Human Resource Management Fundamentals PDF

What are the functions of human resource management? ==================================================== HR functions can vary depending on industry, businesses size and the types of workers employed. In most cases, the primary objectives are to acquire and cultivate talent and improve communicati...

What are the functions of human resource management? ==================================================== HR functions can vary depending on industry, businesses size and the types of workers employed. In most cases, the primary objectives are to acquire and cultivate talent and improve communication and cooperation among workforce members. Other key human resource management functions include: Job analysis ============ Workforce operations ==================== Performance measurement ======================= Incentive programs ================== Professional development ======================== What are the responsibilities of human resource management? =========================================================== Staffing ======== Developing workplace policies ============================= Administering pay and benefits ============================== Retaining talent ================ Training employees ================== Complying with regulations ========================== Maintaining safety ================== Human resource management and small business ============================================ HRM systems and software ======================== Why use a human resource management system (HRMS)? ================================================== - Improve their hiring processes - Manage people more effectively - Optimize workforce productivity - Engage and retain employees - Eliminate costly redundancies - Make data-driven decisions - Maintain regulatory compliance How to choose a human resources management solution - Identify what the organization would like to accomplish, change or improve and how technology can help achieve those goals. - Ensure that the HRMS can keep pace with the rapidly changing regulatory and statutory requirements in all applicable jurisdictions (local, state, federal, international, etc.). - Prioritize security and know exactly how sensitive data will be stored, transferred and backed up. - Look for implementation models with a change management strategy that will get the HRMS up and running efficiently. - Address stakeholder questions, concerns and objections to drive widespread HRMS support. - Ask about service plans to manage the hundreds of post-payroll tasks necessary for compliance. - Inquire into the vendor's financial history and investments in innovation. - Get outside-in perspective by looking at peer reviews, industry analyst feedback and product demos. Examples of HRM software ======================== HR Outsourcing ============== Since the mid-20th century, some companies have outsourced some of the more traditional administrative, transactional HR functions to free the department to recommend and implement more meaningful, value-adding programs that positively impact the business.7 - Functions that may be outsourced in this process include: - Payroll administration - Employee benefits - Recruitment - Background checks - Exit interviews - Risk management - Dispute resolution - Safety inspection - Office policies The use of modern tools, such as recruitment software, can help improve the efficiency of HR departments. This can, in turn, give these departments more leeway to focus on adding ever-greater value. What Is the Role of Human Resources? ==================================== A human resources department focuses on recruiting and retaining employees within a company. HR is responsible for finding, hiring, and training employees, overseeing employee relations, and managing benefit programs. It\'s the go-to place for employees to ask questions about their roles, address concerns, and air grievances. What Is Human Resource Management (HRM)? ======================================== Human resource management (HRM) is a strategic approach to managing company employees, the work culture, and the work environment so that people can function as effectively and productively as possible. Typically, it involves using metrics to measure workforce success. What Are the 5 Functions of Human Resources? ============================================ - Recruiting, hiring, and onboarding new employees - Handling employee compensation and benefits - Offering employee job/career development - Addressing work-related issues of individual employees - Developing policies that affect a working environment company-wide Skills Needed for Human Resources ================================= A dedicated human resources manager is the backbone of a successful business. Human resource managers create a safe, efficient workplace by balancing business-related needs with employee relations and demands. Their job duties often include benefits management, conflict mediation, applicant interviews and employee training. Many human resource professionals also promote or terminate employees, and are responsible for compiling evidence after allegations of harassment or discrimination. Basically, human resource managers do everything a business needs to thrive. That's why it's essential that HR managers are equipped with a wide variety of interpersonal skills to effectively handle their hectic workdays. Not quite sure what that means? Whether you're a business owner seeking the perfect human resources professionals or a current HR manager interested in personal development, our list of essential HR management skills below can help take your HR department to the next level. Key Skill \#1: Communication ============================ Communication is arguably one of the most important soft skills a human resources manager must possess. A qualified HR manager needs strong written and verbal communication skills to handle daily tasks and meet company standards. These soft skills include active listening skills, honesty and integrity, utilizing emotional intelligence when conversing, and more. Here are several examples of HR duties that require excellent communication skills: - Salary negotiation - Employee benefits package explanation - Conflict resolution - Company presentations - Employee handbook updates Nonverbal communication skills are also essential for human resource managers. Simple signals such as tone of voice, facial expression, posture and personal space given can dictate the flow of a conversation, and the response of your employees. Similarly, you can pick up on the nonverbal communication of others, helping you understand how they feel. Nonverbal communication helps an HR manager determine whether people are uncomfortable, dishonest or confused during conversations or presentations. These skills are essential for an HR manager, especially in situations like an employee filing a discrimination claim or a new candidate undergoes a job interview. Key Skill \#2: Organization =========================== It's difficult to manage the needs of employees and business owners if you lack organizational skills. When an employee visits the HR office with a question or concern, the manager may not immediately know the answer. However, they should have the experience to know exactly where to find the requested information. Many HR managers organize information online as well as offline. That means there may be stacks of file folders with general company information as well as digital programs with sensitive data. Human resources managers often benefit from resource management software for payroll, employee schedules and benefit package management. Business- oriented software streamlines HR management by providing important information on one convenient platform. Key Skill \#3: Tech Savvy ========================= Gone are the days where HR managers would pound away on typewriters or draft performance reviews by hand. Many human resources professionals rely on visual planning software, digital spreadsheets and online databases to complete their job. A tech-savvy HR manager may also create PowerPoint presentations, update company blogs and track workplace analytics. Going digital and enhancing the technical skills of your human resources management team may even reduce the need for overtime. A whopping 94% of business professionals say that Visual Planning software helps them save time. Time management is one of the most important human resources skills, as approximately 1 out of 3 HR managers works more than 40 hours per week. Key Skill \#4: Flexibility ========================== Structure helps a business run smoothly, but HR management requires plenty of flexibility. Job duties vary daily, and unexpected issues may arise at any time. It's impossible to predict when a workplace injury may occur or whether a benefit provider may abruptly change their policies. Flexibility is a vital professional skill, especially as an HR manager oversees the employees of an entire company. Key Skill \#5: Patience ======================= This also describes the life of an HR manager. During an average workday, an HR manager may handle complaints ranging from "I don't want to sit by Judy because she smells" to serious personal issues like "Ross won't stop touching me and saying I'm beautiful." You may also have to deal with complaints about insurance and other benefit providers for your company or mediate conflicts between workers and their bosses. All of this requires a calm, patient personality. HR managers are relied on to be advocates for employees and to handle their problems, whether they involve major concerns or trivial disagreements. Key Skill \#6: Negotiation ========================== When an employee comes to HR management with an issue, they often believe they're right, and the other parties involved are wrong. This is true whether the complaint involves pay, hours, job duties or another problem. When issues like this arise, an HR manager diffuses conflict by negotiating with employees. The following situations may warrant negotiations: - A new employee with extensive experience or a college degree requests a higher salary than the normal starting rate - A current employee threatens to quit if they don't receive a raise - An employee wants to remain at the company but can't handle the current schedule - An employee refuses to work with a specific manager In these situations, the skills of a human resources manager must encompass negotiation, so they can find compromises that benefit the company as well as the employee. Key Skill \#7: Ethical Actions ============================== Human resource management requires a strong sense of ethics and the ability to take actions that preserve the integrity of all parties involved. However, that's tricky because HR issues often involve gray areas where even the most effective leaders cannot identify clear solutions. A skilled HR manager must be able to sift through conflicting information to make tough decisions when right and wrong answers aren't obvious. These decisions must always protect the company and its employees. That means HR professionals must be mindful that their solutions never result in favoritism, racism, sexism or other forms of discrimination or preferential behavior. Key Skill \#8: Compassion ========================= Many employees are terrified to request personal time, even when companies offer generous plans. Workers worry management might view them as lazy, irresponsible or uncommitted to their duties. As an HR manager, it's important to remember employees have lives beyond the workplace. When an employee confides they are taking time off of work, an HR manager shouldn't judge or interrogate them. An HR manager should also apply emotional intelligence to treat employees fairly and respectfully if they complain about serious matters such as sexual harassment or racism in the workplace. Key Skill \#9: Commitment ========================= In order to be successful, a human resources specialist should genuinely care about the state of the company. It's difficult for an apathetic HR manager to provide guidance and resources to employees. Dedication and loyalty are essential traits for HR managers. An HR expert must possess the fundamental skills to fully complete projects and administrative duties, resolve issues and address employee needs. Half-hearted attempts may make employees feel inadequate or undervalued, which could lead to high turnover rates. Even if employees stick around, they may not do their best work if they don't feel appreciated or respected. Human resource management requires more key skills than traditional management. If you or your company's HR manager lack the skills above, don't give up just yet. Schedule training, install helpful software and establish goals for effective HR management. Business Management & Leadership Skills ======================================= Business management and leadership are fundamental skills that all human resource managers must have in order to be successful. Today\'s HR professionals need to be prepared to address organizational challenges in businesses of all sizes, from small, privately-held companies to nonprofit institutions to large, multi-national corporations. These challenges may include, but are by no means limited to, handling the complex of issues diversity and inclusion, understanding hiring laws and employee rights, creating and managing competitive benefit packages, and overseeing a healthy organizational culture while effectively managing personnel issues. Additionally, human resource managers must be effective leaders that can coach employees and develop them into leaders themselves. HR professionals must be able to cultivate an organization-wide leadership and coaching approach that will develop agile employees, build creative teams, and creative effective problem-solvers at all levels of the organization. Employees should look to human resource managers as organizational leaders helping to guide the organization towards success in a productive, positive way, with both the employee\'s and the employer\'s interests in mind. Human Capital Development Skills ================================ Great human resource management isn\'t just about hiring new employees and handling personnel issues when they arise, though those are both important tasks many HR managers are responsible for. The reality is that in today\'s world, hiring new employees is a costly, time-intensive process that isn\'t guaranteed to yield results in the form of longevity and success. Human resource professionals must shift their focus to workforce development, leveraging and managing the \"human capital\" of their organization - defined as \"the collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.\" Essentially, this involves looking at employees as individuals with a diverse set of skills, competencies, needs, and interests beyond the confines of their current job description. Good employers - and good HR managers - will understand the importance of developing a comprehensive workforce development strategy that will allow them to truly invest in their employees through training, education, and opportunities for internal advancement. Instead of looking outside the organization to bring in new employees, these employers turn to the talent they already have within their organization and give them the tools they need to develop new soft skills and grow both as employees and as individuals. These strategies can include mentorship programs, tuition reimbursement plans, or structured training programs. Human resource managers will be responsible for developing and managing these human capital investment initiatives, and will also be tasked with encouraging employees to take advantage of any and all employer offerings, such as using tuition reimbursement to pursue higher education. Communication & Interpersonal Skills ==================================== One of the most important skills required for professional success in any field, but particularly human resources, is the ability to communicate well, and to relate to those around them. Human resources professionals are known for being good with people for a reason - they are constantly interacting with employees at every level of their organizations, and must know how to communicate with them in a warm, clear, and professional way. In most organizations, the human resources department is responsible for managing conflicts between coworkers, coaching employees looking to advance their careers, and counseling individuals in need of support - meaning that interpersonal relations and soft skills, such as the ability to listen well and to build rapport with all kinds of people, are key. Because HR professionals are often dealing with, and delivering, sensitive information, it is essential that they be able to express themselves well both verbally and in writing. Knowing how to effectively modulate tone, manage body language, and personalize communication based on the individual being spoken to are key skills for effective human resource management. Additionally, in today\'s increasingly diverse and global workforce, it\'s important that human resource professionals be culturally competent, demonstrating a developed and multicultural worldview to promote respectful, reciprocal interactions, setting an example for the rest of the organization. This includes, but is not limited to, taking care to use inclusive language that makes all individuals in the organization feel recognized and respected, regardless of race, ethnicity, gender, or social class. Strategic Thinking & Planning Skills ==================================== While people skills are important in the human resources field, the ability to think strategically - and use that strategic thinking to successfully shape and help lead the organization - just as important. Human resource managers must have a keen understanding of how organizations gain a sustainable, competitive advantage through investing in people - both new hires and existing employees. They must be very aware of the strategic needs of the organization, at all levels and in all departments, and must have the skills to find and retain people that meet those needs. While big-picture thinking is one of the most important skills for HR, human resource managers must be equally detail-oriented. They need to be meticulous planners, due to the fact that they have to juggle so many balls and are responsible for so many different tasks. A successful human resource professional will, in addition to these planning skills, be very comfortable making data-driven decisions based on metrics and analytics to drive and improve organization-wide recruitment, training, development, and retention efficiency. Perhaps most importantly, they must be the champions for the human resource lens, and must ensure that it is fully incorporated into the organization\'s overall strategy and direction. Human resource professionals understand that their division within the organization isn\'t simply a box that needs to checked: it is an essential piece of a successful business and, done well, will strengthen the organization\'s ability to meet its strategic goals. Workplace Culture Development Skills ==================================== Finally, the last of the essential human resource management skills needed for success in this field is the ability to effectively develop, shape, and lead workplace culture. The concept of a strong workplace culture can vary based on the organization in question, but at its core it means a positive, productive, and healthy work environment for all employees, defined by the overarching values and behaviors of the group. This is often shaped by the employees in an organization, but is defined and led by the company\'s key decision makers - including human resources. Human resource managers must be tuned into the value systems of the organization, both those that develop organically from within and those that are set out by those at the top. Human resource managers are responsible for designing healthy workplace cultures that will guide and lead engaged workers, develop leaders, and create a creative and inspiring environment. Oftentimes, this means creating a vision for the organization (usually in conjunction with upper management) and constantly ensuring the organization and its employees are moving towards it, motivating others to produce meaningful, lasting results. 10 Core HR Challenges in 2024 ============================= Employers have faced endless human resource management challenges in recent years, and each year seems to bring more than the last. This year is no different, with the continuation of many HR challenges from last year and several new ones. Dive into some of the biggest future trends and challenges in HR management, and discover the opportunities that lie ahead for HR leaders in 2024. Reimagining wellbeing as a work practice, not a perk ==================================================== Employees have let employers know that they aren't happy through their actions, such as quiet quitting and social media posts about their jobs. One of the main issues contributing to employee burnout is the feeling of being mistreated, underappreciated, and lacking proper development. Similarly, employees don't like being forced back into the office without the choice of remote or hybrid work arrangements. Workplace wellness programs do little to help, one study finds, noting that such programs, including resilience and stress management training, aren't effective and can even have a negative impact. "If employees do want access to mindfulness apps and sleep programs and well-being apps, there is not anything wrong with that," says Dr. William J. Fleming, the author of the study and a fellow at Oxford University's Wellbeing Research Center. "But if you're seriously trying to drive employees' well-being, then it has to be about working practices." To truly address employee burnout, HR leaders need to examine the work environment and consider whether it empowers and enables employees. Are you providing a sense of autonomy and responsibility, along with a strong support system for getting work done? Employee wellness is often tied to purpose and motivation. "If employees cannot understand or see their work's tangible impact on the organization's overall goal, their motivation will wane," wrote Betterworks CEO Doug Dennerline in an article for HR.com. Employees need to feel supported in their career growth, too. "Failing to connect with employees around skills, career growth, and development opportunities can take its toll over time by demotivating people and making them feel stuck in their roles," Dennerline wrote. Managing the debate over remote, hybrid, and in-office work =========================================================== Return-to-office plans are expected to continue in 2024, but they might be the wrong decision for companies seeking a competitive employer brand in a tight labor market. Many employees want to be consulted about their work preferences, especially when they're trying to attend to life needs, such as caring for children or older relatives. Employees want flexibility, not a one-size-fits-all work policy. And when they can't find this flexibility domestically, more U.S. employees are seeking remote work with foreign employers. According to Deel's 2023 State of Global Hiring report, the share of U.S. workers hired by international companies grew 62% in 2023. To attract and retain talent in this environment, HR teams need to emphasize flexibility, including remote and hybrid policies. Clarify which roles require in-person attendance, and how often. By focusing policy on roles and outcomes, rather than physical presence in an office, HR can make fair, defensible decisions related to who works where and when. Rethinking the employee value proposition ========================================= Work has fundamentally changed, and so have worker expectations. They still want competitive pay, strong benefits packages, and training and development, but that's not enough. Since the pandemic, employees have been rethinking what work means to them. This means HR needs to rethink talent acquisition. People increasingly expect a holistic value proposition encompassing career growth, skills development, inclusion, belonging, fairness, trust, authenticity, purpose, a supportive company culture, and wellness. Your employee value proposition must also account for changing worker needs and expectations. Younger employees, for example, are more likely to expect from the workplace high connection, more transparency, work-life balance, and relationships that matter. The challenge facing HR managers is to deliver an experience that provides value across a spectrum of employee needs. Develop an agile approach to organizational culture. Use surveys, interviews, and focus groups to learn what your workforce needs. Be open to changing culture, processes, and norms to help employees remain engaged and working at their best. Managing many generations at work ================================= Managing generational diversity continues to be a challenge for HR departments in 2024. There are distinct trends suggesting what different generations want from work, even as we shouldn't make blanket assumptions based on age. "Generations are never a guarantee of behavior, but they're a clue that can help us understand people's shared experiences and likely expectations," said Lindsey Pollak, author of "The Remix: How to Lead and Succeed in the Multigenerational Workplace" and People Fundamentals webinar speaker. Look to take actions that align generations across shared expectations. Although Gen Z employees tend to be more vocal about their expectations, for example, what they want from work isn't remarkably different from what employees of all ages want. Research finds that most employees across generations want meaningful work, real connection with colleagues, and a sense of purpose. These priorities can help you isolate what each of these elements means to your workforce specifically. Strengthening managers and their relationships ============================================== Fostering manager-employee relationships remains a critical HR focus. These relationships power the modern workplace and are especially important for hybrid and remote employees. HR professionals must provide managers with intentional support, training, and tools. This requires putting more emphasis on the soft skills that comprise emotional intelligence, such as listening, empathy, and communication, as these remain essential components of human-centered leadership Unfortunately, research from RedThread Research shows a decline in organizational support for managers, with many left to figure things out by themselves. In 2024, HR must reverse this trend, supporting managers in coaching employees for growth and career advancement. A clear priority for HR is improving communication and expectation-setting with managers. Emphasize the importance of building relationships with employees through frequent check-ins and feedback. Train managers to interpret business goals for their teams, which helps each worker understand their purpose within the organization. Reward managers for building strong teams and reinforcing the company's culture and values. Beyond communication and training, managers also need help managing their workloads so they can prioritize time for building employee relationships. According to Gartner, the average manager has 51% more responsibilities than they can effectively handle. Rethink the managerial role and seek ways to reduce or eliminate low-value activities. Look to help managers prioritize their responsibilities, including how they can apply artificial intelligence in the flow of work. For instance, intelligent performance management software, like Betterworks, can generate end-of-year performance review feedback based on data that managers and co-workers input throughout the year and that the manager can then review and adjust if needed. In this way, generative AI can reduce manual labor and contribute to data-driven results that are more fair to employees. Refocusing on outcomes: productivity vs. activity ================================================= In 2024, HR leaders need to rethink performance metrics and distinguish between productivity that yields desired outcomes and activity. Not every work task is equally valuable, and PwC's annual CEO survey reveals that 40% of CEOs view time spent on routine tasks as inefficient. Meanwhile, 60% of these CEOs view generative AI as creating efficiency. The HR planning process should look to refocus workloads to prioritize outcomes and value-adding activities that support strategic business needs. For example, consider an employee tasked with two projects, each 20 hours in length. One is identified as critical to a strategic business goal, and the other is lower-value work. It's clear which should be prioritized as part of the HR planning process. When your primary focus is on achieving work outcomes, it's easier to gain clarity around processes. Performance management shifts to performance enablement. Instead of managing employee tasks, managers assess performance based on agreed-upon metrics. Frequent conversations help managers discover roadblocks to performance or whether employees are stuck in low-value work. If an employee is struggling with a task, managers can quickly diagnose and address such issues rather than letting the situation fester and bring down productivity. Ongoing conversations also allow managers to determine whether an employee's goals are driving the right strategic outcomes. The goals might need to evolve along with the business strategy. Leveraging AI for greater efficiency and productivity ===================================================== One of the top ways businesses will drive efficiency in 2024 is through greater adoption of AI-driven tools. According to a recent Betterworks report, 47% of employees believe that generative AI will help make their jobs easier and improve efficiency. AI will "profoundly change the way that people work and the way that they innovate," said Betterworks CEO Doug Dennerline during a People Fundamentals webinar session. Many employees are already using AI tools to support a variety of work, including strategic tasks, creative brainstorming, and technical work according to a recent study on generative AI in the workforce commissioned by Betterworks. As HR leaders, you can help define your organization's strategic use of AI. "Work with your leadership to come up with your own language around how you're going to use AI, how you talk about it externally, how you're going to protect people that use it," Doug said. "And have models for what your expectations are for when people interact with it." Building skills for an AI-enabled world ======================================= The half-life of skills continues to shrink because of technology. The hard skills we learn today are likely to become outmoded within five years --- and even less in some industries. In this fast-paced environment, upskilling isn't enough: you need to reskill your entire workforce. Reskilling initiatives are more than employee training. They require cultivating a workplace environment with the right mindset and behaviors from employees and managers. Ultimately, reskilling should be treated as a change management project. Keeping the workforce relevant is important for employee retention. Workers without access to robust reskilling programs will worry about becoming obsolete and losing their jobs not just to technology, but also to better-skilled humans. "The greatest worry shouldn't be about AI replacing people, but people without AI skills being replaced by people with them," Doug said. Emphasize the human elements of work that AI can't replace. For instance, introduce AI- related projects and tasks that align with employees' existing roles and responsibilities. This allows employees to apply new skills in the flow of work. Keeping DEI top of mind ======================= When circumstances get tough, companies are quick to pull back support for diversity, equity, and inclusion (DEI) programs. Companies might reduce DEI budgets, deemphasize corporate communication, and give less attention to it in the C-suite. DEI practitioners, particularly those well-versed in navigating this cycle, are revisiting their strategies to safeguard the progress they've made. Even as they continue making the business case and preserving the progress made, they must continue to make the human case for DEI, too. This requires embedding DEI practices throughout the employee experience. Companies with inclusive cultures will attract and keep top employees, encourage innovation, appeal to customers, and increase profit in the long run. According to McKinsey, diverse and inclusive corporations are 35% more likely to outperform their competitors, while diverse management teams can lead to a 19% increase in revenue says a study by Boston Consulting Group. Investing in data-driven decision-making ======================================== The abundance of HR data has transformed HR from an administrative role to a strategic partner, allowing for data-driven decisions on talent management, workforce planning, and organizational performance. HR leaders who embrace AI tools and analytics can use all sorts of workplace data to make intelligent decisions that drive business success. The wealth of data highlights the need to organize and prioritize this data in a single system. HR will need to become comfortable working with data --- understanding what data exists in the organization, the metrics it needs to evaluate to address organizational goals, and cross-correlating data to reveal patterns, potential trouble spots, and bright spots, and to spot areas for improvement. OVERCOMING HR CHALLENGES IN 2024 ================================ This year, look at how leading HR trends can help you redefine your HR strategy and the fundamentals of work. HR professionals are redefining work by redefining how we work --- and by placing people at the center. As you address HR challenges in your organization, consider how you're building your organization's future and enabling the success of your workforce. Goulsdberry, Michelle (2024, January, 31st). 10 Core HR Challenges in 2024. https:/[/www.betterworks.com/magazine/8](http://www.betterworks.com/magazine/8-of-the-biggest-challenges-for-hr/)-[of-the-biggest-challenges-for-hr/](http://www.betterworks.com/magazine/8-of-the-biggest-challenges-for-hr/) [[https://www.visual-planning.com/en/blog/the-9-essential-skills-of-human-resource-]](https://www.visual-planning.com/en/blog/the-9-essential-skills-of-human-resource-management) [[management]](https://www.visual-planning.com/en/blog/the-9-essential-skills-of-human-resource-management)