Scope of Human Resource Management (HRM)

What is the first thing that comes to mind when you hear the word HR (Human Resources)? The people who are always bustling around employees to ensure their paperwork is complete, or are busy scheduling meetings, and interviews, organizing activities or seminars, the list goes on and on. and all of this with a smile on their face. Human resource management is more than just another department in an organization. They are the people who are constantly looking out, nurturing, and managing the most valuable asset of an organization-the people.

The scope of human resource management is far more expansive than you can imagine. Due to its ever-evolving, dynamic, and far-reaching nature, it holds a huge significance in modern workplaces.

What is Human Resource Management?

Human resource management is a strategic approach to managing an organization’s workforce. From planning, hiring (recruitment and selection), induction and orientation to Personnel management aspects like performance appraisal, development of new skills, and incentives, HRM (Human Resource Management) touches every facet of an organization, ensuring that its human capital is aligned with its mission, values, and objectives.

You may be wondering if this is the definition for HRM then what is SHRM (Strategic Human Resource Management)? Is it the same?

HRM and SHRM are essentially the same with a slight difference. Human resources are responsible for the day-to-day management of employees while SHRM (Strategic human resource department) focuses on creating a strategic plan for the success of an organization’s long-term goals.

A good SHRM strives to understand a company’s story, its goals, and objectives and then creates foolproof strategies and policies that can see through the company’s goals and support them.

What are the Objectives of Human Resource Management?

The main objective of human resource management is to procure the right people for the right job in an organization. Apart from that, it aims at developing and maintaining a competent workforce managing them simultaneously in a way that organizational goals are achieved.

Some of the objectives of an effective HRM are-

• Hiring competent and efficient employees with a zeal to work towards the organization’s goals.
• Utilizing the workforce at hand as effectively as possible
• Creating an effective and desirable workplace environment that supports work-life balance.
• Establishing a culture that increases employee satisfaction.
• Establishing and maintaining amicable relations between the staff and management
• Establishing and maintaining ethical policies internally and externally
• Reconciliation of personal goals with organizational goals

What is the Scope of Human Resource Management?

An organization’s main asset is its people. Having talented, efficient, and satisfied employees contributes to the success of an organization. So, what exactly is the scope of HRM in an organization? HRM is responsible for the entire lifecycle of an employee’s term in an organization. Right from planning their recruitment, their needs, and issues during their tenure to when they exit the company. Naturally, the scope of Human Resource Management is wide and expansive.

But just to give you a clear understanding, we have divided it into three major aspects.

1. Workforce personnel

The main objective here is to ensure the growth and development of employees in alignment with the organizational goals and objectives. It deals with everything from recruitment and selection to the development of new skills and incentives.

2. Welfare/ well-being of employees

It deals with creating a close-to-ideal working environment for employees. It is concerned with the working conditions and amenities of the workplace. Some of the basic responsibilities include taking into consideration services like cleanliness, rest and lunchrooms, housing, transport, health and safety, training, medical services, social security, and welfare funds.

3. Employee-workplace relations

Safeguarding employee interests is just as important as hiring the right person. Another key role of HRM is maintaining relations with the employee union, addressing their concerns, and settling disputes to maintain a non-chaotic, stress-free workplace and strike a balance between the employees and the management.

Top 10 Key Functions of the HRM

The functions of human resource management are plenty. But let us take a look at some of the most critical functions they are responsible for

HR’s take note! Core Functions of HR Management:

1. Planning

Planning involves determining the organization’s goals and objectives and creating a strategic plan to achieve them. For HR, this means procurement of the right personnel for the right jobs.

But first, they need to evaluate and keep track of the number of people employed, the number of vacancies, whether the company is facing a shortage or has excess staff,f and selecting candidates with the right qualifications required to fill those vacant positions.

2. Job analysis

Job analysis is what provides the basis for staff recruitment, training, and development. It involves identifying the inherent job requirement, meaning what the job role demands of the candidate.

Mapping out profiles with details of the skills required responsibilities and duties of the candidate helps in the recruitment and selection process.

Additionally, it also helps identify the necessary training that needs to be provided to candidates to help them upskill as well as thrive in the role.

3. Job Evaluation

Every organization has different hierarchical-level roles with distinct, complex responsibilities associated with each of them. The roles are graded and ranked based on their nature and level of complexity and appropriate pay is determined and fixed as seen as suitable for the particular role.

4. Recruitment and Selection

To recruit the right candidates, you need to explore diverse sources. The employer brand identity also plays a key role in the recruitment process as most candidates base their decision on brand identity. Because a strong brand speaks volumes about its reputation and can attract top-tier candidates much more easily and procure a better-quality workforce. You can make use of various recruitment tools and techniques to guide you in the process.

Once you have a list of potential candidates with the desired educational qualifications and the right skills, you need to start the selection process. This involves rigorous screening of profiles of the potential candidates list. The screening procedure can include reviewing application letters, background checks, reference checks, a screening test with a set of questions to assess the candidate’s skills relevant to the job, and other assessments as required by the hiring manager.

5. Orientation and Placement

Post the recruitment and selection process, the HRM is to organize an induction/orientation program. During this process, the candidate is required to fill out certain paperwork that could include personal information, previous employment information as well as confirming their status about taking up the position in your company.

In the orientation program, the candidate is made aware of the values, goals, and objectives of the organization.

Placement involves the settling of the candidate into their designated role at the organization. They are assigned tasks, duties, and responsibilities that encompass the job role. The newly appointed employees are briefed about the departmental goals and what is expected of the employee to help achieve those goals.

6. Training and development

Every candidate, even the best of the lot, requires a certain degree of training to perform their best at their roles. Once the candidate is placed in their respective job roles, in order to ensure job efficiency, you must identify their strengths and weaknesses and provide them with the required training necessary.

The changing technological landscape demands everyone to be at their intellectual best if they are hoping to excel at their work. Training and development programs can help upskill candidates with new skills to keep up with the dynamic needs of the job.

7. Performance Appraisal

Employee performance appraisals are crucial for determining the candidate’s performance in their job roles. The evaluation of their performance gives the management insights into whether they meet the standard level or need extra training to improve their performance.

Performance appraisal also helps in determining their eligibility for promotions or pay hikes.

8. Employee compensation and benefits

One of the biggest motivators for every employee is attractive compensation and benefits. Providing candidates with bonuses and fair compensation for a job well done. The objective here is to incentivize the employees to perform their duties at an optimum level to derive the best results. HRM determines the salaries and wages to be paid as well as rewards to better-performing employees.

9. Motivation, Employee welfare, health, and safety

As a department dedicated to overlooking the welfare of employees, the HRM of an organization must focus on providing a safer, cleaner, healthier environment by eliminating any workplace hazards. Implementation of flexible working hours, and encouraging employees to take paid time off are some ways to motivate their morale to become more productive.

10. Industrial Relations

As mentioned under Employee workplace relations in our previous segment, the HRM should play a proactive role in resolving disputes and addressing grievances as and when needed. The HR department must strike a balance between the employees and the management to achieve a high level of employee satisfaction as well as workplace efficiency.

Reflecting on the Extensive Scope of HRM

The future scope of human resource management (HRM) is likely to continue expanding as organizations recognize the value of their human capital and the need to create inclusive, engaging, and adaptable workplaces. As new challenges and opportunities emerge in the global business landscape, HR professionals will need to stay agile, innovative, and well-versed in the latest trends and technologies.

As a leading HR agency in India, Alp Consulting can provide a wide range of services that support and enhance your HR management efforts, allowing your organization to operate more efficiently, comply with regulations, and attract and retain the right talent.

As businesses and the workplace continue to transform, HRM will remain a pivotal force in driving success, growth, and employee well-being.

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