Human resource management is the process of managing the people of an organisation with a humane approach. How does human resource management think about how to deal with and cooperate with the organization’s employees?
introduction to human resource management:
Human resource management originated in the early 20th century. It is a management field that oversees employee selection, training, and management.
There are many real-world examples of how individuals can make or break an organisation. Every company and organisation is keenly interested in finding a solution to the question of how to inspire individuals to create an organisation but not to destroy it. Indian software professionals have made notable advancements in the United States information technology industry. Employees at the Rourkela Steel Plant converted a loss-making unit into a profitable business, while most public sector companies, such as Hindustan Machine Tools Ltd. (HMT) and Hindustan Cables Ltd., went bankrupt.
In the words of Oliver Shelden, “No industry can be rendered efficient so long as the basic fact remains unrecognised that it is principally human.” Today, all organisations agree that human resources, or manpower, have a paramount importance in the success of any organisation because most problems in organisational settings are human and social rather than physical, technical, or economical failure.
What is the Human Resource Management System (HRMS)?
The human resource management system (HRMS) refers to a collection of software applications that companies use to manage their internal human resources departments.
An HRMS is a computer programme designed to help businesses with all features of employee management. It combines various employee-related tasks into one location, making it easier for businesses to manage things like payment, scheduling, employee information, and hiring. To put it simply, an HRMS performs the following functions:
Employee Info: Stores all relevant information about each employee, including contact details, employment history, skills, and performance reviews.
income and compensation: income and compensation manages all financial matters, including calculating salaries, deducting taxes, and directly depositing funds into employees’ bank accounts.
Time and Attendance: It records the hours worked, the duration of shifts, and the frequency of absences. Hiring New People: It advertises job positions, gathers applications, and arranges interviews.
Performance reviews: Help managers judge the performance of staff members and set goals for their improvement.
Training and Learning: It plans and coordinates employee training programmes and maintains track of the knowledge gained.
Benefits: It helps oversee benefits programmes, such as health insurance and retirement plans.
Respecting Regulations: It ensures that the business follows all applicable laws and regulations regarding the treatment of employees and provides necessary reports on that matter.
Why is human resource management important for business?
Businesses need human resource management (HRM) for a number of reasons.
Talent accession: Firstly, HRM helps them find, attract, and retain talented individuals who add to their success. Recruitment and selection procedures that are effective guarantee that the right people are in the right positions.
Employee Engagement and Retention: Secondly, HRM is critical to maintaining the motivation, satisfaction, and engagement of employees. Employees who are engaged are more likely to be innovative, productive, and dedicated to the company. HRM initiatives like training, career development, and recognition programmes aid in the retention of top talent.
Workforce Planning: Thirdly, HRM helps to mitigate risks associated with talent shortages or surpluses by forecasting talent requirements and involving strategic workforce planning to ensure that the organisation has the right mix of skills and competencies to achieve its goals.
Performance Management: Fifth, HRM establishes performance management systems to set expectations, provide feedback, evaluate performance, and reward high achievers. Regular evaluations and clear performance goals contribute to employee growth and organisational effectiveness.
Legal Compliance: HRM keeps an eye on labour laws and implements fair and equitable procedures to help minimise legal risks and liabilities. It also makes sure that the organisation complies with industry standards and employment legislation.
Employee Well-Being and Satisfaction: HRM initiatives support and enhance the well-being, safety, and work-life balance of employees. They also help to create a cohesive and values-driven workplace culture by addressing employee concerns, offering support services, and cultivating a positive work environment.
Organisational Culture and Values: HRM plays a critical role in shaping and reinforcing the organisational culture and values. Examples of HRM initiatives include communication strategies, leadership development, and diversity and inclusion programmes.
HRM (Human Resource Management) in India:
Let’s understand our blog with the examples of HRM (human resource management) in India:
The history of HR management in India is not very old; in fact, it is relatively new. If we look back in time, we can find evidence that Kautilya addressed some of the key elements of HRM in his 400 B.C. book, Arthasastra. The rulers of that era adopted the HRM techniques that Kautilya recommended. In the modern sense, HRM has only emerged and become more well-known since India’s independence.
The Royal Commission Report on Labour in India, which advocated the appointment of labour officers to address employment and welfare issues, gained traction only after the Factories Act of 1948 was passed, despite the fact that the significance of labour officers was acknowledged as early as 1929.
The Act’s Section 49 mandates the appointment of welfare officers in companies employing more than 500 people. Initially, the government’s focus on labour welfare was narrow; the first labour laws in India addressed the Regulation of Recruitment, Forwarding, and Employment, which addressed the conditions of Indian labourers sent to different British colonies in 1830.
Recent Developments: Treating employees as men and women in terms of their economic, social, psychological, and spiritual well-being is one of the most recent advances in human resources management.
The important aspects of the development of human resources management year-wise are shown below:
Since 1995, the emphasis has been shifted to human resources development (HRD).
- As the top management realised that HRM is the core competency of 21st century corporations, 1998 saw an emphasis on HRD, cultural diversity, teamwork, and participative management continue. Additionally, emerging areas include total quality management in HRM, empowering employees, developing empowered teams, and integrating HRM with strategic management.
- To investigate working conditions, the second National Commission on Labour was established in 1999.
- The focus in 2001 was on “smart scaling of the organisations.”
- In 2002, the focus moved from knowledge and talent to the candidate’s or employee’s positive attitude.
- The concept of emotional quotient (EQ) replaced intellectual quotient (IQ) in 2003.
- 2004 saw a transition from skilled to knowledge workers.
- The transition from rigid, hierarchical structures to flexible, virtual ones occurred around 2005.
- HRM emerged as a central component of strategic management in 2006.
- Human capital management replaced the HRM concept in 2007.
- 2008 saw a reduction in corporate activities as a result of the global economic recession and crisis and a focus on retention management and the development of internal human resources by firms through partnerships with universities and colleges.
- 2009 saw a lengthy global recession and crisis that resulted in employment losses, pay costs, and layoffs. 2014 saw a shift in focus to talent management and flexible human resource policies and practices.
