Introduction To Human Resource Management

The first Chapter of this book is for presenting an introduction to Human Resource Management (HRM) which is critical in running organisations smoothly and improving them further in order to enhance the standard of living of people.

Ultimate purpose of an economy or a nation is better standard of living of its people. Every nation/economy attempts to achieve a better standard of living in the period of time being considered compared with the past period of time. Generally standard of living refers to the level of well-being enjoyed by people by fulfilling their needs (which are legally and morally acceptable). People have a huge number of various needs including physical needs such as foods, drinks, clothes and shelters. You are aware that

“HRM deals with the design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals. In an organization, the management of human resources means that they must be recruited, compensated, trained and developed.”- Mathis and Jackson (2000, p.4)

9. “HRM encompasses those activities designed to provide, motivate and coordinate the human resources of an organization. The human resources of an organization represent its largest investment.”- Pattanayak (2000,

“HRM refers to the policies, practices, and systems that influence employees’ behaviour, attitudes, and performance.”-Noe, Hollenbeck, Gerhart and Wright (2007, p.5)

11. “Personnel Management is that part of the management function which is concerned with people at work and with their relationships within an enterprise. Its aim is to bring together and develop into an effective organisation the men and women who make up an enterprise and, having regard to the well-being of an individual and or working groups, to enable to make their best contribution to its success.” – The British Institute of Personnel Management (currently The Chartered Institute of Personnel and Development) (as in Graham and Bennett, 1992)

12. “Personnel Management is that part of the management function which is primarily concerned with human relationships within an organisation. Its objective is the maintenance of those relationships on a basis which, by consideration of the well-being of the individual, enables all those engaged in the undertaking to make their maximum personal contribution in the effective working of the undertaking.”- Indian Institute of Personnel Management, Calcutta (as in Tripathi, 1992)

Viewing from these definitions, following common characteristics of HRM can be given:

1. HRM focuses on managing