Human Resources Management (HRM): The management function concerned with getting, training motivating and keeping competent employees.
The quality of an organization is to a large degree determined by the quality of the people it employs. Success for most organizations depends on finding the employees with the skills to successfully perform the tasks required to attain the company’s strategic goals. Staffing and human resources management decisions and methods are critical to ensuring that the organization hires and keeps the right personnel.
Some of you may be thinking, sure personnel decisions are important. But aren’t most of them made by people specifically handling human resource issues? It’s true that in many organizations, a number of activities grouped under the label human resource management (HRM) are done by specialists. In other cases, HRM activities may even be outsourced to companies such as Daksh Eservices or Ma Foi. Not all managers have HRM staff support. Many small business managers, for instance, are obvious examples of individuals who frequently must do their hiring without the assistance of HRM specialists. Even managers in larger organizations are often involved in recruiting candidates, reviewing application forms, interviewing applicants inducing new employees, making decisions about employee training, providing career advice to employees, and evaluating employees’ performance. So, even if an organization provides HRM support activities, every manager is involved with human resource decisions in his or her unit.
The key components of an organization’s HRM process represent eight activities, or steps that if properly executed, will staff an organization with competent high performing employees who are capable of sustaining their performance level over the long term.
The first three steps represent employment planning: the addition of staff through recruitment, the reduction in staff through downsizing, and selection. When executed properly these steps lead to the identification and selection of competent employees and assist organizations in achieving their strategic directions. Accordingly once an organization’s strategy has been established and the organization structure had been designed, it’s now time to add the people. That’s one of the most critical roles for HRM and one that has increased the importance of human resource managers to the organization.
Once you select competent people, you need to help them adapt to the organization and to ensure that their job skills and knowledge are kept current. These goals are accomplished through orientation and training and development. The last steps in the HRM process are designed to identify performance goals, correct performance problems if necessary, and help employees sustain a high level of performance over their entire work life. The activities involved include performance appraisal, compensation and benefits and safety and health.
The entire employment process is influenced by the external environment. Many of the factors introduced (e.g. globalization, downsizing, diversity) directly affect all management practices, but their effect is probably greatest in the management of human resources, because whatever happens to an organization ultimately influences what happens to its employees. So, before we review the HRM process, let’s examine one primary environmental force that effects it – employment and discrimination laws.
The Legal Environment of HRM:
HRM practices are governed by laws of the land, and those laws vary from country to country. Within countries, state or provincial and local regulations further influence specific practices. Consequently, it is impossible to provide you with a full description of the relevant regulatory environment you’ll face as a manager. By shaping HRM policies it enhances commitment, competence, congruence, and cost effectiveness, an organization increase its capacity to adapt to changes in its environment. High commitments, for example means better communication between employees and managers.