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Features of HRM

Last updated date: 15th Apr 2024
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What is HRM?

Human Resource Management is the management of the workforce and organisation. It is responsible for recruitment, training, assessment and recognizing employees while administering organisation surveillance and work culture. HRM also ensures abidance with labour laws. In simple words, Human Resource Management is defined as the organising, planning and governing of the development, procurement of the human resources to the edge that a person, organisation and social goals are supported. HRM pertains to the overall skill, attitude and knowledge that a firm requires to perform. It comprises interest and effort to manage the workforce. The everyday chores of HRM are to select, train employees and develop good relations with them.


  1. Substantial Existence

HRM is a universal component in every organisation. Even small enterprises need a human resource team to evaluate the requirement and recruit people accordingly. The implication of principles remains the same irrespective of the nature, size and purpose of the firm. Human resources can be an individual or a team depending on the expansion and complexity of a firm. Majority of the firms deploy a team of experts that can regulate the entire organisation's workforce and position them as per their capabilities.


  1. A Component of Management Domain

HRM plays a vital role in an organisation's discipline. It is not regarded as a whole discipline but is certainly a field of study. However, HRM lies under the management process; it brings out management strategies, principles and concepts and utilises it to regulate human resources of any firm. An HRM builds a communication channel between the top management and employees to strengthen a firm's financial and professional roots.  Companies with efficient HR professionals are more likely to expand than firms with weak HR skills. 


  1. An Action-Oriented Sector

The vital role of HRM is to take action according to the company's policy. It means the HR department is not all about record-keeping and written rules. They take action to solve employees' problems as soon as possible. To solve problems that require the involvement of top management authorities, the HR department communicates with them and solves the crisis. 


  1. Development-Oriented 

HRM looks at the capability of each employee and positions in order to utilise the skills. It changes the compensation structure as per the employee requirements. The HR department also caters to training to enhance the worker's skills to boost productivity. It helps in determining work responsibilities and discover employees' hidden abilities to serve the organisational goal.  


  1. Presided Towards the Fulfilment of Goals 

Human Resource Management works for fulfilling a company's set of objectives. It empowers an organisation through tools and strategies for effective management.  

From hiring to rewarding to resigning, HRM manages and keeps a record of every employee. It helps an organisation to grow exponentially by handling resources efficiently. Mishandling of resources can lead to bankruptcy, mismanaged manpower and violation of company discipline. 


  1. People-Centred

HRM is all about people at work as a solo worker and a group. It strives to support employees to develop their potential and be productive. It deals with the people-oriented job and manages functions like training, hiring working performance and more. Human Resources has the capacity of building human capital. Humans are important for achieving organisational goals and the performance is based on the virtue of employees.

Managers in every hierarchy need to manage people in a way or another. From workers to managers, every individual in an organisation has to deal with human resource management. 


  1. HR Philosophy

HRM is a philosophy that does not assume a human being as a facet of production like capital or labour. HRM acknowledges employees' qualities and utilises their skills according to the company's requirements.

Every manager should have the necessary social skills to interact and establish a bond with the employees. If an employee has a good relationship with the HR department, s/he is more likely to sustain in the organisation.


  1. Functions Continuously

The process of HRM is steady and has to run all the time without halts. An organisation requires effective workforce management for functioning smoothly. 

It requires constant efforts instead of one-shot actions. HRM is a permanent process and managers at every level deal with people. They need to regulate paychecks without any error and calculate incentives for OT and medical reimbursement. Human resources primarily work for managing the workforce to complete a project.


  1. Extensive Range of Activities

HRM involves various processes concerned with the management of the workforce. It comprises HR planning, placement, employment, appraisal, compensation and maintenance of workers. 

For performing these activities, an organisation needs an individual or group of people known as HR or Human Resource Department. The HR department tracks the productivity index of each employee and provides appraisal to the employee as per his/her efforts.

The actual abbreviation of HRM or HR is Human resource management. It is the strategic and structured approach to the effective and efficient management of people in an organisation such that they help their business gain a competitive advantage over the others in the market. It is designed to maximise the level of employee performance by serving in a company according to an employer's strategic objectives.

It is the practice of recruiting, hiring, deploying, and managing an organisation's employees. HRM is an art of managing the employees with significant importance treating them as assets of the business.


The 9 most important features of HRM are as follows

  • An HR should be Decision Oriented and deal with the employees accordingly. Some of the most important decisions an HR might have taken will be with respect to performance improvement through further training programs arranged or a promotion decision based on satisfactory performance by an employee without any bias.

  • An Hr should always be on the employee side and be Employee Oriented but not foregoing the company policies as well. 

  • They should continuously plan and develop a structure in order to Provide Opportunities from the organisation's end.

  • Rather than getting stuck in one place, effective management should be an active Continuous Process.

  • The company should be Development-Oriented by drawing and framing various rewards and incentive structures in order to boost the employee to work well. On the other hand, Multidisciplinary in the sense that an HR should practice selecting and drawing the knowledge and inputs from various employees from different disciplines and backgrounds like those of psychology, sociology, anthropology, political science, etc.

  • Integration of Goals is a policy where the employee's goals and the organisational goals are not different and everyone works towards it in order to attain success.

  • Dynamic Function where the management is expected to perform necessary changes to the goal and organisation according to the social, economic, technical, and political environment outside. 

  • Challenging, Comprehensive, and Pervasive Function 

  • Performance and of course Future-Oriented 

FAQs on Features of HRM

1. How can we ensure smooth management succession?

Sometimes hiring an expert professional from external sources can be the only convenient short-term option. However, long term smooth management is vital to elevate productivity and sales for the company. To make sure of smooth management succession, a company should go for a leadership pipeline idea. This idea was originated by Walt Mahler, a very popular name from the management field. According to the theory, Mahler noticed every aspect that is required for successful management. 

Mahler developed the crossroad model, indicating that every organization has specific leadership crossroads. This theory states how to manage yourself, blue-collared workers, top-level executives, managers and functional managers.

2. How can one assess people's skills?

Here are the two ways to assess the skills of any individual working in an organization.

Give them a problem that mandates soft skills: Instead of asking theoretical questions about soft skills, give them a real-life problem where they can implicate soft skills. Ask them to walk you down the process and tell them to justify every action. At every level, ask them which soft skills are required to crack the problem.

Let them find problems in the current process: During the interview, provide a flawed project proposal to the applicant and ask them to find the errors and its solutions for smooth functioning.

3. Why is the HRM chapter important?

Human resource management chapter gives insight to students about providing guidance and helping them when they turn into employees to identify their strengths and weaknesses. It can also provide them the knowledge to design and evaluate strategies to increase their chance of retention in any particular organisation. Learning all about Human resource management will create a positive and enjoyable environment in their workplace and will also encourage them to build and maintain the company's culture.

4. What are the important topics involved in the HRM chapter?

The key topics that will be covered in the Human Resource management chapter are

  • Employment Opportunity for all citizens

  • Effective HR Management in Organisations

  • Strategic HR Management and Planning

  • Jobs, and Job Analysis

  • Human Resource Planning and Retention policies

  • Recruitment process

  • Selection and training process

  • Talent acquisition

  • Performance Management, Appraisal, Rewards, and Compensation

  • Incentive Plans and Executive Compensation

  • Managing effective Employee Benefits

  • Risk Management and Worker Protection

  • Employee Rights, Responsibilities, Rewards, and Compensation

5. Which stream do we have to choose for learning HRM as a course?

The teachers should give proper guidance to the students on what group to take up and which course to select for taking up their desired career track. If the students are interested and clear with taking up HR as their career then you should guide them to consider taking up commerce or arts stream in high school and post 12th, they can either take up BA in Psychology or B. Com or BBA with post-graduation in MBA taking up HR as the mainstream.

6. Is the HRM chapter tough and difficult to score?

Definitely if you have an interest in learning about starting a new business or managing the employees or even working in an organisation then this chapter will be interesting to learn. But in general, this is a highly dry chapter where you have to learn all the concepts under every topic without changing its meaning. You can refer to past years' solved question papers and other sample papers on the Vedantu website and learn which topic is more important and needs more time to prepare with concentration. You will have to provide full interest and passion when you learn any new topic.

7. What is the life cycle of HR in an organisation?

The HR life cycle, or HR cycle, is the continuous process of integrated HR activities which involves combining all the regular activities or systems that will help with managing human resources = employees in a business or any organisation so that they can work effectively together for the best-forecasted results. This definitely means that the HR cycle starts right from the framing of business strategy, which is then translated and further formulated into effective HR strategy, organisational design and environment, and HR activities that involve all recruiting, training & development processes, all the way until any particular employee's exit from the organisation and finally setting them free with all the settlement properly.