Human Resource Management (HRM) Scope

Human Resource Management (HRM) is the governance of an organization’s employees. HRM is sometimes referred to simply as Human Resources (HR).

The first definition of human resource management is that it is a process that will manage people in a company in a defined and structured way.

The HR is supposed to do the following tasks- staffing, hiring people, retention of employees, managing pays and perks and setting them, performance management, managing the changes and many more. This definition is a traditional one and is a modern version of personnel management.

Another definition for human resource management states that managing the people or employees in an organization can be done in a macro perspective which means that managing employees will be in the form of a relationship between management and employees.

Human resources are the people who work for the organization; human resource management is really employee management with an emphasis on those employees as assets of the business. In this article, employees are sometimes referred to as human capital.

HR professionals recruit, manage and provide direction for people who work in an organization to maximize profitability and employee satisfaction. They typically develop and administer policies related to hiring, performance management, compensation, safety and wellness, employee benefits, communication and training.

Pigors and Myers: “It is basically a method of developing potentialities of employees so that they feel maximum satisfaction of their work and give their best efforts to the organization”.

Byars and Rue: “Human resource management encompasses those activities designed to provide for and coordinate the human resources of an organization Human resource functions refer to those tasks and duties performed in organizations to provide for and coordinate human resources”.

Ivancevich and Glueck: “Human resource management is the function performed in organizations’ that facilitate the most effective use of people (employees) to achieve organizational and individual goals”.

Scope of Human Resource Management

Human resources are undoubtedly the key resources in an organization, the easiest and the most difficult to manage! The objectives of the HRM span right from the manpower needs assessment to management and retention of the same. To this effect Human resource management is responsible for effective designing and implementation of various policies, procedures and programs. It is all about developing and managing knowledge, skills, creativity, aptitude and talent and using them optimally.

Human Resource Management is not just limited to manage and optimally exploit human intellect. It also focuses on managing physical and emotional capital of employees. Considering the intricacies involved, the scope of HRM is widening with every passing day. It covers but is not limited to HR planning, hiring (recruitment and selection), training and development, payroll management, rewards and recognitions, Industrial relations, grievance handling, legal procedures etc. In other words, we can say that it’s about developing and managing harmonious relationships at workplace and striking a balance between organizational goals and individual goals.

The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it concisely. However, we may classify the same under following heads:

(i) HRM in Personnel Management

This is typically direct manpower management that involves manpower planning, hiring (recruitment and selection), training and development, induction and orientation, transfer, promotion, compensation, layoff and retrenchment, employee productivity. The overall objective here is to ascertain individual growth, development and effectiveness which indirectly contribute to organizational development.

It also includes performance appraisal, developing new skills, disbursement of wages, incentives, allowances, traveling policies and procedures and other related courses of actions.

(ii) HRM in Employee Welfare

This particular aspect of HRM deals with working conditions and amenities at workplace. This includes a wide array of responsibilities and services such as safety services, health services, welfare funds, social security and medical services. It also covers appointment of safety officers, making the environment worth working, eliminating workplace hazards, support by top management, job safety, safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits, employment injury benefits, personal injury benefits, maternity benefits, unemployment benefits and family benefits.

It also relates to supervision, employee counseling, establishing harmonious relationships with employees, education and training. Employee welfare is about determining employees’ real needs and fulfilling them with active participation of both management and employees. In addition to this, it also takes care of canteen facilities, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

(iii) HRM in Industrial Relations

Since it is a highly sensitive area, it needs careful interactions with labor or employee unions, addressing their grievances and settling the disputes effectively in order to maintain peace and harmony in the organization. It is the art and science of understanding the employment (union-management) relations, joint consultation, disciplinary procedures, solving problems with mutual efforts, understanding human behavior and maintaining work relations, collective bargaining and settlement of disputes.

The main aim is to safeguarding the interest of employees by securing the highest level of understanding to the extent that does not leave a negative impact on organization. It is about establishing, growing and promoting industrial democracy to safeguard the interests of both employees and management.

The scope of HRM is extremely wide, thus, can not be written concisely. However, for the sake of convenience and developing understanding about the subject, we divide it in three categories mentioned above.