Introduction

In an industrial unit, large number of persons are employed in order to conduct various operations and activities. This is treated as human resource or manpower employed. A business unit needs material resources as well as human resource for the conduct of various activities. Of all the "M"s in management (such as Materials, Machines, Methods and Money) the most important "M" stands for Men i.e., manpower working in the organization. It is through manpower/employees that all other ingredients of an enterprise-money, machines, materials, marketing, etc., are managed. In brief, Human Resource (HR) constitutes the most important and the most productive resource of an industrial / business unit.

It is rightly said that "machines are important in the production process but the man behind the machines is more important". He transforms the lifeless factors of production into useful products. Human resource (HR) is an important asset of a business unit. Well-trained, loyal and efficient team of workers brings success and stability to a business unit. This suggests the importance of human resource in business. People and the organization in which they work are inter-related and interdependent. organization moves towards prosperity only by using its available human resource purposefully. Similarly, employees get various monetary and other benefits through the prosperity of their organization.

Definition

Edwin Flippo defines- HRM 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.” 

OR

Activities undertaken to attract, develop and maintain an effective workforce within an organization.

Objectives of HRM

1. Societal objective

To be socially responsible to the needs and challenges of society while minimizing the negative impact of such demands upon the organization. The failure of organizations to use their resources for society's benefit may result in restrictions. For example, societies may pass laws that limit human resource decisions. 

HRM is essential to comply with the laws of the society such as labour law or reservation system. It is obligatory for any organization to fulfil its ethical and social responsibilities which can be done only through HRM.

2. Organizational objective

To recognize that HRM exists to contribute to organizational effectiveness. HRM is not an end in itself; it is only a means to assist the organization with its primary objectives. Simply stated, the department exists to serve the rest of the organization.

In an organization, human resource management is not an independent unit, but it is a department which aims at facilitating the other departments of the organization to function smoothly.

3. Functional objective

To maintain the department's contribution at a level appropriate to the organization’s needs. Resources are wasted when HRM is more or less sophisticated than the organization demands. A department's level of service must be appropriate for the organization it serves. 

HRM ensures that every department is supplemented with the employees possessing the required set of skills and talent, at the desired cost. It also provides for the optimum utilization of the human capital.

4. Personal objective

To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual's contribution to the organization. Personal objectives of employees must be met if workers are to be maintained, retained and motivated. Otherwise, employee performance and satisfaction may decline, and employees may leave the organization.

Besides this there are following objectives of HRM

• 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

Scope Of Human Resource Management

1. Personnel aspect

This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc.

2. Welfare aspect

It deals with working conditions and amenities such as canteens, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

3. Industrial relations aspect

This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

Nature Of Human Resource Management

1. Inherent Part of Management

Human resource management is inherent in the process of management. This function is performed by all the managers throughout the organisation rather that by the personnel department only. If a manager is to get the best of his people, he must undertake the basic responsibility of selecting people who will work under him

2. Pervasive Function

Human Resource Management is a pervasive function of management. HRM is practised at all levels of management and applies to all kinds of organisations, even to non-profit organisations.It is not a responsibility that a manager can leave completely to someone else. However, he may secure advice and help in managing people from experts who have special competence in personnel management and industrial relations

3. Basic to all Functional Areas

Human Resource Management permeates all the functional area of management such as production management, financial management, and marketing management. That is every manager from top to bottom, working in any department has to perform the personnel functions.

4.People Centered

Human Resource Management is people centered and is relevant in all types of organisations. It is concerned with all categories of personnel from top to the bottom of the organisation. The broad classification of personnel in an industrial enterprise may be as follows : 

• Blue-collar workers (i.e. those working on machines and engaged in loading, unloading etc.) and white-collar workers (i.e. clerical employees)

• Managerial and non-managerial personnel

• Professionals (such as Chartered Accountant, Company Secretary, Lawyer, etc.) and non- professional personnel.

5. Personnel Activities or Functions

Human Resource Management involves several functions concerned with the management of people at work. It includes manpower planning, employment, placement, training, appraisal and compensation of employees. For the performance of these activities efficiently, a separate department known as Personnel Department is created in most of the organisations.

6. Continuous Process

Human Resource Management is not a ‗one shot‘ function. It must be performed continuously if the organisational objectives are to be achieved smoothly.

7. Based on Human Relations

Human Resource Management is concerned with the motivation of human resources in the organisation. The human beings can‘t be dealt with like physical factors of production. Every person has different needs, perceptions and expectations. The managers should give due attention to these factors. They require human relations skills to deal with the people at work. Human relations skills are also required in training performance appraisal, transfer and promotion of subordinates.

8. Result Oriented

It aims at achieving organisational objectives through the optimum utilisation of human resources.

9. Tactful Approach

HRM deals with the people who are distinct from one another; thus the manager needs to apply diverse strategies and tactics at different point of time and in different situations.

10. Integrative Action

It focuses on maintaining cordial relations among the employees at different levels and also addresses employee grievances.

Importance Of Human Resource Management

1. Fulfil the Human Resource Requirement

Human resource management fills in the gap between the vacancies in the organisation and the suitable candidates for such positions.

2. Employee Retention

HRM not only functions to acquire the manpower but also concentrates on the maintenance and retention of the human capital.

3. Enhance the Quality of Work Life

It focuses on the continuous enhancement of the job facilities, hence improving the quality of employee’s work life.

4. Redressing Grievance and Conflict

HRM addresses the problems among employees or with the management since it is essential for any organisation to resolve its internal conflicts and grievances to ensure a sound and co-operative work environment.

5. Achieving Organizational Goals

To reach the set objectives and targets on time, it is necessary to direct the employee’s efforts towards the organisational goals. All this is possible only through the practice of human resource management.

6. Long-term Existence in the Market

As we all know that employees are the inevitable part of any organisation, therefore to survive in the competition, it is imperative that the organisation brings HRM into functioning.

7. Developing Team Spirit and Feeling of Belongingness

It brings together the different employees as a team to accomplish the goals of the organisation. HRM also make the employees feel valuable to the organisation.

8. Employee Satisfaction and Welfare

HRM works for the welfare, safety and security of the organisation. It is majorly concerned about the level of satisfaction derived by an employee from his job.

Challenges of Human Resource Management (HRM)

The human resource managers go through many obstacles in the management and development of the human resource, all due to the emergence of new technology and the changing of political and socio-economic conditions. To get an overview of these challenges, read further:

1. Growing Employee Expectations

With the learning of new skills and better qualification, the employee’s expectations keep on increasing, and at times it is difficult for managers to meet such high expectations.

2. Growing Size of Workforce

With the growth of any organisation, the workload increases and the number of employees also multiply. This leads to the excessive workload on the human resource manager and the HR team.

3. The emergence of New Technology

The technological advancement has though simplified the business process but has emerged as a challenge in front of the managers to either provide training to their old staff or seek for the new talent.

4. Internal Politics

Sometimes, the human resource manager has to face situations where employees either mislead or influence other employees to restrict them from performing their task if the problem pertains the organisation may experience employee turnover or resignations.

5. Human Psychology

HRM somehow deals with human psychology and its impact on the business which is a complex system and unlike the problems related to other physical resources and assets, have no particular solution.

6. Changes in Law and Regulations

To safeguards the interest of employees, government bring in specific rules and regulations which have to be followed by organisations. At times, it is difficult for the HR manager to adhere to such laws.

7. Maintenance of Human Relations

A human resource manager not only acts as a mediator between the management and the employees but also tries to maintain a cordial relationship among the two, which requires a lot of tactics and diplomacy.

References

• P.Subba Rao, Essentials Of Human Resource Management And Industrial Relations, Himalaya Publishing House, Edition 2014

• https://www.linkedin.com/pulse/nature-human-resource-management-monty-west/

• https://theinvestorsbook.com/human-resource-management-hrm.html