Topics: Human resource management, Management, Human resources Pages: 13 (3266 words) Published: March 19, 2014
Concept of HRM

Human resource management means management of people at work. HRM is the process which binds people with organizations and helps both people and organization to achieve each other’s goal. Various policies, processes and practices are designed to help both employees and organization’s to achieve their goal.

Human resource management is branch of management that deals with people at work, it is concerned with the human dimensions of management of the organization. As organization consists of people, therefore acquiring them, developing their skills, providing them motivation in order to attain higher goal and ensuring that the level of commitment is maintained are the important activities.

Human resource constitutes of all the management decisions responsible for relationship between organization and employees. HRM is the field of management which plans, organizes, controls the functions of procurement, development, maintenance and utilization of the work force so that. 1. Organization goals can be accomplished.

2. Objectives of human resources can be accomplished
3. Objectives of society can be accomplished.

According to Flippo, Human Resource Management is:
"The planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished" Human resource management can be concluded as a business oriented philosophy concerned with the management of people in order to obtain added value from them and achieve competitive advantage.

Concept of SHRM
The concept of strategic human resource management (strategic HRM) and the processes involved in: - strategic HRM defined;
- the meaning of strategic HRM;
- the aims of strategic HRM;
-approaches to strategic HRM;
- limitations to the concept of strategic HRM.

Strategic HRM defines the organization’s intentions and plans on how its business goals should be achieved through people. It is based on three propositions: first, that human capital is a major source of competitive advantage; second, that it is people who implement the strategic plan; and, third, that a systematic approach should be adopted to defining where the organization wants to go and how it should get there.

Strategic HRM is a process that involves the use of overarching approaches to the development of HR strategies, which are integrated vertically with the business strategy and horizontally with one another.

These strategies define intentions and plans related to overall organizational considerations, such as organizational effectiveness, and to more specific aspects of people management, such as resourcing, learning and development, reward and employee relations.


Strategic HRM focuses on actions that differentiate the firm from its competitors (Purcell, 1999). It is suggested by Hendry and Pettigrew (1986) that it has four meanings:

- the use of planning;
- a coherent approach to the design and management of personnel - systems based on an employment policy and workforce strategy and - often underpinned by a ‘philosophy’;
- matching HRM activities and policies to some explicit business strategy; - seeing the people of the organization as a ‘strategic resource’ for the - achievement of ‘competitive advantage’.

HRM in Australia
Planning and the development of an HR strategy is a critical part of the HR process.  It is important that all HR processes and initiatives are developed as part of an overall people strategy which is aligned with, and designed to assist in the achievement of, the organisational strategy and goals.   A key part of the HR planning role is the development of a workforce plan.  This plan is a design for the organisation to attract, retain and develop the workforce required in order to the...
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