Human Resource Management: An Overview PDF

HRM WITH LABOR RELATIONS TERM 1 HUMAN RESOURCE PERFORMANCE MANAGEMENT MANAGEMENT: AN OVERVIEW Evaluating and managing employee...

HRM WITH LABOR RELATIONS TERM 1 HUMAN RESOURCE PERFORMANCE MANAGEMENT MANAGEMENT: AN OVERVIEW Evaluating and managing employee performance to ensure they meet their 1. Defining Human Resource Management job goals. 2. HRM Historical Breakthroughs 3. Best Features Of Human Resource COMPLIANCE Management Ensuring the organization follows labor 4. Human Resource Management laws and regulations Functions 5. Dynamic Human Resource Management HISTORICAL BREAKTHROUGHS Environment 6. The Challenge of Managing Human 1890-1910 | Frederick Taylor Resources Today Introduced a management approach 7. The Difference Between Human known as scientific management Resource Management and Personnel Management focuses on the idea of scientific selection of employees based on their capabilities. DEFINING HUMAN RESOURCE MANAGEMENT the use of individuals to achieve This system provides that workers will organizational objectives, with be paid additional compensation managers at all levels dealing with HR when they exceed the standard level of matters. output for a given job, with the aim of motivating them Challenges faced by HR professionals include 1910-1930 changing workforces government regulations Most companies started to develop technological revolutions departmental units focused on maintaining the well-being of global competition. employees. HRM is a critical business function, requiring The field of industrial psychology, attention from upper management. together with the beginning of World War I PRACTICE OF MANAGING PEOPLE IN AN o led to the development of ORGANIZATION employment tests and selection techniques RECRUITMENT AND HIRING 1930-1945 | Hawthorne Studies Finding and hiring the right employees for the company started to have a tremendous effect on management studies and principles TRAINING AND DEVELOPMENT such that much attention was given to Helping employees improve their skills personal and social interactions in the and grow in their roles. workplace that affect and influence worker productivity and level of EMPLOYEE RELATIONS performance. Managing relationships between 1945-1965 employees and addressing any issues or conflicts Birth of union membership that gave considerable importance to employee- COMPENSATION AND BENEFITS employer relationships Setting salaries, wages, and providing Pay and benefits programs slid in a very benefits like health insurance and notable value as organized unions retirement plans. bargained for paid work leaves, health and welfare coverage JANICAH REYES 1  HAWTHORNE STUDIES It is prevalent in nature. Highlighted the importance of social HRM is continuously present and factors and employee morale in productivity, carried out in all operational and this movement emphasized the need for better functional areas of management within interpersonal relationships and employee an organization. satisfaction It is dynamic. Series of studies done between 1920s Human Resource Management isn ’t and 1930. stagnant. This period sparked an increase in the It does not rely on written rules and importance of the social and psychological policies to address issues. relationships in the workplace. HRM focuses on what can be done via reasoned, and well-informed decisions. Evaluations of the studies led HRM continually looks for methods to researchers to believe that "human relations " alter circumstances and occurrences for greatly influence workers ' level of satisfaction the improvement of the company and its and productivity. people 1965-1985 | The Civil Rights Act of 1964 It is individually-oriented. reached its highest point when it With HRM, every employee of the prohibited discriminatory practices company is treated as a human being based on an individual' s age, sex, color, that is worthy of respect and religious affiliation, race, and physical or understanding. mental disabilities. Human Resource Management works to Employers were advised to adhere to bring out the maximum potential of equal employment opportunity each employee by making sure provisions and take affirmative steps to employees consistently receive the avoid workplace discrimination chance to acquire new abilities through 1985-present development, training, and other productivity improvement programs. Diverse labor force, globalization, and It is employee-oriented. strategic HRM functions were three pressing concerns during this period. In HRM, employees are seen as valuable Employers ' primary aim: assets of an organization. o to effectively cope with the Therefore, recognizing employees for intense demands and effects of their contributions to the success of the change organization is a powerful motivator to o competition raise the level of work performance. o job efficiency It is forward looking. Technology and Globalization The HRM function of an organization The rise of technology, such as HR must be able to predict and evaluate the software and data analytics, transformed HR labor requirements for a specific time practices. period in order to be successful. With this, the management will be Globalization also increased the reassured that only the capable, complexity of managing diverse and distributed motivated candidates with the workforces. appropriate qualifications are joining BEST FEATURES OF HUMAN RESOURCE the organization MANAGEMENT It is growth oriented. Human Resource Management is a continuous Every organization has its method for managing employees ' work-related organizational goals in order to succeed. activities and developing their potential to In view of this, HRM should always work become effective individuals. to improve the conceptual and analytical abilities of its employees. To ensure the JANICAH REYES 2  success of the company, employee PERFORMANCE MANAGEMENT development must be carefully planned. One approach for employees to pick up Goal-oriented process that is directed new skills and experience is called ‘Job toward ensuring that organizational rotation ’ processes are in place to maximize the o employees are required to work productivity of employees, teams, and ultimately, between different tasks which the organization. may enhance their exposure PERFORMANCE APPRAISAL and improve their skills. Formal system of review and evaluation HUMAN RESOURCE MANAGEMENT of individual or team task performance. FUNCTIONS It affords employees the opportunity to People who are engaged in managing capitalize on their strengths and HR develop and work through an integrated overcome identified deficiencies, HRM system. thereby helping them to become more satisfied and productive employees. Six Functional Areas Associated With Effective HRM HUMAN RESOURCE DEVELOPMENT 1. Staffing Major HRM function consisting not only 2. Human resource development of training and development but also of career 3. Performance management planning and development activities, 4. Compensation organization development, and performance 5. Safety and health management and appraisal 6. Employee and labor relations Training And Development STAFFING Training is designed to provide learners Process through which an organization with the knowledge and skills needed ensures that it always has the proper number for their present jobs. of employees with the appropriate skills in the right jobs, at the right time, to achieve Development involves learning that organizational objectives goes beyond today ’ s job and has a more long-term focus JOB ANALYSIS Organization development (OD) determining the skills, duties, and knowledge required for performing jobs Planned and systematic attempts to in an organization. change the organization (corporate culture), typically to a more behavioral HUMAN RESOURCE PLANNING environment. matching the internal and external OD applies to an entire system, such as a supply of people with job openings company or a plant. anticipated in the organization over a Career planning specified period. ongoing process whereby an individual RECRUITMENT sets career goals and identifies the attracting individuals on a timely basis, means to achieve them. in sufficient numbers, and with Career development appropriate qualifications to apply for jobs with an organization formal approach used by the organization to ensure that people with SELECTION the proper qualifications and choosing the individual best suited for a experiences are available when needed. particular position and the organization Organizations should assist employees from a group of applicants. Successful in career planning so the needs of both accomplishment of the staffing function can be satisfied. is vital if the organization is to effectively accomplish its mission. JANICAH REYES 3  COMPENSATION SAFETY AND HEALTH The issue of fair pay has been a Safety involves protecting employees longstanding concern for management, unions, from injuries caused by work-related and workers, with a well-designed compensation accidents. system ensuring employees receive adequate and equitable rewards. Health refers to the employees ’ freedom from physical or emotional Compensation illness. includes the total of all rewards provided These aspects of the job are important to employees in return for their service because employees who work in a safe Direct Financial Compensation (Core environment and enjoy good health are more Compensation) likely to be productive and yield long-term benefits to the organization. Pay that a person receives in the form of HUMAN RESOURCE RESEARCH wages, salaries, commissions, and bonuses. It is not a distinct function in HRM. It Indirect Financial Compensation (employee encompasses all functional areas and the entire benefits) work environment. All financial rewards that are not It can help identify the type of worker included in direct compensation, such as most likely to succeed in a firm ' s paid vacations, sick leave, holidays, and culture medical insurance. Identify causes of work-related accidents Nonfinancial Compensation Identify causes of problems like excessive absenteeism or grievances. Satisfaction that a person receives from the job itself or from the psychological This research is essential for developing a or physical environment in which the productive and satisfied workforce. person works. DYNAMIC HUMAN RESOURCE MANAGEMENT EMPLOYEE RELATIONS & SAFETY AND ENVIRONMENT HEALTH EMPLOYEE RELATIONS Businesses are required by law to recognize a union and bargain with it in good faith if the firm ’ s employees want the union to represent them. In the past, employers often favored union-free environments, but today, most firms prefer a union-free environment. Labor relations the human resource activity representing employees handles collective bargaining, and is Many interrelated factors affect HRM often referred to as labor relations. practice within and outside the organization. Internal employee relations ENVIRONMENTAL FACTORS comprise the HRM activities associated Legal considerations with the movement of employees within Labor market the organization such as promotions, Society demotion, termination, and resignation Political parties unions Shareholders Competition JANICAH REYES 4  Customers capacity, to serve or protect the interests Technology of groups other than themselves the economy POLITICAL PARTIES unanticipated events Each factor, either separately or in Closely related to society, but not the combination with others, can create constraints same, are political parties. or opportunities for HRM The Democratic and Republican parties LEGAL CONSIDERATIONS are the two major political parties in the United States. These parties often have differing A significant external force affecting opinions on how HRM should be accomplished. HRM relates to federal, state, and local Democrats legislation and the many court decisions interpreting this legislation. favor government regulation to ensure minimum wage and health insurance for Age Discrimination in Employment Act all employees a federal law protecting older workers Republicans from illegal discrimination. advocate for business flexibility Presidential executive orders believing in the Fair Labor Standards significantly impact HRM, affecting the Act and Patient Protection Affordability entire spectrum of HR policies. and Accountability Act LABOR MARKET UNIONS Potential employees located within the Wage levels, benefits, and working geographic area from which employees are conditions for millions of employees reflect normally recruited comprise the labor market. decisions made jointly by unions and management. The capabilities of a firm ’ s employees determine, to a large extent, how well the Union organization can perform its mission. consists of employees who have joined Always changing, and these shifts together for the purpose of negotiating inevitably cause changes in the terms of employment such as wages and workforce of an organization. work hours. treated as an environmental factor SOCIETY because, essentially, they become a third party when dealing with the company Society The United Auto Workers May also exert pressure on HRM. The public is no longer content to accept, an example of a large labor union without question, the actions of business. SHAREHOLDERS To remain acceptable to the general The owners of a corporation public, a firm must accomplish its purpose while complying with societal Because shareholders, or stockholders, norms. have invested money in the firm, they may at times challenge programs considered by Ethics management to be beneficial to the organization. discipline dealing with what is good and Stockholders bad, or right and wrong, or with moral duty and obligation. wielding increasing influence, and management may be forced to justify Corporate social responsibility (CSR) the merits of a particular program in Closely related to ethics terms of how it will affect future Implied, enforced, or felt obligation of projects, costs, revenues, profits, and managers, acting in their official even benefits to society as a whole. JANICAH REYES 5  COMPETITIONS competencies rather than managing their own computer centers Firms face intense global competition in their product or service and labor markets. THREE MAIN APPLICATIONS OF SOCIAL MEDIA To succeed: 1. Companies may engage in targeted They must maintain a supply of recruiting and sourcing passive and competent employees active applicants. Ensure they obtain and retain a 2. Companies may use social media to sufficient number of employees in promote knowledge sharing, training various career fields. and development. 3. Reinforcing identification with the A bidding war often results when organization and promoting the brand competitors attempt to fill critical positions in their firms. Even in a depressed economy, firms ECONOMY find creative ways to recruit and retain employees to compete effectively. Significantly impacts HRM, with a booming economy making it harder to recruit COSTUMERS qualified workers, while a downturn leads to more applicants. The people who actually use a firm ’ s goods and services also are part of its external The dynamic and ever-changing environment. economic environment impacts every aspect of HRM, making it a major challenge for HR Because sales are crucial to the firm ’ s professionals to navigate survival, management has the task of ensuring that its employment practices provide excellent UNANTICIPATED EVENTS customer support service. Occurrences in the environment that cannot be Customers constantly demand high- foreseen. quality products and after-purchase service The Deepwater Horizon oil spill off the Gulf Coast in 2010 caused major modifications in HR TECHNOLOGY the performance of many HR functions. Every disaster—whether human-made or natural— Technological advancements have likely requires a tremendous amount of revolutionized HR roles, requiring them to stay adjustment with regard to HRM. updated with applications like human resource information systems, cloud computing, and THE CHALLENGE OF HRM TODAY social media, despite the increasing pressures 1. Changing Employee Expectations 2. Rapidly Changing Technology 3. Emphasis on increased productivity Human resource information system (HRIS) 4. New Modality of Employment – organized approach for obtaining Outsourcing relevant and timely information on 5. Flatter Organization which to base HR decisions. CHANGING EMPLOYEE EXPECTATIONS HRIS brings under one encompassing technology system many human One must recognize that today ' s resource activities workforce comprises several generations, each with a different set of values, aspirations, and Cloud computing each with a unique perspective and attitude a means of providing software and data towards work. via the Internet. Silent Generations Cloud computing and mobile devices are revolutionizing HR work by Born before 1946 eliminating expensive hardware and So-called veterans who entered the infrastructure costs and staff-intensive workforce around the 1950s and early upgrades. 1960s. Since they are already old, they Allows businesses to buy and use have since long retired and are unheard necessary resources when needed, of. allowing them to focus on core JANICAH REYES 6  Known to be loyal to the organization. EMPHASIS ON INCREASED PRODUCTIVITY Baby Boomers Because of this global competition, companies need to manage their labor costs Born between 1946 and 1959 or born more carefully. They do this by: after the second world war. They are also the people who never "Increasing productivity " : Getting more work experienced hardships of the war days done with the same or fewer resources. Known to be aggressive, ambitious and loyal to their careers. "Eliminating redundant jobs " : Cutting jobs that are no longer needed. Generation X "Jobs which have no value " : Removing Born between 1960 and 1979 before the positions that don 't contribute to the company ' advent of the Information Age. s success. They are usually concerned with their NEW MODALITY OF EMPLOYMENT- work/life issues. OUTSOURCING Generation Y 1. Companies that depend on the cyclical Born between 1980 and 2008 demands of their products or services Otherwise known as the Nexters must also be flexible in their hiring These are the generations who love the practices. modern gadgets of the Information age 2. It is not easy under our laws to like headphones, yoga mat, laptop, terminate the services of employees designer coffee, Blackberry, Digital when no longer needed. Employees, camera and IPod. whether casual or temporary, can only They are known for talking back to be terminated for just cause or their bosses, are ambitious, authorized causes. demanding and questions everything. This prompted some employers to resort to According to the article written by the outsourcing their temporary employers from Fortune magazine in May 28, 2008, nexters are labor service contractor. self-absorbed, gregarious, multitasker, loud, OUTSOURCING optimistic, and pierced. practice of hiring external The most high-maintenance workforce organizations or individuals to but also, according to Bruce Tulgan, nexters can perform tasks, services, or functions be the most highperforming workforce in the that would typically be handled by the history of the world. company ' s own employees. RAPIDLY CHANGING TECHNOLOGY Companies often outsource to reduce costs, The advent of computers has access specialized expertise, or focus on their fundamentally changed jobs. Automation has core business activities. eliminated huge numbers of jobs in Outsourced tasks manufacturing, finance, sales and marketing, and administration and human resources Range from IT services and customer support to manufacturing and With this event, it dramatizes the impact administrative functions of advanced technology and communication on the workflow and productivity of the FLATTER ORGANIZATION organization especially on its human resources. Flattening of organizations improves Companies must invest millions of productivity, efficiency, and communications. money in training and development to update their employees ’ skills to keep Reduces hierarchical levels pace with the technology. Leading to improved communication, Organizations must hire more skilled faster decision-making workforce and redesign job Increased employee autonomy Enhances productivity and efficiency by streamlining processes and empowering employees to act more quickly and effectively JANICAH REYES 7 In a flatter organization, people are expected to responds to demands planning, and produce more using fewer resources. as soon as they arise advancing continuously Multitasking is required as they are sees the organization asked to perform a variety of ever-changing as one that embodies roles, taking new responsibilities, and a dynamic significantly changing the job contents of the personality incumbents. complete control ensures that workers over people ' personal and The restructuring of organizations impacts on management professional human resource management in many ways: requirements are properly met 1. HR must develop and implement limited range motivational and policies to minimize the pain in because it solely teambuilding downsizing. The policies need to set focuses on managing activities standards from communicating the people termination to affected employees to mundane tasks such treating manpower of severance packages. as employee hiring, the organization as remunerating, assets to be valued, 2. Those being given the so-called “ pink training, and used, and preserved paper ” (the euphemism for layoffs), harmony, whereas must be let go with dignity. monetary and non- productivity, Organizations with moral conscience monetary benefits satisfaction, and should include in their severance employees ' social agreements or offers transitional well-being training, outplacement assistance, or treats employees as valuable contributors extended benefits commodities that can to the success of the be bought in company and so exchange for money recognizes their 3. Extreme care must be addressed to contributions remaining employees. Security of tenure through is jarred. Assurances of no more layoffs opportunities for sometimes are taken with disbelief growth and among the survivors. Questions of who promotion. is next would be up- permost in their minds. Through effective human resource management, an organization should be able to keep its staff pacified, assuaged and productive through the difficult transition DIFFERENCES BETWEEN PERSONNEL MANAGEMENT AND HR MANAGEMENT Personnel Management (PM) and Human Resource Management (HRM) differ when it comes to the method of finishing the work or task necessary for attaining an organization ' s goals. PERSONNEL HUMAN RESOURCE MANAGEMENT (PM) MANAGEMENT (HRM) pertains to managing pertains to a non- employees through stop function that supervisory focuses more on the administration effective supervision and management directed at enhancing employees knowledge and abilities. reactive in nature - Proactive- management management is anticipating, JANICAH REYES 8