The document discusses human resource management (HRM) and its significance. It defines HRM as maximizing the use of an organization's human resources to achieve its goals and objectives. It notes that HRM involves planning, organizing, directing, and managing the recruitment, development, compensation, and retention of employees. The document outlines some of the key functions of HRM, including planning, organizing, staffing, leading, and controlling human resources. It provides details on what each of these functions entail, such as setting goals, developing rules and procedures, determining workforce needs, assigning tasks to employees, and coordinating employee work.
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1.1 Human Resource Managament (HRM)
The document discusses human resource management (HRM) and its significance. It defines HRM as maximizing the use of an organization's human resources to achieve its goals and objectives. It notes that HRM involves planning, organizing, directing, and managing the recruitment, development, compensation, and retention of employees. The document outlines some of the key functions of HRM, including planning, organizing, staffing, leading, and controlling human resources. It provides details on what each of these functions entail, such as setting goals, developing rules and procedures, determining workforce needs, assigning tasks to employees, and coordinating employee work.
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1.
1 Human resource managament(HRM):
What is the significance of the term "HRM"? o The skilled staff of an organization is referred to as Human. o Limited availability or scarcity is referred to as a Resource. o Management refers to the process of maximizing and making the most of a restricted or precious resource in order to achieve the organization's goals and objectives. As a result, HRM is intended to maximize the use of available skilled labor as well as the organization's existing human resources. The construction industry, for example, has been experiencing a severe lack of trained workers in recent years. It is predicted to increase in the next decade from the current 30%, which will have a negative influence on the sector's total productivity, according to industry analysts. Many experts now say that automation and technology are displacing humans and reducing their role or effort. Machines and technology, on the other hand, are built by humans and must be run or at the very least overseen by humans, which is why businesses are always on the lookout for talented, knowledgeable, and certified people to help them continue to grow. As a result, humans are critical assets for any organization. While artificial intelligence has taken over many activities, it lacks judgment capabilities that cannot be matched by the human mind. "The automation of factories has already decimated jobs in traditional manufacturing, and the rise of artificial intelligence is likely to extend this job destruction deep into the middle classes, with only the most caring, creative or supervisory roles remaining"
HRM is the process of hiring, selecting, and inducting employees, as well as
providing orientation, training, and development, evaluating employee performance, determining compensation and benefits, motivating employees, maintaining proper relations with employees and their trade unions, and ensuring employee safety, welfare, and health measures in accordance with the law. Planning, organizing, directing, and managing are some of the managerial functions involved in HRM.
o It entails the acquisition, development, and maintenance of human
resources. o It aids in the achievement of personal, organizational, and social goals. o HRM is a subject that spans several disciplines. Management, psychology, communication, economics, and sociology are all covered. o It entails teamwork and team spirit. o It's a never-ending process. HRM, as a department within an organization, is responsible for all aspects of employees and performs a variety of tasks such as human resource planning, conducting job analyses, recruiting and conducting job interviews, selecting human resources, orienting, training, compensating, providing benefits and incentives, appraising, retaining, and career planning. 1.1.1 Definitons Many famous scholars have defined HRM in various ways and using various terms, but the primary meaning of the term concerns with how to manage people or employees in an organization. Edwin Flippo defines- HRM as “planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.” The National Institute of Personal Management (NIPM) of India has defined human resources – personal management as “that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up enterprise and having regard for the well – being of the individuals and of working groups, to enable them to make their best contribution to its success”. According to Decenzo and Robbins, “HRM is concerned with the people dimension” in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieve organsational objectives. This is true, regardless of the type of organization – government, business, education, health or social action”. 1.1.2 Functions
5 basic (Managerial) function of HRM
PLANNING Planning is the first and most basic function of management, and everything is dependent on it since it is a process of thinking about things before they happen and making plans to cope with them in advance. Poor planning leads to failure and has an impact on the entire system. As a result, HR managers must be aware of when it is appropriate to do things, when they should be done, and when they should not be done in order to meet the organization's goals and objectives. o Establishing goals and objectives for employees to attain in order to achieve the top-level management's corporate mission. o Developing rules and procedures that employees must follow in order to avoid any type of discrimination among employees in any of their functions, to enable fair and transparent treatment among employees, to avoid conflict from employee recruitment to separation, to instill discipline among employees, to drive employee performance, and, ultimately, to avoid retaliation. o Determining plans and forecasting procedures as part of human resource planning to avoid any workforce shortages that may have an influence on the organization's output, to estimate the exact workforce required for the organization, and to plan for attracting outstanding applicants. o HR outsourcing: Similar to the make or purchase option in operations management, human resource managers should be able to make judgments about whether HR functions should be carried out in-house or outsourced where there is a benefit of bringing in knowledge and cost savings for the firm. Legal advice and support, employee payroll, pensions, training and development, recruitment, employee assistance, compensation and benefits, outplacement, human resource information systems, employee relations, policy-making, strategic partnerships, employee appraisal, and resource planning are the most outsourced HR activities. The irritation of spending more time than they wish on non-revenue producing operations such as payroll, HRM, and benefits and compensation is common among small and medium-sized business owners. Many firms may find that outsourcing part of their HR functions to third-party companies allows them to focus on their core business while also providing the following benefits. 1. Save money by lowering your running costs. 2. Allow the organization to concentrate on what it does best. 3. Reduce the number of HR employees and the costs associated with them. 4. Allow HR to concentrate more on strategy. 5. Avoid the costs of a large technological investment. 6. Enhance metrics and measurement ORGANIZING HR managers should be well-versed in the process of organizing everything linked to human resources and organization, as organizing is the process of creating and arranging things in the appropriate order to avoid any confusion or disputes. o Giving each member a specific task to complete in order to meet the overall objectives of the work given to an employee is the Human Resource Manager's responsibility. It is also the Human Resource Manager's responsibility to clearly define task before committing the work to an employee. HR managers must remember that tasks given to employees must be matched to their skill set and talents, and HR managers must also ensure that employees receive training in the area or subject to which they will be entrusted, or the task handed to employees will fail and be defeated. o Organizing departments and divisions based on the nature of duties and projects in order to improve efficiency, expertise, and productivity. Separate divisions and departments would allow management to have easier and more effective control over staff, resulting in greater results and an overall improvement in the organization's performance. o Employee development includes delegating authority to members for a worthy cause and to make employees more responsible for their jobs and organizations. Because there is a principle called authority equals responsibility, delegating authority to employees makes them more responsible towards the organization. When you load an employee with tasks, he should be given authority so that he can complete the tasks put upon him. The objective of authority without responsibility and responsibility without authority is defeated. As a result, when employees feel accountable and accept obligations, it is a positive indicator because it motivates them to work more. o Any human resource manager's principal role is to establish channels of authority and communication that will allow managers to effectively express the organization's desired goals and objectives. Effective communication will prevent disagreements, ensure that employees understand what they are expected to perform, and allow the management to complete tasks on time. o Developing a method to coordinate the work of members in order to ensure that employees work properly and that there are no conflicts in the distribution of work among employees. Improper and discriminatory task assignment will cause one or more employees to feel overburdened, burnout, and maybe create conflicts among employees, which is not healthy for the organization's health. and forming teams will foster teamwork, which will foster synergy among members, allowing them to achieve their full potential. STAFFING Staffing is one of the most important aspects of HRM since it involves hiring the right people, giving appropriate training, and placing them in the correct job while paying them appropriately and adequately. o The importance of determining the type of people to be hired should not be underestimated, since they are the most important resource and investment for any company. Every company wants the proper people on board, but they come at a cost. Employee salary is a crucial motivating factor in attracting and keeping exceptional people in the organization for a long time. o One of the primary functions of HRM is to compensate personnel. Money is the most significant motivational factor for any employee among all the other driving variables. Providing enough remuneration for the employee's labor will not only make the employee happy, but it will also ensure that the company complies with all applicable employment regulations; otherwise, it will be unjustifiable and amount to employee exploitation, which is illegal. o Setting performance goals, assessing, and evaluating employees: A performance appraisal is intended to assist employees recognize their strengths and weaknesses so that they can be compensated appropriately. The basic objective of evaluating and compensating personnel is to appraise their performance. Employees' real performance cannot be compared to the standard performance unless the organization establishes performance criteria for them. HR managers consider employee performance gaps when deciding whether or not to compensate workers with bonuses, profit-sharing, stock options, and incentive payments. These employee performance gaps will be considered not only for making compensation decisions, but also for deciding whether to initiate corrective actions on said employees, promote them to higher levels, and if any employee performance gaps are too large, such employees will be demoted, suspended, or even fired from their jobs. o As a Human Resource manager, I counsel employees in order to understand and aid people who have technical, personal, emotional, or adjustment challenges, with the goal of reducing them so that employee performance is maintained or even increased. o One of the key duties of HRM is to recruit potential employees and choose the best ones from among them. Recruiting is the process of asking people who want to join an organization to apply, and selecting the finest among them is a key procedure that includes numerous selection exams. Having the best people in the organization will make it the best in every manner, creating an employer brand that will help recruit bright individuals and keep them for a long time. o HR Metrics: The use of formulae to measure and calculate basic HR issues in order to derive precise HR results and the present state of the organization. The goal of HR metrics is to show the organization's present position and performance. DIRECTING Directing is a method of conveying to others what you expect them to perform for you or for an organization. It requires knowledge, discipline, and formality. A HR manager cannot be considered a full-fledged HR manager unless he or she is capable of directing. When an HR manager has the correct directing skills, it clarifies for employees what they are expected to do, eliminates employee misunderstanding, and clarifies what results management expects from employees. o Getting work done through subordinates in order to satisfy the goals and objectives of the organization. Indeed, getting work done for others is an art that every Human Resource Manager should master, and employee motivation is heavily influenced and influenced by HRM. o Ensuring good two-way communication with subordinates for the flow of information in order to successfully explain the organization's aims and objectives, as it plays a major part in knowing what the Human Resource manager or organization expects from employees to perform. Employee miscommunication stymies productivity and can even lead to conflict, which has a negative impact on the company's overall effectiveness. o One of the functions of HRM is to motivate subordinates to strive for improved performance by offering employee recognition, awards, intrinsic benefits, paid vacations, salary increases, presents, and any social security benefits to employees and their family members. o Maintaining group morale involves treating employees fairly, being ethical and generous to them, and management being devoted to their employees and prioritizing employee problems. It is the obligation of the human resource manager to always guide his or her staff; otherwise, lack of guidance can kill employee morale. Employee training and development programs not only increase their skills but also their morale, making them happier and resulting in longer tenures. Training programs provide employees with a learning platform where they may acquire new abilities and become more marketable, in addition to breaking up the monotony of the workplace. CONTROLLING HR managers should be able to think and decide what should be done and what should not be done while dealing with employees, as well as what should be done and what should not be done. o Establishing a standard of performance in order to assess employees' real performance through performance evaluations for appraisals. o Actual performance is compared to specified employee performance standards in order to identify performance gaps o If there are any deviations, compare actual performance to the standard to determine the deviation and initiate corrective steps. Corrective actions include providing proper and appropriate training to such personnel or deferring pay increases until performance gaps are eliminated. When major deviations are discovered, the individual is demoted, suspended, and fired from their employment.
1.1.3 Role of HRM
According to Mullins (2006), the role of human resources management is to guarantee that management properly deals with everything related to the organization's human resource, employee development, and managing management-employee relationships. Its purpose is to act as a facilitator in the process, advocating for all members and ensuring that each employee's voice and concerns are addressed. In addition, HRM ensures that all strategies for changing behavior have enough time and resources to take impact, especially when it comes to aligning people processes with company goals to generate a shared sense of meaning. Develop Human Resource plans and strategies that are aligned with the organization's strategic direction and business strategy in strategic HRM. HRM must also give tools for implementing these initiatives and maintaining control over processes and systems. The requirement for a human resources professional to change regularly is a result of the organization's desired effectiveness. HR professionals are highly appreciated for their abilities and understanding to implement successful transformation strategies. To reduce employee unhappiness and resistance to change, understanding how to tie the change to the organization's strategic needs is critical. HRM's Strategic Role The human resources management team advises the management team on how to manage people as business resources strategically. Recruiting and employing people with specific skill sets to suit the company's present and future goals, organizing employee benefits, and providing employee training and development methods are all part of this process. HR experts, in this sense, are consultants rather than employees in a separate business function; they advise managers on a variety of issues concerning personnel and how they may assist the corporation in achieving its objectives. Developing Future-Ready Skills Managers and HR experts collaborate at all levels of the organization to help employees enhance their abilities. HR specialists, for example, advise managers and supervisors on how to assign people to various tasks within the organization, assisting the organization in successfully adapting to its environment. Employees are moved around to different company roles in a flexible organization based on business priorities and employee preferences. Creating a Culture of Loyalty and Commitment HR professionals can provide advise on how to increase employee commitment to the company. This begins with the use of the recruiting process, which involves matching individuals to the appropriate positions based on their qualifications. Employees must be devoted to their jobs once employed and feel challenged by their manager throughout the year. Building a Talent Pipeline An HRM team assists a firm in gaining a competitive edge, which entails increasing the company's capacity so that it can provide a unique set of goods or services to its customers. Private enterprises fight with one another in a "war for talent" to develop successful human resources. This game is about maintaining people and helping them grow and stay dedicated in the long run, not just hiring talent. Keeping up to date and competitive HRM necessitates strategic planning to accommodate not only an employer's changing demands, but also a competitive employment market that is continuously shifting. Employee benefit packages must be evaluated on a regular basis for their cost to the employer. By adding vacation days, flexible working arrangements, or retirement plan changes to the packages, employers can increase employee retention. Many human resource professionals, for example, have recently overseen the inclusion of preventative health components to typical health plans for both employment recruitment and retention initiatives.