Main Functions of HRM

The discipline of HRM (Human Resource Management) is also known as Staffing or Personnel Management. HRM main functions or activities are broadly divided into following processes: -

Acquiring – Recruiting people

Training – Orientation and training for employees

Appraising – conducting performance appraisal, job analysis

Compensating – (Managing employees wages and salaries, rewards, incentives and benefits)

Labor Relations – Health, Security and equality concern.

What is human capital?

Human capital some time refers as intellectual capital is not limited to the employees or people working in an organization, instead it include on the following competencies and skills that people deliver to the organizations: -

Ø  Knowledge

Ø  Creativity

Ø  Skills

Ø  Decision making

Ø  Experience

Ø  Thinking

Ø  Ideas generating

What is Definition (s) of HRM (Human Resource Management) by different authors?

There are various definitions of HRM given by the HR experts are presented here:-

Human Resource (HR) management is designing management system to ensure that human talent is used effectively and efficiently to accomplish organizational goals.

Human Resource Management, 12th Edition (By Robert L. Mathis. John H. Jackson)

HRM is “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.”

(Edwin Flippo)

Human resource management is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of Cultural, structural and personal techniques.

(John Storey, 1995)


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, ensure that the agreement is fulfilled. (They named it as Personnel Management)

(Torrington and Hall)

The policies and practices involved in carried out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and apprising.

(HRM, 11^th Edition by Gray Dessler, Biju Varkkey)

Why HR management is necessary?

Managed and organized human resource is necessary to face real world challenges and for successfully competing in the marketplace and to deliver the best products and services to the customers to achieve customer satisfaction for ultimate success. Therefore HR management is very important to get results which are bottom line for managing:

• To fulfill the legal requirement of government regulations to avoid any penalty on the company by law. 
• To find the best employees. 
• Talent management and employee development 
• HR management helps organization to build a creative and industrious work environment with the productive human resource. 
• To retain employees 
• For Employee motivation 
• To decrease turnover rate 
• Increase effectiveness of organization with potential employees 

Usually in small organization a line manager may be perform all personnel management duties and HR activities but as the size of the organization grow in terms of sales, structures, employees, office networks, financial and non financial capital increases the organization need assistance, specialized knowledge and advice from a proper human resource management professional and staff. Thus the company established HR department separately to handle HR related problems and issues.

Criticism and Problems in HRM

The HR Managers and HR Department of an organisation has to confront many possible criticisms and problems like the following: 

• Ineffectiveness of Performance appraisals
• HR compliance the orders of CFO to reduce salaries and benefit? Which increase the turnover rate and organization lose its precious capable and experience human resource.
• HR insistence on equal dealing all employees, whether an employee deliver the best results or output or an employee performed poorly, this behavior of HR often protects poor performers and discourage and unpreserved the high performers.

Importance of Human Resources (Employees) Or Importance of Human Capital

Human resource or people working as employees in an organization are the most precious input to achieve organizational objectives. Other resources like Plants, Machinery, technology, buildings, vehicles, computers and equipments, land and capital contribute in the success of an organization but to achieve sustainable development and success at profit Human Resource (people) play very important role.

            A business may have one or all resources listed in the above paragraph but what make an organization different from the other organization? Yes, Human Resource (Workers), because managerial skills, technical knowledge, innovation thought of Human Resource create a clear difference between organizations and companies.

Organizational Resources and Assets

There are five major types of resources or assets that play vital role in success of any organization, are given in the diagram:

1.	HR (Human Resource)	Productive, Creative, Experienced, devoted and professional employees
2.	Tangible Resources	Manufacturing Plants, Machinery, Building, Land, automobiles, Ships and Aero planes and Computers etc
3.	In-Tangible Resources	Business processes, exclusive researches Patents, Information Systems, Designs etc
4.	Financial Resources	Cash, Marketable financial securities, stocks and bonds, financial Certificates etc
5.	Non-Financial Resources	Market Reputation, Recognitions, Awards, Market Ranking etc

HR Relationship with operation Managers

Operation managers like sales managers or manufacturing managers cooperate with HR department to apply the HR polices and processes. The level of cooperation of other departments with HR is depends on the size of organization or as directed by the top management.

Definition of Marketing

There are various definition of marketing but the most famous of them is related to the Kotler  as he said :

"Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others."(Kotler)

It is a management process which identifies, anticipates and satisfies customer requirements profitably. The Chartered Institute of Marketing (CIM).

The compnay who follow right marketing strategy which is (Social Marketing) in which customer is always right and the corporate soical reponsibility must be oberserved. Marketing is not limited to advertisement which some people think so. If we ask about definition of marketing from common people there answer would be limited to the following line:

• Some may say marketing is advertisement.
• Some define it as a media publicity
• Few people tell that marketing is printing material obout the company's products.

All of the above defintions limited because advertisement, product promotion or publicity through electronic or print media is very tiny part of markeing but the comprehesive defintion is what is defined at the top given by Kotler.

What is HRM? or What is Human Resource Management or Introduction to Human Resource Management

HRM (Human Resource Management) is one of the important function of the Five major functions of Management. These functions are are : -

Five Functions of Management


1.   Planning
2.   Organizing
3.   Staffing (HRM)
4.   Leading
5.   Controlling

The concept is well illustrated in the Management and HRM Relationship Model here: -

HRM in Five Management Functions 

So HRM (Human Resource Management) falls at third number of the Management Function and its usually know as Staffing. This functions is generally covers recruitment, hiring, training and development for employees, compensations, performance appraisal.

General idea about HRM

The approach of HRM enable employer to develop a management system to achieve organizational objectives at profit, to create competitive advantage and value creation for shareholders.

Importance of HRM (Human Resource Management) in Organizations

The discipline of HRM kept strategic importance for the buisness organizations. Some of you might asked very genuine question that how ? 

The answer to this question is human resource is the most important resource for the companies as compare to other resources like Financial Assets, Buildings and Products, Automobiles, Market reputation (Tangible or non tangible). Because these people plan, develop, work and devoted themselves for the success of the organization if rightly selected and keep managed continuously

To ensure the success, the HRM department of an organization must hire and recruit the most optimal workforce by following best practices of HRM and then compensate, carried out performance appraisal, arrange training and development programs to achieve organizational goals. 

In the opposite direction if the management fail to apply any recommended approaches in the practice of hiring, firing, compensating, or any other HR element, this will lead to company failure and cost it heavily.

Therefore a proper and practicing HRM department in a business organization is very crucial to meet the real world challenges like globalized competition, for increasing shareholders wealth, to fulfill social responsibilities etc.