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Nature, scope, belief and objectives of Human Resource Management (HRM)


Human Resource Management: Nature

Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include

  • It is pervasive in nature as it is present in all enterprises.
  • Its focus is on results rather than on rules.
  • It tries to help employees develop their potential fully.
  • It encourages employees to give their best to the organization.
  • It is all about people at work, both as individuals and groups.
  • It tries to put people on assigned jobs in order to produce good results.
  • It helps an organization meet its goals in the future by providing for competent and well-motivated employees.
  • It tries to build and maintain cordial relations between people working at various levels in the organization.
  • It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.

Human Resource Management: Scope

  • Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc.
  • Welfare aspect-It deals with working conditions and amenities such as canteens, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
  • Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

Human Resource Management: Beliefs

  • Human resource is the most important asset in the organization and can be developed and increased to an unlimited extent.
  • A healthy climate with values of openness, enthusiasm, trust, mutuality and collaboration is essential for developing human resource.
  • HRM can be planned and monitored in ways that are beneficial both to the individuals and the organization.
  • Employees feel committed to their work and the organization, if the organization perpetuates a feeling of belongingness.
  • Employees feel highly motivated if the organization provides for satisfaction of their basic and higher level needs.
  • Employee commitment is increased with the opportunity to discover and use one's capabilities and potential in one's work.
  • It is every manager's responsibility to ensure the development and utilisation of the capabilities of subordinates.

Human Resource Management: Objectives

  • To help the organization reach its goals.
  • To ensure effective utilization and maximum development of human resources.
  • To ensure respect for human beings. To identify and satisfy the needs of individuals.
  • To ensure reconciliation of individual goals with those of the organization.
  • To achieve and maintain high morale among employees.
  • To provide the organization with well-trained and well-motivated employees.
  • To increase to the fullest the employee's job satisfaction and self-actualization.
  • To develop and maintain a quality of work life.
  • To be ethically and socially responsive to the needs of society.
  • To develop overall personality of each employee in its multidimensional aspect.
  • To enhance employee's capabilities to perform the present job.
  • To equip the employees with precision and clarity in transaction of business.
  • To inculcate the sense of team spirit, team work and inter-team collaboration.


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