Last Updated 04 Jul 2021

Importance of Human Resource Management

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Human resource management (HRM) is the strategic and coherent draw to the management of an organization’s most appreciated assets — the people working there who individually and collectively put into the getting of the objectives of the business. The terms “human resource management” and “human resources” (HR) have mainly replaced the term “personnel management” as a description of the processes involved in managing people in organizations. In plain language, HRM means employing people, developing their capacity, utilizing, maintaining and compensating their services in melody with the job and organizational requirement. Harshly

Human Resource Management can be described as “The comprehensive set of managerial activities and tasks concerned with developing and maintaining a qualified workforce – human resources – in ways that contribute to organisational effectiveness.” (DeNisi and Griffin, 2004)

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Human Resource Management (HRM) is the role within an organization that focuses on staffing of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by procession managers.

The Human Resources Management (HRM) tasks include a range of manners, and key among them is deciding the recruitment needs of a business and whether to use sovereign contractors or employ employees to fill these requirements, recruiting and training the best workers, ensure that they are high performers, dealing with performance issues. Activities also include managing your approach to employee remuneration and reparation, employee accounts and personnel policies. Usually small businesses have to carry out these actions themselves because they can’t yet afford part- or full-time help. However, they should always ensure that employees have—and are aware of—personnel policies, which conform to current regulations. These policies are often in the form of employee manual, which all employees have.

Case Study of British Gas The role of human resource management

To control a successful large business involves acquiring, developing and maintaining a wide range of assets. These capitals include materials, buildings, land, equipment, technology and, people. Any establishment needs good workforce who has the right skills to get the company’s aims and objectives. Human resource management (HRM) is the business function that focuses on the people characteristics of an organisation. It is responsible for ensuring that an organisation has the right people to carry its overall business plan. Centrica, the parent corporation of BGS, has to deliver long-standing productivity. Its shareholders expect the business to show a return on their investment by making profits, now and in future. BGS needs to add to these profits. This means time after time meeting the needs of its customers with comparatively priced products and services that give good returns to the company. BGS’s core customer base is housing consumers across the country. These customers suppose to top-class service at fanatical prices. If BGS does not meet this model, the company may lose business to competitor. To ensure customer liking, BGS engineers must have the technological skills to undertake work to the obligatory standard and the people skills to take away good customer service. Through its engineer enrolment team, the British Gas Academy must therefore ensure that the company attracts and retains the best engineer. This involves several harmonizing tasks. It requires setting up to assess the BGS’s future needs for skilled employees. It requires a recruitment and selection programme to bring new people into the company. It requires a training operation to prepare new recruits and existing employees with the right skills.

Case study of Scottish Power The role of Human Resource Management

People are one of the most important resources used by any organisation. Scottish Power recognises that it is ‘powered by people’.

Human Resource Management (HRM) is apprehensive with organising and looking after people in the place of work. On a day-to-day basis this includes recruitment, selection, training and development and assessing staff presentation. An important part of HRM is staff planning. This involves getting the right people in the right position at the right point in time. It also involves identifying the numbers of people required to enable the business to operate at full effectiveness. These people need to have the right skills to do the profession.

Part of labour force planning therefore involves planning growth opportunities. Growth increases the skills of the current workforce. The energy industry is changing quickly which means it is important to recruit and train people with the ability to carry out new jobs. This is particularly essential in the growing renewable energy sector.

Scottish Power aims to offer a positive recruitment and selection experience for every employee and potential employee. Scottish Power is committed to equal opportunities for everyone regardless of factors such as race, sex, age or disability.

The significance of HRM’s historical development

History of Human Resource management

The history of human resources management had startedapproximately end of 19th century when the protecting representatives had come into life form they are all women’s and are only Worried about the defence of rest of the women’s and children effected their harshness of industrial conception had an effected

coupled with pressures arising from the extension of the franchise, the power of trade unions and the labour association, and the disturbance of progressive employers, often Quakers, for what was called ‘industrial betterment’. As the role grew; there was some stress between the aim of moral defence of women and children and the needs for higher output.

The First World War accelerates change in the growth of personal management with women being recruited in huge numbers to fill up the gaps absent by men going to battle, which in turn meant reaching agreement with trade unions and accepting unskilful women into craftsmen’s jobs and changing manning levels.

During the 1920s, jobs of ‘labour manager’ or ‘service manager’ came into being in the business industry and other industries where there was a large industrial unit, to handle absence, recruitment, dismissal and queries over bonuses and so on. Employers’ federations, mostly in engineering and shipbuilding, negotiated general pay rates with the unions, but there were local and regional variations, and it was a lot of scope for disputes.

During the 1930s, with the economy started to pick up big corporations in these newer sectors saw the value in improving employee benefits as a way of recruiting, retaining and motivating employees. However, older industries such as textile shipbuilding, etc. which were hit by the worldwide recession did not adopt new techniques, seeing no need to do so because they had no difficulty in recruiting labour.

The 2nd World War brought about interests and staff work on a permanent basis at all establishment manufacturing war materials because an extended Ministry of Labour and National Service insisted on it, just as the Government had insisted on voluntary workers in weapon factories in the previous clash. The government saw the specialist personal management as part of the drive for greater efficiency and the number of people in the personnel function grew significantly; there were around 5,300 in 1943.

By 1945, employment supervision and voluntary work had become included under the broad term ‘personal management’. Experience of the war had shown that output and productivity could be influenced by employment strategy. The role of the Human function in war time had been mainly that of implementing the rules demanded by large-scale, state-governed production, and thus the image of an emerging profession was very much a bureaucratic one.

Following the development of poor industrial relations during the 1960s a Royal Commission under Lord Donovan was set up. Reporting in 19681, it was critical of both employers and unions; personnel managers were criticised for lacking negotiation skills and failing to plan industrial relations strategies. At least in part, Donovan suggested, these deficiencies were a consequence of management’s failure to give personnel management sufficiently high priority.

During 1960s and 1970s employment started to develop considerably. At the same time personnel techniques developed started using theories from the social sciences about recruitment and selection, motivation and organisational behaviour etc. Selection testing became extra broadly used, and management of training long-drawn-out. During the 1970s, speciality fields started to develop, with reward and benefits.

Around the mid-80s, the term ‘human resource management’ arrived from the USA. The term ‘human resources’ was an interesting one: it seemed to propose that employees were an asset or resource-like machinery, but at the same time HR also lead to highlight employee commitment and motivation.

Today’s HR profession encompasses a number of specialist disciplines, including diversity, reward (including compensation, benefits, pensions), resourcing, employee relations, organisation development and design, and learning and development. Most recently, in developing the new CIPD HR Profession Map, the CIPD has defined ten ‘professional areas’ covered by the HR profession.

Human Resource Management

The Human Resources Management (HRM) now a day’s functions include a variety of manners, and key between them is deciding what staffing needs you have whether to use independent contractor or hire employees to fill those needs, recruiting and training best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various set of laws. Activities also include managing your move towards to employee benefits and compensation, employee records and personnel policies. The organisation should always ensure that employees have — and are aware of — personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have

Human resources management comprises several processes like –

  • Recruitment
  • Orientation and Induction
  • Training and development
  • Performance appraisal
  • Retention
  • Recruitment:

Recruitment refers to the method of screening and selecting people for a job or post within an organization. Staffing is the process of attracting qualified individuals for a specific job. The assignment of recruiting new staff is a vital but time-consuming process, so companies often prefer to hire an expert agency to source suitable candidates. The objective of a recruitment consultant is to build relationships with clients, source job vacancies, and find suitable candidates for each role.

Now there are various types of methods where a company can recuruit employees

  • Traditional recruitment agency
  • Online recruitment websites
  • Head-hunters
  • In-house recruitment

Traditional recruitment agency

Recruitment agencies in the past have a physical location. A candidate visits a local branch for a short interview and an appraisal before being taken onto the agency’s books. Recruitment Consultants then try to match their pool of candidate to their clients’ open positions. fitting candidates are with potential employers.

Online recruitment websites

Online recruitment websites have two main features: job boards and a resume/Curriculum Vitae (CV) database. Job boards allow member companies to place job vacancies. on the other hand, candidates can upload a resume to be included in searches by member companies. Fees are charged for job postings and access to search resumes.

In recent times the recruitment website has evolved to encompass end to end recruitment. Key players in this sector provide e-recruitment software and services to organisations of all sizes and within numerous industry sectors, who want to e-enable entirely or partly their recruitment process in order to improve business feat.


Head-hunters are third-party recruiters often taken when usual recruitment efforts have failed.

Head-hunters are usually more belligerent than in-house recruiters. They may use higher sales techniques, such as firstly posing as clients to gather employee contacts, as well as visiting applicant offices. They may also purchase expensive lists of names and job titles, but more a lot will generate their own lists. They may arrange a candidate for the interview, help negotiate the salary, and conduct conclusion to the search.

In-house recruitment

Larger employers tend to take their own internal recruitment, using their Human Resources department. In addition to coordinate with the agencies stated above, in-house recruiters may advertise job opportunity on their own websites, coordinate employee referral schemes, and/or focus on campus graduate recruitment.). Otherwise a large employer may choose to outsource all or some of their recruitment process.

Orientation and Induction

New employee orientation is the process you use for salutation a new employee into your organization. New employee orientation, often spearheaded by a meeting with the Human Resources department, generally contains information about security, the work environment, the new job account, benefits and eligibility, company culture, company history, the organization chart and anything else relevant to working in the new company.

Traning and Development

In the field of human resource management, training and development is the field anxiety with organizational action aimed at bettering the performance of individuals and groups in organizational settings. It has been known by several names, including employee development, human resource development, and learning and development.

In simple terms, training and development refers to the instruct of unambiguous skills, capacity and information to an employee. A formal definition of training & development is… it is any attempt to improve current or future employee performance by increasing an employee’s ability to perform through knowledge, usually by changing the employee’s attitude or increasing his or her skills and knowledge. The need for training & development is determined by the employee’s performance shortage.


Importance of Human Resource Management essay

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