Human resource management is the management of people at work . HRM is the part of the organisation that is concerned with the people dimension. it can be viewed in one of the two ways .
First,HRM is a staff or support function in the organisation . its role is to provide assistance in HRM matters to line employees or those directly involved in producing the organisation`s goods & services .
Second , HRM is a function of every manager`s job. to effectively manage employees , all managers must handle activities in regard to acquiring their services , developing their skills , motivating them , and ensuring that they maintain their commitment top the organisation . Hiring and keeping good people is critical to the success of every organisation . HRM is to build core competitive and creating advantage for the organisation. Thus it is concerned with developing the potential of employees so that they get maximum satisfaction from their work & give best to the organisation .
HRM consists of four basic functions :
- Training and development
thus it is hiring people , preparing them, stimulating them & helping them .
The Watson Wyatt`s Human Capital Index(HCI) emphatically states that a fully functioning HR department does make a difference .
The landmark HCI study , conducted in 1999 in 750 North american and European countries indicated that the quality HRM services improved both the financial well being of an organisation and shareholder value The companies studied by Watson Wyatt indicated that over a five year period quality HRM provide a 64% total return to shareholders as compared to 21% return for quality HR programmes perform better than those who don`t . accordingly , there is no chicken and egg syndrome here .
Practices that go into superior HR services include rewarding productive work , creating a flexible work friendly environment , properly recruiting and retaining quality workers and effective communication.