Human Resource Management (HRM) Practices

• Human Resource Management (HRM) is managing the most valuable part of an organization, the employees
• HRM ensures employees are treated with respect and compassion during their employment

HRM Practices

• Helps an organization lead its people successfully through the employment cycle

Pre-Hiring

• HR planning
• Job analysis
• Staffing needs determination

Hiring

• Recruitment
• Selection
• Onboarding

Post-Hiring

• Training
• Performance appraisal
• Compensation
• Employee safety
• Separation

Historical Breakthroughs in HRM

• 1890-1910: Frederick Taylor introduced Scientific Management, emphasizing worker selection based on capabilities and additional compensation for exceeding output standards
• 1910-1930: The emergence of Industrial Psychology led to the development of employment tests and selection techniques, influenced by WWI
• 1930-1945: The Hawthorne Studies highlighted the importance of social and personal interaction in boosting worker productivity and satisfaction
• 1945-1965: The rise of union membership led to more focus on employee-employer relations, improved pay, and benefits
• 1965-1985: The Civil Rights Act of 1964 prohibited discriminatory practices, emphasizing Equal Employment Opportunity
• 1985-Present: Workforce diversity, globalization, and strategic HRM became pressing concerns for organizations adapting to changes and improving efficiency

Importance of Studying HRM

• HRM covers recruitment, selection, training, performance appraisals, compensation, and safety
• Entrepreneurs learn to manage worker challenges, compensation structures, and build company culture.
• Employees understand their rights, privileges, and responsibilities in the organization
• Supervisors/Leaders develop skills to enhance employee performance and work-life balance

Key Features of HRM

• Prevalent in Nature: Applies universally across organizations
• Dynamic: Adapts to changing needs and environments
• Individually Oriented: Focuses on individual employees' growth
• Employee-Oriented: Prioritizes employee welfare and development.
• Forward-Looking: Focuses on long-term organizational goals
• Growth-Oriented: Seeks continuous improvement for both individuals and the organization

PM vs. HRM

• Personnel Management (PM) focuses on managing employees. It is a conventional/administrative approach, a separate function within the organization, reactive to issues, and focuses on administration and labor laws. Employees are seen as commodities.
• Human Resource Management (HRM) focuses on enhancing employee capabilities and development, is a continuous/strategic process focused on organizational development, integrated across the organization, is proactive in preventing issues, emphasizes work-life balance and employee satisfaction, and employees are viewed as valuable assets

HRM vs. HRD

• Human Resource Management (HRM) focuses on long-term employee potential, utilizes employees efficiently, makes decisions related to HRD plans, and addresses employee needs for increased satisfaction and productivity
• Human Resource Development (HRD) focuses on enhancing skills and behavior change, ensures opportunities for growth and development, depends on HRM for decision-making and planning, and on upscaling skills and knowledge for better performance

Pre-Hiring Stage

• Human Resource Planning: Determining the organization's workforce needs and ensuring the right number of people with the appropriate skills are available
• Job Analysis: Defining the roles, responsibilities, and requirements for each job within the organization

Hiring Stage

• Recruitment: This tool to locate and attract job seekers who are qualified for the position; can be done internally and externally.
• Selection: Choosing the best-qualified candidates from the applicant pool based on job requirements

Post-Hiring Stage

• Training and Development: Improving employee skills, knowledge, and performance
• Performance Appraisal and Management: Evaluating and managing employee performance to ensure organizational goals are met
• Compensation and Benefits: Administering salaries, bonuses, and other employee benefits.
• Employee Safety and Health: Ensuring a safe and healthy work environment for employees
• Separation: Process when an employee leaves, due to resignation, retirement, or termination

Current Trends in Human Resource Management

• Increasing Workplace Cultural Diversity: Workplaces becoming more diverse, necessitating inclusive HR practices
• Work and Family Issues: Focus on flexible work schedules, such as telecommuting, to address work-life balance
• Growth of Part-Time and Temporary Employees: Increasing reliance on part-time and temporary employees in many sectors.
• Dynamic Upgrading of Technology: Evolving HR technology influencing recruitment, training, and employee management

HR Roles

• HR Generalist: Handles a wide range of HR activities; typically in small to medium enterprises (SMEs)
• HR Specialist: Focuses on specific tasks like recruitment, compensation, or training; typically in larger companies

HRM Specialty Areas

• Training and Development: Assessing training needs, designing/implementing programs, and evaluating results
• Employee Compensation and Benefits: Designing compensation structures, conducting market surveys, and developing benefits programs
• Employee Well-being: Ensuring employee safety/health by creating programs
• Recruitment and Selection: Determining job vacancies, attracting candidates, conducting interviews, and administering tests.
• Work and Family Life Programs: Flexible time arrangements, child care assistance, and other work-life balance initiatives
• Cross-Cultural Orientation: Creating programs for employees to understand cultural differences and integrate in the workplace
• Managed Health Care Programs: Programs that design cost-effective health care for employees
• Diversity Management: Ensures discriminatory practices are prevented and promoting equal opportunities for all employees

Organizational Ethics

• Definition: Determining the right or wrong conduct in the workplace
• Importance: Ethical behavior; should be practiced by HR professionals
• Role of HR: HR professionals should model ethical behavior; they have critical roll in shaping culture

Human Resource Planning (HRP)

• The primary goal is to predict and manage the human resources needed by an organization: the right people, right qualifications, right positions, and the right time

Key Aspects of HRP

• Predicting HR needs: In terms of both quantity (number of employees) and quality (skills, qualifications)

Human Resource Planning (HRP) and Strategic Planning

• Linking HRP and Strategic Planning: HRP integrated to ensure HR activities directly contribute to achieving long-term goals
• Strategic Planning: Includes formulating strategies, assessing internal and external environments, and aligning HR functions to the strategic plan
• Corporate Strategic Plan: Defines mission, goals, values, industry analysis, and competitive strategy
• Begins by understanding the company's mission and strategic objectives
• Current Manpower Inventory: Assess current workforce capabilities and identifying gaps in skills or numbers
• Forecasting Demand and Supply: HR predicts future workforce requirements and evaluates the availability of internal/external talent
• Deciding on Action Plans: HR formulates an action plan to address gaps based on demand and planning
• Filling Manpower Gaps: Recruiting upskilling or adjusting the current workforce
• Company’s Strategic Goals: HRP influenced by overall company goals and strategy
• Forecasting Time Frame: Requires sufficient time for analysis and planning.
• Business Uncertainties: HRP should account for market volatility
• Internal and External Availability of Manpower: Will influence HR planning
• Structural Design: Organizational structure affects how HR resources are allocated/ positioned

Forecasting Types

• Forecasting HR Demand: Quantitative (trend analysis, ratio, regression analysis) and Qualitative (Delphi Technique)
• Forecasting HR Supply: Understanding the availability of existing employees; promotions, retirements, transfers, or exits

Workforce Oversupply

• If the workforce exceeds the number of available jobs, the company needs to downsize
• Alternative measures include suspending hiring, limiting overtime, avoiding contingent workers, early retirement, pay reduction, or career breaks

Workforce Undersupply

• If the company needs more workers to fill roles, it could recruit additional employees, encourage overtime, reassign existing employees, or strengthen retention programs

Outcomes of HR Planning

• The main outcome is the ability to manage situations of undersupply or oversupply to manage the workforce effectively