1.1 Concept and Definition of HRM
Concept of HRM
HRM is concerned with the human beings in an organization. “The management of man” is a very important and challenging job because of the dynamic nature of the people. No two people are similar in mental abilities, tacticians, sentiments, and behaviors; they differ widely also as a group and are subject to many varied influences. People are responsive, they feel, think and act therefore they can not be operated like a machine or shifted and altered like template in a room layout. They therefore need a tactful handing by management personnel.
HRM is the process of managing people of an organization with a human approach. Human resources approach to man power enables the manager to view the people as an important resource. It is benevolent approach to develop effectively utilize the manpower not only for the benefits of the organization but for the growth development and self satisfaction of the concerned people. Thus, HRM is a system that focuses on human resources development, on one hand and effective management of people on the other hand so that people will enjoy human dignity in their employment.
HRM is involved in providing human dignity to the employees taking into account their capacity, potentially, talents, achievement, motivation, skill, commitment, great abilities, and so on so that their personalities are reckoned as valuable human beings. If an organization can trust and depend and draw from their bank account or on the strength of their capital assets, they can trust depend and draw more on their committed, talented, dedicated and capable people. This is what the HRM is involved in every business, managerial activity or introduction. The principal component of an organization is its human resource or ‘people at work’. Human resources have been defined from the national point of view as, “the knowledge, skills, creative abilities, talents and aptitudes obtained in the population; whereas from the view point of the individual enterprise, they represent the total of inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees.”
It is this human resource which is of paramount importance in the success of any organization because most of the problems in organizational setting are human and social rather than physical, technical or economical failure to recognize this fact, cause immense loss to the nation, enterprise and to the individual. In the words of Silver Shelden, “No industry can be rendered efficient so long as the basic fact remains unrecognized that it is principally human.
Human Resources Management is concerned with the “people” dimension in management. Since every organization is made up of people acquiring their services, developing their skills, motivating them to high level of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true regardless of the type of organization, government, business, education, health, recreation or social action. Getting and keeping good people is critical to the success of every organization, whether profit or non-profit, public or private.
Evolution of Human Resource Management
The Royal Commission on Labor set up from 1929 to 1931 to examine the situation recommended the appointment of labor officers and other changes. The suggested changes led to the bringing in of standardization and that was the first step toward introducing personnel management, Formation of trade unions, with close links with political leaders like Mahatma Gandhi (the Textile Labor Association in Ahmedabad was founded in 1920), also influenced the way industrial workers are managed. This focus made an adequate number of employees available to the industry, disciplined the “rural” and “less educated workers” and implemented various legislations and settled...
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