Role Of Human Resource Management In Building Companies Business Essay


A rapidly & dynamically changing economic environment, characterized by such. Phenomena as the globalization and deregulation of markets, changing customer and investor demands, and ever-increasing product-market competition, has become the norm for most organizations. To compete, they must continually improve their performance by reducing costs, innovating products and processes, and improving quality, productivity, and speed to market. With the following research paper we hope to contribute to a better understanding of the role of human resource management in building strong social relationship in companies. A company whether big or small requires human resource for survival. Without human resource it is impossible to employees are just treated as a resource rather than human beings. This shabby treatment creates a torture for them due to which the enthusiasm & spirit of good working lowers down. The present papers discuss that how human resource management can play vital role in building good social relationships between the people working in companies.

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KEYWORDS: Human resource management, management, organization, social relationship, employees.


Management is an integral part of any organized group having specific objectives. Every organization requires planning of activities, organization of resources, establishment of communication system, leading and motivation of people, and control of operations for realization of its objectives. Nowadays what an organization or company is to earn profits and remain ahead from their competitors. They strive very hard to achieve their goals & objectives. Management is a distinct process consisting of planning, organizing, actuating (directing) and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources. An organization or institute have some objectives for which they are existing. To achieve these objectives they require resource & then they apply managerial functions to attain success.


Managing humans is at the heart of almost all the real-life management 'problems'. What it takes to 'manage' humans? Why humans are a 'resource' and what makes them special? Humans are counted as a resource because without them the work of any organization cannot be done. As they require man to process machine, material & money to bring useful output. Every human working in the organization have different wants, needs & desire. They have various thoughts & opinions. When many humans with different thoughts work together. Then it becomes difficult to manage each one. These variances causes conflicts & arguments. To manage them there is management.

Human Resource Management (HRM) is a relatively new approach to managing people in any organization. People are considered the key resource. It is concerned with the people dimension in management of an organization. Since an organization is a body of people, their acquisition, development of skills, motivation for higher levels of attainments, as well as ensuring maintenance of their level of commitment are all significant activities. These activities fall in the domain of HRM.

Human Resource Management is a process, which consists of four main activities, namely, acquisition, development, motivation, as well as maintenance of human resources.

Scott, Clothier and Spriegel have defined Human Resource Management as that branch of management which is responsible on a staff basis for concentrating on those aspects of operations which are primarily concerned with the relationship of management to employees and employees to employees and with the development of the individual and the group.

Human Resource Management is responsible for maintaining good human relations in the organization. It is also concerned with development of individuals and achieving integration of goals of the organization and those of the individuals.

Northcott considers human resource management as an extension of general management, that of prompting and

Stimulating every employee to make his fullest contribution to the purpose of a business. Human resource management is not something that could be separated from the basic managerial function. It is a major component of the broader managerial function.

French Wendell, defines ―Human resource management as the recruitment, selection, development, utilisation, compensation and motivation of human resources by the organisationâ€-.

According to Edwin B. Flippo, ―Human resource management is the planning, organizing, directing and controlling of the procurement, development, resources to the end that individual and societal objectives are accomplishedâ€-. This definition reveals that human resource (HR) management is that aspect of management, which deals with the planning, organizing, directing and controlling the personnel functions of the enterprise.


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According to Scott, Clothier and Spriegal, ―The objectives of Human Resource Management, in an organization, is to obtain maximum individual development, desirable working relationships between employers and employees employees, to affect the molding of human resources as contrasted with physical resourcesâ€-.

The basic objective of human resource management is to contribute to the realization of the organizational goals. However, the specific objectives of human resource management are as follows:

To ensure effective utilization of human resources, all other organisational resources will be efficiently utilised by the human resources.

To establish and maintain an adequate organisational structure of relationship among all the members of an organisation by dividing of organisation tasks into functions, positions and jobs, and by defining clearly the responsibility, accountability, authority for each job and its relation with other jobs in the organisation.

To generate maximum development of human resources within the organisation by offering opportunities for advancement to employees through training and education.

To ensure respect for human beings by providing various services and welfare facilities to the personnel.

To ensure reconciliation of individual/group goals with those of the organisation in such a manner that the personnel feel a sense of commitment and loyalty towards it.

To identify and satisfy the needs of individuals by offering various monetary and non-monetary rewards.

In order to achieve the above objectives, human resource management undertakes the following activities : (i) Human Resource Planning, i.e., determining the number and kinds of personnel required to fill various positions in the organisation. (ii) Recruitment, selection and placement of personnel, i.e., employment function. (iii) Training and development of employees for their efficient performance and growth. (iv) Appraisal of performance of employees and taking corrective steps such as transfer from one job to another. (v) Motivation of workforce by providing financial incentives and avenues of promotion. (vi) Remuneration of employees. The employees must be given sufficient wages and fringe benefits to achieve higher standard of living and to motivate them to show higher productivity. (vii) Social security and welfare of employees.


The main functions of human resource management are classified into two categories: (a) Managerial Functions and (b) Operative Functions

(a) Managerial Functions Following are the managerial functions of Human Resources Management.

1. Planning: The planning function of human resource department pertains to the steps taken in determining in advance personnel requirements, personnel programmes, policies etc. After determining how many and what type of people are required, a personnel manager has to devise ways and means to motivate them.

2. Organisation: Under organisation, the human resource manager has to organise the operative functions by designing structure of relationship among jobs, personnel and physical factors in such a way so as to have maximum contribution towards organisational objectives. In this way a personnel manager performs following functions:

(a) preparation of task force; (b) allocation of work to individuals; (c) integration of the efforts of the task force; (d) coordination of work of individual with that of the department.

3. Directing: Directing is concerned with initiation of organised action and stimulating the people to work. The personnel manager directs the activities of people of the organisation to get its function performed properly. A personnel manager guides and motivates the staff of the organisation to follow the path laid down in advance.

4. Controlling: It provides basic data for establishing standards, makes job analysis and performance appraisal, etc. All these techniques assist in effective control of the qualities, time and efforts of workers.

(b) Operative Functions: The following are the Operative Functions of Human Resource Management

1. Procurement of Personnel: It is concerned with the obtaining of the proper kind and number of personnel necessary to accomplish organisation goals. It deals specifically with such subjects as the determination of manpower requirements, their recruitment, selecting, placement and orientation, etc.

2. Development of Personnel: Development has to do with the increase through training, skill that is necessary for proper job performance. In this process various techniques of training are used to develop the employees. Framing a sound promotion policy, determination of the basis of promotion and making performance appraisal are the elements of personnel development function.

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3. Compensation to Personnel: Compensation means determination of adequate and equitable remuneration of personnel for their contribution to organisation objectives. To determine the monetary compensation for various jobs is one of the most difficult and important function of the personnel management. A number of decisions are taken into the function, viz., job-evaluation, remuneration, policy, inventive and premium plans, bonus policy and co-partnership, etc. It also assists the organisation for adopting the suitable wages and salaries, policy and payment of wages and salaries in right time.

4. Maintaining Good Industrial Relation: Human Resource Management covers a wide field. It is intended to reduce strifies, promote industrial peace, provide fair deal to workers and establish industrial democracy. It the personnel manager is unable to make harmonious relations between management and labour industrial unrest will take place and millions of man-days will be lost. If labour management relations are not good the moral and physical condition of the employee will suffer, and it will be a loss to an organization vis-a-visa nation. Hence, the personnel manager must create harmonious relations with the help of sufficient communication system and co-partnership.

5. Record Keeping: In record-keeping the personnel manager collects and maintains information concerned with the staff of the organisation. It is essential for every organisation because it assists the management in decision making such as in promotions.

6. Personnel Planning and Evaluation: Under this system different type of activities are evaluated such as evaluation of performance, personnel policy of an organisation and its practices, personnel audit, morale, survey and performance appraisal, etc.


Usually people thinks that building good relations within the organization is part of public relation. No doubt public relation officer deal with public directly & indirectly connected to organization. But the sense of connectivity, intimation & belongingness minimizes while dealing with internal public. The objective of HRM is not only to hire or select suitable candidate, maintaining skills through training, motivating them etc. it should be responsibility of HRM to conduct some orientations, social events, counselling, get-together & other such events so that the employees get time to share their experiences with each other.

Human being is a social animal. He/she requires a company to live in with. He/she wants to share or exchange joy, sorrows, thoughts, attitude, experiences etc. with others. Same way the employees working in the organization also requires this exchanging of thoughts. So HRM should plan & implement such activities apart from recruitment, training etc. so that overall development of an employee can take place. Employees faces many pressures & deadlines in his work field. So to release such pressure he requires some sort of healthy & friendly environment. Big organizations have n number of employees working in different departments but none of them are known to each other. The reason behind that they don't get such platform so that they get familiar. They remain untouched from such type of intimacy between employees. It should be the duty of HRM to provide such platform through following:

1 orientation: many organizations are practicing and should practice such activities which is known as orientation. In this they can motivate their employees & can teach them communication skills too. They van engage them in lot many activities & give them the task which they have to perform on the spot so that their hidden talent & other managerial qualities can be known to everybody.

2 councelling: because a lot many pressure & situation is to be faced by employees they get depressed & the enthusiasm gets down for such state they should have a councelling which should be headed by chamber of experts including psychiatrists and experienced managers. So that they can solve their problems.

3 social events: such events should involve employees' family member so that they feel pleasure and charm of the organization. Like: talent hunt, dandiya nights etc.

4 informal gatherings: such gathering can pool up all the grievances among employees, among departments.

5 seminars: There should be seminars in the companies or organization so that the employees can participate and can enrich their knowledge & working styles.

6 informal visits & trips: such trips & visits should be planned by organization so that employees apart from working can have such type of relief in their mind and when such practices are made it heightens the morale of employees and dedication towards work.

A good working environment is always a need for every employee so that he can work efficiently and with full dedication. A person works under pressure until and unless he is comfortable he can't work properly and it can also harm the image of the person as well as of the organization he is working with. So it is the responsibility of HR to develop such comfort zone for employees and make them feel good and comfortable at office place. Until and unless soldiers are not fit, the king can never win the battle.


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