Human Resource Management is the strategic approach to the effective management of people in a company or organization such that they help their business gain a competitive advantage.
Definition
The process of planning, organizing, directing (motivating), and controlling the procurement, development, compensation, integration, maintenance, and separation of organizational human resources to the end that organizational, individual, and societal needs are satisfied.
It can also be defined as – “ employing people, developing their resource, utilizing maintaining and compensating their services in tune with the job and organizational requirements”
Human Resource Management includes all activities used to attract & retain employees and to ensure they perform at a high level in meeting organizational goals.
Functions of Human Resource Management
HR Planning
- strategic HR planning; job design
Retaining employees
- compensation; maintenance; labor relations; separation
Attracting employees
- recruiting; selecting
Developing employees
- training & development; performance appraisal
HR Planning
What Is Human Resource Planning (HRP)?
Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve optimum use of an organization's most valuable asset—quality employees. Human resources planning ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses.
Objectives of Human resource planning
- Forecast personnel requirement
- To ensure optimum utilization of resources
- se of existing manpower productively
- Cope with changes(training about technological changes)
- To provide control measures - (ensure resource availability when required)
- Promote employees in a systematic manner - (promotions, pay scale)
- To provide a basis for Management Development Programmes.
- To assist productivity bargaining
- To assess the cost of manpower
Importance of HR Planning
A. Reservoir of talent- THEY ARE THE ONE WHO retains skilled people IN AN INSTITUTION
B. Prepare people for future motivation & developed to meet future needs
C. Expand or contract-continuous supply of people to handle challenging jobs
D. Cut cost-HR budget
E. Succession planning- stars are picked for challenging projects EFFECTIVE
Job Design
– usually done prior to recruitment
– the process of describing the work that needs to be done by an employee and
– specifying the requirements needed in fulfilling the job
• According to Geisler-
“ Manpower planning is the process which includes forecasting, developing, implementing, and controlling by which a firm ensures that it has the right number and the right kind of people at the right place, at the right time doing work for which they are economically most useful”
Retaining Employees
- an effort by a business to maintain a working environment which supports current staff in remaining with the company
Factors to retain employee
Compensation
- the adequate and equitable remuneration of personnel for their contribution in the achievement of organization objectives.
Labor relations
- entails recognizing the validity of unions, negotiating for the collective bargaining agreement, and being able to handle strikes and other forms of mass action.
Maintenance
- the process of providing the following services to employees:
– career counseling
– safety & health programs
- Also involves the minimization of absenteeism and tardiness
Separation
- the process of reintegrating employees into society; entails the following:
– employees should be terminated for a just cause
– a retirement plan must be provided for old employees as an aid when they leave the company.
Attracting Employees
– is the process which is includes recruitment and selecting the right people for the right job.
- Recruitment
– development of a pool of job candidates in accordance with a human resource plan
– its purpose is to provide mgmt. with enough candidates from which they can select qualified employees
– internal versus external - Internal recruiting is when a business or organization intends to fill a vacancy from within its existing workforce.
External recruitment on the other hand is when an organization looks to fill vacancies from applicants outside of the company.
- Selection
– the mutual process whereby the organization decides to make a job offer and the candidate decides whether or not to accept it.
Developing Employees
- Orientation
– a program designed to help employees fit smoothly into an organization
- Training
– a process designed to maintain or improve current employee performance
- Development
– a process designed to develop skills and attitudes necessary for future work
- Performance Appraisal
– process of providing feedback to subordinates regarding their performance on the job.
– Informal versus Formal
- A formalized appraisal process is used for:
– rating work performance
– identifying those deserving raises or promotions
– identifying those in need of further training
Nature of HRM
- Inherent part of management- selecting people, training, motivating, appraising their performance for improving their quality.
- Pervasive function-present in all levels of mg in an organization
- Action oriented-solve problem through rational(balanced) policies rather than record-keeping
- People-oriented-HRM is all about people at work. Assign jobs, produce results, reward, motivate them towards improvements in productivity
- Future-oriented- Effective HRM helps the organization meet its goals
- Development oriented-HRM develops the full potential of employees through reward, training, job rotation.
- Integrating mechanism: HRM maintains the cordial relationships between people working at various levels in the organization.
- Comprehensive function: Workforce signifies people working at all levels, HRM differs with form & shape but the basic objective of effective utilization of human resource remains the same.
- Continuous function: HRM is not a one-shot deal it requires constant awareness and alertness of human relations in everyday operations.
- Based on human relation: Every person has a different need, perception, and expectations. The manager should give due attention to these factors.
Scope(capacity) of HRM
- Human resource planning-fill various position
- Recruitment & Selection- develop a pool(team) of candidates
- Job Design: define task, assign authority & responsibility
- Training & Development- helps in developing key competencies
- Appraisal of performance-systematic assessment & evaluation of workforce
- Motivation of workforce- develop enthusiastic workforce
- Remuneration of employees-focuses on fair, consistent & equitable compensation
- Social security & Welfare of employees-working conditions, transport, medical assistance etc
- Review & audit of personnel policies- ensures reliable HR policies
- Industrial labour relation- ensures healthy union mg relationship e.g.: settlement of dispute
Importance of HRM
Human Resource Management (HRM) is a modern approach of maintaining people at workplace which focuses on acquisition, development, utilization and maintenance of human resource.
HRM is development oriented. It is concern of managers of all level and provides space for employee involvement, performance and growth. Several companies nowadays prefer HRM to personnel management because HRM plays vital role in maintaining quality team of working experts. Besides, it has several importance which were discussed previously.
No comments