Introduction to Human Resource Management (HRM) PDF

BM2018 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT WHY STUDY HUMAN RESOURCE MANAGEMENT (HRM)? "Human Resources isn't a thing we do. It's the thing that runs our business," say...

BM2018 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT WHY STUDY HUMAN RESOURCE MANAGEMENT (HRM)? "Human Resources isn't a thing we do. It's the thing that runs our business," says Steve Wynn, CEO of Wynn Resorts Ltd. Human Resource Management, being one of the major business functions alongside Marketing, Accounting, and Finance, and Operations, plays a vital role in the organization. Its importance includes the following (Lussier and Hendon, 2019): 1. People create the organization's competitive advantage Most organizations of comparable size and scope within the same industry have access to the same materials and facilities-based resources to maintain competitiveness, narrowing people as the organization's most valuable asset. For example, construction companies have the same functions, equipment, and departments. But what makes one ahead of the other companies would be the managers' skills in maximizing employees' potential and the employees' flexibility to make themselves better. 2. Managing people effectively results in organizational success If the organization can get their employees fully engaged, it can make better decisions, increase employees' trust and loyalty, and improve productivity. 3. Human resources build relationships The better employees can work well with others, the more successful they will be in their personal and professional lives—whether as an employee, a line manager, or a human resource manager. It does not require one to be part of the HR Department to work with people. All positions in the company, especially the managerial and supervisorial levels, require their people to utilize their skills and work at their best. Human Resource Management Defined HRM is the management of people in organizations (Dessler, 2019). HRM is the process of employing people, training them, compensating them, developing policies related to them, and developing strategies to retain them (Open University in Hong Kong, 2016). For the working definition, Human Resource Management is a strategic, integrated, and coherent approach to the employment, development, and well-being of the people working in organizations (Armstrong, 2014). THE STRATEGIC ROLE OF HRM HRM's role plays a vital function in every organization because people are the doers of the organizational goals. Human Resources staff are advocates for both the organization and the people who work in the organization. A good HR professional performs a constant balancing act to meet both needs successfully. The following are the roles of an HR professional (Dessler, G., & Chhinzer, N.,2017): Strategic Partner. In this role, the HR professional contributes to developing and accomplishing the organization-wide strategic plans and objectives. This strategic partnership impacts HR services such as the design of work positions, hiring, reward, recognition, and strategic pay, performance development and appraisal systems, career and succession planning, and employee development. Employee Advocate. As an employee sponsor or advocate, the HR professional plays an integral role in organizational success using his/her knowledge about and advocacy of people. This advocacy includes expertise in creating a work environment in which people will choose to be motivated, committed, and happy. 01 Handout 1 *Property of STI  [email protected] Page 1 of 6  BM2018 Change Champion. Both the knowledge and their ability to execute successful change strategies make the HR professional exceptionally valued. Knowing to link the changes to the organization's strategic needs will minimize employee dissatisfaction and resistance to change. MAIN TRENDS IN THE HR PROFESSION There are 16 HR Trends that you need to know (Snook, 2020): Technological HR Trends 1. Use of Artificial Intelligence (AI) – Companies incorporate more AI tools into everyday operations for better efficiency and workflow. Example: HR Analytics providing automated interview schedules and feedback as seen in Jobstreet.com.ph. Also, International Business Machines (IBM) Corporation has integrated AI as a compensation advisor system that implements cognitive chatbots, virtual agents, digital assistants, robotics process automation, and many more functions. 2. More Remote Employees – During the COVID-19 pandemic, the work-from-home (WFH) set-up, and Flexible Working Arrangement were viewed as alternatives to continue working and coordinate tasks without the need to meet physically. Example: English as Second Language (ESL) jobs offered by companies like 51Talk and RareJob. 3. Organization of Virtual Team Buildings – Team building is one of the traditional activities that can creatively help team members bond through online conferences in shorter periods than physical meetings. Examples: Global companies that incorporate virtual team buildings include SAP, IBM, and General Electric Company (GE) 4. Automation of Tasks – HR people have a lot on their plate, and automation of tasks is of big help in efficiently using their time and energy. Automating major tasks like payroll, employee benefits management, and records management could be handy and accessible on work-from-home set- ups or overseas business meetings. Example: Automated exportation of reports under payroll software like Visita Solutions 5. Data-Driven Strategies – Using metrics and analytics removes the guesswork and provides meaningful decisions for the company backed up by records and information. Examples: Sprouts Solutions and Convergys Employee-based HR Trends 6. Emphasis on Learning – Whether it's personal or professional development, employees who feel their employer supports their growth will be more engaged, motivated, and productive (Beaty, 2020). Example: Ayala Corporation 7. Better Onboarding – When there is the urgency to fill a vacant position, HR creates skill gaps that can be filled in by good training modules and updated onboarding processes in-tune with the "why's" of the company, such as mission, vision, and values. Examples: Netflix and LinkedIn 8. Focus on Workplace Experience – The HR trend shifts away from the paternalistic toward a new human-centered interaction, empowering employees, and encouraging responsibility. Examples: Canva Manila and DHL Express 9. Health Advocacy Program – Health insurance costs are reduced as employees become aware of managing their health and lifestyle. 01 Handout 1 *Property of STI  [email protected] Page 2 of 6  BM2018 Examples: Primer Group of Companies and Unilever Philippines 10. Caregiving Benefits – Some employees juggle work with caring for an elderly or disabled family member. Adopting eldercare benefits can simply be done by offering flexible work hours, remote work options, care assistance plan, and giving time offs and paid family leave. Examples: Microsoft and Johnson & Johnson 11. Concentrating on Inclusion – The human resource department should make sure all employees feel safe, respected, and free to share their beliefs. To boost inclusion efforts, a crackdown on harassment, ensure policies are applied consistently. Examples: San Miguel Corporation and Coca-Cola FEMSA Philippines Recruitment HR Trends 12. Open Workforce – To find the best talent, many HR departments turn to the open workforce, hiring freelancers and independent contractors on an "as-needed" basis. Example: Accenture 13. Improved Candidate Experience – Improve candidate experience by pursuing where the applicants are located, instead of relying on them to search for the company. Another way is by making the application process smoother by providing fill-out forms online. Example: Emerson 14. Pre-Employment Assessments over Resumes – How the applicant performs the assessment set such as interview, simulations, and other examinations should be the basis of hiring as the candidates' abilities to get the job done and not simply on the words written in their resumes. Example: Filinvest 15. Recruitment Marketing is about proactively putting the employer brand in the recruitment process to attract the right candidates. Examples: Jobstreet, LinkedIn 16. Mobile-Friendly Recruitment – A mobile-friendly recruitment system is an essential HR trend for it is easier for the applicants and HR Personnel to access. If it is slow, hard to read, or difficult to use on mobile, qualified candidates might abandon the recruitment process if they were not given an immediate response. Examples: Oracle Taleo Cloud, Smart Recruiters APPLICATION OF INFORMATION TECHNOLOGY (IT) IN HR HR people must understand and initiate useful IT applications in HR, aligned with efficiency and profitability. Some of these are the following (Corpuz, 2016): E-recruitment – This technology provides accessibility to a wider range of applicants for the job and is usually used to communicate job vacancies and application procedures. E-selection – This technology can reduce the time and effort involved in selecting the most qualified applicant for the job, including using and interpreting test results. Employment Kiosk – This service is a web-delivered application that can assist employees who have access to the Internet, modify their personal information, and resolve any issues quickly, easily, and conveniently. E-learning –This program facilitates the learning process by providing just-in-time learning opportunities. 01 Handout 1 *Property of STI  [email protected] Page 3 of 6  BM2018 Electronic Performance Support System (EPSS) –This provides managers a very effective tool to communicate and establish key results areas (KRAs), objectives, and required employees' competencies. Salary and payroll administration – For most companies, Payroll Management HR Information System is now linked to performance management systems, time and attendance, and other employee benefits and pay systems. Growth of social networking sites like Facebook and Twitter – Vital questions at this point include how to use social networking data to support recruitment, internal communications, employee knowledge sharing, collaboration, and training. Use of emails – HR departments should develop unified messaging that will allow workers to check and store emails related to work in one inbox. Use of IT to foster customer involvement – Because of social media's popularity, companies started using different social networking sites where they can post company updates, service offerings, or just to let the users of the account know their company exists. Telecommuting/Teleworking – Teleworking closes the gap between where people live and work. It transforms homes into virtual office dimensions. Human Resource Information System (HRIS) Human Resource Information System (HRIS) is the composite of databases, computer applications, hardware, and software necessary to collect, record, store, manage, deliver, manipulate, and present data regarding human resources. Its primary function is to provide information to its clients, such as employees, managers, payroll staff, and HR professionals (Corpuz, 2016). Benefits of HRIS Solutions (Corpuz, 2016) Salary and Payroll Administration. It is aligned with local statutory standards and regulatory specifications. HRIS can help keep workflow costs in check and ensure that all employees are paid on time in any circumstances. HR Training. It provides control of internal organizational training, from delegating participants to projecting training budget, course scheduling, enrollment, training assessments, and individual performance appraisals. Self-Service Benefits Transactions. Employees can gain online access to their benefits package at their leisure so they can focus on more demanding tasks at hand during office hours. Table 1. Examples of HR Data Accessed by Various Stakeholders Using HRIS Position Online Self-Service Applicants Job Openings Application blanks Data on the company Employees Benefits enrollment and claims Print payslips for past and current months Enroll for training and check the training schedule Dependent data Download forms and templates for HR administration Retirement planning scenarios Provide feedback and view latest company news and announcements Managers Training investment factor 01 Handout 1 *Property of STI  [email protected] Page 4 of 6  BM2018 Position Online Self-Service Cost per hire Turnover costs Executives Data for HR forecasting and costing Succession plans External Groups Time and attendance data Dependent health insurance status Payroll information JeonSoft Payroll Suite JeonSoft Payroll Suite is the leading payroll software in the Philippines. It comprises three (3) major modules: Time Attendance System, Payroll System, and HRIS System, and all rolled into one (1) complete package. The system automates payroll computation while making recording and retrieval of employee records fast and easy. Figure 1. JeonSoft Eyedesk Model (2020) Source: http://www.findglocal.com/PH/Makati/691967817502188/JeonSoft-Corporation INTERNATIONAL HUMAN RESOURCE MANAGEMENT (IHRM) International HRM is the process of managing people across international boundaries. Most companies have been expanding their operations in different countries around the world. But before we discuss more on IHRM, it is important to define some concepts (Armstrong, 2014): Offshoring is when a business relocates or moves some parts of its operations to another country. Outsourcing involves contracting with another company (onshore or offshore) to perform some business-related task. The company considers the type of market, such as domestic, international, multinational, global, and transnational. o Domestic companies create and sell a product within the borders of the country; o International companies are importers and exporters but have no investment outside their home country; o Multinational companies have investments in other countries but do not have a coordinated product offering in each country; and o Global companies have investments and are present in many countries. o Transnational companies are complex organizations that invest in foreign operations, central corporate facilities, decision-making, R & D, and marketing powers to each foreign market. 01 Handout 1 *Property of STI  [email protected] Page 5 of 6  BM2018 Third, it is the type of employees that the company would hire in an international set-up such as parent country national (PCN), host country national (HCN), a third-country national (TCN). o Parent country nationals (PCNs) are employees from the country where the organization is based, like the Headquarters. o Host country nationals (HCNs) are employees from the country in which the subsidiary is based; and o Third-country nationals (TCNs) are employees working in a different country. Lastly are the types of staffing approaches done in IHRM, namely, ethnocentric, polycentric, and geocentric. o The ethnocentric approach gives most of the autonomy, decision-making, and key positions to the Headquarters and PCNs, therefore replicating the corporate culture to the subsidiary; o The polycentric approach gives each subsidiary a distinct national entity with some decision- making autonomy giving way to HCNs and a few language and culture barriers; and o The geocentric approach views that the best and the most competent individuals hold key positions irrespective of the nationalities. In a nutshell, the International HRM performs functions on an international level, focusing on issues that concern different laws governing countries involved. The variety of culture of the employees and regions, and employee and family adjustments in the expatriates or the managers are given the assignment to hold key positions in other countries. References: Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page. Corpuz, C. R. (2016). Human resource management (3rd ed.). Rex Book Store. Dessler, G., & Chhinzer, N. (2017). Human resource management in Canada. Pearson. JeonSoft Corporation: Best Philippine Payroll Software Solutions Provider. (n.d.). https://jeonsoft.com/philippine- payroll Lussier, R. N., & Hendon, J. R. (2019). Fundamentals of human resource management: Functions, applications, and skill development. SAGE Publications. Open Textbooks for Hong Kong. (2016). Human Resource Management. The Open University of Hong Kong. http://www.opentextbooks.org.hk/ditabook/32088 Snook, A. (2020, March 25). 16 HR Trends You Need to Know in 2020 (According to Experts). i-sight. https://i- sight.com/resources/16-hr-trends-you-need-to-know-in-2020-according-to-experts/ 01 Handout 1 *Property of STI  [email protected] Page 6 of 6