Page 12 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 1: Understanding the Nature and Scope of Human Resource Management

3. Staff (service) Functions: Assisting and advising line managers is the main function of the Notes
HR managers' job. For example, HR assists in the hiring, training, evaluating, rewarding,
counseling, promoting, and firing of employees. It also administers the various benefit
programmes (health and accident insurance, retirement, vacation, and so on). It helps line
managers comply with equal employment and occupational safety laws, and plays an
important role in handling grievances and labour relations. It carries out an innovator
role, by providing "up-to-date information on current trends and new methods of solving
problems-such as today's interest in instituting six-sigma quality programs and creating
"learning organizations". And it plays an employee advocacy role: it helps define how
management should be treating employees, makes sure employees can contest unfair
practices, and represents the employees' interests within the framework of its main
obligation to senior management. In most firms today, HR also plays a strategic role, by
helping the CEO craft and implements the firm's strategy.

Did u know? What is meant by competitive advantage?
It is an ability of an organization to perform activities exceptionally well (availing
profitable opportunities and thereby maximizing returns on investment) and gaining an
edge over rivals when competing.

1.3 Objectives of Human Resource Management

1. Advising management on the human resource policies required to ensure that the
organization has a highly motivated and performing workforce, has people equipped to
cope with change and meet its legal employment obligations.
2. Attracting, hiring, rewarding, maintaining and developing the human resource of the
organization.
3. Handling crisis and difficult human relations situations to ensure that they do not get in
the way of the organization achieving its objectives.
4. Providing a communication link between the work force and organisation's management.
5. Acting as a custodian of organizational standards and values in the management of human
resources.

1.4 Nature and Scope of Human Resource Management

1. It is the most important sub-system of management: Human resource is an indispensable
element in an enterprise. Labour is a must in every organization. Management is concerned
with achieving the objectives of business through people. It makes Human Resource
Management a part of management. Human Resource Management applies to all principles
of management also, so it is called sub-system of management.
2. Human Resource Management is related to managing the human beings working in an
organization: Human Resource Management is related to selection and appointment of
workers and employees. It is concerned with training, organizing, controlling and other
welfare amenities of employees.
3. HRM has a pervasive function: Every management function at every level of management
has to be performed by subordinate employees. Every functional area whether production,
marketing or finance requires employees. It makes the Human Resource Management
pervasive.

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