Wednesday, February 17, 2010

HRM (Human Resource Management)


Humans are an organization's greatest assets; without them, everyday business functions such as managing cash flow, making business transactions, communicating through all forms of media, and dealing with customers could not be completed. Humans and the potential they possess drive an organization. Today's organizations are continuously changing. Organizational change impacts not only the business but also its employees. In order to maximize organizational effectiveness, human potential—individuals' capabilities, time, and talents—must be managed. Human resource management works to ensure that employees are able to meet the organization's goals.

"Human resource management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labors, and solving problems that arise".

What is HRM about?
 HRM is about managing the most valuable assets of an organization---the people working there.
 Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a work force

 Definition: “a series of activities which:
First enable working people and their employing organizations to agree about the objectives and nature of their working relationship and,
Secondly, ensures that the agreement is fulfilled"
Why do we need HRM?
 Humans are different from machines
 Each individual is different from the other
 They individually and collectively work for the achievement of organizational goals
 Humans can produce more than machines if properly motivated
 So we need to study human resource management as a separate subject

A Historical Background:
 Previously, also known as personnel management, industrial relations, industrial psychology
 Prior to mid-1960s, personnel department was perceived as the “health and happiness” dept.
 Their primary job activities involved:
 Planning company picnics
 Scheduling vacations
 Planning retirement parties

Goal of the HRM:
 Now a days, HR department has become a backbone of the organizations
 The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively.

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