Introduction to HRM

Study Notes

Human resources are personnel with unique qualities that align with organizational needs.
Human Resource Management (HRM) manages people effectively to achieve company goals, including hiring, motivation, and retention.
Other names for HRM include personnel management, manpower management, people management, and staff management.

Social Objectives: Enhance work-life quality; promote workplace diversity and inclusion.
Functional Objectives: Optimize workforce skills; ensure employee comprehension of HR policies.
Organizational Objectives: Facilitate achievement of organizational goals; provide trained and motivated employees.
Personal Objectives: Improve job satisfaction; support employee career development.

Personnel/Labor Aspect: Involves workforce planning, recruitment, training, managing employee relations, and productivity.
Welfare Aspect: Focuses on improving employee living conditions through various forms of support and benefits.
Industrial Relation Aspect: Manages union-management relationships, negotiates agreements, and resolves workplace disputes.

HR Managers oversee hiring, staff training, and fair employee treatment, ensuring enforcement of company policies.

Return on Investment (ROI): A measure of effectiveness; calculated from ongoing and one-time costs against productivity gains.
Economic Value Added (EVA): Reflects profit after deducting the cost of capital; serves as a performance benchmark.
Utility Analysis: Employs models to evaluate costs and benefits of HR activities.
Human Resource Information Systems (HRIS): Essential for managing HR data, aiding in decision-making and task automation.

Workforce Growth: Increased demand for better pay and working conditions.
Diversity: Enhanced focus on equal pay and gender equality.
Employee Expectations: Educated workers seek both financial and non-financial benefits.
Technological Advancements: Continuous skill updating necessary due to automation.
Lifestyle Changes: Increased mobility for better job opportunities.
Environmental Challenges: Training needs arising from changing workplace dynamics.

Job Analysis: A comprehensive study outlining job tasks, skills, necessary qualifications, and equipment.
Methods of Job Analysis:
- Interviews: Structured discussions with job holders or supervisors for comparative data.
- Questionnaires: Quick data collection tool with open- and closed-ended questions.
- Diaries/Logs: Employee record-keeping of daily tasks, though less common now due to technology.

HR Planning: Determines future staffing needs based on organizational changes.
Features of HRP: Ongoing process, adaptable, and integral to overall company strategy.
Objectives of HRP:
- Assess future staffing needs and develop recruitment strategies.
- Identify required skills and training programs.
- Optimize workforce utilization and manage labor costs.

Analyzing Plans and Setting Objectives: Usage of SMART criteria for goal setting.
Forecasting Labor Supply: Involves tools like staffing tables, skills inventories, and turnover rates.
External Recruitment: Sourcing candidates from outside the organization through diverse channels.
Developing Employment Plans: Identifying skill gaps between current resources and future needs.
Creating HR Plans: Addressing staffing gaps through detailed recruitment, training, and succession planning strategies.

HRIS consolidates employee information, including demographics, performance, and benefits management.
Facilitates recruitment assessments and enhances strategic HRM decision-making.

Objectives: Enhance workplace efficiency, improve quality, and support staff learning and growth.
Identification of Training Needs: Focused on both individual and group needs based on current and future challenges.

Individual needs assessed through performance evaluations, surveys, and direct feedback.
Group needs determined by aligning with organizational strategy and addressing changes in product/service offerings.