Every organization in the world has four major types of resources.
They are human, financial, physical and informational.
Human resources are also known as people and human being.
Human resource is living resource but financial, physical and informational are non-living resources.
Non-living resources are also dependent on human resources.
Managers or management can acquire, replace or change non-living resources as per their desires, but it is not easy to change human resources.
When the manager changes or replaces a computer, there is not any action by a computer.
When the manager changes or replaces a human, there is counter reaction from human or employee.
Non-living resources are ready to work when they are acquired.
But; the manager needs to educate, train and motivate to human resources.
Human resources are the most difficult type of resource to manage but it is the only resource in organization that appreciates in the value of an organisation.
Human resources management is a very important and challenging job.
Different people have different abilities, according to traditions, sentiments and behaviour.
Therefore, human resources cannot be operated like a machine or material; they need a tactful handling.
The office that manages human resources is known as human resources department (HRD).
HRD is the division of the business.
John R. Commons used ‘human resource’ word first time in his book ‘The Distribution of Wealth’ in 1893.
Human resource is not popular until the 19th century.
At the beginning of the 20th century, human resource departments (HRD) were developed in the large organisation.
At present time, HRD is very popular in developed countries.
This department hires, screens, recruits and trains for the new job applicants.
It also provides training, workshop, skill development etc to existing employees.
According to Gary Dessler, “Human resource management refers to the policies and practices one need to carry out the ‘people’ or human resource aspects of a management position, including recruiting, screening, training, rewarding and appraising.”
According to Donnelly & Gibson, “Human resource management is the process of accomplishing organizational objective by acquiring, retaining, terminating, developing and properly using the human resources in organizations.”
According to DeCenzo & Robbins, “Human Resources Management is a process consisting of the acquisition, development, motivation, and maintenance of human resources.”
Therefore, the objective of HRM is to attain maximum individual development, desirable working relationship between employers to employees and employees to employees.
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The basic characteristics of human resources management are given below:
Human resource management is an art or science; it is complex.
To handle employees and get done work from them is an art.
To get complete work from them in targeted is also an art.
Today’s work is depended on the various technologies.
Technology is related to science.
Selections of employees to the retirement of the employees, many technologies are used.
Therefore, human resource management is both art and science.
Like other components of management (i.e.
In a big organisation, there are different types of the departments.
They are finance, production, marketing, information, operations (customer care).
All these departments need human resources and they depend on productivity of HRM.
Human resource management fulfills the requirement the human resources.
Therefore, HRM is also an important component (sub-system) of management.
Mainly there are two types of employees; blues collared and white collared.
Blues collared employees or workers are labours, craftsmen, foreman and operators.
They are manual physical labour, lower social class, lesser education, hourly or weekly wages, unskilled or semiskilled etc.
White collared employees are professional, proprietors, technical workers, managers, official clerical workers and sales workers etc.
They are intellectual desk job, higher social class, higher education, high monthly salaries, managerial or business skill etc.
Human resources management covers both blues collared employees and white collared employees.
It takes time to change the habits of human being.
Employees take time to learn new work, ideas and used to with the technology.
Human resource planning is not fixed.
Today’s planning will not work for long time in the future.
Planning needs to be revised and update continuously.
Therefore, human resource management is a continuous process.
Every organisation needs human resource to complete the task.
These organizations are profit making, non-profit making and government offices, defense etc.
In every organisation, there are blue collared and white collared employees.
They need recruitment, selection, development, training, workshop and technical knowledge
There is no discrimination between any levels of the employees in the developed countries for their management.
Human resource planning focuses on optimum utilization of human resources in the organization.
HRM checks and analyses how the employees are utilized in a productive manner.
It also identifies employees’ existing capabilities and future potentialities to perform the work.
Human resource planning is the part of the internal part of an organization.
Employees are recruited and selected to fulfill the strategic goal of the organization.
HRM is considered a strategic partner for organizational change and development.
It can be formulated at strategic, tactical and operational levels.
HRM helps to mobilize human resources in the organization in order to achieve its goals strategically.
Human resource planning is a process of determining demand for and supply of human resources in the organization.
Human resource management estimates the optimum level of manpower.
Then, human resource department (HRD) matches supplies according to need of the demand.
In another words, HRD recruits and selects the employees as per requirement.
HRM is performance and commitment-oriented.
It focuses on results, rather than on rules.
It encourages employees to give their 100% result.
It is a process of bringing people and organizations together so that the goals of each are met.
HRM is an organization consists of people which are managed by HR managers.
They interact with each other when they work together.
This interaction among HR of an organization leads to the development of a social relations and dynamism in the work places.
The smooth functioning of an organization depends much on HRM i.e., mutual understanding, cooperation and support of the members to one another.
The principles and practices of HRM should not be static. Rather they should be dynamic.
HRM works about the employees as individuals and a group.
It helps employees to develop their potential fully.
Employees are vital for achieving the goals of the organization.
It comprises employees centered functions like hiring, training, performance appraisal, working environment etc.
HRM has the responsibility of building human capital.
The performance of the organisation depends on the quality of people and employees.
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The primary objective of HRM is to ensure the availability of competent and willing workforce to an organization.
There are specifically four objectives; they are societal, organizational, functional and personal.
1. Societal objectives
2. Organizational objectives
3. Functional objectives
4. Personal objectives
Here, societal means related to society.
The societal objectives are responsible for the needs and challenges of society.
While doing so, they have to minimize the negative impact of such demands upon the organization.
The failure of organizations to use their resources for society’s benefit in ethical ways may lead to restrictions.
For example, the society may limit human resource decisions to laws that enforce reservation in hiring and laws that address discrimination, safety or other such areas of societal concern.
The main objectives of the organisation are to earn profit, growth, expansion in good condition; and survival in bad condition.
Profit, growth and expansion are depends on skilled, caliber and honest manpower.
For this, HRM has to prepare human resource planning to recruit, select, place and train to manpower.
In another words, the HRD exists to serve the other departments of the organisation.
Different departments need different human resources.
Functional objectives try to maintain the organization’s needs.
Human resources are to be adjusted to suit the organization’s demands.
Departmental functions are carried out by the human resources.
Personal objectives assist employees in achieving their personal goals.
These goals are higher wages and salaries, job satisfactions, better working conditions, standard working hours, social security, promotion etc.
Personal objectives of employees must be met if they are to be maintained, retained and motivated.
Otherwise, employee may leave the current organisation and join other organisation.
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Human Resource Management functions can be classified into three categories; they are:
Under the managerial functions of HRM, there are four functions; they are explained below:
Human resource planning
Different departments need different human resources to achieve organizational goals.
Human resources department (HRD) analyses the current and future human resource requirement.
HRD forecast changing values, attitude and behaviour of employees and their influence on the organization.
Organizational tasks are allocated among its employees.
Their capabilities are identified and activities are integrated towards a common objective.
Good relationships are established among the employees so that they can collectively contribute to the achievement of the organization’s goal.
HRD motivates and directs employees at different levels to contribute their maximum efforts to meet the organization’s goal.
It is possible through motivation, commanding and directing.
After planning, organizing, and directing, employees’ actual performance is checked, verified, and compared with the plans.
If the actual performance is found deviated from the plan, control measures are required to be taken.
Under the operating functions of HRM, the major functions are explained below:
Recruitment and selection
Recruitment of candidates is the function preceding the selection.
It brings the pool of prospective candidates to the organization.
The management can select the right candidate through recruitment and selection.
Job analysis and design
Job analysis is the process of describing the nature of a job.
Specific qualification, skills and work experience are required to perform that job.
Job design outlines the organizing tasks, duties and responsibilities for the achievement of certain objectives.
Human resource professionals are required to perform this function to ensure that the performance of employees is at an acceptable level.
Training and development
HRM helps employees to acquire skills and knowledge to perform their jobs effectively.
Training and development programs are organized for both new and existing employees.
Employees are prepared for higher-level responsibilities through training and development.
HRM determines how much salary or wages is to be paid for different types of jobs.
HRM also decides employee’s compensation, incentives, bonuses, fringe benefits, welfare benefit etc.
Employee turnover is not considered good for the organization.
Here, employee turnover means employees leave the organisation frequently.
Skilled, talented and honest human resource is considered as an asset for the organization.
Human resource management always tries to keep their best performing employees with the organization.
HRM gathers employees’ opinions on wages and salaries, promotions, working conditions, welfare activities, leadership etc,
Such researches help in understanding employee satisfaction, employee turnover, employee termination etc,
HRD records and maintains employee’s employment history, working hours, employee absents, presents, absents, employee turnover and other data related to employees.
Under the advisory functions of HRM, the major functions are explained below:
HRM is expert in managing human resources.
It can give advice on matters related to human resources of the organization.
HRM can offer advice to top management and department heads
Advised to top management
The personnel manager advises the top management in the formulation and evaluation of personnel programs, policies and procedures.
Advised to departmental heads
The personnel manager advises to the various departments’ heads on employees’ matters.
These matters are manpower planning, job analysis, job design, recruitment, selection, placement, training, performance evaluation (appraisal) etc.
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