Human Resource Management Overview

Human Resource Management (HRM)

• HRM is the process of acquiring, training, appraising, compensating employees, and addressing labor relations, health, safety, and fairness concerns.

Functions of HRM

• HRM functions can be categorized into operative, managerial, and advisory roles.

Operative Functions

• Recruitment & Selection: This involves analyzing departmental staffing needs, creating job descriptions, internally sourcing candidates, conducting external interviews, shortlisting candidates, negotiating salaries, and offering jobs.
• Orientation, Training, & Development: Training provides employees with required skills and information. Development fosters personal growth via conscious and unconscious learning. On-the-job training is an HR responsibility. Training improves employee job performance & understanding. Training effectiveness is monitored.
• Professional Development: This function provides opportunities for employee growth (education, management training). Organizations sponsor employees in seminars, trade shows, and responsibilities. This improves employee morale and organizational commitment.
• Compensation & Benefits: Companies adapt to provide competitive employee benefits. Examples include flexible working hours, extended vacations, dental/medical insurance, parental/maternal leave, and education reimbursement.
• Performance Appraisal: This is a formal process to assess employee competence and suggest improvements. Strengths are recognized, weaknesses are addressed. This helps identify areas for company improvement.
• Ensuring Legal Compliance/Occupational & Health Safety: This role involves adhering to employment laws, working conditions, hours, overtime, minimum wage, and tax allowances. This is vital for organizational survival.

Managerial Functions

• Human Resource Planning: This analyzes the need and availability of human resources to meet organizational objectives. It ensures the right number of staff with right skills are available for the job.
• Planning: This function outlines the objectives, goals, and strategic plans for the organization. Guidelines and procedures are established to reach short- and long-term targets.
• Organizing: This involves structuring teams/departments and resources based on the plan. This includes grouping employees by tasks/positions, allocating functions, and delegating authority.
• Directing: Management ensures employees understand targets, goals, and the direction to achieve them. This involves inspiring and guiding employees.
• Controlling: Managers evaluate employee work against organizational standards. Corrective measures are designed to address underperformance and resentment.
• Motivating: Motivation is the internal drive to act. Management creates incentives for employees (intrinsic, like job enrichment, or extrinsic, like financial rewards).
• Delegating: Managers assign tasks to subordinates. Final responsibility remains with the manager. Responsibilities cannot be delegated.

Advisory Functions

• Top Management Advice: HR managers advise top management on HR policies and procedures.
• Department Head Advice: HR managers advise department heads on recruitment, job descriptions, selection, and appraisals.

Key HRM Functions

• Hiring qualified individuals
• Prioritizing employee health and safety
• Maintaining a low employee turnover rate
• Maximizing employee performance
• Avoiding unnecessary interview time
• Preventing unfair labor practices
• Providing employee training and development