8 P's Framework of Human Resource Management

Human Resource is the most important asset for any organization and it is the source of achieving competitive advantage. Managing human resources is very challenging as compared to managing technology or capital and for its effective management, organization requires effective HRM system. HRM system should be backed up by sound HRM practices or functions. HRM practices or functions refer to organizational activities directed at managing the pool of human resources and ensuring that the resources are employed towards the fulfillment of organizational goals. The Human Resource Management system in any organsation perform many functions like Human Resource Planning, Recruitment and Selection, Training and Development, Career planning, Performance Appraisal, compensation management, employee welfare and maintenance of sound industrial relations. Each function needs special attention and proper planning and should be in accordance with the organizational goal. It has become a great necessity that the organizations measure the effectiveness of HR efforts. It has become crucial for organizations to have better people in all positions if not the best. A proper planning of Human Resources pave path to profitable future. This paper has been designed to review the existing literature available on HRM functions in an organisation. The purpose of this paper is to develop an understanding of HRM Practices or functions in the framework of 8 P's of HRM.

On the basis of the literature reviewed, an 8 P's framework has been developed showing how HRM practices or functions leads to overall corporate performance.