Understanding Human Resource Management in Organizations

Human Resource Management Unit- I

HUMAN RESOURCE MANAGEMENT Every organization, large or small, uses a variety of capital to make the business work. Capital includes cash, valuables, or goods used to generate income for a business. For example, a retail store uses registers and inventory, while a consulting firm may have proprietary software or buildings. No matter the industry, all companies have one thing in common: they must have people to make their capital work for them. This will be our focus throughout the text: generation of revenue through the use of people s skills and abilities.

What Is HRM? Human resource management (HRM) is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them. Human Resource Management deals with the management functions like planning, organizing, directing and controlling It deals with procurement of human resource , training & development and maintenance of human resource. It helps to achieve individual, organizational and social objectives Human Resource Management is a multidisciplinary subject. It includes the study of management, psychology, communication, economics and sociology. It also deals with building team spirit and team work. It is a continuous process.

What Is The Importance Of Human Resource? Behind production of every product or service there is an human mind, effort and man hours (working hours). No product or service can be produced without help of human being. Human being is fundamental resource for making or construction of anything. Every organisation desire is to have skilled and competent people to make their organisation competent and best. Among the five Ms of Management, i.e., men, money, machines, materials, and methods, HRM deals about the first M, which is men. It is believed that in the five Ms, "men" is not so easy to manage. "every man is different from other" and they are totally different from the other Ms in the sense that men possess the power to manipulate the other Ms. Whereas, the other Ms are either lifeless or abstract and as such, do not have the power to think and decide what is good for them.

Why do we call it as Human Resource Management?... Human: refers to the skilled workforce in an organization. Resource: refers to limited availability or scarce. Management: refers how to optimize and make best use of such limited or scarce resource so as to meet the organization goals and objectives.

Why do we call it as Human Resource Management?... Therefore, human resource management is meant for proper utilisation of available skilled workforce and also to make efficient use of existing human resource in the organisation. The best example in present situation is, construction industry has been facing serious shortage of skilled workforce. It is expected to triple in the next decade from the present 30 per cent, will negatively impact the overall productivity of the sector, warn industry experts.

Why do we call it as Human Resource Management? Today many experts claim that machines and technology are replacing human resource and minimizing their role or effort. However, machines and technology are built by the humans only and they need to be operated or at least monitored by humans and this is the reason why companies are always in hunt for talented, skilled and qualified professionals for continuous development of the organization. Therefore humans are crucial assets for any organisation, although today many tasks have been handing over to the artificial intelligence but they lack judgement skills which cannot be matched with human mind.