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What is Human Resource Management (HRM)? Objectives, Functions & Difference Between HRM and PM

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Human Resource Management (HRM) sees all people as organizational assets and internal customers, besides working for employees job satisfaction, employee efficiency, and greater effectiveness. HRM aims to focus on internal sources of competitive advantage. Here we will discuss HRM objectives, importance, scope, and Difference between HRM & PM.

# What is HRM?

Human resource management (HRM) is defined as the process of managing employees in a company and some elements include hiring, training, compensation, and motivating employees. HRM is a formal system designed to manage employees and other stakeholders within a company. The main objective of HRM is the best way to increase the productivity of an organization through its employees. Despite the ever-increasing revenge in the corporate world, no change in the role of HRM is possible.

# Objectives of HRM

8 Objectives of Human Resource Management (HRM)

  • The objective of HRM is to help the organization achieve its goal by providing well-trained and motivated employees.
  • To employ the skills and knowledge of the employee efficiently and effectively.
  • Increase job satisfaction and self-realization by encouraging and helping every employee to release their potential.

  • To maximize the development of members of the organization by providing training and development opportunities.

  • Development and maintenance of the quality of work line

  • Maintain high morale and good human relations with the organization.

  • Helping to maintain ethical policies and behavior inside and outside the organization.

# How does HRM work?

Human resource management is performed by dedicated HR professionals, who are responsible for the day-to-day execution of HR-related tasks. Most human resources will include a full department within each organization. Human resources departments of different organizations may differ in the size, structure and nature of their individual positions. For small organizations, it is not uncommon for some HR generalists to have a wide range of HR functions. Larger organizations may have more specialized roles, such as individual employees dedicated to tasks such as recruitment, immigration and visas, talent management, benefits, compensation, and more. Although these HR positions are differentiated and specialized, job functions may still overlap with each other.

# Scope Of HRM

The role of an HR professional comprises developing and managing their company’s culture. HRM is a mighty disciplinary subject including-

  • Personnel aspect – Concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity, etc.
  • Welfare aspect – It deals with working conditions and amenities such as canteens, rest and lunchrooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

  • Industrial relations aspect – This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

#  Importance of HRM

Human resource management is a very important function in every organization because, without human resource management, companies will not be able to recruit and retain their employees effectively, HRM is required in an organization and workplace culture. These are some more importance of HRM:- 

  • HRM regularly helps the company achieve its objectives by developing a positive attitude among employees.
  • HRM is important because it aims to attract the right type of people during recruitment.

  • HRM motivates employees through its performance evaluation process.

  • They help in providing excellent training for the employees.

  • They follow a certain set of protocols to select the right candidate for a certain task.

  • It is also important because they develop an awareness of the workplace and provide details about it.

  • They provide the right job according to the expertise of the employee.

  • HRM plans succession that leads the organization to success in the future.

# Who is Responsible for HRM?

Managers are mostly responsible for human resource management in the organization. It is the top-level manager for the administration of all HR activities. Directors oversee functions such as compensation, benefits, staffing, affirmative action, employee relations, health and safety, and training/development, etc. They are well looked after by professional HR staff and are very helpful in enhancing the system.

# Benefits of HRM

Here are the Benefits of HRM:

  • It helps to build teams in an organization.
  • It helps in building organizational culture and values
  • It gives quality Employees Hiring and Training
  • HRM takes care of the performance management system
  • HRM helps manage conflict between employer and employee
  • It affects the overall productivity and profitability of a business organization
  • It handles disputes and resolves all questions of the workforce from time to time.

# Difference Between Human Resource Management and Personnel Management 

MeaningThe branch of management that focuses on the most effective use of a unit’s manpower to achieve organizational goals is known as human resource management.The aspect of management that relates to the workforce and their relationship with the unit is known as personnel management
Treatment of manpowerAssetMachines or Tools
Type of functionStrategic functionRoutine function
Basis of PayPerformance EvaluationJob Evaluation
Management RoleTransformationalTransactional
Decision MakingFastSlow
Management ActionsBusiness needsProcedure
FocusThe manpower of an organization is considered valuable, utilized, and protected.Mainly worldly activities such as employee recruitment, remuneration, and training.

# Conclusion:

Human resource management (HRM) is a “people’s practice” of the same HRM that works for the organization. The human resources departments are fully responsible for various tasks related to the acquisition and management of employees. Training and development are one of the main tasks of HRM professionals. HRM has gained wide acceptance in the industry over the last decade in India. The objective of HRM is to assess the level of satisfaction of employees on various aspects of HR.

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