Question

"Real investment in today's society is not in plants and machines: it is in people." With reference to the above statement, explain the role of human resource management in a business organisation.

Answer 1

Procurement Function: It is concerned with securing and employing the right kind and proper number of people required to accomplish the organisational objectives. It consists of the following activities.

1. Job Analysis: It is the process of studying in detail the operations and responsibilities involved in a job so as to identify the nature and level of human resources required to perform the job effectively. Job descriptions and job specifications are prepared with the help of information provided by job analysis.
2. Human Resource Planning: It is the process of estimating the present and future manpower requirements of the organisation, preparing inventory of present manpower and formulating action programmes to bridge the gaps in manpower.
3. Recruitment: It is the process of searching for required personnel and stimulating them to apply for jobs in the organisation. A proper balance should be maintained between the internal and external sources of recruitment.
4. Selection: It implies judging the suitability of different candidates for jobs in the organisation and choosing the most appropriate people.
5. Placement: It means assigning suitable jobs to the selected candidates so as to match employee qualifications with job requirements.
6. Induction or Orientation: It involves familiarising the new employees with the company, the work environment and the existing employees so that the new people feel at home and can start work confidently.