Business Ethics and Corporate Governance, Second Edition

DEFINITION

What is HRM? To define it formally, HRM is engaged in the process of identification and development of suitable manpower resources within the parameters of the socio-legal framework of the organization. Differently stated, HRM refers to the principles, policies, practices as well as the systems that influence employees’ behaviour, attitudes and performance. In other words, it is a management function involving the recruitment of suitable human resources, training, developing and sustaining their competencies, motivating them, offering them rewards on a rational and equitable basis, and ensuring their continued commitment to the organization for achieving its overall objectives.

 

Fig. 6.1 HRM’s Multifaceted Management Functions ...