Human Resource Management (HRM)

• Organizations rely on capital, including cash, valuables, or goods, to operate and generate income
• Regardless of the industry, all companies require people to utilize their capital effectively
• Human Resource Management (HRM) encompasses:
• Recruiting
• Selecting
• Inducting employees
• Providing orientation
• Imparting training and development
• Appraising employee performance
• Deciding compensation and providing benefits
• Motivating employees
• Sustaining proper relations with unions and employees
• Ensuring safety, welfare, and healthy practices in line with labor laws
• Compliance with High Court and Supreme Court orders

Key Definitions

• Human refers to the skilled workforce in an organization
• Resources are limited or scarce
• Management optimizes the use of limited resources to meet organizational goals

Purpose of HRM

• Aims for the correct use of proficient workforce and efficient use of current human resources
• Human assets are critical for organizations
• Although AI is taking over tasks, it lacks the judgment skills of humans

Insights

• N.R. Narayana Murthy (Infosys Ltd. Chairman Emeritus): Employees should be treated with dignity as the human mind brings innovation and John F. Kennedy (35th President of the United States): A nation's progress depends on education, which is a fundamental resource
• Edwin Flippo defines Human Resource Management as the planning, organizing, directing, and controlling of procurement, development, compensation, integration maintenance and the separation of human resources to achieve individual, organizational, and social goals

Decenzo and Robbins View

• Human Resource Management is concerned with the people dimension in management
• Since every organization is made of people, those services, developing skills, motivation, and commitment are essential to achieving organizational goals
• Applicable across government, business, education, and health/social action sectors

Main Functions

• Planning
• Organizing
• Directing
• Controlling

Key Activities

• Procurement of human resources
• Training and development
• Maintenance of human resources

HRM Objectives

• It helps in achieving:
• Individual
• Organizational
• Social objectives
• It's a multidisciplinary subject including:
• Management
• Psychology
• Communication
• Economics
• Sociology
• Focuses on team spirit and teamwork
• It is a continuous process

HRM's Role as a Department

• Manages all employee aspects
• Key functions:
• Human resource planning
• Job analysis
• Recruitment
• Job interviews
• Selection
• Orientation
• Training
• Compensating
• Providing benefits/incentives
• Appraising
• Retaining
• Career planning
• Quality of work-life
• Employee discipline
• Sexual harassment prevention
• HR auditing
• Maintaining industrial relations
• Ensuring employee welfare and safety
• Communicating at all levels
• Ensuring compliance with labor laws

HRM Objectives

• Objectives can be influenced by organizational, individual, and social goals/objectives
• Organizational objectives include:
• Earning profit
• Growth
• Expansion
• Survival
• Stability
• Diversification
• HRM ensures competent workforce availability, meets individual needs and values, and addresses socio-economic issues
• HRM objectives are classified into these categories:
• Societal
• Organizational
• Functional
• Personal
• General

Societal Objectives

• HRM is socially responsible, addresses societal needs, and follows legal restrictions and maintains relationships between unions and management

Organizational Objectives

• Focuses on recognizing HRM's role in effectiveness, human resource planning, recruitment, selection, training, appraisal, and achieving organizational goals

Functional Objectives

• Maintains departmental contribution at a suitable organizational level, timely functions

Personal Objectives

• Helps employees achieve personal goals like:
• High wages
• Job satisfaction
• Better conditions
• Standard hours
• Promotion
• Motivation
• Welfare and Social Security

Other HRM Objectives

• Achieve Organizational Goals: By using human resources for business goals, aligning with efficient planning and execution
• Work Culture: Employee/work environment factors, promotes strategies, automation, empowerment, and positive transparent relationships
• Team Integration: Aids team coordination, communication ease, productivity and better data availability

Training and Development

• Training and Development are essential achieving organizational goals and safety
• This practice is dependent on training practices that enable management
• Training management software helps in auto-reminders, easy scheduling, reporting, and tracking capability of employee performance and productivity
• Ensure effective practice is being undertaken at the firm.

Employee Motivation

• Keep distractions and negative vibes away when providing motivation
• Support empowerment for employees that involves communication, decision participation with morale and recognition programs
• An automated feedback system enhances performance appraisal management

Workforce Empowerment

• Using tools like employee self-service (ESS) portals for approvals and tracking can save HR efforts
• Avenues for assistance and transparency:
• Leave requests
• Payslip generation
• PF account checks
• Leave balances
• Holiday awareness
• Focus: Ensuring appropriate workforce engagement

Retention

• Providing leadership opportunities, a healthy work environment, and employee retention
• Focus: Keeping employees retained for long to eliminate ineffective training management or a rough hiring process
• Help maintain employee turnover

Data and Compliance

• Focus: Managing company/employee data and follow compliances procedures
• Managing payroll compliances ensures no penalties or fines

Best Practices

• Correct employment and payroll data is essential to keep organization out of penalties
• Objective is to retain claims which enables organization to have smooth operations
• To maintain legal HR, automated software ensures IRS guidelines are upheld

HRM Processes Involve

• Internal recruitment
• On the job tasks
• Off the job tasks
• Rewards and benefits
• Recognition
• Recruitment
• Selection
• Training
• Assessing performance
• Motivating
• External recruitment
• Traditional methods
• Modern methods
• Compliance to labor laws
• Health, welfare & safety of employees
• Maintaining labor relations
• Compensating

Key Steps

• Putting the right person in the right place for his/her achievements using proper training so they become assets for the company

General HRM Processes

• Recruiting
• Posting job openings to attract potential candidates for selection
• Selecting
• Involves tests and interviews to eliminate the unsuitable candidates and finding a best fit
• Training and Development
• Giving training to improve skills and handling challenges

Assessing Performance

• Management is essential to enhance performance and appraise employees, raise confidence and provide optimum productivity

Motivation

• Employees are an asset for an organization
• It's intention, intensity, and perseverance

Differences Between Personnel Management and Human Resource Management

• Personnel Management scope is limited
• Workers can be viewed as tools
• Behaviors manipulated
• Workers easily replaced
• Human Resource Management has wider scope
• Employees considered assets
• Mutuality in goals, responsibility, and reward
• Helps economic performance and HR development
• Traditionally, Personnel Management handled staffing and payroll before HRM emerged
• HRM is an extension of Personnel Management

Personnel Management (PM)

• Its part of management that focuses on people
• This involves workforce recruitment, hiring, staffing, development, and compensation in relation to organizational objectives

Categories

• Operative Functions: Related to procurement, development, compensation, job evaluation, employee welfare, utilization, maintenance, and collective bargaining
• Managerial Function: Performing and directing within planning, organizing, directing, motivation, control, and coordination

The Rise of HRM

• As automation and technology grew, functions were superseded by Human Resource Management

Human Resource Development HRD

• Essential to dynamic, growth-oriented organizations
• Helps continuously recognize, surface, nurture, and use people's capabilities by creating a climate

HRD System

• Aims to create a certain climate
• Techniques focus on performing tasks upon certain principles

Leonard Nadler's HRD Definition

• "Learning experiences which are organized for a specific time and designed to bring about the possibility of behavioral change" which was first conceived in 1969

HRD Framework

• Helps employees develop their skills, knowledge, and abilities through many avenues:
  • Employee training
  • Career development
  • Performance management
  • Development
  • Coaching
  • Mentoring
  • Succession planning
  • Key employee identification
  • Tuition assistance
  • Organizational development

HRD Goal

• Developing the most superior workforce for organizational and employee accomplishment

M.M. Khan on HRD

• "The across of increasing knowledge, capabilities and positive work attitudes of all people working at all levels"

Leonard Nadler on HRD

• "A series of organized activities conducted within a specialized time and designed to produce behavioral changes."

HRD Context

• Process to help employees continuously enhance performance
• This is done to acquire or sharpen capabilities required to perform functions associated with their present or expected future roles
• Develop capabilities, discover potential own inner potential for organizational goals
• Cultivate organizational supervision, teamwork, and promote well being

HRD Limitations

• Limited to a state or nation

Purpose of HRD

• Not merely a set of mechanisms and techniques, it's counselling, training
• Initiate and promote a continuous process
• Organizations can facilitate by planning, allocating HR resources, and promoting their developments

Notable Concepts

• Both HRM and HRD are important to ensure development to differentiate them
• HRM oriented towards maintenance, HRD is development oriented
• HRM structure is independent, HRD creates an interdependent structure
• HRM aims to improve efficiency while HRD aims at employee and organization development

Responsibilities

• HRD given to personnel and managers
• HRM is managed through monetary incentives to retain the workforce
• HRD forges better organizational usage and improves conditions, it’s a brand of HRM
• Before discussing HRM and HRD in further detail, a comparative chart illustrates the differences between the two

HRM vs HRD

     | Basis of Differentiation | HRM                                                                 | HRD                                                                                                           |
     | :----------------------- | :------------------------------------------------------------------ | :------------------------------------------------------------------------------------------------------------ |
     | Definition/Full form     | Managing employees effectively within an organization              | Improving performance continuously                                                                          |
     | Nature                   | Management function                                                 | Sub-function of HRM                                                                                           |
     | Function                 | Reactive, applied to holistic goals                               | Proactive, consistently applied to enhance productivity                                                         |
     | Goal                     | Improve employee performance overall                                | Skill dev knowledge and enhancing competency                                                                   |
     | Process                  | Routine, as-needed                                                  | Ongoing                                                                                                       |
     | Dependency               | Independent                                                         | Subsystem of HRM                                                                                              |
     | Concerned with            | Only concern with aspects, people, rewards                         | Concerns all people in an organization and develop skill development                                         |
     | Levels of formality       | Generally formal and applied in classrooms for training             | Maybe informal with mentoring and/or coaching                                                                  |

HRD Features

• HRD is focused on employee success
• Recognizes value and development with the workforce to enable high performance

Key Attributes

• Establishing or developing interpersonal relations to deliver trust/confidence
• Promoting team spirit through providing healthy organizational climate for development
• Provides interconnected system within all the subsystems
• Developing solid inter-subordinate relations with an established sense of quality
• Meeting goals in an established interdisciplinary environment to integrate various concept and ideas for the employee workflow
• Continuous systematic learning process for development that has a life that never ends

HRD Objectives

• Prepare the employee meet current job requirements now and in the future
• Prevent employee obsolescence

Provide opportunities for employee development

• Ensure higher positions are occupied

New employees receive basic training and knowledge

• Helping senior managers build relations

Create a new climate of possibilities

• Aid total quality management

Provide strong leadership for organization needs

• Broad awareness for current employees

HRD System Focus

• HRD systems are designed to be different organization
• It allows organizations to be well diverse
• Principles and concepts are well organized to integrate human resource capabilities
• HR staff should be well understood to develop and diagnose the organization
• A proper perception of all the practices is essential to ensure that the climate within said organization is one of growth

Principles of Effective HRD

• Focus on enabling capabilities, improving organizational health
• Balance adaptation to encourage change and evolve to future
• Pay attention to contextual factors and culture the organization is creating
• Build linkages for long term financial and functional opportunities
• Use specialization to implement HR action in areas for sole responsibility
• Ensure respect and creditability
• Balance differentiation and integration and handle administration
• Creating a great environment comes from having great internal / external expertise and monitoring methods

HR Department Structure

• Growing companies need well-defined structure to navigate complexity, maintain corporate culture, and prevent employee satisfaction declines

HRM's Role in Growth

• HR must professionalize, care for corporate culture, and employee retention
• Responsible HR departments develop salary models and handle increasing bureaucracy

HR Department Size

• Staff depends varies with company size
• One HR position for every 100 employees (larger companies).
• Smaller companies with up to 250 employees, 3.4 HR employees per 100

HR Department Implementation

Steps to evaluate your HR department structure includes task identification to assist areas of focus that ensures employees retain

Key Areas of Focus

• Recruiting top talent
• Flexible working models
• Employee satisfaction
• Training and education

HR Processes

• Documenting tasks ensures the HR role is at its highest potential
• Document current processes, including:
• Responsibilities
• Relevant tasks
• Establish relationships through service agreements, and make staffing plans
• Outline each procedure with guidelines to remain compliant with both regulations and with departments create job functions to retain compliance with the processes

Implement Internal Software

• Implementing HR software from the start is important, and it can keep your information organized with data interfaces
• Streamline new software in a cost-effective way to create efficient workflow

Structure of an HR Department

Four unique ways to create a HR roles that ensures the workplace can deliver traditional work and a modern work approach:

• More flexible models
• Goals are assigned to tasks
• Central Task can use outsource

Model

• The Hierarchical Model

  • Best for a traditional work structure that allows movement throughout seniority

• Formal and Informal Model

  • Enables a modern approach that enables for flexible rules with agile work

• Goal-Oriented Model

  • To ensure productivity, goals can be designed

• The Shamrock Model

  • It creates a structure enabling relevant contractors and maintaining a core team

HR Department Hierarchies with 4 Structures of Hierarchy

• The model allows departments to be ranked in an orderly fashion for efficiency
• Example:
• It can be composed of managing to lead in team based roles

Formal and Informal Structures

• Freer team to interact with each other on an agile approach

Goal Oriented

• Enterprise creates commitment and focus

A Shamrock

• Enables core workers to be placed externally in a special project

Networking and Outsourcing

• Complete dominated of outside sources

The Role of Human Resource Development Manpower

• HRD process documentation in decision-making through qualitative and quantitative organizations

Key Attributes

• Descriptions, identifications, Analytic decomposition HRD provides feedback, balance to quantitative decisions and phases with high skill and enhance motivation to level skill

Goals Met through HRD

• Assist employees in their goals
• A HR advisor can assist those in needs based in several sectors within the organization:
• HR advisor can assist in identifying intervention to retain effectiveness- Lead efforts that links the total workforce

More Goals assisted through HR through

• Facilitating and directing structures- Marketing programmes
• Material developers of both written form and tech
• Analyze needs using Role-identifying and performance
• Ensure organization has influence to retain structure
• Create content with specific interventions- Research with hard ware to assist