MBA Made Easy

Human Resource Management


If you focus on three key terms, “Human Resource Management” then it will be easier to find a simple definition of HRM. Humans are different from machines so it is altogether different to manage them. They should be treated as resources rather than as a mere cog in the wheel. Management is about optimizing the competitive advantage and in turn maximizing the return for an organization. In other words it can be said that HRM is managing the most valuable asset of an organization to enhance the longevity of the organization. The longevity can be possible if the organization sustains competitive advantage over a long time frame.

HRM and Organization

An organization needs three main things to function and survive and thrive. They are finances, machines and humans. Many entrepreneurs have proven; by their turnaround performances; that even without machine and finances an organization can be created and finances can be attracted to invest in machines and systems. So it should be beyond doubt that human is the most important component to make an organization function.


Selection of the perfect fit for a particular responsibility is what gives an organization the ability to function smoothly. There should be proper planning to understand the human resource need of an organization before going for the recruitment and selection process. If the senior management fails to plan beforehand it can end up appointing a monkey to guard an orchard.

Once the planning part is over it is important to attract right kind of talent through proper recruitment channels. Newspapers are still popular to advertise vacancies, but because of internet; job portals have also grown in their own way. Apart from them HR consultancies also play important role in filtering candidates. Choice of a particular kind of channel depends on the scale of recruitment and budget constraints of an organization.

Although highly unreliable, interviews are still the most widely used method to select a candidate. There can be one to one interview or group interviews. For entry level job, where number of aspirants is on a higher side, Group Discussion and written tests are also used as elimination methods. In certain specialized jobs, like designing, skill test is also conducted to assess a candidate.