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Class notes Bachelor of business administration and management (BBAM) 1. Dessler, G., 2002. Human Resource Management, Prentice Hall, London 2. Torrington, D and Laura Hall, 2004. Human Resource Management, Prentice Hall, New York 3. Fli

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NOTES ON THE NATURE AND SCOPE OF HUMAN RESOURCE MANAGEMENT

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Human Resource Management (HRM)
Definition of Human Resource Management (HRM)
There exist many definitions of human resource management (HRM).HR
experts define HRM from different perspectives.
Few important definitions are presented below:
 HRM deals with the design of formal systems in an organization to ensure
the effective and efficient use of human talents to accomplish
organizational goals (Mathis and Jackson, 2005).
 Dessler (2003) defines HRM as a process of acquiring, training, appraising,
and compensating employees, and attending to their labor relations,
health and safety, and fairness concerns.
 According to Gary Dessler, “Human resource management is the process
of acquiring, training, appraising and compensating employees and of
attending to their labor relations, health & safety and fairness concerns. ”

Features of Human Resource Management
HRM is pervasive
HRM has universal application. That is, it can be used for business as well as
for other organizations such as schools, colleges, hospital, religious
organizations, etc.
Development of HRM covers all levels and all categories of people, and
management and operational staff. It is pervasive also because it is required in
every department of the organization. All kinds of organizations, profit or non-
profit making, have to follow HRM.
HRM is a process
HRM is a process involving four important functions like acquisition,
development, motivation, and maintenance of
HRM is a continuous process
HRM is not a one-time process. It is a continuous process. It has to
continuously change and adjust according to the changes in the environment,
and changes in the expectations of the staff, etc. HRM has to give continuous
training and development to the staff due to changes in technology.
HRM is a service function
HRM is not a profit center. It serves all other functional departments. But the
basic responsibility always lies with the line managers. HRM is a staff function –
a facilitator.
The HR Manager has line authority only within his own department but has
staff authority as far as other departments are concerned.
HRM must be regulation-friendly.
The HRM function has to be discharged in a manner that legal dictates are not
violated.
HRM is Interdisciplinary and fast changing
It is about welfare, manpower, personnel management, and keeps close
association with the employee and industrial relations. It is a multidisciplinary
activity utilizing knowledge and inputs from psychology, sociology, economics,
etc.
HRM is Focused on results
HRM is performance oriented. It has its focus on results, rather than on rules. It
encourages people to give their 100%. It tries to secure the best from people
by winning the wholehearted cooperation.

, HRM is People-centered
HRM is about people at work both as individuals and a group. It tries to help
employees to develop their potential fully.
It comprises people-related functions like hiring, training, and development,
performance appraisal, working environment, etc. HRM has the responsibility
of building human capital.
People are vital for achieving organizational goals. Organizational performance
depends on the quality of people and employees.
Human Relations Philosophy
HRM is a philosophy and the basic assumption is that employees are human
beings and not a factor of production like land, labor or capital. HRM recognizes
individuality and individual differences.
HRM is an Integrated Concept
HRM in its scope includes personnel aspect, welfare aspect, and industrial
relations aspect in itself. It is also integrated as it concerns with not only
acquisition, but also development, utilization, and maintenance.
HRM Develops Team Spirit
HRM tries to develop the team spirit of the full organization. Team spirit helps
the staff to work together in achieving the objectives of the organization.
Nowadays more importance is given to teamwork and not to individuals.

Functions of HRM
1. Recruitment.
2. Performance Appraisals.
3. Maintaining Work Atmosphere.
4. Budget Control.
5. Conflict Resolution.
6. Training and Development.
7. Employee Satisfaction.
8. Cost Savings.
9. Performance Improvement.
10.Sustaining Business.
11.Corporate Image.

Nature of HRM
Human Resource Management brings organizations and people together so
that the goals of each are met. The nature of HRM includes:
Broader function.
Human Resource Management is a comprehensive function because it is about
managing people in the organization.
People oriented.
HRM is the process which brings people and organizations together so that
their goals can be achieved.
Action-oriented.
Human resource management believes in taking action in order to achieve
individual and organizational goals.
Development-oriented.
Development of employees is an essential function of human resource
management in order to get maximum satisfaction from their work so that they
give their best to the organization.

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