An Introduction to HRM

 

An Introduction to HRM

In the current world the Impact of the Human Resources are high. The most of the companies are developed & well recognized based on the people resources. The employer should need to guide & support the employee to achieve the organizational goals. 

Dealing with people is not like dealing with other assets. If anything happens its very difficult to replace them. So, it is to be said they are the most valuable assets for an organization.

Organization’s vision, mission, goals & objectives are needed to be easy & convenient to follow to the people resources.

 Human resources effect good or bad impact to an organizations structure, on their behaviors.

 

 What is Human Resource Management (HRM)?

Human resource management (HRM) is the practice of recruiting, hiring, deploying and managing an organization's employees. HRM is often referred to simply as human resources (HR). A company or organization's HR department is usually responsible for creating, putting into effect and overseeing policies governing workers and the relationship of the organization with its employees.

HRM is employee management with an emphasis on employees as assets of the business. In this context, employees are sometimes referred to as human capital. As with other business assets, the goal is to make effective use of employees, reducing risk and maximizing return on investment (ROI).

The modern term human capital management (HCM) is often used by large and midsize companies when discussing HR technology.

The importance of Human Resource Management

The purpose of HRM practices is to manage the people within a workplace to achieve the organization's mission and reinforce the corporate culture. When people management is done effectively, HR managers can help recruit new employees who have the skills to further the company's goals. HR professionals also aid in the training and professional development of employees to meet the organization's objectives.

A company is only as good as its employees, making HRM a crucial part of maintaining or improving the health of the business. Additionally, HR managers monitor the state of the job market to help the organization stay competitive. This could include ensuring compensation and benefits are competitive, events are planned to keep employees from burning out and job roles are adapted based on the market.

 

 

 

 (Barney et al, 2023)

The goals of HRM

 

 The goals of HRM are to:

·         Support the organization in achieving its objectives by developing and implementing human resource (HR) strategies that are integrated with the business strategy (strategic HRM);

·         Contribute to the development of a high-performance culture.

·         Ensure that the organization has the talented, skilled and engaged people it needs.

·         Create a positive employment relationship between management and employees and a climate of mutual trust.

·         Encourage the application of an ethical approach to people management.

 

 

(Armstrong and Taylor, 2009)

 

Personnel Management (PM) and Human Resource Management (HRM)

Personnel management is mainly about basic administrative tasks like hiring, paying, teaching, and making sure everyone gets along. HRM, on the other hand, focuses on measuring the needs of the company and constantly reviewing and changing all systems to reach a single goal.

Even though a lot of people think that Human Resource Management is just a new name for personnel management, the area is more well-known in the business world. On the other hand, many experts think that staff management and human resource management are very different.

Comparison chart: HRM vs. personnel management

Basis For Comparison	Personnel Management	Human Resource Management
Meaning	An aspect of management that is concerned with employees at work and their relationships within the company.	An essential branch of management that deals with making the optimum usage of organizational human resources to achieve organizational goals.
Objective	Managing people at work	Working for the growth & development of the workforce
Approach	Traditional	Modern
Treatment of manpower	Machines or Tools	Resource & Asset
Type of function	Routine function	Strategic function
Basis of Pay	Job Evaluation	Performance Evaluation
Management Role	Transactional	Transformational
Communication	Indirect	Direct
Labor Management	Collective Bargaining Contracts	Individual Contracts
Initiatives	Piecemeal	Integrated
Management Actions	Procedure	Business needs
Decision Making	Slow	Fast
Job Design	Division of Labor	Groups/Teams
Major Functions	Employee hiring, remuneration, training, and harmony.	Recruitment & staffing, Equal employment opportunity, HR development, Remuneration, Employee relations, Continues growth, etc.

 

 

(Islam, 2023)

Hard & Soft HRM

In the realm of human resource management (HRM) there are two opposing methods that businesses and human resource departments typically adopt as their HRM strategy.

They are called hard or soft HRM practices. Each approach has its own set of principles and practices that impact the overall management of human resources within a company. But is one better than the other?

Hard vs soft HRM

Soft and hard HRM are two contrasting models of human resource management that shape how businesses interact with and manage their workforce. These approaches influence the strategies, policies, and practices adopted by businesses to achieve their goals.

 

What is hard HRM?

Hard HR management is characterized by a strategic, results-driven mindset. In this approach, employees are viewed as valuable resources, much like any other valuable assets that contribute to your business objectives. It puts emphasis on efficiency to ensure productivity and achieve concrete outcomes.

Key components of hard HRM include strict performance metrics, centralized decision-making, and a focus on strategic workforce planning.

Within the framework of hard HRM, the employment relationship is transactional, where the employer expects specific skills and outputs from employees in exchange for compensation and benefits. The business model tends to be hierarchical, with a clear chain of command and usually involves one-way communication.

What is soft HRM?

Soft HR management, on the other hand, takes a more people-centric approach. It acknowledges the importance of fostering positive relationships between employers and employees, recognizing that employee empowerment and satisfaction contribute to business success.

Soft HRM focuses on prioritizing open communication, employee engagement, professional development, and workplace flexibility. It's rooted in the belief that a happy and engaged workforce is more likely to be creative, innovative, and committed to your business goals.

Unlike the transactional nature of hard HRM, soft HRM promotes a progressive relationship between employers and employees, focusing on mutual trust and shared values.

(BrightHR,2020)

(SlideShare, 2014)

Reference

 

 

Armstrong, M., & Taylor, S. (2009) Introduction to the HRM – Chapter 1 The Essence of HRM

Armstrong’s Handbook of Human Resource Management Practice, 13^th Edition”, London: Kogan Page. (Accessed on 29/03/2024)

 

Barney, N., Chai, W. & Sutner, S. (2023) Human Resource Management (HRM), TechTarget.com (Online) Available at https://www.techtarget.com/searchhrsoftware/definition/human-resource-management-HRM (Accessed on 29/03/2024)

 

BrightHR, (2020) Hard & Soft HRM – should your business take a hard or soft human resource management approach, BrightHR (Online) Available at https://www.brighthr.com/articles/hris/hard-and-soft-hrm/ (Accessed on 29/03/2024)

Islam, S. (2023) How HRM and personnel management differ – why it matters for your business WP ERP.com (Online) Available at https://wperp.com/106102/hrm-and-personnel-management-differences/ (Accessed on 29/03/2024)

 

SlideShare (2014) Hard versus Soft HRM (Image). Available from https://www.slideshare.net/IGilmore/hard-versus-softhrm  (Accessed on 29/03/2024)