HRM refers to people management in such a way that they are committed, integrated
and contributing to the objectives of the Organization. It also makes sure that they
stay with the Organization for fairly a long time (low attrition rate) though not wedded
to the Organization. Let us see the process of defining HRM that leads us to two
different definitions. The first definition of HRM is that it is the process of managing
people in Organizations in a structured and thorough manner. This covers the fields of
staffing (hiring people), retention of people, pay and perks setting and management,
performance management, change management and taking care of exits from the
Company to round off the activities. This is the traditional definition of HRM which
leads some experts to define it as a modern version of the Personnel Management
function. The second definition of HRM encompasses the management of people in
Organizations from a macro perspective i.e. managing people in the form of a
collective relationship between management and employees. This approach focuses
on the objectives and outcomes of the HRM function. What this means is that the HR
function in contemporary Organizations is concerned with the notions of people
enabling, people development and a focus on making the “employment relationship” fulfilling for both the management and employees. Changes are happening at a faster
pace rather exponentially in the business influencing the environment within the
Organization. The human resources of an Organization should be capable of adopting
and/or adapting to the changes quickly. This necessitates the Organizations to ensure
that they have the right people capable of facing the business challenges effectively.
Management of these resources therefore is an integral part of business success.
The efficient and effective management of human resources results in;
and contributing to the objectives of the Organization. It also makes sure that they
stay with the Organization for fairly a long time (low attrition rate) though not wedded
to the Organization. Let us see the process of defining HRM that leads us to two
different definitions. The first definition of HRM is that it is the process of managing
people in Organizations in a structured and thorough manner. This covers the fields of
staffing (hiring people), retention of people, pay and perks setting and management,
performance management, change management and taking care of exits from the
Company to round off the activities. This is the traditional definition of HRM which
leads some experts to define it as a modern version of the Personnel Management
function. The second definition of HRM encompasses the management of people in
Organizations from a macro perspective i.e. managing people in the form of a
collective relationship between management and employees. This approach focuses
on the objectives and outcomes of the HRM function. What this means is that the HR
function in contemporary Organizations is concerned with the notions of people
enabling, people development and a focus on making the “employment relationship” fulfilling for both the management and employees. Changes are happening at a faster
pace rather exponentially in the business influencing the environment within the
Organization. The human resources of an Organization should be capable of adopting
and/or adapting to the changes quickly. This necessitates the Organizations to ensure
that they have the right people capable of facing the business challenges effectively.
Management of these resources therefore is an integral part of business success.
The efficient and effective management of human resources results in;
- High productivity - increased profits – growth - increased market value
- Enhanced company image - customer satisfaction
- Healthy organizational climate and culture - effective communication
- Competitiveness and development orientation