Question
Define Human Resource Management (HRM) and distinguish it from personnel management.
Answer :
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Human Resource Management (HRM) refers to the systematic process of managing people in an organization in order to achieve organizational goals while also satisfying the needs and development of employees. It involves planning, organizing, directing, and controlling the procurement, development, compensation, integration, maintenance, and separation of human resources. HRM views employees as valuable assets whose skills, knowledge, and abilities contribute significantly to the success and competitiveness of an organization. It focuses not only on administrative functions but also on strategic initiatives such as employee development, performance management, motivation, training, leadership development, and organizational culture. In the context of Micro, Small and Medium Enterprises (MSMEs), HRM plays a crucial role because these organizations often operate with limited resources and depend heavily on the
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