What is Human Resource Management (HRM)?

What is Human Resource Management, What is HR, What is HRM,

Human Resource Management (HRM):

                    Manpower is one of the crucial tools in 5 M's of Management. 5 M's in management are:
  • Money (Finance)
  • Material (Raw Material)
  • Method (Technique)
  • Machine (Machinery)
  • Manpower (Employees or Workers)

                          Efficient workforce planning can boost the earnings of the company. If the company does not have proper manpower planning, the chances of increasing employees turnover ratio will become high which ultimately increase the cost of a company.

                   The primary objective of Human Resource Management is to select the right candidate for the right job at a right time and in the right place. If the candidate selected by the HR department is not suitable for the job, the cost of the company will be increased. So, the HR department makes a plan for manpower and selects according to the requirements of the company.

Human Resource Management follows the below process for human resource planning in the organization:

  • Recruitment
  • Selection
  • Hiring the best candidates
  • Training
  • Induction
  • Orientation
  • Evaluation
  • Promotion
  • Layoff

                      In today's era, human resource is considered as a living asset of the company. It was said by successful entrepreneurs that, human resource is an asset of the company which is wrongly debited in profit & loss account (expense) instead of showing it on balance sheet (asset).

                            Selection of right employees for the company is a crucial responsibility of the HR department. If the Human Resource department fails in selecting the appropriate staff, cost of the company in hiring employees will be increased. The cost incurred on recruitment, selection, and training of the candidate by the company will be useless.

                            A candidate must go through various rounds and interviews arranged by the company to get selected for the job. There are Group Discussion (GD), Personal Interview or group interview arranged by the company for selection of a candidate. A candidate must pass the interview or rounds arranged by the company. 

                             Personal interview and GD are not responsible for the selection of any candidate. Selection of candidates for the job may vary due to qualifications, achievements or skills of the candidate. After analyzing the candidate in an interview and GD rounds, HR manager prepares the list of the candidates who are to be selected and finally selects the ideal employees for the company.

                                One of the crucial core functions of the Human Resource Department is to maintain internal relations. Internal relations means to maintain good relations in the company with employees and with other departments of management.

                               Human Resource Department also must have the ability to understand people. Because functions of the HR department revolves around human beings. If they have the ability to understand people and good communication skills, productivity will be increased and employee morale can be boost which creates a positive work atmosphere.

                    Human Resource Management simply means Planning, Organizing, Directing, and Controlling of human resource in such a manner that productivity in the company can be increased and organizational objective can be achieved.

Suggested Books for HRM

1. Human Resource Management (14th Edition)

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What is Human Resource Management (HRM)? What is Human Resource Management (HRM)? Reviewed by Bhavik Chhuchha on October 01, 2018 Rating: 5

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