Introduction

Work done is not enough. Work done right is the requirement. That’s exactly what constitutes the scope of human resource management. Getting the right people who understand the company’s goals and play a role in forwarding these goals is the key to the success of any organization. Understanding the monetary and non-monetary needs of employees and using them to enhance productivity is the nature and scope of human resource management. 

List of Scope of Human Resource Management

Human resource management is a pervasive and inter-disciplinary activity that, over the years, has become indispensable in every organization. Let’s find out how human resource management’s scope is so vast and why it plays such an important role in the company. 

  1. Assessment of company human resources
  2. Reviewing jobs in the organization 
  3. Interviewing and Selection
  4. Introduction and Orientation
  5. Remuneration and Benefits
  6. Employee’s growth prospects
  7. Training on the job 
  8. Employee Satisfaction
  9. Employee’s Grievance Redressal system
  10. Labour and Trade unions

1. Assessment of company human resources

First and foremost in vast functions of hrm is an assessment of the current human resources of the company. It means evaluating the current payroll and whether it is proportional to the work requirement. This gives an idea about whether roles are missing in the organization or whether they are excess than required. This whole process can also be called human resource planning. 

2. Reviewing jobs in the organization 

Getting a comprehensive detail about each title in the company and what profile will be needed to fulfil a vacant job title comes under human resource management. This helps in setting out the base for finding and selecting the right candidates for the company. Job analysis needs to be done very carefully, taking into consideration the financial budget of the company.

3. Interviewing and Selection

The next step in hr scope is the selection of the right candidate. The right candidate would be the one who, apart from his academic qualification, fits the culture of the company as well. One of the activities of hrm is setting out the requirements for a particular job title. Deciding how many steps the interview selection process would have also come under the scope and functions of hrm

4. Introduction and Orientation

After the candidate is selected, he is introduced to its work culture, ethics, and environment. He is oriented with the team he will be working with and the supervising manager. This helps in building the comfort level of the new employee.  The objective of the whole induction process is to acquaint the employee with organizational values. It is an informal process. 

5. Remuneration and Benefits

Discussing the base salary and other perks to which an employee is entitled is a part of the scope of human resource management. The human resource manager’s role is to clearly describe all the benefits, including medical, travel, vacation leaves, etc. All these perks help in achieving a superior work efficiency environment. 

6. Employee’s growth prospects

The better the growth opportunities a company gives, the more the loyalty of the employees. The nature and scope of hrm comprise how to keep the employee motivated and gain their loyalty.  It’s the HR who has all information about employees’ performance and who is better than him to review his past performance and discuss future growth opportunities with him. A performance appraisal, linked with incentives and increments, motivates the employees to achieve more and more targets if done from time to time.

7. Training on the job 

Human resource management is alternatively known as the employee-oriented function. Its job is to provide different learning programs to its employees continuously. One of the main activities of hrm involves the development of his employees. Every organisation’s success depends on how up-to-date an employee is with new ways of doing the job. These training programs’ goal is to enhance and build the employee’s skills as per skills from around the world. 

8. Employee Satisfaction

The health, Wealth, and prosperity of employees all are the responsibility of HR. Building a healthy work environment and motivating the employees at each step also comes under the scope of human resource management. This includes non-monetary amenities like medical or a canteen or other recreational areas. A safe and secure work environment plays a huge role in the efficiency of employees.

9. Employee’s Grievance Redressal system

Human resource managers should employ a mechanism to address any grievances of employees in a secure environment. This helps in building the trust of employees in the long run. Feeling their voices are heard as well gives the employee a different level of satisfaction. Ensuring this process is carried out securely and confidentially is one of the crucial jobs of hrm.

10. Labour and Trade unions

Building strong relations in the industry is one of the key attributes to the success of any organization. The wide scope of human resource management also involves building and maintaining healthy, strong relations with different trade unions for the company’s smooth functioning. 

Conclusion

With dynamic changes in the world today, the scope of human resource management needs to be widespread and needs to evolve to suit the organisation’s current needs. It won’t be wrong to say that to win in the market, one has to win in the workplace, and the key to that is implementing a strong and adaptable human resource management function.

Are you interested in learning more about Analytics in Workforce Management? Take a look at our People Analytics and Digital HR program, in collaboration with IIM Indore. This is a 3-month long program with instructor-led sessions by IIM-I faculty.

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