Human Resource Management

I am convinced that nothing we do is more important than hiring and developing people. At the end of the day, you bet on people, not on strategies."

Human Resource Management Human Resource Management

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Table of contents

    - Lawrence Bossidy

    Human resource management (HRM) makes sure that the organisation functions smoothly. The process begins with the formulation of correct policies for job postings and finishes with a successful growth for the organisation. Hence, HRM is an imperceptible agent that joins all the aspects of the organisation ensuring smooth growth.

    Human Resource Management Meaning

    Human resource management (HRM) is the strategic management of people and processes within an organization.

    HRM was initially recognized as people’s management. Previously, its role was confined, however, over time it has become a primary part of organisational management. The key responsibilities of this department are recruitment, procurement assessment, integration, training and development, and compensation of the workforce. The human resource department takes care of any issues faced by the employees in their working capacity in the company. Human resource is related to particular work practices and how they impact a company’s performance.

    The following represent the principles of HRM:

    • HRM deals with the management functions and principles such as selection, development and maintenance, and provision of remuneration to the employees of the company.

    • Human resource decisions impact the effectiveness of the company. The effectiveness of a company will lead to better service to the customers with high-quality products at affordable prices.

    • HRM functions are not relevant just for business organisations but also for education, healthcare, etc.

    Role of Human Resource Management

    Let's take a look at what some of the main roles of HRM.

    Staffing

    A business needs people to accomplish certain tasks even when there are high-tech machines present. Due to this, one of the key tasks of HRM is staffing. This comprises the hiring process from a job post to the negotiation of a salary package.

    Creation of policies

    Each company has policies that ensure fairness and steadiness. Therefore, one of the roles of HRM is to create such policies. In the creation of policies, HRM, management, and executives are included in the process.

    Some of the policies are:

    • Ethics policy

    • Holidays policy

    • Discipline process policy

    • Dress code

    Compensation

    HR managers should define if compensation is fair, matches market standards, and is high enough to attract individuals to work for a company. Compensation comprises anything the employee gets as an exchange for their work. HRM managers should ensure that the pay is equivalent to what other companies are paying their employees for similar jobs.

    Some of the compensation examples include the following:

    • Salary

    • Sick leave

    • Health benefits

    • Holidays

    • Bonus

    Retention

    This includes keeping and encouraging employees to continue with the company. One key contributor of retention is compensation, however, there may be other elements as well such as organisational culture or work flexibility.

    Training and development

    Training ensures that employees are not just trained to perform their job but also persistently progress and develop new skills, hence resulting in higher productivity, employee motivation, and employee retention.

    Strategic human resource management

    Strategic human resource management is the connection between a business’s human resources and its overall strategies, aims, and objectives.

    The Goal of Strategic Human Resource Management

    The goal of strategic HRM is to:

    1. Enhance business performance,

    2. Create a fit for organisational culture

    3. Enhancement of flexibility innovation

    4. Develop a competitive edge

    For strategic HRM to be efficient and effective, human resources should play an essential part as a strategic partner when an organisation’s policies are developed and employed. Strategic HR can be exhibited via diverse activities including recruiting, training, and rewarding. It involves searching for methods in which human resources can make a direct influence on the organization’s growth. Human resource managers should embrace a strategic approach to develop and retain employees to achieve the organisation’s long-term objectives.

    Organisations will succeed when all the teams are performing for a similar goal. Strategic HR conducts an analysis of employees and establishes the actions needed to amplify their value to the organization. The outcome of this analysis can be used to create human resource approaches to tackle employee weaknesses.

    The benefits of strategic HRM are as follows:

    • It increases job satisfaction

    • Improved work culture

    • Enhances rates of satisfied customers

    • Efficient and effective resource management

    • Increases productivity

    • A proactive approach to managing employees

    Human Resource Management System

    HRM systems (HRMS) are software applications employed to manage HR and processes linked to the lifecycle of employees.

    HRMS allows an organization to completely understand its workforce whilst conforming to the varying tax laws and labor regulations.

    Functions of Human Resource Management

    The functions of HRMS include:

    Candidate Management

    It associates employment offers to candidates and promotes positions both internally to the present employees who might want to apply for internal positions and externally to the world. It is crucial for organisations for which the experience of the participants is their main concern.

    Employee Management

    This function is often considered the main human resource function. It delivers a primary portal for supporting analysis, reporting, and fulfilling processes. This is where the workforce is structured into units such as departments/locations, it outlines reporting relationships among the managers and the employees, and personal information is stored.

    Payroll

    This is a main function of HRMS, calculation of earnings from gross to net, holding back employee deductions, and giving out payments are routine tasks.

    Some of the benefits of HRMS include the following:

    • It provides enhanced employee engagement as with HRMS, HR managers can develop training schedules, customize learning plans and career paths.

    • It provides enhanced and deep insights as all the data is in a single bucket, therefore, enabling quicker decision-making.

    • Allows for rapid recruitment as HRMS connects the recruiters and candidates electronically via job boards.

    Human Resource Management - Key Takeaways

    • Human resource management (HRM) is the strategic management of people and processes within an organisation.

    • HRM was initially recognized as people’s management.

    • The key responsibilities of HRM are recruitment, procurement assessment, integration, training and development, and compensation of the workforce.

    • HRM deals with the management functions and principles, and decisions made about employees are integrated.

    • The role of HRM includes staffing, creation of policies, compensation, retention, and training and development.

    • Strategic human resource management is the connection between a business’s human resources and its strategies, aims and objectives.

    • The goal of strategic HRM is to enhance business performance, create a fit for organisational culture, enhancement of flexibility innovation, and develop a competitive edge.

    • Strategic HRM benefits are increased job satisfaction, improved work culture, enhanced rates of satisfied customers, efficient and effective resource management, increased productivity.

    • HRM systems are software applications employed to manage human resources and processes linked to the lifecycle of employees.

    • Some of the functions of HRMS include candidate management, employee management, and payroll.

    Frequently Asked Questions about Human Resource Management

    what is human resource management?

    Human resource management (HRM) is the strategic management of people and processes within an organization.  

    what are the techniques for improving human resources management?

    Better hiring practices, comprehensive onboarding, tracking employee performance, and promptly responding to employee feedback are the techniques for improving human resources management. 

    what is the best fit in human resource management?

    The best fit in human resource management is an approach that advocates that HRM practices must be aligned with the organisation's culture. 

    What is human resource management functions? 

    Candidate management, employee management, and payroll are HRM functions.  

    what is talent management in human resource management?

    Talent management in human resource management is a practice that focuses on hiring, developing, motivating, and retaining top-performing employees. 

    Test your knowledge with multiple choice flashcards

    What is not an avoidable cause of high labour turnover? 

    What is not an unavoidable cause for labour turnover?

    What are some positive effects of labour turnover? 

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