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    What Is HRM

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    Mfm 2015
    Human resource management (HRM) involves recruiting, training, compensating, and developing policies for employees. It also aims to retain employees. Traditionally, HRM played an administrative role, but it now serves a more strategic role crucial to organizational success. The main roles of HRM include staffing, developing workplace policies, administering compensation and benefits, retaining employees through training and development programs, ensuring compliance with employment laws, and protecting worker safety. While an HR manager typically oversees HRM, many HR activities are also performed by other department managers.

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    What Is HRM

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    Mfm 2015
    62 views5 pages
    Human resource management (HRM) involves recruiting, training, compensating, and developing policies for employees. It also aims to retain employees. Traditionally, HRM played an administrative role, but it now serves a more strategic role crucial to organizational success. The main roles of HRM include staffing, developing workplace policies, administering compensation and benefits, retaining employees through training and development programs, ensuring compliance with employment laws, and protecting worker safety. While an HR manager typically oversees HRM, many HR activities are also performed by other department managers.

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    Human resource management (HRM) involves recruiting, training, compensating, and developing policies for employees. It also aims to retain employees. Traditionally, HRM played an administrative role, but it now serves a more strategic role crucial to organizational success. The main roles of HRM include staffing, developing workplace policies, administering compensation and benefits, retaining employees through training and development programs, ensuring compliance with employment laws, and protecting worker safety. While an HR manager typically oversees HRM, many HR activities are also performed by other department managers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    62 views5 pages

    What Is HRM

    Uploaded by

    Mfm 2015
    Human resource management (HRM) involves recruiting, training, compensating, and developing policies for employees. It also aims to retain employees. Traditionally, HRM played an administrative role, but it now serves a more strategic role crucial to organizational success. The main roles of HRM include staffing, developing workplace policies, administering compensation and benefits, retaining employees through training and development programs, ensuring compliance with employment laws, and protecting worker safety. While an HR manager typically oversees HRM, many HR activities are also performed by other department managers.

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    © All Rights Reserved
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    of 5

    What Is HRM?

    Human resource management (HRM) is the process of employing people, training them,
    compensating them, developing policies relating to them, and developing strategies to retain
    them. As a field, HRM has undergone many changes over the last twenty years, giving it an even
    more important role in today’s organizations. In the past, HRM meant processing payroll,
    sending birthday gifts to employees, arranging company outings, and making sure forms were
    filled out correctly—in other words, more of an administrative role rather than a strategic role
    crucial to the success of the organization. Jack Welch, former CEO of General Electric and
    management guru, sums up the new role of HRM: “Get out of the parties and birthdays and
    enrollment forms.… Remember, HR is important in good times, HR is defined in hard times”
    (Frasch, et. al., 2010).

    It’s necessary to point out here, at the very beginning of this text, that every manager has some
    role relating to human resource management. Just because we do not have the title of HR
    manager doesn’t mean we won’t perform all or at least some of the HRM tasks. For example,
    most managers deal with compensation, motivation, and retention of employees—making these
    aspects not only part of HRM but also part of management. As a result, this book is equally
    important to someone who wants to be an HR manager and to someone who will manage a
    business.

    The Role of HRM


    Keep in mind that many functions of HRM are also tasks other department managers perform,
    which is what makes this information important, despite the career path taken. Most experts
    agree on seven main roles that HRM plays in organizations. These are described in the following
    sections.

    Staffing
    You need people to perform tasks and get work done in the organization. Even
    with the most sophisticated machines, humans are still needed. Because of this, one
    of the major tasks in HRM is staffing. Staffing involves the entire hiring process
    from posting a job to negotiating a salary package. Within the staffing function,
    there are four main steps:

    1. Development of a staffing plan. This plan allows HRM to see how many people
    they should hire based on revenue expectations.
    2. Development of policies to encourage multiculturalism at
    work. Multiculturalism in the workplace is becoming more and more important, as
    we have many more people from a variety of backgrounds in the workforce.
    3. Recruitment. This involves finding people to fill the open positions.
    4. Selection. In this stage, people will be interviewed and selected, and a proper
    compensation package will be negotiated. This step is followed by training,
    retention, and motivation.

    Development of Workplace Policies


    Every organization has policies to ensure fairness and continuity within the
    organization. One of the jobs of HRM is to develop the verbiage surrounding these
    policies. In the development of policies, HRM, management, and executives are
    involved in the process. For example, the HRM professional will likely recognize
    the need for a policy or a change of policy, seek opinions on the policy, write the
    policy, and then communicate that policy to employees. It is key to note here that
    HR departments do not and cannot work alone. Everything they do needs to
    involve all other departments in the organization. Some examples of workplace
    policies might be the following:

     Discipline process policy


     Vacation time policy
     Dress code
     Ethics policy
     Internet usage policy

    These topics are addressed further in Chapter 6 “Compensation and


    Benefits”, Chapter 7 “Retention and Motivation”, Chapter 8 “Training and
    Development”, and Chapter 9 “Successful Employee Communication”.

    Compensation and Benefits Administration


    HRM professionals need to determine that compensation is fair, meets industry
    standards, and is high enough to entice people to work for the
    organization. Compensation includes anything the employee receives for his or her
    work. In addition, HRM professionals need to make sure the pay is comparable to
    what other people performing similar jobs are being paid. This involves setting up
    pay systems that take into consideration the number of years with the organization,
    years of experience, education, and similar aspects. Examples of employee
    compensation include the following:

     Pay
     Health benefits
     401(k) (retirement plans)
     Stock purchase plans
     Vacation time
     Sick leave
     Bonuses
     Tuition reimbursement

    Since this is not an exhaustive list, compensation is discussed further in Chapter 6


    “Compensation and Benefits”.

    Retention
    Retention involves keeping and motivating employees to stay with the
    organization. Compensation is a major factor in employee retention, but there are
    other factors as well. Ninety percent of employees leave a company for the
    following reasons:

    1. Issues around the job they are performing


    2. Challenges with their manager
    3. Poor fit with organizational culture
    4. Poor workplace environment

    Despite this, 90 percent of managers think employees leave as a result of pay


    (Rivenbark, 2010). As a result, managers often try to change their compensation
    packages to keep people from leaving, when compensation isn’t the reason they are
    leaving at all. Chapter 7 “Retention and Motivation” and Chapter 11 “Employee
    Assessment” discuss some strategies to retain the best employees based on these
    four factors.
    Training and Development
    Once we have spent the time to hire new employees, we want to make sure they
    not only are trained to do the job but also continue to grow and develop new skills
    in their job. This results in higher productivity for the organization. Training is also
    a key component in employee motivation. Employees who feel they are developing
    their skills tend to be happier in their jobs, which results in increased employee
    retention. Examples of training programs might include the following:

     Job skills training, such as how to run a particular computer program


     Training on communication
     Team-building activities
     Policy and legal training, such as sexual harassment training and ethics training

    We address each of these types of training and more in detail in Chapter 8


    “Training and Development”.

    Dealing with Laws Affecting Employment


    Human resource people must be aware of all the laws that affect the workplace. An
    HRM professional might work with some of these laws:

     Discrimination laws
     Health-care requirements
     Compensation requirements such as the minimum wage
     Worker safety laws
     Labor laws

    The legal environment of HRM is always changing, so HRM must always be


    aware of changes taking place and then communicate those changes to the entire
    management organization. Rather than presenting a chapter focused on HRM laws,
    we will address these laws in each relevant chapter.

    Worker Protection
    Safety is a major consideration in all organizations. Oftentimes new laws are
    created with the goal of setting federal or state standards to ensure worker safety.
    Unions and union contracts can also impact the requirements for worker safety in a
    workplace. It is up to the human resource manager to be aware of worker
    protection requirements and ensure the workplace is meeting both federal and
    union standards. Worker protection issues might include the following:

     Chemical hazards
     Heating and ventilation requirements
     Use of “no fragrance” zones
     Protection of private employee information

    Who performs HR activities?


    Human resource management is the recruitment, management, and development of employees to
    serve an organization's goals. In most businesses, this function is overseen by an HR manager or
    director.

    References
    Cappelli, P., “HR Implications of Healthcare Reform,” Human Resource Executive
    Online, March 29, 2010, accessed August 18, 2011, http://www.hreonline.com/HRE/story.jsp?
    storyId=379096509.

    Frasch, K. B., David Shadovitz, and Jared Shelly, “There’s No Whining in HR,” Human
    Resource Executive Online, June 30, 2009, accessed September 24,
    2010, http://www.hreonline.com/HRE/story.jsp?storyId=227738167.

    Rivenbark, L., “The 7 Hidden Reasons Why Employees Leave,” HR Magazine, May 2005,
    accessed October 10, 2010, http://findarticles.com/p/articles/mi_m3495/is_5_50/ai_n13721406.

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