What is HRM | Definition, Nature, Scope, Objective, Function, Importance

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What is HRM?

Human resource management (HRM) is the process of acquiring, training, appraising, and compensating employees, and of attending to their labour relations, health and safety, and fairness concerns.

Take our twenty best people away, and I will tell you that Microsoft would become an unimportant companyBill Gates, CEO of Microsoft in Fortune, November 25th 1996

HRM Definition

According to M L Cuming, “Human Resource Management is concerned with obtaining the best possible staff for an organization and having got them looking after them so that they want to stay and give their best to their jobs.”

Dale Yoder defines Human Resource Management as that part of the phase of management dealing effectively with control and use of manpower as distinguished from other source of power.

According to F. E. L. Brech, Human Resource Management is that part of management progress which is primarily concerned with the human constituents of an organization.

Edison defines Human Resource Management as the science of human engineering.

According to Leon C. Megginson, the term human resource can be thought of as, “the total knowledge, skill, creative abilities, talents and aptitudes of an Organization’s workforce, as well as the values, attitudes and beliefs of the individuals involved.”

Nature of HRM

Human resource management aims at fulfilling the goal of each individual and the organization on a whole.

Below is the nature of human resource management.

  1. Pervasive Force: Human Resource Management is an inherent part of an organization. It is pervasive in nature and present in all enterprises at all levels of management. It is the responsibility of each manager to select the right candidate under him and pay attention to the development and satisfaction of each sub-ordinate.

  2. People Oriented: Human Resource Management focuses on and values people at work both as individuals and groups. It encourages people to develop their full potential and in return give the best to the organization.

  3. Action-Oriented: Human Resource Management does follow rules, records and policies but it stresses on the action. The focus is on providing an effective and timely solution to employees for any problems, tensions or controversies faced by them.

  4. Future-Oriented: To sustain and grow in this competitive environment organizations follow long term strategic planning. Effective Human Resource Management prepares people for current as well as future challenges, especially working in an environment characterized by dramatic changes.

  5. Development Oriented: HRM continuously works towards the development of employees. There are various tools used to make the employees reach their maximum potential. Training programs are held to help employees enhance their skills and knowledge. Monetary and non-monetary reward structures are tuned to motivate the employees.

  6. Enhance Employee Relations: HRM helps to build a healthy relationship between the employees at various levels. It encourages mentoring and counselling to help employees in times of need. It aims at creating a culture in the organization that is conducive to learning and growth.

  7. Interdisciplinary Function: The knowledge that has influenced Human Resource Management is interdisciplinary in nature. It drives knowledge from five major bodies: education, system theory, economics, psychology and organizational behaviour.

Jump Section: | What is HRM? | HRM Definition | Importance of HRM |
| Nature of HRM | Scope of HRM | Functions of HRM | Objectives of HRM

Scope of HRM

Human Resource management has a very wide scope, Every department and activity in an organization needs human resources, even if it is about running machinery.

The scope of human resource management can be broadly divided into three:

  1. HRM in Personnel Management
  2. HRM in Personnel Management
  3. HRM in Industrial Relation

HRM in Personnel Management

The objective here is to ensure the individual growth of each employee which indirectly contributes to the overall growth of the entire organization.

HRM in Employee Welfare

This aspect of HRM is concerned with the working condition and the amenities at the workplace. It makes the environment worth working by eliminating workplace hazards, providing job safety, medical and health services etc.

HRM in Industrial Relation

The main aim of this aspect is to maintain peace and harmony in the organization. It requires effective interaction with the labour or employee unions, sensitively addressing their grievances and settling their disputes.

Objectives of HRM

The primary objective of HRM is to place a competent and willing workforce into the right position and at the right time.

Further, it aims to obtain maximum individual development, desirable working conditions and at the same time, it focuses on contributing to the realization of the organizational goals.

The main objectives of HRM are:

  • To help the organization achieve its goals: HRM is the means to assist the organization to achieve its goals. It ensures effective utilization of Human Resources which in turn results in the efficient utilization of all the other organizational resources.

  • To employ a skilled workforce and focus on their training and development: HRM aims at employing the skills and abilities of the workforce efficiently. It generates maximum development of Human Resources within the organization by offering opportunities for growth to employees through training and development.

  • To ensure employee job satisfaction and maintain a quality of work-life: HRM focuses on fulfilling the personal objectives of the employees which helps in enhancing their contribution to the organization. Their objective is to ensure respect for human beings by providing various services and welfare facilities to the personnel.

  • Societal Objective: HRM must ensure that there is compliance with the legal and ethical standards of the society at each level and function of the organization. It implies that the organizations manage human resources in an ethical and socially responsible manner.

Functions of HRM

  • HR Planning: Human Resource Planning is a process that identifies current and future human resource needs for an organization to achieve its goals.

  • Job Analysis and Design: Job Analysis is the determination of the precise characteristics of a job through an in-depth and detailed examination of the activities to be performed.

    Job design allows job analysis. It involves designing the content of a job, it combines the tasks into a job to be assigned to an individual and further fixes the duties and responsibilities to do the job.

  • Recruitment and Selection: Recruitment is the process of searching the best-qualified candidate from within or outside the organization in a cost-effective manner.

  • Orientation and Placement: Orientation is the process in which the new employees are introduced and made familiar to their jobs, complex processes, coworkers and organizations.

    Placement includes assigning tasks to new employees and the promotion or transfer of present employees.

  • Training and Development: Training is the process of enhancing the knowledge and skill of an employee required for a particular job.

    Development is an ongoing and continuous process which aims at improving the personality and attitude of employees.

Importance of HRM

The Importance of human resource management can be discussed at three levels:

  1. As an instrument for growth to an organization: The survival and growth of the organization depend largely on the competence and its effective management. Human resource management makes workers efficient and motivated through training, supervision and inspiring leadership.

  2. As a liaison between the employee and employer: It tries to maintain the balance between the available jobs and the job seekers according to their need and organizational requirement.

    Its significance can also be determined by the elimination of wastages and providing a healthy and conducive environment for employee growth.

  3. As a professional field: Human Resource Management has moved to a specialist function. The realization of employee goals is the sole responsibility, as a specialist function.

    Its focus has moved from employee management to employee development. The skills development and individual capacity utilization are the challenges faced by human resource managers in the current scenario.

Jump Section: | What is HRM? | HRM Definition | Importance of HRM |
| Nature of HRM | Scope of HRM | Functions of HRM | Objectives of HRM


  1. Garry Dessler, “Human Resource Management”, 13th ed., Pearson 2012.
  2. Aswathapa, K.(2008), Human Resource Management, 5th Ed, TMH
  3. J. Brattor, J. Gold, “Human Resource Management: Theory and Practice”, Machnillian Press, London, 2nd ed., 1999
  4. http://www.hrmguide.net/

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