Managing Employee Resources

Human Resources Management (HRM) is the branch of management that deals with managing one of the resources of the organization - Human Resources. It is also called Personnel Management. However, the term Personnel Management is being replaced in most spheres by the terms Human Resource Management or Human Resource Development (HRD) or simply Human Resources (HR). In our text, we shall be using these terms interchangeably.

Most organizations have a full-fledged Human Resource Management department. The function of Human Resource Management is to acquire, train, develop, and retain the human resources of the organization so that with the help of these human resources, the organization is able to achieve its goals.

Broadly, the activities carried out by Human Resource Management are:

- Manpower Planning
- Recruitment and Selection
- Induction of the New Employees
- Performance Appraisal
- Organization Development
- Training and Development
- Employee Counseling
- Compensation Planning
- Industrial Relations
- Employee Separation

We will be looking at these topics in greater depth in the later part of this text.

Since Human Resource Management has such a wide berth, defining it is quite a task. One good definition of Human Resource Management is given by the UK-based Institute of Personnel and Development, which defines it as:

"Recruiting and selecting people, training and developing them for their work, ensuring that payment and conditions of employment are appropriate, where necessary negotiating such terms of employment with trade unions, advising on healthy and appropriate working conditions, the organization of people at work, and the encouragement of relations between management and work people."

Relation between Human Resources and Management:

Human Resource Management is an integral part of management. It helps the management in taking a strategic view of a very important resource i.e. Human Resource. It helps management in identifying key skill sets, knowledge, values required in the employee and the rewards that are needed to be given to the employees so that the organization goals are fulfilled. Also like other management functions, it has to ensure that these resources are available at an optimal cost. It has to look into various training and development activities to ensure this. This is a key area for Human Resource Management as it shows their contribution in terms of money. The money here would be the opportunity cost incurred due to appointing new employees instead of developing current employees for the task at hand.

The HR manager has a dual role in the organization. He performs the role of an executive as well as a consultant. Managing people is not only an HR area but also part of the job of line managers. These managers are heading various activities like accounts, audit, production, marketing, sales etc. They have people working under them and have to manage them too. There are times when line managers have problems handling employees and are unable to resolve the issue. This is where the HR person steps in as a consultant. The HR person can provide advice to the line manager to tackle the situation. This is in addition to the executive role he performs. The executive role of the HR person is his role in carrying out the routine activities of his area. There are occasions when they have to wear both hats of an executive as well as that of a consultant. A typical example is the role of the HR person when recruiting people for line functions, where line managers decide as they have the expertise, they help the line managers with advice while simultaneously carrying out their executive role of recruiting.

From India, Mumbai
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Hi Deepti,

The article you posted was really informative. However, I learned that training and development fall under Human Resource Development. Human Resource Management is the combination of personnel management and human resource development. Is my information valid, or could you please provide some feedback on this?

With regards,
Jayavel.k

From India, Madras
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Hi deepti The article posted by you is really informative. Jayavel. k is right. with regards Sandeep
From India, Mumbai
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