HUMAN RESOURCE MANAGEMENT (HRM)

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MEANING OF HRM
HRM is a management function that helps organisation to recruit, select, train, develop and manage its members. Simply stated, HRM is all about management of people in the organisation from Recruitment to Retirement. HRM refers to set of programs, functions, and activities designed and carried out in order to maximise both employee as well as organisational effectiveness.

Definition 1
“HRM is planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.”

Definition 2
“HRM is concerned with the people dimensions in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels 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 the organization – government, business, education, health, recreational, or social action.”


SCOPE OF HRM
From Entry to Exit or Recruitment to Retirement of an employee in the organization

Following are the areas of operation of HRM:
1. Human Resource Planning
2. Job Analysis
3. Job Design
4. Recruitment & Selection
5. Orientation & Placement
6. Training & Development
7. Performance Appraisals
8. Job Evaluation
9. Employee and Executive Remuneration
10. Motivation
11. Communication
12. Welfare
13. Safety & Health
14. Industrial Relations


CHALLENGES OF HRM IN INDIAN ECONOMY

The job of HRM department in India has never been so challenging. Last decade has witnessed tectonic shift in Job market. From being an employer’s market, it has suddenly turned into employee’s market, especially in the most crucial segment, ie middle management. Globalisation and India’s growing stature in the world has seen demand for Indian managers soaring. From the state of plenty, there is a stage of scarcity of the right talent. The biggest challenge is to retain the talent one has so assiduously hunted and trained. The attrition rate has reached alarming proportions