Importance Of Human Resource

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THE ROLE OF HUMAN RESOURCES IN AN
ORGANIZATION
LOUIE MARK ASOR

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IMPORTANCE OF HUMAN
RESOURCE

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Human Resource Management (HRM)
- is a process of bringing people and
organizations together so that the goals of
each are met.
- it is that part of the management
process which is concerned with the
management of human resources in an
organization.

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People are the
most valuable
asset

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The ultimate aim of
the function is to:
“ensure that at all
times the business is
correctly staffed by the
right number of people
with the skills relevant
to the business needs”,

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Scope of Human Resource Management

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The scope of HRM activities can be broadly
classified into five categories:
1. Employee recruitment and selection
2. Employee training and development
3. Employee performance management
4. Compensation and benefits administration
5. Industrial relations

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1. Employee recruitment and selection
The scope of human resource management activities in
employee recruitment and selection includes all the activities
involved in identifying, attracting, and selecting employees
for an organization.
- Recruitment and selection is the most crucial process that
defines the scope of human resource management
Without the proper scope of human resource
management activities in employee recruitment and selection,
the organisation may end up recruiting employees who are
not a good fit for the organisation.

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2. Employee Training and Development
Organisations invest significant resources in
employee training and development programs. The
scope of human resource management includes
designing, delivering, and evaluating these programs.

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3. Employee Performance Management
It provides a structured process for identifying
and addressing employee development needs. By
assessing employees regularly, managers can identify
areas where employees need improvement.

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4. Compensation and Benefits Administration
This is the process of designing and
maintaining employee compensation and benefits
programs.
HR professionals work with accounting staff to ensure
that employees are paid correctly and on time. They also
work with benefit providers to set up and administer
employee benefit programs, such as health insurance and
retirement plans.

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5. Industrial Relations
The scope of industrial relations includes aspects such as
1. employee relations,
2. labour relations, and
3. Collective bargaining.

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Comparison of
HRM and Personell
Management

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1. The part of management that deals with the
workforce within the enterprise is known as
Personnel Management. The branch of
management, which focuses on the best possible
use of the enterprise’s manpower is known as
Human Resource Management.

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2. Personnel Management treats
workers as tools or machines whereas
Human Resource Management treats it
as an important asset of the
organization.

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3. Decision Making is slow in
Personnel Management, but the same
is comparatively fast in Human
Resource Management.

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4. In Personnel Management, the basis of job
design is the division of work while, in the case
of Human Resource Management, employees
are divided into groups or teams for performing
any task.

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5. In Personnel Management, the pay
is based on job evaluation. Unlike
HRM, where the basis of pay is
performance evaluation.

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6. Personnel management primarily focuses on
ordinary activities, such as employee hiring,
remunerating, training, and harmony. On the
contrary, Human resource management focuses
on treating employees as valued assets, which
are to be valued, used and preserved.

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Personnel Management Human Resource Management
1 Time and Planning
Perspective
Short term, reactive, ad hoc, marginal Long Term, proactive, strategic,
integrated
2 Psychological Contract Compliance Commitment
3 Control Systems External Controls Self Control
4 Employee Relations
Perspective
Pluralist, collective, low trust Unitarist, individual, high trust
5 Preferred structures/
systems
Bureaucratic/mechanistic Flexible roles
6 Roles Specialist/professional Largely integrated into the line
management
7 Evaluation Criteria Cost minimization Maximum utilization (human asset
accounting)

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THANK YOU