Human Resource Management – Nature, Scope, Objectives and Function

Human resources may be defined as the total knowledge, skills, creative abilities, talents and aptitudes of an organization’s workforce, as well as the values, attitudes, approaches and beliefs of the individuals involved in the affairs of the organization. It is the sum total or aggregate of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the persons employed in the organization.

The human resources are multi­dimensional in nature. From the national point of view, human resources may be defined as the knowledge, skills, creative abilities, talents and aptitudes obtained in the population; whereas from the view­point of the individual enterprise, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees.

Human Resource Manage­ment: Nature

Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include:

  It is pervasive in nature as it is present in all enterprises.
  Its focus is on results rather than on rules.
  It tries to help employees deve­lop their potential fully.
  It encourages employees to give their best to the organization.
  It is all about people at work, both as individuals and groups.
  It tries to put people on assigned jobs in order to produce good results.
  It helps an organization meet its goals in the future by providing for competent and well-moti­vated employees.
  It tries to build and maintain cordial relations between people working at various levels in the organization.
  It is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology, econo­mics, etc.

Human Resource Manage­ment: Scope

The scope of HRM is very wide:

Personnel aspect-This is con­cerned with manpower planning, recruitment, selection, place­ment, transfer, promotion, train­ing and development, layoff and retrenchment, remuneration, incentives, productivity etc.
Welfare aspect-It deals with working conditions and ameni­ties such as canteens, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
Industrial relations aspect-This covers union-management rela­tions, joint consultation, collec­tive bargaining, grievance and disciplinary procedures, settle­ment of disputes, etc.

Human Resource Manage­ment: Objectives

To help the organization reach its goals.

To ensure effective utilization and maximum develop­ment of human resources.

To ensure respect for human beings. To identify and satisfy the needs of individuals.

To ensure reconciliation of indivi­dual goals with those of the organization.  

To achieve and maintain high morale among employees.

To provide the organization with well-trained and well-motivated employees.

To increase to the fullest the employee’s job satisfaction and self-actualization.

To develop and maintain a quality of work life.

To be ethically and socially res­ponsive to the needs of society.

To develop overall personality of each employee in its multi­dimensional aspect.

To enhance employee’s capabi­lities to perform the present job.  

To equip the employees with precision and clarity in trans­action of business.  

To inculcate the sense of team spirit, team work and inter-team collaboration.

Human Resource Manage­ment: Functions

In order to achieve the above objectives, Human Resource Manage­ment undertakes the following activi­ties:

Human resource or manpower planning.
Recruitment, selection and place­ment of personnel.
Training and development of employees.
Appraisal of performance of employees.
Taking corrective steps such as transfer from one job to another.
Remuneration of employees.
Social security and welfare of employees.
Setting general and specific management policy for organiza­tional relationship.
Collective bargaining, contract negotiation and grievance hand­ling.
Staffing the organization.
Aiding in the self-development of employees at all levels.
Developing and maintaining motivation for workers by pro­viding incentives.
Reviewing and auditing man­power management in the organization
Potential Appraisal. Feedback Counseling.
Role Analysis for job occupants.
Job Rotation.
Quality Circle, Organization development and Quality of Working Life.