Human Resource Management

Human Resource Management 2

 No universal definition
 Term originated in the USA
 Initially interchangeable with ‘Personnel Management’
 Managing Humans (Employees)
 The management of people to do the work. (Boxall and
Purcell 2012)
WHAT IS HRM?????
 Human resource management is the
set of individuals who make up the
workforce of an organization,
business sector or an economy.

 Other terms sometimes used include

"manpower", "talent", "labor" or
simply "people".
 Definitions of HRM

HRM is the function performed in organizations that

facilitates the most effective use of people to achieve
organizational and individual goals.”
Ivancevich and Glueck

Human Resource Management is the managing of different

activities that are designed to increase and enhance the
effectiveness of an organization`s work force in achieving
organizational goals.
Evolution of HRM
assets

Procure, develop
and motivate

Procure and develop

 HRM at the earlier stages
Up till the mid 1960s, HRM activities were
only limited to maintaining files related to employees
information and planning company social activities such as
picnics, company trips gifts etc.


As the time kept passing and by 1970s companies started
focusing much on HR practices in order to gain
competitive advantage.
The Importance of Human Resource 8
Management (HRM)
 As a necessary part of the organizing function of
management
 Selecting, training, and evaluating the work force
 As an important strategic tool
 HRM helps establish an organization’s sustainable competitive
advantage.
 Adds value to the firm
 High performance work practices lead to both high individual and
high organizational performance.
 Importance
(1) Right person for right job

(2) Save time and high cost of recruitment, selection and avoid
useless interviews

(3) Settling smoothly of the new employees in the job.

(4) Results in integration of the new employees

with the team.
(5) Safety laws

(6) Effective training and development.

(7) Ensure that employees do their best

Human Resource Management Process 10
Right person
for right job
Candidate might be
right for job but wrong
for the organization
Human resource concern
with People or Employees