An Introduction To Human Resource Management Commerce Essay

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Human Resources Management (HRM) is based on ideas and techniques developed to increase worker motivation, productivity and performance.HRM is the task within the organisation that focuses on recruitment of management. Human Resource Management is the organization function that deals with issues related people such as reward hiring, performance, management, organizational development motivation, administration and training.

The efficiency and performance of staff, and their commitment to the objectives of the organization, are fostered by good human relationships at work. This demands that proper interest be given to human resource management and people work well together.. The manager needs to understand the importance of good managerial practices and how to make the best use of people. The promotion of good human relations is an important skill of the process of management and improved organisational performance. However the activities of management are identified, and whatever the nature of organizational process, an essential part of the process of management is that proper attention be given to the efficient use of resources, in particular human resources. The human part plays a major part in the overall success of the organization. There must be effective management of human resources.

They move away from a basic view of HRM to one which clearly takes in to the account the external arrangement of the organization to its outside environment and the internal arrangement of its human resource strategies and policies. These systems approaches also begin to highlight the value of the organisation.

The three approaches detail as below.





People management


The policies and practices which govern

how people are managed and developed

in organizations

Human resource management

A strategic and logical approach to the

Management of an organization's most

valued assets - the people working there

who individually and collectively contribute to the achievement of its objectives

Human capital management

'An approach to obtaining, analysing and

reporting on data which informs the direction

of value-adding people management

strategic investment and operational decisions

at corporate level and at the level of

front line management

Personnel management

'Personnel management is concerned with

obtaining, organizing and motivating the

Human resources required by the enterprise.'

(Armstrong, 1977)



Purpose-In this approach basically it's based on the purpose of the business which means "what business are we in? In HRM strategy change according to the business also internal and external environment change based on that.

Relationship-Also relationship .that means how managing problems among the people in the organisation.

Structures-Divide the work force and the responsibilities within the organization suit for the organization. Correct person to correct place.

Rewards-reward people for get motivated

Leadership-needs to be leading somebody to works get it done properly.


In this approach the main key is organizational processes.HRM strategy and approaches based on that. and also external environment, employees .tangible assets and Technology.


This model provides a structure for the analysis of complex HRM strategy that can engage difficulty. That is based on people as well as organizational structure, culture, environment and organization outcomes.

In NHS human resource management helpful for activities supported to achieve in business goals and objectives by increasing organisational performance. They are

1. Employee relations - Welfare

2. Resourcing - Recruitment selection methods and decisions

3. Reward System- Salaries, Incentives, Pension and Benefits

Those system approaches can be use for any organization in varies occasions and it's been used during the organization's strategic management process to scan the internal and external environments and produce a model that identifies important environmental influsences.That model can be checked for external alignment of the organization's HRM policies and practices.

NHS HR Management

Human resource (HR) management (personnel management) includes the overall responsibility for recruitment, selection, appraisal, staff development and training, understanding and implementing employment legislation and welfare.

HR managers may have responsibility for workforce planning or work for one or more directorates (e.g. surgery, day care or accident and emergency) where they will provide HR support and advice to the general manager responsible for that directorate. This might involve advising on the redeployment of staff from a ward that is closing or advertising strategies for the recruitment of new staff. HR managers may have a responsibility for a particular group of staff such as all medical staff working within an NHS trust.


In NHS HR management which identifies within three approaches they based on BEER approach.

b) HRM Models

HRM models are use to manage human resource activities in order to achieve the company strategic goals and objectives. It is essential that any changes in policy carrying out on human resource .People's are major resource.

Matching Model

Political Forces

Mission and strategy

Organisational structure HRM

Economic Forces cultural force


People as human resources

A different view of HRM is associated with the Michigan Business School (Fombrun, Tichy and Devanna, 1984). Employees are resources in the same way as any other business resource. People have to be managed in a similar manner to equipment and raw materials. They must be gained as cheaply as possible, used economically, and developed and broken as much as possible.


The four processes are as follows

1.Selection-Select the correct person for correct place

2. Appraisal-performance

3. Rewards-reward people's for their achievements

4. Development-Develop high quality employees

Using this model can prove Humans are just resources like the other other materials in organization can organized and utilized for maximising organization objectives.

2. Harvard Framework.

Stake holder


Beer et al (Managing Human Assets by Michael Beer, Richard E. Walton, Bert A. Spector, 1984) argue that when general managers decide the suitable human resource policies and practices for their organizations, they require some method of assessing the suitability or effectiveness of those policies. Beer et al devised the famous Harvard Model of HRM.

Stakeholder interests, including those of shareholders, management employees, unions, community, and government. Beer et al argue that human resource policies SHOULD be influenced by ALL stakeholders. If not, 'the enterprise will fail to meet the needs of these stakeholders in the long run and it will fail as an institution.'

Beer et al state that these 'four Cs' do not represent all the criteria that human resource policy makers can use to evaluate the effectiveness of human resource management, but consider them to be 'reasonably comprehensive' although they suggest that readers may add additional factors depending on circumstances. And various authors have done so.

The Harvard Map or model outlines four HR policy areas:

Human resource flows - recruitment, selection, placement, promotion, appraisal and assessment,promtion,termination

Reward systems -pay systems, motivation

Employee influence - delegated levels of authority, responsibility, power

Work systems - definition/design of work and alignment of people.

Which in turn lead to the 'four C's' or HR policies that have to be achieved?




Cost effectiveness


HR planning and development methods

Planning will require a detailed consideration of the requirements of an organization.

1. Recruitment and selection

2. Outsourcing recruitment

3. Training and development

4. Rewards

5. Diversity

1. Recruitment and selection process

The overall aim of the recruitment and selection process should be to obtain at minimum cost the number and quality of employees required to satisfy the human resources needs of the company. The three stages of recruitment and selection as follows.

(I). Defining requirements-preparing job description and specifications; deciding terms and conditions of employment

(ii). Attracting candidates-reviewing and evaluating alternative sources of applicants, inside and outside the company, advertising, using agencies and consulting.

(iii). Selecting candidates-sifting applications,interviewing,testing,assessing candidates, assessment centres, offering employment, obtaining references; repairing contracts of employment.

2. Performance

The strategic aspects of performance-related pay processes are exemplified in the integration of appraisal and performance-related pay processes within performance management systems. These links have information about rating scales of various kinds (including trait, competency and behaviourally-anchored systems.

3. Appraisal

The Performance Appraisal System is an integral part of performance management within DOI. Revision to the law allows each agency to develop one or more performance appraisal systems for employees covered. The agency appraisal system, in this case the DOI Performance Appraisal System, establishes agency wide policy for the application and operation of all performance appraisal within the agency, including: 

1.  Establishing employee performance plans, including, but not limited to, critical and performance indicators; 

2.  Communicating performance plans to employees at the beginning of the appraisal period; 

3.  Evaluating each employee during the appraisal period on the employee's performance plan; 

4.  Recognizing and rewarding employees whose performance so warrants; 

5.  Assisting employees in improving unacceptable performance; 

6.  Reassigning, reducing in grade, or removing employees who continue to have unacceptable performance, but only after an opportunity to demonstrate acceptable performance; and, 

7.  Identifying the employees covered by the system. 

The Performance Appraisal System applies to all Bureaus and offices of the Department. Bureaus will not issue supplemental performance management policy. 

4. Reward & Recognition

HRM aims to enhance motivation, job engagement and commitment by introducing policies and processes that ensure that people are valued and rewarded for what they do and achieve and for the levels of skill and competence they reach.