Human resource management includes managing all the issues that are related to the people in an organization. The function of human resource manager is not limited. It is found that people restrict the scope of human resource management. It is not restricted only to compensation, recruitment, performance management, employee motivation, safety, wellness, administration and training. Learn what is Human Resource Management in 5 minutes.

What is human resource management? – Learn what is Human Resource Management in 5 minutes

Basically human resource management is the strategic and comprehensive way to manage people. The management of human resource department prove to benefit the company. They help in increasing the efficiency and productivity in an organization. To fulfill the goals and objectives of the company, efficiency of employees need to be increase. (Source: INC)

The difference between the human resource department and other department of the company is that they impart the basic training to an employee to be a part of the company. Human resource management evolved over the years. The best part of this department is that it has contributed towards the strategic direction of the company.

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Evolution of Human Resource Management – Learn what is Human Resource Management in 5 minutes

Human resource management has evolved from the erstwhile personnel management. Personnel management during the initial years served the purpose of managing employees in an organization. It was Elton Mayo who studied human behavior extensively. Mayo suggested that a proper work life balance increases the productivity of the employees. Elton Mayo is called the father of human resource management.

Another name in managing human resource was of Robert Owen. He introduced the system of reforms for workers in his own Lanark Cotton Mill. Owen was the pillar behind 8 hours of work. He introduced the system of 8 hours work, 8 hours sleep and 8 hours rest. Another landmark achievement, he identified that better working conditions improved productivity of employees. Robert Owen is regarded as the father of personnel management. (Source: WhatIsHumanResource)

Evolution of Human Resources Management - Quick Leonard Kieffer
Human Resources Evolution (Source: QLKSearch)

Many factual information suggests that the first personnel management department begun at the National Cash Register Company. The department came into action in the early 1900s. As a result of strikes and lockouts NCR leader Patterson arranged personnel department. This department was in charge of handling grievances, training supervisors and safety of employees.

Human Resource Management Process – Learn what is Human Resource Management in 5 minutes

Human resource management primarily includes managing functions like planning, direction and control.

  • HRM includes the process of procurement and development of human resource.
  • It helps to achieve the organizational goals and personal goal of the employees.
  • HRM helps in the involvement of team spirit and teamwork within the company.
  • Human resource management is a continuous process as it keeps on evolving. (Source: ManagementStudyGuide)

Why is it called Human Resource Management? – Learn what is Human Resource Management in 5 minutes

Humans are skilled resources of a company. The resources that are available are scarce in nature. Therefore, human resource is the management of the skilled workforce that are available in an efficient way. In the construction industry there is shortage of skilled workforce. Therefore, machines and technology are replacing humans in this industry. But humans built machines. It is not the other way round. Thus it is important for skilled workforce to operate these machines. Companies hunt for skilled and efficient employees as they increase the efficiency and productivity of the company. These employees help the organization to achieve its goals.

Humans are crucial assets of the company. In the modern times of technology, artificial intelligence has taken some amount of place of humans in the offices. But the difference between human intelligence and artificial intelligence is judgement. Artificial intelligence cannot replace the judgmental skills of human mind. Artificial intelligence in the form of robots have its own limitations thus it cannot totally replace the human mind. Stephen Hawking remarked that the cause of destruction of middle class was artificial intelligence itself as it was replacing humans in many places of work. But at the same time, it is also true that the need of human mind in certain jobs is inevitable.

Purpose of HRM – Learn what is Human Resource Management in 5 minutes

The main purpose of HRM is to choose the correct person for the job and secondly to deal with the employee of the company. The choosing a person to work in the company is done by the human resource manager. The identification of the person who will work for the company has few steps that has to be followed.

Steps in HRM – Learn what is Human Resource Management in 5 minutes

The first step is to release the job description and the specification required for the job. The job description contains the roles and responsibilities of the employee if he joins the company. The specification for the job is the academic qualifications, skills that are required for that particular job post.

Next comes the dealing part of human resource management. After the suitable candidates are selected by HR department they undergo proper training to match the suitability of the job requirement. The last step or the associated step after the training is imparted is that of assessing the performance of the candidate. If the employees perform their duties well, they are given a pay rise. Looking after the health and welfare measures of the employees is also the work of human resource manager. These measures and the way to deal with employees is the task of HR managers. If the employees are satisfied with the welfare measures of the company then their efficiency towards the work also increases. (Source: BizFluent)

The last purpose of human resource management is to look into conflict resolve if anything arises. The maintenance of healthy relationship between employees and management is also looked after by the human resource managers. Employment laws, labor laws comes under the ambit of HR department. Any kind of disruption to the labor laws can cost the company it’s reputation.

10C Principle

There is a ten C principle in human resource management that was developed by Allan Price. He spoke about the ten C’s in his book called “Human Resource Management in a Business Context”. The ten C’s as told by Price were

  • Cost Effectiveness
  • Competitive
  • Coherence
  • Credibility
  • Communication
  • Creativity
  • Competitive Advantage
  • Competence
  • Change
  • Commitment

Objectives – Learn what is Human Resource Management in 5 minutes

The objectives of human resource management are as follows-

  • Societal Objective- The societal objective of human resource is to be responsible enough so that they voice for the needs and challenges that is faced by the society. It works to reduce the negative demand that is created inside the organization.  
  • Organizational Objective- Human resource works to assist the organization to overcome the goals of the company. The department of HR serves the rest of the organization by helping them to grow in their own domain. (Source: YourArticleLibrary)
  • Functional Objective- Every organization has its own goals to accomplish. Human resource management employs those persons who works for the organization to accomplish the objectives and goals of the company.
  • Personal Objective- Human resource helps the employees to achieve their personal goals. To retain the workers in the company their personal goals are met by the company. Or else the work satisfaction of employees will decrease hampering the performance of the company.

Importance of Human Resource Management – Learn what is Human Resource Management in 5 minutes

It is commonly said that behind every product that is coming out of the lines there is a human mind. In modern world, it is not only restricted to the human mind but now it also includes human effort and man hours. No product can be made without the intervention of the human mind.

Therefore, human mind is the sole source of any creation that benefits the organization. Thus every organization wants to have the best skilled employees for itself. It not only increases the brand value of the company, but certain companies also help in the growth of the employee too.

Importance of Human Resource Management in an Organization - Assignment  Point
Importance of Human Resource Management (Source: AssignmentPoint)

There are five 5s of management namely

  • Men
  • Money
  • Machines
  • Materials
  • Methods

Human resource management deals with the first M i.e. Men. The most difficult thing to manage among the 5 M’s is men. One person is totally different from the other person thus making the job of the HR manager difficult. Men can easily manipulate the other M’s of management. The other four components of management do not possess the skill men possess i.e. the skill to think differently. Man is with brain, but the other components do not have one. Therefore, men manage the other components and not the other way round. (Source: Gisma)

Why HRM is important to all managers? – Learn what is Human Resource Management in 5 minutes

The task of a human resource manager is not so easy. They have to deal with different employees at different point of time. HR managers impart training to the recruits so that the execution of the work goes smoothly. Even after the training. HR look for the performance report of the employee. It is the duty of the HR’s to choose the perfect candidate for the job position. As a manger of the company there can be certain mistakes that can be committed like

  • Hiring the wrong person for the job
  • Experiencing high turnover
  • Wasting time in interviews
  • Court proceedings against the company
  • Lack of training among the employees

The task of managing the company is that of a manager. The task of managing an employee is that of a human resource manager. Therefore, the role of a manager and human resource manager are totally different. None of the roles can be discredited as both these roles are important for the success of the company. Managers look out for good human resource managers to look into managing the employees for the company. It can be said that a manager and a human resource manager are two sides of a same coin.

Difference between HRM and personnel management

Personnel management is the seed for human resource management. It all started with personnel management which slowly improvised to human resource management. The primary focus of personnel management was to extract the work from employees in return of a remuneration. Decision making was restricted in personnel management. The priority of the personnel manager was to look that the company adheres to the labor laws. During that time focus was not given to boost the morale of the employees. Employees were treated as tools for completing a project and not as assets. Discipline was key for personnel management and there was no flexibility in work regime.

Why personnel management equally essential as HR management?
Difference between HRM and personnel management (Source: KissFlow)

Employees are seen as assets of the company in human resource management. Human resources helps in increasing efficiency of the firm. Motivating the employees of the company is a key feature of human resource management. The primary focus of human resource management is to see the work assigned to employees. The task for HR managers to look into the matters of flexibility of work in the company and also maintaining proper work life balance of the employees. The prime difference between personnel management and human resource management is that of augmenting of IT tools in the process itself. This has helped in increasing the productivity of the company and also to save time and money. (Source: KeyDifference)

Functions of HR Manager – Learn what is Human Resource Management in 5 minutes

The functions of human resource manager are broadly classified under two heads i.e. managerial functions and operative functions.

Managerial Functions

Managerial functions of human resource manager are divided into planning, organizing, staffing, directing and controlling.

Planning

Planning is the first important function of HR manager. It is important for the HR managers to know the correct time to do things so that organizational goals are met. Under planning comes the establishment of the goals and objectives that are to be achieved by the department of the company. It is also a part of HR to develop rules and procedures for the proper functioning of the company. For the benefit of the company or any department, HR chalks out plan and techniques for hiring the best talent.

Organizing

Another important managerial function of HR is that of organizing. HR managers should be well aware of organizing related to human resource for the company. The execution and organizing part of a job should be such that there is no confusion among employees. Under organizing HR managers are well aware of the employees. Therefore giving each employee a task is the duty of the HR. There are various types of jobs in an organization, HR managers divides the job among the employees by creating different departments according to the nature of the job. HR managers know their responsibility for their job. Managers delegate duties and roles for different employees so that their performance level can match the organization. This also help the employees feel more responsible towards their job. The job of HR is also to create a chain to coordinate among members of the company. (Source- DigitalHRTech)

Staffing

The next important head under managerial function is that of staffing. Staffing is one of the most important managerial function of human resource management. From the hiring part till training and maintaining cordial relation between employees comes under staffing. The primary functions that come under staffing is that of hiring the suitable person for the suitable position in the company. The other important part of staffing is compensating the employees in form of allowance or to boost the morale of the employees. Evaluating the employees on the basis of their performance is also the job of HR under staffing.

Directing

Directing is also a part of staffing. It is a formal way to communicate to the employees about the work the HR wants them to do. The objective of directing is to get the work done by the subordinate staff of the company. HR is also responsible to motivate the employees to get the best performance for the organization. The HR manager maintain discipline and treat every employee fairly. This boost the morale of employees and his belongingness towards the company.

Controlling

The last head under managerial function is that of controlling. It is the duty of the HR manager to have knowledge regarding all the matters of HR. It is very important for HR manager to think and decide the best course of action for the company. The HR manager works to manage and control the employees. The duty starts from recruitment to their salaries. HR managers guides the employees to work for the company with zeal and enthusiasm.

Difference Between Personnel Management and Human Resource Management - HRM  Exam
Functions of HRM (Source: HRMExam)

Operative Functions

This is one of the most important function of human resource management. Operative functions is divided into seven important sub-parts. First is the procurement function, development function, compensation function, maintenance function, motivation function and integration function. (Source: HumanResourcesMBA)

Procurement

It is the first stage of operative function. Procurement means the procuring of employees to work for the company. The best skilled person gets the job. Now the HR manager ensures the reward for the person selected. HR managers explain the detail job profile to the shortlisted candidates. The part of recruitment and selection of employees forms the part of the procurement process of human resource management.

Development

Next comes the development part of the operative function. It is the responsibility of the HR manager to ensure the development of both the company and its employees. None can be neglected as employees are assets to the company itself. Career development and planning for the benefit of the employees is the key role of human resource management. After the selection of the desired candidates, it becomes the task of the HR manager to impart proper training for their career development in the company.

Operation

The third important part of the operative function of human resource management is the compensation function. Compensations are like morale boost for employees. Perks, allowances, proper salary structure forms the part of compensation.

Motivation

Motivation acts like a medicine for an employee. With proper motivation an employee can get better results for the company. What works out most for the employees is their job security and well-being. Therefore it is important for HR managers to ensure their security of job and the employees well-being. Second most important is the recognition for the job they are doing. If managers recognize the work done by the employees it helps the employees to work harder for the company. Let us look into some of the important key preference of employees to boost their motivation

  • Security of job tenure
  • Financial compensation
  • Appreciation of work by his employer
  • Healthy environment to work.
  • Good and effective relationship between his colleagues
  • Career development
  • Interesting work

Integration

The last part of the operative function is that of integration. The process of integration is managing the industrial relations, employee discipline, dispute settlement, labor laws all at the same time. One of the key points of the integration function is that of resolving conflicts among employees. It is the work of the human resource manager to be the spokesman of the employees and the organization. Source- (BusinessManagementIdeas)

People/employees are the strategic assets of the company. The employees either work collectively or individually to achieve the objectives of the company. Here we will discuss about strategic human resource management and its importance. Strategic human resource management is the approach to address business challenges and make a direct contribution to the long-term goals of the organization. The main purpose of strategic human resource management is to improve the performance of the business. The use of innovation in management techniques and working on competitive advantage techniques helps to perform better.

Strategic Human Resource Management – Learn what is Human Resource Management in 5 minutes

Human resource is just a part of strategic human resource management. A proper human resource manager can lead a team to successful outcome in business. Leadership is the key to success in business . In this case, strategic human resource management encompass human resource management. It encompasses the functions of recruitment, screening, interviews and hiring. Strategic human resource management works along with the organization to achieve the objectives of the company. (Source: SmartSheet)

Strategic HRM (Source: DigitalHRTech)

The benefits accrued from strategic human resource management are

  • The HR related outcomes are lower turnover of employees, increased job satisfaction of the workforce and higher employment commitment.
  • Organization benefits more from strategic human resource management. The benefits are higher productivity and efficiency, customer satisfaction on the products produce by the company.
  • The financial outcomes due to strategic human resource management are higher profits for business, greater returns on investment.
  • In the capital market the company stock price increases followed by increased market share.

Society for Human Resource Management – Learn what is Human Resource Management in 5 minutes

The society for human resource management was founded in the year 1948. It is the largest human resource industry professional associations. SHRM has more than 500 chapters in USA with its subsidiary offices in India and China. The mission of SHRM is to work for the profession developmental needs of the HR managers. It has over 3 lakh members from 165 different countries.

The basic problems that have arose in the news headlines are

  • Skill Gap
  • Employment based Immigration
  • Workplace Harassment

Many people consider human resource as a job profile itself. Human resource management is growing into an industry with every passing second. The job opportunities in human resource is very high around the world. Startups have started coming up which requires human resource managers. So now let us check the job opportunities in the profile of human resource management.

Human Resource Management Jobs – Learn what is Human Resource Management in 5 minutes

The job profile for human resource management can be

  • Human Resource Assistant
  • Payroll Specialist
  • Office Manager
  • Training Coordinator
  • Recruiter
  • Human Resource Manager

As you can see the varied profiles are listed above regarding the positions available in the sector of human resource management. (Source: SHRM)

Now we can see the salary packages that is available for human resource manager. According to U.S. Bureau of Labor Statistics, HR managers can be paid as little as $68,300 per annum and the highest being $205,720.

Human Resource Management Salary – Learn what is Human Resource Management in 5 minutes

Country-wise distribution of HR manager salary

US

$68,300-$205,720 annually

India

Rs 2,09,337-Rs 7,03,438 annually

UK

35,812 pounds annually

Canada

C$70,554 annually

China

286,480 Renminbi

We can see the distribution of annual salaries of HR managers from different countries around the world. (Source- PayScale)

To conclude, we say that human resource management is a field in itself. The responsibilities and functions taken care of by the HR manager is overwhelming. The success of organizations like Google, Microsoft Berkshire Hathaway and others, the credit goes to both the employees and the management. But the people behind the success is the team of human resource management.

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