The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here perhaps is “fit”, i.e. a HRM approach seeks to ensure a fit between the management of an organization’s employees, and the overall strategic direction of the company (Miller, 1989).
It can be also defined as the branch of management which directly deals with the resources of organization.The term resource means human capital which is also considered as the asset for the company. Human resource management is practiced in every organization to manage the employee in a better way. The fierce competition in the market starts a new war of skillful human capital, organization having employees with rich and unique skills lead the industry.
In past assets like land, building, animals, gold etc are considered more important then human beings. As time passes organization strategy regarding resources totally shifted towards human capital. People came to know that every organization can have the land, building, technology, cash and etc but the thing which differentiate one organization from another are human resources with rich skills and talent. Managing the employees are considered an important function because competitors always willing to fetch best resource from your human capital.
Why we are concerned about HRM?
Some schools of thoughts consider HRM as an expense for the organization but this is not true, just take an simple examples if your organization have millions dollars machinery but no one is available to operate it. Machines can work 24/7 but as a manager or owner of the organization you can’t force employees to work 24/7 without taking any rest, holidays, leaves and etc. There is a lot of difference to take work from machines and human beings, machines can easily managed but managing human resource is a tough task.
As a manager you should have knowledge about HRM to avoid the mistakes selection, dealing with the people. The manager having HRM knowledge can define the right job according to the requirements of the organization and then find the person for that job. Human resources are the source of competitive advantage. Success of organization like Wal-Mart, Microsoft, South West Airlines already proved that human resources are the assets that can make the difference and give edge over the competitors.
HRM covers every aspect that deals with human capital, it helps to develop a work environment for the employees that motivate them towards the achievement of the goals.