INTRODUCTION TO HRM

Every organization, large or small, uses a variety of capital to make the business
work. Capital includes cash, valuables, or goods used to generate income for a
business. For example, a retail store uses registers and inventory, while a consulting
firm may have proprietary software or buildings. No matter the industry, all
companies have one thing in common i.e. they must have people to make their
capital work for them.

Human Resource Management is the process of recruiting, selecting,

inducting employees, providing orientation, imparting training and development,
appraising the performance of employees, deciding compensation and providing
benefits, motivating employees, maintaining proper relations with employees and
their trade unions, ensuring employees safety, welfare and healthy measures in
compliance with labour laws of the land.

Edwin Flippo defines- Human Resource Management as “planning, organizing,

directing, controlling of procurement, development, compensation, integration ,
maintenance and separation of human resources to the end that individual,
organizational and social objectives are achieved.”

Human Resource Management involves management functions like:

 Planning:

Why Is Human Resource Management Important to All

Managers?

It's easier to answer this by listing some of the personnel mistakes you don't want to make
while managing. For example, you don't want to:

1. Hire the wrong person for the job.

2. Experience high turnover
3. Have your people not doing their best
4. Waste time with useless interviews
5. Have your company taken to court because of discriminatory actions
6. Have your company cited under federal occupational safety laws for unsafe
practices
7. Have some employees think their salaries are unfair and inequitable relative
to others in the organization
8. Allow a lack of training to undermine your department's effectiveness
9. Commit any unfair labor practices