Human Resource Management

Definition of Human Resource Management

“A strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations” (Armstrong, 2014)

HRM is with regard the people dimension in management. As every organization is made up with people, obtaining their services, developing their ability, motivating them to higher level of performance and motivating them to maintain their commitment to the organization is essential to achieve organizational objectives. For any organization to run smooth, there should be resource of human. Although the machines and technology built by the humans, there is a threat that the machines and technology are replacing human resource and minimizing their role of effort. However, to apply control measures and operate the technology/ machineries built by the humans, again there should be talented, skilled and qualified professionals which gives the value for the human resource.

Human: refers to the skilled workforce in the organization.

Resource: refers to limited availability or scarceness.

Management: refers how to optimize and make best use of such limited and scarce resource so as to meet the ordination goals and objectives

Also, distinct from personal management, is the emerging philosophy that “people need to be viewed as an asset rather than merely a variable cost” (Beer et al, 1984)

Definition of Personnel Management:

“All the management decisions and actions that directly affect, or influence, people as members of the organization rather than as job holders.” (Henderson, 2017)

Difference between Human Resource Management and Personnel Management is HRM treats employees as a valuable asset while PM treats employees as a cost and is independent from an organization. Personnel Management is an administrative function of an organization that exist to provide personnel needed for organizational activities and to manage the employee-employer relationship.

Functions of HRM can be classified as follows: 

Human Resource Management deals with issues related to employees such as hiring, training, motivating, development, compensation, communication and administration. Also Recruitment and selection of employees, Preparing and analyzing the Performance Appraisal of the employees, Wage and Salary Administration, Employee Welfare, Personnel Research and Personnel Record, Planning, Organizing, Labor Relations maintaining the workforce in an organization.