Definition of Human Resource Management
Human Resource Management is the combination of activities which is regarding the efficient and effective utilization of human resource with the purpose of achieving organizational goals and objectives. According to the above definition of HRM,
Efficient utilization of HRM is:
The optimum utilization of employee by eradicating or minimizing wastage. This means, utilizing the right employee in the right number at the right cost. indeed, this involves the fulfillment of activities by minimizing waste of human resource as much as possible, in terms of employees, their efforts and total cost.
Effective utilization of HRM is:
Utilization of human resource for organizational effectiveness, which is the extent to which organizational goals have been realized. Indeed, this involves the utilization of employees in order to achieve goals of the organization. Efficiency should be reached so as to attain organizational effectiveness.
An organization can be identified as an economic and social entity composed of a group of people who interact with each other with purpose of achieving a common goal. Organization can be either a profit earning organization or non profit earning organization. further, the organization may belongs to the public sector or private sector.
Goals refers to desired targets to be achieved in the future. Obviously, the basic goal of any organization should ideally be to serve the human society. If not, the organization is not capable of staying in the market for long time. In order to accomplish the above mentioned basic goal, an organization establishes specific goals. however, an organization may establish one or more or all of the goals mentioned below. so, we will see what the organizational specific goals are.
01. To increase the net assets of the owners.
02. Enhance employee welfare and development
03. Maximize customer satisfaction
04. Maintain market share
05. Fulfill social responsibility
06. Achieve the financial stability
07. Increase the quality of the product
Human resources are employees who work for the organization. When it comes to human resource, it is the most significant resource compared with other resources like financial resources, physical resources, etc. Human resource is significant due to the following unique characteristics.
01. It is animate, active and alive.
02. It has the ability to think.
03. It has the ability to influence on determining their wages and salaries.
04. It has the ability to organize as unions and teams.
05. Behavior is complex and unpredictable.
06. Creativity and innovative power.
07. Human resource make decisions about all other resources.
Human resource with above mentioned unique features in an organization could divided into two groups.
01. Managerial employees – The employees who make decisions of an organization.
02. Non managerial employees – The employees who implement those made decisions.
What is the generic purpose of Human Resource Management?
The generic purpose of human resource management is, to generate and retain an appropriate and contented employee force, which gives the maximum individual contribution to organizational success.
What are the strategic goals of Human Resource Management?
In order to achieve the above mentioned generic purpose, there are several strategic goals in human resource management. They are,
01. To improve employee productivity
Employee productivity means, the ratio between inputs and outputs. Employee inputs mean the number of employees who work to achieve a specific task. Employee outputs mean, the number of units produced by the employees.
Employee productivity = Number of units produced (Output)
Number of employees (Input)
Employee productivity improvement must be achieved for the progress of success. Thus, productivity improvement means doing better than today.
02. Employee development
Employee development refers as the provision of opportunities as many as possible to accomplish employees, personal objectives, improvement of their career development through the development of knowledge, skills and attitudes.
03. To increase Quality of Work Life. (QWL)
This is intended that the degree of employees participation or involvement in making employment decision is increased. Specially, regarding the decisions which affect them.
04. To ensure legal compliance.
Human resource in an organization must be performed in compliance with legitimate provisions imposed by labor laws.
01. Industrial Disputes Act.
02. Trade Union Ordinance
03. Termination of Employment
04. EPF/ ETF
What are the objectives of Human Resource Management?
When strategic goals of HRM are fulfilled, the fulfillment of generic purpose of HRM occurs. The following objectives have to be accomplished in order to achieve strategic goals of Human Resource Management.
01. To produce right people at the right time to do the right job.
02. To retain the more appropriate employees with the organization.
03. To control employee cost.
04. To motivate employees.
05. To get and improve employee commitment.
What are the functions of Human Resource Management?
There is a series of functions to be followed to accomplish the goals and the objectives of HRM. The series of functions include:
01. Job design
02. Job analysis
03. Human power planning
08. Performance evaluation
09. Pay management
10. Training and development
11. Employee movements
12. Welfare administration
13. Safety and health administration
14. Discipline administration
15. Grievance handling
16. Labor relations
The above functions are referred to as HRM functions. They are interrelated. For an example, pay management can be successfully done by doing a job analysis properly. On the other hand, performance evaluation gives the data to perform the functions of training and development.
Some HRM functions are interdependent. Success of a one function has a direct impact on determining the success of another function. For example, success of selection function depends on successful performance of recruitment function. therefore, it is very important to note that there are interrelationship and inter-dependency among the above HRM functions.