Hello everyone, in the previous topic we were talking about Liberalization. Today we are going to talk about Human Resource Management (HRM).

What is the meaning of Human Resource Management (HRM)?

Human Resouce Management or HRM can be defined as the management of human resources by- 

1. Attracting
2. Developing
3. Utilizing
4. Retaining

The human resources to achieve the Company’s objective.

What are Resources?

Resources are the input required to produce something and the final results could be goods or services.

Some examples of Input or results are-

1. Land
2. Capital
3. Raw material
4. Electricity
5. Machine
6. Technology
7. People

The most important resource is people because it is the people who manage all the resources.  It is the people who set the vision for Company, plans for it, and execute it. People are the most important resource for the Company and they are referred to as the human resources of the Company.

In this regard Henry Ford the founder of Ford motors Companies has said-

“You can take my factories, burn up my buildings, but give me my people and I will build the business right back again. – Henry Ford

In other words, Human resources refer to the workforce or the people working in an organization. These people could be permanent employees or interns or could have a contractual position in the Company.

What is HRM?

Human Resouce Management or HRM can be defined as the management of human resources by- 

1. Attracting
2. Developing
3. Utilizing
4. Retaining

The human resources to achieve the Company’s objective.

Or in other words, Hiring Human Resources effectively and efficiently managing them to achieve the Company’s objective is known as HRM.

Four functions of HRM are-

Attracting

Attracting is meant to get the attention of people when we want to hire them. We can attract the people by telling them about the job profile, the Company, the Compensation, etc., and choose the correct people to full fill the Company’s requirements.

For e.g– Colleges required teachers and so they post the open requirement for hiring them.

Developing

Sometimes the new candidate we hire for the role was the existing employee needs to be up to skill for various reasons. In such cases, HR helps in arranging necessary training for these people so that the skills gap between the expectations of the role and the skills of the employee can be filled.

For e.g – Because COVID-19 teachers are teaching online instead of in the classroom but they are not trained to teach at platforms such as – Zoom, Google meets, Microsoft team, etc.

So the teachers need to be trained to use these online tools or software for these the HR can arrange or the experts either internally or externally who can train the teachers on using the online tools.

In these cases, the teachers can be developed to deal with such situations by training them. Now you must be thinking when talk of employee or HR,s we usually refer to companies but it’s not so you can think of educational institutions or nay organization where people work as a company and the people who work in them are their employees.  

Utilizing

In simple words, it means to give tasks or works as per the strength and weaknesses of the workforce and the current requirement.

For e.g- We hire two HR’s – HR (A) who is very good with numbers and HR (B) who is exceptional communication skills and they both hired for the same role but the HRM function involve a lot of things to do, so we can ask person A to take care of payroll process which is the task of managing the wages of each employee while the other person B can be asked to give presentations when needed to auto-build a rape over the employee, etc. this is what we meant by utilizing.

Retaining

HR has the responsibility of making sure of the employee of the company continue to work for the company. Therefore, it is important that the employee has enough incentives and a good working condition so that they continue to work with the company.

e.g- We don’t want teachers to change frequently because it does not give a very good impression to the college and it will also take time to hire and train to stay since we will improve the learning experience of the student. Hence to retain teachers the college may give a better salary, better flexibility teaching hours, give more paid leaves, etc.

Nature and Scope of HRM

Nature

HRM is both an art as well a science too. HRM is a science because of the multidisciplinary organizational function that draws inspiration from various fields such as management, psychology, sociology, and economics.

It is art too because there is no best and standard way to manage people because people are complex creatures with complicated needs, desires, and moods. Hence, HRM is both an art and science in nature.

For e.g– Everyone has a different way of building a repo with another person or for getting work done by others. One of the reasons for this is that it is the management of people it shows that it is an art of getting work from others.

Scope

In scope, we can look at the two things-

1. How the work of HR evolves with the growth in the size of the company.
2. Salary of an HR.

How the work of HR evolves with the growth in the size of the company

Let’s says that there is a new company Grooming Urban and the founder of this company is Kumar Shanu Sinha and Sneha Kriti and they had just started to the company and they are the only human resources initially.

They are handling marketing, finance, website and all.

Now let’s assume they hire one more person Sourav to support them in marketing for promoting and attracting more people to their company Grooming Urban.

Now let us talk about the four functions again keeping in mind that grooming urban has only three people right now Shanu and Sneha share their experiences to attract and reach more people. So, they tell Sourav to be more confident and how to attract or convince people, etc. Now, utilizing you can give tasks as per strength and weakness and as per the current requirement.

So, if Shanu and Sneha feel that the company needs more visitors they can ask Sourav in that aspect else, that they believe that the company needs to promote the company and make aware people of their company then they can ask Sourav to focus on that aspect.

Next, come retaining so Shanu and Sneha make Sourav comfortable so he doesn’t leave. When the numbers of the employees are less, then the CEO or the owner will end up having more personal connection with the team in this case Sourav. So, Shanu and Sneha open enquire of the health Of Sourav family, etc.

In short, this HR function was taken care of by Shanu and Sneha by themselves.

Now the company goes further and hires 6 to 10 more people. Now either Shanu, Sneha, or Sourav can look after hiring, developing them utilizing them, and retaining them by solving their grievances and motivating them.

Now we are talking about the departments where HR is needed as the company grow further-

1. HR in technology department
2. HR in marketing department.
3. HR in customer support.
4. HR in HR department.

HR Department is further divided in many sub HR departments such as-

• Requirement team
• Learning and Development team.
• HR generalist- HR generalist has an overall view of all HR functions.
• Department of labour laws and compliance.

Basically, all the function of HR is done by a specialized department. This is how HR evolves with the growth in the size of the company and there are the scope and sector where HR is needed.

Salary of an HR

For an entry-level HR, the salary is usually 15k to 30k per month. 15k usually for small companies and 30k for usually big companies. This is for graduates coming from tier 2 colleges.

If you do graduate from the top management institution then your entry-level salary is 50k to 83k per month and an easy entry point in the HR domain is a requirement since a lot of companies required recruiters to handle this function and the expectation was not too high.

This is because recruitment takes a lot of time and also more HRs depending on how many positions are to be closed and how much time and the same time the good are the way to grow in the field is to be practice in learning about the other functions you can try to get a role of an HR generalist but since there are less opening for that role you can start of the recruitment and then make your way up.

Moving on an average HR with 10 years of experience gets about 12 LPA while those who are very proactive will make up to 60-80 LPA if they have the experience of 10 years. So remember if you want to succeed in the HR domain be proactive.

Evaluation of HRM and Some Common Terms

Simply ask yourself if the current form of HRM is the same as how it started? the simple answer is no. Keeping these in mind let us understand the evaluation of HRM to understand this field better. In simple words, HRM is managing people working in the organization.

Now we talk about managing people or dealing with the human psychic the basic concept will remain the same whether it is about managing people within your family or managing people in an organization.

So, when your father or mother manages the children or family or when a king or when a queen manages his or her subjects it can all be seen as a precursor to human resources management. Hence, we can say that the concept of HRM  has existed since the birth of the human race.

Evaluation of HRM

However now firstly we learn about how evaluation of HRM takes place. So here are some terms which show the evaluation of HRM-

1. Industrial Revolution Era

The current form of HRM was taken inspiration from the industrial revolution era. Before this, there were small commercial units and mainly the family participated in the work. But the era of industrial revaluation introduces machinery and thus, began the employment to take the large workforce.

This era started in the UK in and around the 1850s the basic philosophy which guided the management of the new workforce is the part of the master-servant relationship that is at this time the owners saw the employees as linear servants who could be treated as the owner desired in shorts they are considered as the machines.

2. Trade Union

After the industrial era, most of the workers realized that the owners of the factories or the top management exploited them and so to safe got themselves they began forming groups These formal groups or associations are called Trade Union.

Some common issues this union talking about was the number of working hour, rest periods, working conditions, wages, receive, type of work, etc.

To bring this issue to the top of managing the trade union use some needs such as strikes, slowdowns, boycotts, walkouts, and sometimes even physical force. Condition improves and factories owners started giving better treatment to workers.

3. Scientific Management Era

The key principle here is replacing the rule of thumb or institution with science this meant they start the scientific selections and training method, so science and not institution was used for selecting and hiring the right candidate and also for training them when we say scientific methods or science we will not include some formula or lab experiment what we mean is instead of hiring people based on liking or paying institution people use methods like what qualities do I need in my employee and then seeing. The candidate who is being hired has those qualities or not also science is used for determining a fair day’s work etc.

4. Industrial Psychology

So, now jobs started to be analyzed in terms of mental and emotional requirements and testing devised starting developing to testing this after that person realizing that the psychological factor also has an importance in improving worker productivity hence, industrial psychology started gaining popularity.

5. Human Relation Era

In the 1920s a trend began which can be praised as being nice to people this trend was eventually termed the human relations era people started believing that in order to increase productivity management should be taken care of human relations besides taking care of the physical condition of the workplace. In this era, people believe that a happy worker is a productive worker.

6. Behavioral Science Era

Enough managing involves getting things done with and through people the study of management must be centered around the people and the interpersonal relations manager contribution made by behavioral scientists area in the areas of leadership, motivation, organizational culture, communication, individual and group dynamics, etc. These are all indirect ways to improve productivity.

7. Human Resource Management Era

So, now we are going to cover was comes under a broad heading personnel management moving on during the period of 1952 to 1980 the scope of personnel management expanded considerably throughout the world.

The task of the personnel manager which is confined mainly to the requirement of the workers extended to development, compensation, performance management, and maintenance of personnel.

Personnel management was no longer restricted only to the wage earners of the factories it becomes equally important to offices, sale organizations, hospitals, non-profit organizations, government offices, and even in army forces after many more changes comes in the HRM era so we are now shifted to personnel management to human resource management in this era. The human resource era is an important factor when it came to the competitive advantages of the company.

8. Human Capital Management Era

It is expected that the future of this era is Human Capital Management Era. Here we look at human resources or people working for an organization as intellectual people instead of just hit counts we are not just concerned with numbers here but with the intellectual, because ultimately it is the human capital all the intellectual which does the work. It is the human capital that gives a competitive advantage to the company this concept is not popular for now but it is expected to get popularity in the future.

Some Common terms of HRM

Here are some common terms of HRM given below-

1. Industrial Relation

It means maintaining good relations between employees. This term is usually used when we are talking about maintaining relations with the trade for the union.

2. Personnel Management

Personnel Management covers only the administrative functions.

3. Human Resource Management

Human Resource Management includes both administrative functions and strategic planning.

So, we can say that the HRM or the Human Resource Management covers personnel management that is the admin tasks such as the leave management salary processing as well functions related to strategic planning such as training and development, employee motivation, improving productivity, industry and employee relation, labor law and compliances, etc. Hence, personnel management is now an outdated term since it is narrow while the term HRM is more inclusive and broad.  

So, that is all for today guys see you in our next blog. If you like our article please don’t forget to share with others & follow our Instagram page for your daily dose of Motivation.

Thank You,

Regards

Grooming Urban

General FAQ