Unit 1 (P 3) HRM in Context: Importance and Function of HRM

Importance/ significance/ need of HRM

1. Achieve Objective: - HRM helps a company to achieve its objective from time to time by creating a positive attitude among workers. Reducing wastage and making maximum use of resources etc.
2. Facilitates professional growth: - Due to proper HR policies employees are trained well and this makes them ready for future promotions. Their talent can be utilized not only in the company in which they are currently working but also in other companies which the employees may join in the future.
3. Better relations between union and management:-Healthy HRM practices can help the organization to maintain co-ordinal relationship with the unions. Union members start realizing that the company is also interested in the workers and will not go against them therefore chances of going on strike are greatly reduced.
4. Helps an individual to work in a team/group:-Effective HR practices teach individuals team work and adjustment. The individuals are now very comfortable while working in team thus team work improves.
5. Identifies person for the future:-Since employees are constantly trained, they are ready to meet the job requirements. The company is also able to identify potential employees who can be promoted in the future for the top level jobs. Thus one of the advantages of HRM is preparing people for the future.
6. Allocating the jobs to the right person:-If proper recruitment and selection methods are followed, the company will be able to select the right people for the right job. When this happens the number of people leaving the job will reduce as the will be satisfied with their job leading to decrease in labor turnover.
7. Improves the economy :-Effective HR practices lead to higher profits and better performance by companies due to this the company achieves a chance to enter into new business and start new ventured thus industrial development increases and the economy improves.

 http://www.scribd.com/doc/61824962/7/Objective-of-HR

Functions /Scope / Components of HRM:

The scope of HRM refers to all the activities that come under the banner of HRM. Some of the major activities are as follows

1. Human resources planning:-Human resource planning or HRP refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage.
2. Job analysis design:-Another important area of HRM is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements.
3. Recruitment and selection:-Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of HRM.
4. Orientation and induction:-Once the employees have been selected an induction or orientation program is conducted. This is another important area of HRM. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees.
5. Training and development:-Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area where the company spends a huge amount.
6. Performance appraisal:-Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided.
7. Compensation planning and remuneration:-There are various rules regarding compensation and other benefits. It is the job of the HR department to look into remuneration and compensation planning.
8. Motivation, welfare, health and safety:-Motivation becomes important to sustain the number of employees in the company. It is the job of the HR department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department.
9. Industrial relations:-Another important area of HRM is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company. 

http://www.scribd.com/doc/61824962/7/Objective-of-HRM

Long Question:

1. "In today's competitive scenario organizations give credit to HRM for success"  Do you agree or disagree with the statement.

Short Question:

1. State any four importance of HRM, other that what is listed above.
2. State any two activities performed by HRM, other that what is listed above.