Monday Nov 30

Human Resource Management seeks to achieve - Individual, Organizational and Social Goals

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Organization is a social unit that is composed of number of people and function through people only. All the resources such as men, money, materials and machinery are collected, co-ordinate and fictionalized by the people. Without human efforts, no organization can achieve its goals. Therefore, this resource is called human resource, which is the most significant resource of any organization. We also consider that human resource become unending source of ability, power, skill, efficiency, knowledge, creativity for accomplishment of organizational objectives and also play crucial role in management process. These days, organizations have realized that the most valuable asset in the organization is its people. The growth of an organization depends on talent of its human assets as people act as change agents for the implementation of any initiatives in an organization.

Human Resource Management is the organizational function that deals with issues related to people such as compensation, organization development, employee motivation, communication and training. That means it is the function within an organization that emphasizes on recruitment and providing direction for the people who work in the organization. It is a functional area of general management that includes production management, marketing management, financial and operation management etc. Human Resource Management is concerned with the acquisition, retention, utilization, compensation and labor welfare of human resource. So we can say Human Resource Management play a very important role in fostering innovation within the organization and creating a culture of innovation. It examines the various Human Resource processes that are concerned with attracting, managing, motivating and developing employees for the benefits of the organization.

Human resource management is a set of policies, practices and programs formulate to achieve both personal and organizational goals as it is the process of binding people and organizations together.

According to Flippo, Human Resource Management “the planning, organizing, directing and controlling of the various aspect of human resources to the end that individual, organizational and social objectives are accomplished”. Human resource Management is also known by different names such as Personnel management, Manpower management, Staff management, Personnel administration etc.

In an organization, human resources are the most important element and the effective utilization of other resources depends upon the quality of human resources.

According to National Institute of personnel management in India, “HRM is the part of management concerned with people at work and with their relationships within the organization”.

HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is a way of managing people at work, so that they give their best to the organization.


  • Increase morale and good human relation within the organization.
  • Maintain the quality of work life.
  • Maintain policy and behavior in an organization.
  • Increase job satisfaction so that organizational goals achieve economically.
  • To achieve organizational goals provides well-trained and well motivated employee.
  • Promote effective utilization of human resources that is the primary goals of Human Resource Management.

All these objectives help to achieve individual, organizational, social goals.

Importance of Human Resource Management

Importance of Human Resource Management can be explained at four levels such as corporate, social, national, professional etc.

Corporate importance:

Through Human Resource Management, an organization can achieve its goals more efficiently and effectively in the following ways:

a)  Motivating and retaining the required talent by effective human resource policies such as human resource planning, recruitment, selection, placement, orientation, compensation and promotion etc.

b)  Proper utilization of the available human resources.

c)  Developing the necessary skills through training and development, performance appraisal etc among the employees.

d)  Establish the willing co-operation of employees through motivation and participation.

Effective Human Resource Management provides facilitation to improve the quality of work life and teamwork among employees through better healthy working environment. The professional growth can be achieved in the following ways:

a)  Facilitating maximum opportunities for individual growth of each employee.

b)  Establishing healthy relationships between individual and different work groups.

c)  Allocating work properly.

Social Importance:

Human Resource Management has a great importance for the society to enhance the dignity of labor in the following ways:

a)  Providing better employment that fulfills the social and psychological satisfaction to people.

b)  Maintaining a balance between the available jobs and job seekers.

National importance:

Effective utilization of Human Resource helps in exploitation of natural, physical, financial resources in a better way. People with right skills and proper attitude helps the nation to move forward and provide world to better standard of living with better employment.

The human resource function provides significant support to the management and considers that people are the source of competitive advantages for business and are the responsibility of Human Resource. Managers use Human Resource when it is going to be beneficial and it is usually a problem solving and welfare function. In HRM, manpower is considered as one of the assets of the company. They are not just producing something, but they are considered as the key role in the organizations operation. So, more importance is given to the people in which human resource manager play a significant role.


Box-1: Role of Human Resource Manager

Source: Dr. C.B.Gupta (2004), Human Resource Management, Sixth Edition ,Sultan Chand & Sons.

Human Resource Manager play an important role in investing in employee development and also assisting employees to prepare themselves for internal positions in an organization. So we can also say that the role of human resource manager may be analyzed as follows

  • Acts as a Specialist.
  • Acts as a Change agent.
  • Acts as a Fire fighter.
  • Acts as a Housekeeper.
  • Acts as a Controller.
  • Acts as a Information resource.
Future role of HR Manger in India
  • Up gradation of skills in view of rapid technological changes.
  • Recognition of human resources as vital assets.
  • Emphasis on organization development, quality of work life, organizational culture, career planning and development.
  • Act as a change agent to effectively perform new function.
  • Long term Human resource planning.
  • Effectively managing a multi cultural workforce across the different global locations.

In Human resource management, HR manger performs three important functions i.e.

Such as

  • Recruitment.
  • Retention.
  • Retirement.
Recruitment: Function of HR Manager starts with recruitment of personnel. If properly managed, the recruitment system determines the needs, skills and recruit the person at right time to meet organizational needs. Recruitment process comprises of the following steps:
  • Finalizing the requirement for various posts.
  • Advertisement as per requirement.
  • Receipt of application forms from candidates.
  • Initial screening.
  • Interviews.
  • Final selection.
  • Issuing appointment letters.
Retention: Retention is another aspect of HR Manager which keeps the records of all the employees about the nature of the job, department etc. The major activities are as follows:

Training for employees.

  • Promotion.
  • Increments.
  • Job description.
  • Performance reports.
  • Salary/Compensation.

Retirement: Maintain all the necessary formalities for providing various retirement packages.


Figure1: Function of Human Resource

Source: Compiled by authors

We consider that Human Resource Management is the central subsystem of an organization as it continuously interacts with all other subsystems of an organization. In all subsystems the quality of people mainly depends on the various policies , programs and practices of HRM subsystem which determines in turn the success of an organization.
Box-2: HRM as central subsystem in an organization

Source: Murdick, and Thomas C.Fuller, ”Subsystems for MIS”, Journal of Systems Mangament,June1979

Function of Human Resource Management

Human Resource Management function mainly goes through by 2 things:

  1. By Whom i.e Human Resource Department or Human Resource Manager.
  2. By What i.e. Human Resource Policy.

Human Resource Department mainly concerned with the structure and staffing of the department for the purpose of executing human resource function where as policy is a document, approaches, and methodology to utilize the human resource. The management of Human Resources consists of several interrelated functions. These functions are common to all organization. It is mainly divided into two categories:

Managerial Function:

Managing people is the important aspect of every manager so like other managers; a human resource manager performs the various functions such as:

Planning - Planning is a deciding stage that what is to be done exactly. As it involves identification of alternatives and decision making. We consider that planning includes forecasting and set of programs, procedure to achieve goal. 

Organizing - Organizing includes identification and grouping of work activities.

Staffing - People could be the dynamic elements of management so without proper sort of people things will remain immaterial. It involves communication, Counseling.

Directing - Relates to all levels of management that includes guiding, supervising, communication, motivation, leadership.

Co-coordinating - Concerned with the unifying the action of a group of people.

Controlling - Involves some restriction, corrective action, handling situation.

Operating Functions:

These functions is concerned with specific activities of procurement, developing, compensating & maintaining an efficient work force. 

Procurement function:

Concern with the right kind and right number of people required to accomplishment the organizational objectives. It consists of the following activities-

Job Analysis - Job analysis identify the nature of job and what type of people required to perform these job effectively. Job description and job specification are prepared with the help of information provided by job analysis.

Recruitment - Recruitment is the process of identifying prospective employees, stimulating, encouraging them to apply for a particular job or jobs in an organization.

Selection - Selection is the process of examining the applicants with regard to their suitability for the given job and choosing the best from the suitable candidates.

Human Resource Planning - Human resource planning is the process of estimating the present and future manpower requirements of the organization.

Placement -The selected candidates are assigned to a specific job known as placement.

Orientation/Induction - Orientation is the process of introducing new employees to an organization that includes introducing new employee to an existing employee, in their specific jobs and departments.

Development function:

Human Resource Development is the process of improving the knowledge, skill, and values of employees so that they can perform the present and future job more effectively. The activities are as such-

Performance Appraisal - Performance Appraisal is a systematic evaluation of present potential capabilities of personnel. It is a process of collecting, analyzing and evaluating data relative to job behavior and results of individuals.

Training - Training is an organized procedure for improving the knowledge and skill of the employees for doing a particular job or for a definite purpose. Through training people learn and acquire new skills and job knowledge.

Career planning and development - Career planning and development involve the planning for the career of employees and implementing these plans. It is only possible through promotions and transfers.

Compensation functions:

Provides appropriate remuneration to employees for their contribution to    achieve organizational objectives. It consists of the following activities-

Job evaluation - Job evaluation is a process of determining the relative with of a job.

Salary Administration - Salary Administration is to determine the salary structure for various jobs in the organization.

Maintenance function:

Maintenance function is concerned with promoting the physical and mental health of employees by providing various facility and social security.

All the functions of Human Resource Management are performed in conjunction with each other.


Box-4: Function of Human Resource Management
Source: Partha Sarathi Das(2005), Organizational Behavior ,First Edition ,Alok publications. 

In this computerization and automation world, machine is useless without proper sort of people to run it. So Human Resource management has become play very significant role in recent decades. This significance have takes place in the social, economic, technological environment of administration. HRM professionals will have to act as change agents to build up “learning organization” and ability to learn from experimentation and experience and transfer the learning to all human resources for greater organizational effectiveness. Human Resource Management is tends to be an integral part of overall company function. It is a proactive as it involves on going strategy for continuous development of functions and policies for the purposes of improving company’s workforce. So from above discussion we know about how Human Resource Management helps by linking various functions in a structure way such as performance management and training to departmental aims and values.

Human Resource Management brings out the important values of trust, care , team work, encouragement and development which help to meet the principle of being a good  employer and there by motivating staff to give their best. In short, human resource management seeks to

  • Achieve the organizational goals effectively and economically
  • Achieve the highest degree of the individual goals.
  • Enhance the welfare of the community through individual development, developing better working relationships and effective utilization of human resources.

To sum up, human resource management seeks to accomplish societal, organizational and individual goals.