Human Resource Management

Human:  refers to the skilled workforce in an organization.

Resource: refers to limited availability or scarce.

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

Edwin Flippo

Human Resource Management as “planning, organizing, directing, controlling of procurement,

development, compensation, integration , maintenance and separation of human resources to
the end that individual, organizational and social objectives are achieved.”

Definition
“HRM is the efficient and effective utilization of human resources to achieve goals of an organization.”

According to the above definition of HRM,

a) Organization means an economic and social entity composed of a group of people who interact
with each other for the purpose of achieving a common goal. This organization may be either a
profit organization or a non-profit organization. Also it may belong to public sector or private
sector or cooperative sector.
b) Goals refer to desired targets to be achieved in future. The basic goal of any organization should
ideally be to serve the human society. If not, the existence of the organization will suffer or
vanish after a short period. Basic goal of an organization is to fulfil human needs and upgrade
standard of living of people. The fulfilment of all human needs is impossible for an organization.
Therefore, what human need or needs to be fulfilled should be defined. Thus, by fulfilling certain
human need/ needs the organization activates to enhance level of well-being enjoyed by
people.
c) Human Resources (HR) are employees who work for the organization being concerned. Human
resources (HR) is the department within a business that is responsible for all things worker-
related. That includes recruiting, selecting, hiring, training, promoting, paying, and firing
employees and independent contractors.
d) Efficient utilization of HR means optimum use of employees by eradicating (or minimizing)
wastage. It denotes utilizing the right employees in the right number at the right cost. It involves
fulfilment of activities by minimizing waste of available HR, as much as possible, in terms of
number of employees, their efforts and total employee cost etc.
e) Effective utilization refers to use of HR for organizational effectiveness, which is the extent to
which goals of the organization have been realized. It involves utilization of employees so as to
accomplish goals of the organization fully. It is possible for an organization to achieve efficiency
by minimizing employment cost through reduction of employees in quantity and quality as much
as possible. However, if the relevant activities and functions are not performed successfully and
organizational goals are not attained such an efficiency will be meaningless. Hence efficiency
should be reached so as to attain organizational effectiveness.
 characteristics of HRM

1. HRM focuses on managing people.

2. It is managing people at work or employees who make up an organisation.
3. It exists within an orgorganisation.
4. It generally attempts to serve for the organisation where it is practiced, employees
working for it and society at large.
5. It is the human side of Business Administration.
6. It is a traditional functional field of Business Management.
7. It was traditionally termed as Personnel or Personnel Management.
8. It has a set of activities that focuses on effective use of employees for the
accomplishment of organisational goals.
9. It is mainly concerned with human relationships within an organisation.
10. It has policies, practices and systems influencing employees.

Significance of HRM
Human Resource Management becomes significant for business organization due to the following
reasons.

Objective :- Human Resource Management helps a company to achieve its objective from time to time
by creating a positive attitude among workers. Reducing wastage and making maximum use of resources
etc.

Facilitates professional growth :- Due to proper Human Resource policies employees are trained well
and this makes them ready for future promotions. Their talent can be utilized not only in the company in
which they are currently working but also in other companies which the employees may join in the
future.

Better relations between union and management :- Healthy Human Resource Management practices
can help the organization to maintain co-ordinal relationship with the unions. Union members start
realizing that the company is also interested in the workers and will not go against them therefore
chances of going on strike are greatly reduced.

Helps an individual to work in a team/group :- Effective Human Resource practices teach individuals
team work and adjustment. The individuals are now very comfortable while working in team thus team
work improves.

Identifies person for the future :- Since employees are constantly trained, they are ready to meet the
job requirements. The company is also able to identify potential employees who can be promoted in the
future for the top level jobs. Thus one of the advantages of HRM is preparing people for the future.

Allocating the jobs to the right person :- If proper recruitment and selection methods are followed, the
company will be able to select the right people for the right job. When this happens the number of
people leaving the job will reduce as the will be satisfied with their job leading to decrease in labour
turnover.
Improves the economy :- Effective Human Resource practices lead to higher profits and better
performance by companies due to this the company achieves a chance to enter into new business and
start new ventured thus industrial development increases and the economy improves.

Scope of Human Resource Management

The scope of Human Resource Management refers to all the activities that come under the banner of
Human Resource Management. These activities are as follows..

Human resources planning :-

Human resource planning or Human Resource Planning refers to a process by which the company to
identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to
deal with this excess or shortage.

Job analysis design :-

Another important area of Human Resource Management is job analysis. Job analysis gives a detailed
explanation about each and every job in the company.

Recruitment and selection :-

Based on information collected from job analysis the company prepares advertisements and publishes
them in the newspapers. This is recruitment. A number of applications are received after the
advertisement is published, interviews are conducted and the right employee is selected thus
recruitment and selection are yet another important area of Human Resource Management.

Orientation and induction :-

Once the employees have been selected an induction or orientation program is conducted. This is
another important area of Human Resource Management. The employees are informed about the
background of the company, explain about the organizational culture and values and work ethics and
introduce to the other employees.

Training and development :-

Every employee goes under training program which helps him to put up a better performance on the
job. Training program is also conducted for existing staff that have a lot of experience. This is called
refresher training. Training and development is one area where the company spends a huge amount.

Performance appraisal :-

Once the employee has put in around 1 year of service, performance appraisal is conducted that is the
Human Resource department checks the performance of the employee. Based on these appraisal future
promotions, incentives, increments in salary are decided.

Compensation planning and remuneration :-

There are various rules regarding compensation and other benefits. It is the job of the Human Resource
department to look into remuneration and compensation planning.
Organization of Federal Government in Pakistan