Useful 10 Principles of Human Resource Management (HRM) (2022)

The HRM department should be the backbone of the organization. They are responsible for the smooth functioning of a business, and they ensure that all employees are happy and satisfied.

The principles of human resource management are the foundations that lead the sector to succeed. With efficient execution, any organization can stay on track and grow well.

Table of Contents

  • 1 10 Principles of Human Resource Management
    • 1.1 1. Principle of Scientific Selection
    • 1.2 2. Principle of Employee Development
    • 1.3 3. Principle of Labor-Management Cooperation
    • 1.4 4. Principle of Free of Commutation
    • 1.5 5. Principles of Fair Remuneration
    • 1.6 6. Principles of Incentive-based Reward
    • 1.7 7. Principles of Dignity of Labor
    • 1.8 8. Principle of Participation
    • 1.9 9. Principle of Contribution
    • 1.10 10. Principle of Team Spirit
  • 2 Conclusion

10 Principles of Human Resource Management

The policy is a guideline for managerial decisions and actions. Principles are based on truths that are tested and re-tested to ensure their accuracy. Over time, practice, experience, and observation have proven many human resource principles. These truths are generally applicable in all organizations. However, policies usually differ from organization to organization. Principles guide managers in formulating policies, programmers, procedures, and practices, K. Aswathappa has mentioned some human resource principles which are as follows:

  1. The principle of scientific selection is to select the right person at the right time for the right job.
  2. The guiding principle of employee development is to provide equal opportunities to all employees to develop their full potential.
  3. The idea of labor-management cooperation is to promote cordial industrial relations.
  4. The principles of free flow of commutation are to keep all channels of communication open and encourage upward, downward, horizontal, formal, and informal communication.
  5. The principle of fair remuneration is to pay fair and equitable wages and salaries commiserating with jobs.
  6. The idea is to recognize the exemplary performance of its employees and give rewards to them.
  7. Principal of dignity of labor is to treat every job holder with dignity and respect.
  8. The principle of participation requires that all levels of the company include employee representatives in their decision-making process.
  9. To provide prosperity to all employees and to contribute to national prosperity is the higher purpose of our job.
  10. Promote cooperation and team spirit among employees. When we follow these principles, we will be sure that the organization does a good job of performing all human resource activities.

There may be other principles of human resource management to be followed for the successful performance of all functions. Still, these principles are supposed to be given importance for the development of the human resource activities of an organization. However, Let’s try to understand the issues with a more detailed explanation.

Read more: Principles of Scientific Management Theory

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Useful 10 Principles of Human Resource Management (HRM) (1)

1. Principle of Scientific Selection

The principle of scientific selection is a good one. It means that if you want to get the best job done, you have to make sure that your staff is the best people for it. It means you should put more faith in common sense than in statistics. But if you think this way, it will be hard to motivate your staff.

If they see that they are responsible for their own performance and that there is no one above them telling them what to do, they will take responsibility themselves and do better work. You can’t tell them “This is a job for someone else” and expect results.

2. Principle of Employee Development

The guiding principle of employee development is to provide equal opportunities to all employees to develop their full potential. It is based on the assumption that the employees have equal potential and that they can be developed to achieve the highest level of efficiency.

Employee development is a never-ending process which means that an organization should always be in search of bringing about further improvement in the performance of its workers. This continuous improvement can be brought about by providing opportunities for training and development, education, research, and experimentation in order to provide them with higher skills.

Employee development not only helps individuals but also helps the organization to meet ever-changing needs through the planned growth and development of its workforce. It provides self-development for employees and contributes toward more effective use of human resources.

3. Principle of Labor-Management Cooperation

The principle of labor-management cooperation is to promote cordial industrial relations. It is based on the recognition that the problems of a business concern can be solved with greater success if the management and workers join hands together in an atmosphere of mutual trust and confidence. The management should give due consideration to the views of the workers while framing rules and regulations for their guidance.

Similarly, the workers should also appreciate the difficulties and problems of the management and cooperate with it wholeheartedly without causing any damage to the property of the organization. The principle of labor-management cooperation implies that there should be no room for suspicion and mistrust between them. They should work as partners in trade to achieve common goals for their mutual benefit.

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4. Principle of Free of Commutation

This principle is based on the premise that a manager’s communication must not be blocked. This principle means that all channels of communication should be kept open and encouraged upward, downward, horizontal, formal, and informal communication.

A manager will be able to obtain more useful information from his subordinates if he takes the initiative in maintaining an open channel of communication. The manager should encourage his subordinates to communicate with him freely and frequently. Also, subordinates should feel free to communicate with their superiors without any hesitation or fear. In this way, the manager will know what is going on in the organization through two-way communication.

5. Principles of Fair Remuneration

Pay is a function of factors such as the cost of living, supply and demand for workers in certain occupations, and the ability of the organization to pay. Pay also may be affected by market forces. Pay systems must be consistent with the objectives and strategies of the organization, legal requirements, and with what is fair and equitable.

There are several different approaches to developing pay rates. The most widely used methods are:

  • Job evaluation,
  • Survey of wages paid by other employers for similar jobs,
  • Cost-of-living adjustments (COLA),
  • Pay policies that take into account seniority or merit increases.

6. Principles of Incentive-based Reward

An incentive-based reward is one of the principles of HRM. It is a comprehensive pay system in which the rewards that employees receive are based on their performance and achievement of organizational goals. In other words, the company pays its employees according to the results that they produce. The idea is to recognize the exemplary performance of its employees and give rewards to them.

(Video) Human Resource Management Principles

The form of rewards can be monetary or nonmonetary. A monetary reward can be in the form of a percentage of profit or a bonus based on sales, while a nonmonetary reward could include an extra day off, special privileges like parking space, and many other things.

In other words, incentive rewards are designed to motivate people to perform better by providing them with financial assistance or recognition.

Read more: Principles of Administrative Theory

7. Principles of Dignity of Labor

The objective of HRM is to provide a congenial atmosphere for work by maintaining the dignity of labor. The most important principle of HRM is to respect the dignity of laborers. Workers are the backbone of any organization. They are not just only a human resource but also a valuable resource. The real credit for any achievement goes to them. So every attempt should be made to maintain their dignity and give them respect. It is very necessary to create an atmosphere in which there is no distinction between senior employees and junior employees and workers with respect to job level, age, position, or grade.

It helps in creating job satisfaction among workers. A worker who feels valued, respected, and happy is more productive than a worker who does not. He will perform his duties with more devotion and sincerity which will ultimately lead to the success of the organization.

8. Principle of Participation

The principle of participation in HRM is the most important principle of HRM, and the most difficult to implement. It requires that all levels of the company include employee representatives in their decision-making process.

(Video) HR Basics: Human Resource Management

The principle of participation in HRM is the most important principle of HRM, and the most difficult to implement. It requires that all levels of the company include employee representatives in their decision-making process.

An example of this would be an employee representative on a hiring committee. The representative will not only provide insight into what qualities employees want in a new hire but also help to reduce conflict between management and employees by being part of the process.

9. Principle of Contribution

The purpose of our job is to provide prosperity to all employees and to contribute to national prosperity. The principle of contribution is the basic principle that all our activities should be based on.

Under this principle, we have established a management philosophy under the key phrase “work together and work hard”, which is the source of the strength that has allowed us to grow healthily and steadily into a company we can all be proud of.

We will continue to grow as a company that contributes to society by expanding our business. We will also continue to grow as a company that contributes to society by expanding our business.

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10. Principle of Team Spirit

Promote cooperation and team spirit among employees. Thus, employees feel connected to the organization and enjoy greater job satisfaction. When we follow these principles, we will be sure that the organization does a good job of performing all human resource activities.

The principle of cooperation in HRM helps establish cordial relationships between employers and employees. This relationship is established through communication, consultation, and participation in decision-making.

Conclusion

Human Resource Management (HRM) is very important in any organization. It helps people work together, and it makes sure that workers at different levels of an organization get along. All the principles of Human Resource Management or the principles of HRM try to make sure that all employees are happy and feel secure about their jobs.

FAQs

Who introduced the 10 principles in HRM? ›

HR management is driven by several business principles, particularly the "Ten C" collection of HR management principles developed by HR management expert Alan Price, author of "Human Resource Management in a Business Context." Price's 10 principles of human resource management are "comprehensiveness, credibility, ...

What are the 10 C in HRM? ›

The ten "Cs" of human resources management are: cost effectiveness, competitive, coherence, credibility, communication, creativity, competitive advantage, competence, change, and commitment. The ten "Cs" framework was developed by Alan Price in his book "Human Resource Management in a Business Context".

What are the 10 objectives of Human Resource Management? ›

10 Key Objectives of HRM
  • Organisation Structure. Defining and implementing organisation structure is key to achieving organisational goals. ...
  • Staffing. ...
  • Career Path. ...
  • Learning and Development. ...
  • Performance Management. ...
  • Policy Governance. ...
  • Benefits and Compensation. ...
  • Rewards and Recognition.

What is importance of HRM? ›

HRM can be defined as the effective management of people in an organisation. HR management helps bridge the gap between employees' performance and the organisation's strategic objectives. Moreover, an efficient HR management team can give firms an edge over their competition.

What are the models of HRM? ›

The four HRM models are the Fombrun, Harvard, Guest and Warwick models. Often studied by HR students, these models provide a helpful framework for HR planning. Using them gives credibility and legitimacy to HR policies.

What are the 7 types of human resources? ›

Human Resource activities fall under 7 core functions: Recruitment and Selection, Training and Development, Performance Management, Employee Relations, Employment Law and Compliance, Compensation and Benefits and Administration, Payroll & HR Systems.

What are the 5 main areas of HRM? ›

Human Resources manages 5 main duties: talent management, compensation and employee benefits, training and development, compliance, and workplace safety.

What are the 7 roles of human resource management? ›

What Does an HR Manager Do? 7 Functions of the Human Resources Department
  • Recruitment and Hiring.
  • Training and Development.
  • Employer-Employee Relations.
  • Maintain Company Culture.
  • Manage Employee Benefits.
  • Create a Safe Work Environment.
  • Handle Disciplinary Actions.

What is HRM and its objectives? ›

Definition Of HRM

In other words, Human resource management is the process of making optimum use of the human resources to achieve the set business goals while ensuring they are not exhausted, unhappy, or dissatisfied with the organisation. It is all about how you manage people.

What is HRM in simple words? ›

Human resource management, HRM, is the department of a business organization that looks after the hiring, management and firing of staff. HRM focuses on the function of people within the business, ensuring best work practices are in place at all times.

What are the 12 training principles? ›

However, the development of these capacities should always be based on the following 12 guiding principles:
  • Specificity. ...
  • Progressive overload. ...
  • Be prepared to adapt slower than you did as a kid. ...
  • Train intensely. ...
  • Use intensity sparingly. ...
  • Always warm up and cool down. ...
  • Do flexibility training. ...
  • Strength train all year round.

Why are learning principles important in HRM? ›

Employee training and development presents an opportunity for organizations to increase the employee knowledge base, inculcate important skills, and help them perform well on the job.

What are the 6 training principles? ›

Training means engaging in activity to improve performance and/or fitness; this is best accomplished by understanding general sports training principles: overload, reversibility, progression, individualization, periodization, and specificity.

What are the 4 types of HR? ›

recruitment. labor relations. training and development. human resources information systems (HRIS) professionals.

What are the four importance of human resource management? ›

(i) Providing maximum opportunities for personal development of each employee. (ii) Maintaining the dignity of personnel at the work place. (iii) Providing environment and incentives for developing and utilising creativity. (iv) Maintaining healthy relationships between individuals and work groups.

What are the five importance of human resources? ›

HR plays a key role in developing, reinforcing and changing the culture of an organisation. Pay, performance management, training and development, recruitment and onboarding and reinforcing the values of the business are all essential elements of business culture covered by HR.

What are the steps of HRM? ›

Seven steps to strategic human resource management
  • Develop a thorough understanding of your company's objectives.
  • Evaluate your HR capability.
  • Analyze your current HR capacity in light of your goals.
  • Estimate your company's future HR requirements.
  • Determine the tools required for employees to complete the job.
19 Sept 2019

What are the 5 steps of strategic HR management? ›

Your Strategic HR Plan will be built upon the foundation of this strategic business plan.
  1. Step 1: Identify Future HR Needs. ...
  2. Step 2: Consider Present HR Capabilities. ...
  3. Step 3: Identify Gaps Between Future Needs & Present Capability. ...
  4. Step 4: Formulate Gap Strategies. ...
  5. Step 5: Share & Monitor The Plan.
18 Apr 2018

What are the components of HRM? ›

Components of a Human Resource Management System (HRMS)
  • Application management. ...
  • Employee management. ...
  • Organizational management. ...
  • Benefits management. ...
  • Payroll management. ...
  • Workplace management. ...
  • Compensation management. ...
  • Performance management.

What are the 4 components of human resources? ›

In short, human resource activities fall under the following five core functions: staffing, development, compensation, safety and health, and employee and labor relations. In this article we will discuss the elements of Human Resource Management.

How many types of HRM are there? ›

Description of three types of HRM, relational, transactional and transformational.

What is scope and importance of HRM? ›

The scope of HRM is very wide: Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc.

Who is the father of HRM? ›

George Elton Mayo:The Father of Human Resource Management & His Hawthorne Studies.

What is HRM with examples? ›

Human Resource Management, or HRM, is the practice of managing people to achieve better performance. For example, if you hire people into a business, you are looking for people who fit the company culture as they will be happier, stay longer, and be more productive than people who won't fit into the company culture.

What are the 11 training principles? ›

The principles of physical training are:
  • Principle 01: Specificity.
  • Principle 02: Overload.
  • Principle 03: Adaptation (Rest and Recovery).
  • Principle 04: Progression.
  • Principle 05: Plateau, Regression and Reversibility.
  • Principle 06: Maintenance/Regularity.
  • Principle 07: Individualisation.
  • Principle 08: Warm-up/Cool-down.
1 Nov 2017

What are the 8 principles of training? ›

  • 1 – Principle of PROGRESSIVE OVERLOAD.
  • 2 – Principle of INDIVIDUALIZATION.
  • 3 – Principle of REGULARITY.
  • 4 – Principle of SPECIFICITY.
  • 5 – Principle of REVERSIBILITY.
  • 6 – Principle of VARIATION & ADAPTATION.
  • 7 – Principle of REST & RECOVERY.
  • 8 – Principle of PERIODIZATION.
24 Dec 2016

What are the 4 main principles of training? ›

In order to get the maximum out of your training you need to apply the four key principles of training – specificity, progression, overload and individualisation – to what you do.

What are the 10 principles of learning? ›

10 Principles We've Learned About Learning
  • Learning is developmental. ...
  • Individuals learn differently. ...
  • People learn what is personally meaningful to them. ...
  • New knowledge is built on current knowledge. ...
  • Learning occurs through social interaction. ...
  • People learn when they accept challenging but achievable goals.
22 Sept 2014

What is the most important principles of learning? ›

An important principle of the learning is to provide the learner with the opportunity for practice and repetition. To gain the full benefit of training learned behaviors must be overlearned to ensure smooth performance and minimum of forgetting at a later date.

What are the 5 learning principles? ›

5 Principles of Learning
  • Learning takes Time. It takes time to learn worthwhile academic content. ...
  • Learning is Social. Most learning is an interactive endeavor. ...
  • Learning is Personal. ...
  • Learning is Transferable. ...
  • Effort produces Achievement.
24 Dec 2017

What is the principle of specificity? ›

The principle of specificity of training states that the way the body responds to physical activity is very specific to the activity itself. For example, someone who jogs can expect that their jogging performance would approve as well as their aerobic conditioning.

What are the three main principles of training? ›

Principles of Training

The best fitness training programs are built on three principles: overload, progression, and specificity. By using these principles, you can design an exercise program that improves performance, skill, ability, and physical fitness.

Why are training principles important? ›

The principles of training can help you with understanding different training types and effects. It will give you an idea of how a training program should look like, which is more efficient and with less chance on injuries. The importance of a good training program cannot be underestimated.

What are the two types of HRM? ›

Basically, human resource management models span across different industries and could fall into one of two types of general categories: strategic and traditional.

What is the difference between HR and HRM? ›

What is the difference between HR and HRM? HR stands for Human Resource and HRM stands for Human Resource Management. Human Resource or HR is used to define the set of people who manage the resources related to employees in an organisation.

Why is it called HR? ›

Manage those human resources in a way they can thrive

But if you think about it, the name is about the “humans” who happen to be employees.

Which is the most important of the HRM goals? ›

One of the primary goals of the HR department is to maintain productivity by providing the company with an adequate number of skilled and efficient workers. A good HR manager should continually analyze the workload and know where there are potential problems with manpower and when it's time for additional help.

What are the importance of HRM at different levels? ›

In enterprise the importance for HRM is help to achieving its goal more efficiently and effectively. In professional level its help to improve the quality of work life. In social level its helps to enhance the dignity of labor. HRM plays a vital role in the development of nation.

What is HR PDF? ›

It focuses on personnel administration, employee welfare, & labour relation. It focuses on acquisition, development, motivation & maintenance of HR in the organisation. It assumes people as input for achieving the desired output. It assumes people as in important & valuable resource for achieving the desired output.

What is recruitment and selection? ›

Recruitment involves actively seeking out and advertising to potential candidates and obtaining their interest in the position. Selection refers to the process of determining the best candidate from the pool of applicants.

Who introduced HRM? ›

It built on a simple idea by Robert Owen (1771-1858) and Charles Babbage (1791-1871) during the industrial revolution. These men concluded that people were crucial to the success of an organization.

What is HRM process? ›

Human resource management (HRM) is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them. As a field, HRM has undergone many changes over the last twenty years, giving it an even more important role in today's organizations.

What is modern HRM? ›

Human resource management (HRM) is the practice of recruiting, hiring, deploying and managing an organization's employees. HRM is often referred to simply as human resources (HR).

What should be the strategy of HRM? ›

What is strategic HRM? Strategic HRM, or 'people strategy', is about creating a coherent planned framework for employees to be hired, managed and developed in ways that supports an organisation's long-term goals.

What is interview in HRM? ›

Interview means a conversation between interviewer and interviewee aimed at assessing the potentialities for a job. It is a two way communication between the candidate and the interviewer.

Who is HR company? ›

Human resources (HR) is the department within a business that is responsible for all things worker-related. That includes recruiting, vetting, selecting, hiring, onboarding, training, promoting, paying, and firing employees and independent contractors.

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