Human Resource Management | Short Notes for CAIIB

Human Resource Management (HRM) revolves around managing workplace relationships. It is a multidisciplinary organisational function that incorporates ideas and theories from a variety of fields, including management, sociology, economics, and psychology. HRM aims to maximise employees’ contributions to achieve maximum productivity and effectiveness while also achieving individual and societal goals.

What is Human Resource Management?

Human Resource Management is the systematic and comprehensive management of people in organisations. It includes hiring people, employee retention, setting and managing pay and perks, performance management, change management, and handling employee exits. In simple words, HRM is a managerial function that attempts to match an organisation’s requirements to its employees’ skills and abilities.

Human Resource Management: Nature

HRM is a management function that assists managers in recruiting, selecting, training, and developing employees for a company. 

The following are the most important aspects of Human Resource Management:

• HRM entails putting management functions and principles into practice. Employees in an organisation are acquired, developed, maintained, and remunerated using the functions and principles.
• Human resource (HR) decisions on various aspects of employees must be consistent with other HR decisions.
• The effectiveness of an organisation results in improved customer service as high-quality products are delivered at reasonable prices.
• HRM functions are not limited to businesses; they can also be applied to non-profit organisations, such as education, health care, and recreation.
• HRM is a set of programmes, functions, and activities that are designed and implemented to maximise employee and organisational effectiveness.

Human Resource Management: Scope

HRM covers all major activities in the workers’ working life, from the time they enter an organisation until they leave it. HRM’s broad areas of activity include:

• Human Resource Planning 
• Design of the Organization and Job 
• Selection and Staffing 
• Training and Development 
• Organizational Development 
• Compensation and Benefits 
• Employee Assistance 
• Union/Labour Relations 
• Personnel Research and Information System

Human Resource Management: Objective

HRM objectives can be broken down into four categories:

• Social Objectives: Ensure that the organisation is socially responsible for society’s needs and challenges while minimising the organisation’s negative impact. Organisations that cannot use their resources for the benefit of society may face restrictions.
• Organisational Objectives: Assure that HRM is not a standalone department but a tool to help the organisation achieve its goals. HR exists to serve the organisation.
• Functional Objectives: Maintain the department’s contribution to the organisation. Human resources must adapt to the organisation’s needs. The department’s value should not outweigh the organisation.
• Personnel Objectives: Assist employees in achieving personal goals that enhance their contribution to the organisation. They meet the personal goals of employees to keep them motivated. Otherwise, employee satisfaction and performance may suffer, leading to a turnover.

Human Resource Management: Functions

HRM is composed of seven interconnected functions that occur within an organisation:

• Strategic HR Management: This function strategically manages human resources to create effective innovation teams. It focuses on staffing and employee development.
• Equal Employment Opportunity (EEO): EEO laws and regulations impact all other HR activities.
• Staffing: It includes providing a sufficient supply of qualified individuals to fill positions in an organisation. Staffing includes job analysis, recruitment, and selection.
• Talent Management and Development: Talent management and development includes various types of training, starting with new employee orientation.
• Total Rewards: Employees receive compensation as pay, incentives, and benefits for completing organisational tasks. 
• Compensation Management: It determines how much the employees should be paid for specific tasks.
• Risk Management and Worker Protection: HRM addresses workplace risks to protect workers by meeting legal requirements, addressing workplace health and safety concerns, and planning for disaster recovery.
• Employee and Labor Relations: It handles workplace relations between managers and employees, concerns about employee and employer rights, and make them aware of the HR policies and procedures.

Human Resource Management: Roles & Responsibilities

HRM’s job is to plan, develop, and implement policies and programmes that make the best use of a company’s human resources. HR professionals must have a thorough understanding of the organisation, including all of its intricacies and complexities. Because employee commitment to the organisation is critical, every HR person’s goal should be to develop a link between the employee and the organisation.

The major responsibilities of Human Resource managers are:

• Incorporating corporate culture, plans, and policies into daily activities
• Assisting as an internal change agent and advisor
• Initiating change as an expert and facilitator
• Engagement in the company’s strategy
• Maintaining communication between the HRD function and individuals and groups within and outside of the company.
• Developing HRD strategies that align with the business strategy.
• Facilitating the development of various organisational teams and their relationships with others
• Trying to connect people to achieve the organisation’s goals
• Identifying and resolving issues in human resources
• Coordinating and supporting services for HRD programme and delivery
• Researching to identify, develop, or test how HRD has improved individual and organisational performance 

Conclusion

We hope that this article on Human Resource Management has given you enough information to answer questions on this topic in the CAIIB exam. We advise candidates to refer to previous years papers, reference books, and online mock series to prepare well for the exam. We wish you the best of luck!

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