WHAT IS HRM?

 

“Management of human resources is that function of all enterprises which provides for effective utilization of people to achieve both the objectives of the enterprise and the satisfaction and development of the  employees.”

We may, therefore, view human resource management as human capital formation and managing its use in the development process of the firm. Economists view capital formation as an addition or increment to the existing stock of capital assets of a firm or of a nation. In the language of the Economists, “Capital is the produced means of Production.” A capital asset is something which can be used as instrument of production or distribution. Administrative capital formation (administration and management skills are two terms used in Management literature interchangeably) means formation or creation of skill, knowledge, ideas, values and desires in the people posted in administrative or managerial positions requiring serious contemplation, commitment and devotion for effective planning, organizing, directing, leading, controlling and co-ordination activities designed to achieve goals and objectives of their organizations. Any man or woman can not assemble material and human resources Management  and husband them effectually without needs skills and knowledge. A person develops when he is inducted into the growth process. Social conditioning is needed for fitting him into the organization. This growth process emanate from contact with new  Ideas.

Western nations have taken the words of john kenneth Galbraith who got interested in human resource Management / development and stated categorically that a well trained and well-educated workforce is a nation’s greatest form of capital. Conclusions of Galbraith and schultz were corroborated by the research finding of Eli Ginberg of Columbia University.

Ingredients of our Human resource Management like inherent abilities, skills, experiences, knowledge and other attributes are partly wasted due to poor personnel practices. Need for effective use of human resource is apparent.