Chapter One- Human Resource Management

Chapter one- Human Resource Management

Dire Dawa University, Department Of Management Page 1

Chapter One

Human Resource Management an Over View

1.1. Definition And Back Ground

1.1.1 Background

Human beings are social beings and hardly ever live and work in isolation. We always plan,

develop and manage our relations both consciously and unconsciously. The relations are the

outcome of our actions and depend to a great extent upon our ability to manage our actions.

From childhood each and every individual acquire knowledge and experience on understanding

others and how to behave in each and every situations in life. Later we carry forward this

learning and understanding in carrying and managing relations at our workplace. The whole

context of Human Resource Management revolves around this core matter of managing relations

at work place.

The term “human resource management” has been commonly used for about the last ten to

fifteen years. Prior to that, the field was generally known as “personnel administration.” The

name change is not merely cosmetics.

Since mid 1980’s Human Resource Management (HRM) has gained acceptance in both

academic and commercial circle. HRM is a multidisciplinary organizational function that draws

theories and ideas from various fields such as management, psychology, sociology and

economics.

There is no best way to manage people and no manager has formulated how people can be

managed effectively, because people are complex beings with complex needs. Effective HRM

depends very much on the causes and conditions that an organizational setting would provide.

Any Organization has three basic components, People, Purpose, and Structure.

In 1994, a noted leader in the human resources (HR) field made the following observation:

Yesterday, the company with the access most to the capital or the latest technology had the best

competitive advantage;

Today, companies that offer products with the highest quality are the ones with a leg up on the

competition; But the only thing that will uphold a company’s advantage tomorrow is the caliber

of people in the organization.

Chapter one- Human Resource Management

That predicted future is today’s reality. Most managers in public– and private sector firms of all

sizes would agree that people truly are the organization’s most important asset. Having

competent staff on the payroll does not guarantee that a firm’s human resources will be a source

of competitive advantage.

However in order to remain competitive, to grow, and diversify an organization must ensure that

its employees are qualified, placed in appropriate positions, properly trained, managed

effectively, and committed to the firm’s success. The goal of HRM is to maximize employees’

contributions in order to achieve optimal productivity and effectiveness, while simultaneously

attaining individual objectives (such as having a challenging job and obtaining recognition), and

societal objectives (such as legal compliance and demonstrating social responsibility).

1.1.2 Definitions of HRM

➢ Human resources management (HRM) is a management function concerned with hiring,

motivating and maintaining people in an organization. It focuses on people in organizations.

➢ Human resource management is designing management systems to ensure that human

talent is used effectively and efficiently to accomplish organizational goals.