Human Resource Management
Overview
Human Resource Management (HRM) is a strategic approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service of an employer's strategic objectives.
History
The origins of HRM go back to the industrial revolution in the 18th century where issues such as child labor, poor working conditions, and employee turnover were rampant. The first personnel management department started at the National Cash Register Co. in the early 1900s. In the 20th century, concerns over labor relations, working conditions, and wage policies led to the formation of the human resource management field.
Scope
HRM covers a broad spectrum of activities including HR Planning, Job Analysis, Recruitment, Selection, Orientation, Training and Development, Performance Appraisal, and Job Evaluation. It also deals with Compensation Management, Incentives, Employee health and safety, and Grievance Handling.
Objectives
The primary objective of HRM is to ensure the availability of competent and willing workforce for an organization. Besides, there are other objectives too, like organizational effectiveness, developing team spirit and motivation, maintaining quality work life, managing change, and serving the social and ethical considerations.
Functions
The functions of HRM can be categorized into two sections: managerial functions and operative functions. Managerial functions include planning, organizing, directing, and controlling. Operative functions are related to specific activities of HRM such as recruiting, training, developing, compensating and maintaining relationships with employees.
Importance
HRM is crucial for business success for several reasons. It helps in hiring suitable candidates for the organization, training and developing employees, maintaining a healthy work environment, managing disputes, and maintaining compliance with labor laws.
Challenges
HRM faces several challenges in the modern business environment. Some of these challenges include managing workforce diversity, ensuring ethical behavior and social responsibility, managing globalization, and managing technology.
Future Trends
The future of HRM includes more focus on employee engagement, use of artificial intelligence in HRM, focus on workplace diversity, and the rise of gig economy.