology, statistics etc.

Human Resource (HR) management

The policies and practices involved in carrying out the people or human resource
aspects of a management position, including recruiting, screening, training,
rewarding, and appraising.
-

Gray Dessler

"The Process of analyzing and managing an organizations human resources needs to

ensure satisfaction of its strategic objectives
Hellriegel/Slocum

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Nature of Human Resource Management

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

Broader function
Human Resource Management is a comprehensive function because it is about managing
people in the organization. It covers all types of people in the organization from workers till
the top level management.

People oriented
Human resource is the core of all the processes of human resource management. So HRM is
the process which brings people and organizations together so that their goals can be achieved.

Action oriented
Human resource management believes in taking actions in order to achieve individual and
organizational goals rather than just keeping records and procedures.

Development oriented
Development of employees is an essential function of human resource management in order to
get maximum satisfaction from their work so that they give their best to the organization.

Continuous function
As human resource is a living factor among all factors of production therefore it requires
continuous improvement and innovations in order to get excellence. So it requires a constant
alertness and awareness of human relations and there importance in every day to day
operations.

Future oriented
HRM is very important activity which helps organization to achieve its objectives in future by
providing well motivated and competent employees.
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Scope of Human Resource Management

Labor and Human resource aspect
It includes man power planning, recruitment, selection, placement, induction, transfer,
promotion, demotion, termination, training and development, layoff and retrenchment etc.

Industrial Relations aspect

It concerns with organizations relations with their employees, it includes relations between
union and management, collective bargaining, negotiation, consultation, grievance handling,
disciplinary actions, settlement of industrial disputes etc.

The Welfare aspect

This aspect of HRM includes working conditions and facilities such as canteens, rest rooms,
housing, lunch rooms, transport, health, education, medical help and safety, washing facilities
and recreation etc.

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Objectives of Human Resource Management

1.
2.
3.
4.

Societal
Organizational
Functional
Personal

Societal
HRM may contribute ethically and socially regarding the needs and challenges emerging in
the society. If an organization fails to use its resources for society benefits in ethical ways it
may lead to restriction by society. For example, society may limit the HR decisions through
laws in hiring, it may limit laws that address discrimination, laws regarding safety or other
areas of concern.

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

Functional
Functional objective of HRM deals with contributions of each department regarding their need
and effectiveness in order to attain organization goal. All the resource or skill set get wasted if
HRM is not able to fulfill up with the organizational demand.

Personal
HRM also deals with personal objectives of the individuals so that personal and organizational
objectives can be met or order to achieve maximum production and attain competitive
advantage. These personal objectives are important in order to maintain, retain and to motivate
employees. If this not done employees dissatisfaction and poor performance will result in
attrition or low productivity

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Functions of Human Resource Management

HRM Objectives

Development

Supporting HRM Functions

Training
Management Development
Career Planning & Development

Acquisition

HR Planning
Job Analysis
Job Description
Job Specification
Recruitment & Selection
Employee Socialization & Induction

Motivation

Job Design
Performance Appraisal
Job Evaluation
Compensation & Benefits
Discipline
job Changes

Maintenance

Safety & Health

Employee Relation
Formulate & Review HR Policy
Employee Services
Record Maintenance
HR Research

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