WHAT IS HUMAN RESOURCE MANAGEMENT?

Wendeil French describes human resource management as “the

philosophy, policies, procedures, and practices related to the
management of people within the organization”
According to Michael Armstrong, human resources management
can be defined as a “a strategic and coherent approach to the
management of an organization’s most valued assets: the people
working there, who individually and collectively contribute to the
achievement of its objectives”
In the words of DeCenzo and Robbins “Human resource
management is concerned with the “people” dimensions in
management. It is a process consisting of the acquisition,
development, motivation, and maintenance of human resources”
Human resource management is about managing people. It is a
process of binding people and organizations together so that the
objective of each are achieved.
Human resource management is based on four fundamental
principles:
1. Human resource are the most important assets important assets
an organization has and their effective management is the key to its
success.
2. Organizational success is most likely to be achieved if the
personnel policies and procedures are closely linked to corporate
and strategic plans.
3. Organizational culture, values and climate significantly
influence managerial behavior and exert a major influence on the
achievement of excellence. Hence, continuous effort starting from
the management and acceptance of the culture.
4. Human resource management is concerned with
interationgetting all members of the organization involved and
working together with a sense of common purpose.
ROLE OF HUMAN RESOURCE MANAGEMENT IN
BANKING AND INSURANCE

Services sectors like banks and insurance are entirely dependent

on the knowledge, expertise, skills, attitudes and quality of human
resources for growth and success. Hence effective management of
human resources is extremely critical in banks and insurance
companies.
Human resource management in banking & insurance
concentrates on building employee capabilities. Employee
capabilities serve as the trigger and create growth opportunities for
the organization.
As employee capabilities is the key link to success in banks and
insurance companies, the HR department becomes a “strategic
capabilities unit.” Some key functions of the HR department in
banks and insurances are:
1. The use of the individual, term and organization learning for
serving the customer in a better way.
2. Ensuring that employee’s knowledge and skills are kept up-to-
date.
3. Aligning the HR development and learning strategies with the
overall strategies of the bank.
4. Devising strategies to motivate the employees by means of a
suitable compensation structure.