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What is HRM ?

Prepared By: Rohma Zaidi

Std ID: BM-26526
Course Conducted by Sir Vijay Kumar
Date: 8-10-2016

HRM is abbreviation for the word Human Resource Management.

If we break Human Resource Management in words, we get to know
definition of this keyword as:
Human (Homo-sapiens Social Animal)
Resources (Human, Physical, Financial, Technical,
Informational etc)
Management (Function of Planning, Organizing, Leading &
Controlling of organizational resources to accomplish goals efficiently
and effectively)

HRM is the management of people working in an organization,

it is a subject related to human. For simplicity, we can say that it
is the management of humans or people. HRM is a managerial
function that tries to match an organizations needs to the skills
and abilities of its employees. Human Resource Management is
responsible for how people are managed in the organizations. It
is responsible for bringing people in organization helping them
perform their work, compensating them for their work and
solving problems that arise.

HRM plays important role in creating organizations and

helping them survive. Our world is an organizational world. We
are surrounded by organizations and we participate in them as
members, employees, customers, and clients. Most of our life is
spent in organization, and they supply the goods and services
on which we depend to live. Organizations on the other hand
depend on people, and without people, they would disappear.

1. Helps you get results - through others.

Different managerial techniques help mangers to direct the
performance of employees in desirable direction in order to achieve the
organizational objectives. Through the efforts of others working in an
organization, managers get things done that require effective human
resource management.
2. Helps you avoid common personnel mistakes
Qualified HR mangers utilize organization resources in such a way that
helps to avoid common personnel mistakes like the following
Hiring the wrong person for the job
Experiencing high turnover
Finding employees not doing their best
Having your company taken to court because of your discriminatory
Having your company cited under federal occupational safety laws for
unsafe practices
Allowing a lack of training to undermine your departments
Committing any unfair labor practices


Challenges/Issues of Managing Human Resources in present era

Following are the main issues that are faced by the mangers to
manage the workforce of todays organization for achievement of objectives.
To Attract People
People will be interested to join any organization if it is providing them
quality working environment, attractive benefit and opportunities to excel
in future. Keeping in view the opportunities in the market, the first issues
will be to attract good people for your organization.

What is Management?
Management is the process of working with
different resources to accomplish
organizational goals. Good managers do
those things both effectively and efficiently.
To be effective is to achieve organizational
goals. To be efficient is to achieve goals
with minimum waste of resources, that is,
to make the best possible use of money,
time, materials, and people. Some
managers fail on both criteria, or focus on
one at the expense of another. The best
managers maintain a clear focus on both
effectiveness and efficiency.

Importance of personnel
Importance of personnel management is in reality the
importance of labour functions of personnel
department which are indispensable to the
management activity itself.

To Develop People
Development is related to provide the opportunities for training and
development to match the skills to job in particular areas. It requires careful
need assessment for training and selecting effective training methods and
tools. After attracting/selecting, continuous development of workforce of
the organization leads towards development of the organization. So that
they will start playing their important role in the organization.
To Motivate
Motivation means to influence performance of others and to redirect the
efforts in desirable direction by using different motivational tools that can
help in fulfilling the mission of organization. Third important issues/concern
will be to keep your workforce motivated so that they should keep on
delivering effectively.


Human Resource Management has
a place of great importance.
According to Peter F. Drucker,
The proper or improper uses of
the different factors of production
depend on the wishes of the
human resources. Hence, besides
other resources human resources
need more development. Human
resources can increase cooperation
but it needs proper and efficient
management to guide it

Because of the following reasons human resource

management holds a place of importance.
1. It helps management in the preparation adoption and
continuing evolution of personnel programmes and
2. It supplies skilled workers through scientific selection
3. It ensures maximum benefit out of the expenditure on
training and development and appreciates the human
4. It prepares workers according to the changing needs of
industry and environment.
5. It motivates workers and upgrades them so as to
enable them to accomplish the organisation goals.


6. Through innovation and experimentation in the fields of personnel, it helps

in reducing casts and helps in increasing productivity.
7. It contributes a lot in restoring the industrial harmony and healthy
employer-employee relations.
8. It establishes mechanism for the administration of personnel services that
are delegated to the personnel department. Thus, the role of human
resource management is very important in an organization and it should not
be undermined especially in large scale enterprises. It is the key to the
whole organization and related to all other activities of the management
i.e., marketing, production, finance etc. Human Resource Management is
concerned with the managing people as an organizational resource rather
than as factors of production. It involves a system to be followed in business
firm to recruit, select, hire, train and develop human assets. It is concerned
with the people dimension of an organization. The attainment of
organizational objectives depends, to a great extent, on the way in which
people are recruited, developed and utilized by the management.
Therefore, proper coordination of human efforts and effective utilization of
human and others material resources is necessary.