Scope of Hrm

Scope of HRM

The scope of HRM is extensive and far reaching and hence is very difficult to define concisely. It can be classified as the following:

 HRM in employee welfare: this particular aspect of HRM deals with amenities and working conditions at workplace. It includes a wide array of services and responsibilities such as health services, welfare funds, safety services, medical services and social security. It also includes the appointment of safety officers, eliminating workplace hazards, support by top management, sickness benefits, personal injury benefits, unemployment benefits, family benefits and maternity benefits. In addition to this, it also takes care of canteen facilities, rest and lunch rooms, crèches, housing transport, education, recreation facilities etc.

 HRM in Industrial relations: Being a highly sensitive area, it needs careful interactions with employee unions or labor, addressing their grievances and the settling the disputes effectively in order to maintain peace and harmony in the organization. The main aim is to safe guard the interest of employees by securing the highest level of understanding to the extent that it does not leave a negative impact on the organization. It is basically about growing, establishing and promoting industrial democracy to safeguard interests of both management and employees.

 HRM in Personal Management: This involves typical direct manpower management which includes manpower planning, hiring (recruitment and selection), induction and orientation, training and development, promotion, compensation, transfer, employee productivity, layoff and retrenchment. It also includes performance appraisal, disbursement of wages, allowances and incentives, travelling policies and procedures and other related courses of actions. The overall objective here is to ascertain individual growth, development and effectiveness which indirectly contribute to organizational development.

Functions of HRM

There are seven main functions of the HR:

Function 1: Manpower Planning

The penalties for not being staffed corrected can be very costly to the organization. Overstaffing is wasteful and expensive if sustained. Very importantly, overstaffing reduces the competitive efficiency of the business.

In case of Understaffing, there is a major loss in the business economies of scale and specialization, orders, profits and customers.