Fundamental principles of HRM in an approach to the management of people are mentioned below:
Human Resource Management (HRM) is concerned with the “people” in management. HRM is the term increasingly used to refer to the philosophy, policies, procedures and practices relating to the management of people within organisations.
Since every organisation is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance, and ensuring that they continue to maintain their commitment to the organisation are essential in achieving organisational objectives.
Organisations able to acquire, develop, stimulate and keep outstanding workers will be both effective and efficient.
Organisations that are ineffective or inefficient risk the hazards of stagnating or going out of business.
Human resource thus, creates organisations and makes them survive and prosper. If human resources are neglected or mismanaged, the organisation is unlikely to do well.
1. Human resources are the most important asset of an organisation and their effective management is the key to its success.
2. This success is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with, and make a major contribution to the achievement of corporate objectives and strategic plans.
3. The corporate culture and the values, organisational climate and managerial behaviour that emanate from that culture will exert a major influence on the achievement of excellence.
4. HRM is concerned with integration – getting all the members of the organisation involved and working together with a sense of common purpose.
In its essence, HRM is the qualitative improvement of human beings who are considered the most valuable asset of an organisation – the sources, resources, and end-users of all products and services.
HRM is, no doubt, an outgrowth of the older process and approach. But it is much more than its parent disciplines viz., personnel management and behavioural science.
HRM is also more comprehensive and deep- rooted than training and development. Its approach is multi-disciplinary from the beginning to the end.
It is a scientific process of continuously enabling the employees to improve their competency and capability to play their present as well as future expected roles so that the goals of the organisation are achieved more fully and at the same time the needs of the employees are also met to an adequate extent.
Thus; the basic approach of HRM is to perceive the organisation in its totality. Its emphasis is not only on production and productivity but also on the quality of life.
It seeks to achieve the fullest development of human resources and the fullest possible socio-economic development.