Human Resource Management Overview

Study Notes

Human Resource Management (HRM) encompasses activities from hiring to employee departure, aiming to enhance individual and organizational performance.
Key functions include job setup, recruitment, training, performance review, rewards, and employee well-being.
HRM involves critical decision-making, focusing on sourcing talent, motivation, skills development, career advancement, and engagement.
HRM strategically manages employees throughout their organizational journey, influencing individual and company success.

Human resources are the employees of a company.
HRM practices are the actions taken to manage employees effectively and achieve organizational goals.
These practices include hiring strategies, training programs, feedback systems, and performance-based pay.
Employees are considered a company's most important asset due to their crucial function in achieving success and staying ahead of competitors.
While essential, HR departments often have limited influence on significant company decisions.
Some factors contributing to this limitation include HR managers' lacking business expertise, overemphasis on efficiency at the expense of value creation, and treating all employees uniformly through the application of standard rules and pay scales.
Many agree that employees are crucial for success, but how HR effectively manages them remains a concern.
HR needs to focus on helping employees add value to the company.

HRM not only focuses on organizational performance but also on individual employee experiences, values, and connections within and outside the company.
HRM considers the social responsibility of caring for employees' well-being because it leads to better results, and it is the right thing to do.
HRM focuses on improving and enhancing employee performance and well-being for ethical reasons beyond better outcomes.
Employees are considered as important individuals with their own experiences and aspirations beyond tools for company success.

HRM managers play critical roles and have specific competencies for success.
Four primary roles for HR professionals include Administrative Expert, Employee Champion, Strategic Partner, and Change Agent.
These roles help understand HRM manager activities and the essential skills for success.
Ulrich introduced the 'HR business partner' model, which shows four main roles.

HR aims to make work more efficient and cost-effective without compromising quality.
This role involves using technology and effective strategies to optimize processes, like hiring, training, and performance reviews.
HR builds credibility by focusing not just on their tasks but on the efficiency of the entire organization.

HRM advocates for employee needs, interests, and development.
They support employees by representing their concerns to management, ensuring fair treatment, and creating an environment that fosters motivation and growth.
HRM works to improve employee skills, motivation, and opportunities for effective contributions to the organization.

HR aligns organization strategies with the needs of employees.
HR collaborates with senior management to support the execution of company strategy by understanding the "organizational architecture."
HRM plays an essential role in guiding discussions and decisions about organizational structure, ensuring aligned strategy and execution.

HR facilitates change within the company, guiding and supporting the company through changes, focusing on management of change, and helping with transitions.
Change management models help oversee efficient change within the company.
HR ensures employees are prepared for and effectively manage organizational changes.

HR roles vary based on different organizational settings, such as those with strong unions, frequent mergers, high amounts of paperwork, or crisis situations.
HR needs to adapt strategies and competencies based on the environment they work in.

HRM's concept originated with John R. Commons (1919).
Initially, HRM wasn't formalized, but it evolved over time, influenced by industrial revolutions, unions, the growth of organizations, labor shortages, and economic changes.
Early HRM was often focused on efficiency, labor relations, and worker welfare.
The evolution of HRM shows a shift from individual tasks to strategic management of people as an organizational resource.

HRM's future involves using data and technology to make informed decisions and prioritize employee well-being.
Evidence-based HRM, big data, and e-HRM are key trends shaping the future.
Sustainable HRM focuses on positive aspects of work, like well-being, engagement, and company strategies, rather than just fixing problems.