Human resource management is a vast and complex field that encompasses many different aspects of the workplace. From screening and recruitment to training and development, human resource professionals are responsible for ensuring that employees are productive and satisfied in their jobs. Through this blog post, we will take a closer look at the scope of human resource management and discuss some of the critical functions that fall within its scope.
What Is Human Resource Management? And How Can It Enhance Business Stature?
Human resource management is the term used to describe formal systems within organisations designed to manage people. It is responsible for ensuring the staffing of an organisation, as well as employee development and training, performance management, compensation and benefits administration, organisational development, and employee relations.
No company or organisation can succeed without a productive workforce, no matter how good their products or services are. It is human resource management’s responsibility to ensure that a company has the right mix of talent and skillsets to achieve its business goals. Additionally, human resource management must also provide support and resources that allow employees to be productive and effective in their roles.
It is essential to understand that human resource management sets the course for how an organisation will treat its employees. A company with strong human resource management practices typically has lower turnover rates, higher employee satisfaction, and higher productivity levels.
There are many aspects to human resource management (HRM), but some of the most important include:
- Hiring and onboarding
- Employee development
- Compensation and benefits
- Performance management
- Organisational development
- Employee relations
Each of these areas is important in its own right, but when they are managed effectively, they can have a positive impact on the overall culture and performance of a company.
An Overview: Scope of Human Resource Management
The scope of HRM is constantly evolving. As organisations become more complex, the role of HR must adapt to keep up. In its most basic form, HRM is responsible for managing an organisation’s workforce. This includes recruiting, hiring, and onboarding new employees. HRM also oversees employee relations, benefits, and payroll.
In recent years, the scope of HRM has expanded to include strategic planning, talent management, and employee development. HR must now partner with other departments to ensure that the organisation’s goals are met. This requires a deep understanding of the business and the ability to make data-driven decisions.
The scope of HRM will continue to evolve as organisations become more complex and the workforce becomes more global. HR must be adaptable and always ready to meet the changing needs of the business.
Also Read: What is Strategic Human Resource Management? Definition and Examples
Scope of Human Resource Management: Explained In Detail
There are many different scopes of human resource management activities that organisations can choose to adopt. The scope of human resource management activities will be dictated by the organisational culture, the organisation’s size, and the organisation’s specific needs. The scope of HRM activities can be broadly classified into five categories:
- Employee recruitment and selection
- Employee training and development
- Employee performance management
- Compensation and benefits administration
- Industrial relations
Let’s discuss the scope in detail.
Employee Recruitment And Selection
The scope of human resource management activities in employee recruitment and selection includes all the activities involved in identifying, attracting, screening, and selecting employees for an organisation. The scope of human resource management activities in employee recruitment and selection also includes developing and implementing policies.
Recruitment and selection is the most crucial process that defines the scope of human resource management. Hence, it becomes imperative to have a transparent scope of human resource management activities in this area so that the organisation can identify the most suitable candidates for the vacant positions. Similarly, without the proper scope of human resource management activities in employee recruitment and selection, the organisation may end up recruiting employees who are not a good fit for the organisation.
Benefits of Employee Recruitment and Selection:
Identify Suitable Candidates
Without the scope of human resource management activities in employee recruitment and selection, the organisation may end up hiring employees who are not a good fit for the organisation.
Assess the Skills & Abilities of the Candidates
The scope of human resource management activities in employee recruitment and selection helps assess the candidates’ skills, knowledge, and abilities. This helps the organisation to identify the most suitable candidates for the vacant positions.
Employee Training and Development
Organisations invest significant resources in employee training and development programs. The scope of human resource management includes designing, delivering, and evaluating these programs.
One popular employee development program is management training. Management trainees learn the basics of running a business unit or organisation. They also learn how to motivate and lead employees.
Organisations also offer training programs to help employees improve their job performance. These programs may be specific to a particular job or maybe general skills training. For example, an organisation might offer a customer service training program to help employees improve their communication and problem-solving skills.
Finally, some organisations offer employee development programs to help employees prepare for future roles within the organisation. For example, an organisation might offer a management development program for high-potential employees. This program helps participants develop the skills and knowledge they need to succeed in a management position.
The human resource management scope also includes evaluating employee development programs’ effectiveness. Organisations use various methods to evaluate these programs’ effectiveness, including surveys, interviews, and focus groups.
Benefits of Employee Training and Development:
Improved Job Performance
Employee training and development programs can have several benefits for organisations. These programs can help improve job performance by teaching employees the skills they need to be successful in their jobs.
Organisations that offer employee development programs also tend to see improved job performance from their employees. This is because employees who participate in these programs have the opportunity to learn new skills and knowledge that they can apply to their jobs.
Increased Employee Retention
Employee training and development programs can also help increase employee retention. Employees who participate in these programs often develop a stronger commitment to their organisation. They also tend to better understand the organisation’s goals and objectives.
Employee development programs often see increased employee retention. Employees who participate are loyal and committed to the company and employers.
Employee Performance Management
The scope of human resource management (HRM) is constantly evolving. With changing and diverse workforce, the strategies and practices used to manage employees must evolve. An area that witnessed significant changes in recent years is employee performance management.
With the advent of new technologies, there are now more tools and resources available to help managers effectively evaluate and improve employee performance. However, there is a lot of range for improvement in this area.
One of the challenges facing HR professionals is how to keep up with the latest trends and best practices in employee performance management. Another challenge is how to communicate the scope and objectives of human resource management to employees effectively.
Despite these challenges, employee performance management is critical to the HRM scope. With regular updates on the trends, HR professionals can ensure that their organisations use the most effective methods for managing employee performance.
Benefits of Employee Performance management
Identify and address employee development needs
Performance management provides a structured process for identifying and addressing employee development needs. By assessing employees regularly, managers can identify areas where employees need improvement.
This information is used to create development plans that address these needs. As a result, employees are more likely to reach their potential and contribute positively to the organisation.
In addition, performance management can help identify high-potential employees who may be candidates for promotion or other opportunities.
Facilitates communication between managers and employees
Performance management provides a forum for regular communication between managers and employees. This communication can help ensure that employees are aware of expectations and are allowed to give feedback on their performance.
In addition, regular communication can help build trust and rapport between managers and employees. This trust and rapport are essential for effective working relationships. Finally, communication about performance can help identify issues early on before they become significant problems.
Improve overall organisational performance
By improving individual employee performance, performance management can help to improve overall organisational performance. When employees perform at their best, they are more productive and engaged.
This increased productivity and engagement can improve organisational performance in terms of profitability, customer satisfaction, and employee retention.
Compensation and Benefits Administration
This is the process of designing and maintaining employee compensation and benefits programs. It includes developing eligibility criteria, classifying employees, and administering payroll deductions. HR professionals work with accounting staff to ensure that employees are paid correctly and on time. They also work with benefit providers to set up and administer employee benefit programs, such as health insurance and retirement plans.
Having a thorough comprehension of state laws governing employee compensation and benefits becomes imperative. These laws are constantly changing, so HR professionals must stay up-to-date on the latest developments. They must communicate these changes to employees and managers effectively.
In addition to compensation and benefits administration, HR professionals are also responsible for employee relations. This includes investigating and resolving workplace issues, such as harassment and discrimination complaints. HR professionals create a positive work environment and foster good relationships between employees and managers.
Benefits of Compensation and Benefits Administration:
Boosts employee morale
Compensation and benefits administration can have a positive impact on employee morale. When employees are fairly compensated and have good benefits, they are more likely to feel content with their jobs. This can lead to increased productivity and a reduction in turnover.
Compensation and benefits administration can also help to attract and retain top talent. By offering competitive salaries and benefits, employers can entice the best candidates to apply for open positions. And once hired, these employees are more likely to stay with the company for the long term.
Reduces costs
Compensation and benefits administration can help to reduce costs for employers. HR professionals can ensure that employees are not overpaid or underpaid by properly managing payroll deductions. This can help to prevent errors and save the company money.
In addition, by offering benefits like health insurance and retirement plans, employers can save on taxes. These benefits are tax-deductible for businesses, which can lead to significant savings.
Industrial Relations
Industrial relations is the field of human resource management that deals with managing employees in businesses and organisations. The scope of industrial relations includes aspects such as employee relations, labour relations, and Collective bargaining.
HRM is a field that is constantly evolving and growing. As businesses become more globalised, the scope of human resource management has become more complex. The scope of human resource management now includes managing employees in various countries and cultures. Industrial relation is a field that is growing in importance as businesses become more globalised.
Also Read: Nature and Objectives of Human Resource Management
Benefits of Industrial Relations
Improves communication and understanding
Effective communication is essential for any organisation, but it is imperative in an unionised workplace. Industrial relations help to improve communication and understanding between employees and management.
Resolves conflict
Conflict is inevitable in any organisation, but it can be especially damaging. Industrial relations can help to resolve conflict before it gets out of hand and disrupts the work culture.
Industrial relation is a vital part of human resource management. The scope of industrial relations has grown and changed as businesses have become more globalised. Industrial relations help to improve communication and understanding between employees and management, and they can help to resolve conflict.
The Bottom Line
The scope of human resource management also includes managing employees who are working remotely. With the advent of technology, more and more employees are working remotely, which presents a new set of challenges for human resource managers.
As the scope of human resource management continues to grow and evolve, human resource managers need to stay fresh on the latest trends and developments in the field. By staying abreast of the latest developments, human resource managers can ensure that they provide the best possible service to their employees.
Planning to step into the HR field? Start with a PG course that will give you access to all the necessary information regarding the ever-evolving HR domain. Take a look at our Post Graduate Certificate in Human Resource Management.
More Information:
Key Fundamentals of Human Resource Management
What Is Human Resource Management System?
Difference Between Personnel Management And Human Resource Management