Systems Approach to Human Resource Management
A system is a set of subsystems associated in such a way that form unitary or
coordinated whole. The components of a system are linked together in such a way
that changes in one have far reaching effects on others. The system approach
recognizes that an organisation is made up of the components which have mutual
relationships. It provides a complete picture of the organization and considers the
organization in its totality.
A business organization is an open adaptive system as it influences and is
influenced by the environment continuously. It receives inputs (raw materials),
labour, capital, information, etc. from the environment. It transformers them into
output (products and services) and supplies them to the environment. Business
system consists of the following subsystems:
1. Human resource system.
2. Production system.
3. Marketing system.
4. Finance system.
5. Research and development system.
All these sub system must be properly integrated and closely coordinated so
that business system can function efficiently and effectively.
Each subsystem consists of a number of sub-subsystems. For example, the
human resource system includes the following subsystems:
i. Employment.
ii. Training and development.
iii. Compensation.
iv. Employee maintenance
v. Employee integration
vi. Records, audit and research.
The human resource system transforms inputs (people) into output
(productive human resources) in collaboration with other subsystems. The human
resource system must function as an open and dynamic system so as to adapt
continuously to changes in the internal and external environment of the organization.
The human resource system seeks to achieve the following objectives:
• High productivity
• Better quality of life for all employees.
• An agent of change and progress.
Organisational Objectives and Goals
Legal and Regulatory Requirements
Competition for People and Skills
Available Skills and Talent
Human Resource Planning
Compensation,
Promotion, Recruitment and
Transfer, Demotion, selection
and Termination
Performance Orientation and
Appraisal Training
Technological and Economic Conditions.