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Human Resource Management

Humanresource (or personnel) management, in the sense of getting things done throughpeople. It's an essential part of every manager's responsibilities, but many organizations find it

advantageous to establish a specialist division to provide an expert service dedicated to ensuringthat the humanresource function is performed efficiently.

"People are our most valuable asset" is a clich which no member of any seniormanagementteam would disagree with. Yet, the reality for many organizations is that their people remain

y under valuedy under trainedy under utilizedy poorly motivated, and consequentlyy perform well below their true capability


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The rate of change facing organizations has never been greater and organizations must absorband manage change at a much faster rate than in the past. In order to implement a successful

business strategy to face this challenge, organizations, large or small, must ensure that they havethe right people capable of delivering the strategy.

The market place for talented, skilled people is competitive and expensive.

Taking on new staffcan be disruptive to existing employees. Also, it takes time to develop 'cultural awareness',

product/ process/ organization knowledge and experience for new staff members.

As organizations vary in size, aims, functions, complexity, construction, the physical nature of

their product, and appeal as employers, so do the contributions ofhumanresourcemanagement. But, in most the ultimate aim of the function is to: "ensure that at all times the

business is correctly staffed by the right number of people with the skills relevant to the businessneeds", that is, neither overstaffed nor understaffed in total or in respect of any one discipline or

work grade.

Functional overview and strategy for HRM

These issues motivate a well thought out humanresourcemanagement strategy, with the

precision and detail of say a marketing strategy. Failure in not having a carefully crafted humanresources management strategy, can and probably will lead to failures in the business process

itself.

This set of resources are offered to promote thought, stimulate discussion, diagnose theorganizational environment and develop a sound humanresourcemanagement strategy for

your organization. We begin by looking at the seven distinguishable function humanresourcemanagement provide to secure the achievement of the objective defined above.

Following on from this overview we look at defining a humanresource strategy.

Finally, some questions are posed in the form of a HRM systems diagnostic checklist for you toconsider, which may prove helpful for you to think about when planning your development

programs for the human resources in your organization, if they are truely "your most valuableasset."

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What is HRM?


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HumanResourceManagement ("HRM") is a way of management that links people-related activities tothe strategy of a business or organisation. HRM is often referred to as "strategic HRM". It has severalgoals:

- To meet the needs of the business and management (rather than just serve the interests ofemployees);

- To link humanresource strategies / policies to the business goals and objectives;

- To find ways for human resources to "add value" to a business;

- To help a business gain the commitment of employees to its values, goals and objectives

The link between Human Resources and Business Strategy

All elements of the business strategy have implications for human resources, as illustrated in the tablebelow. The challenge for management is to identify and respond to these HR challenges:

Examples of Key Strategy Issues Possible Human Resource ImplicationsWhat markets should the business compete

in?

What expertise is required in these markets? Do

existing management and employees have the rightexperience and skills

Where should the business be located tocompete optimally?

Where do we need our people? How many do weneed?

How can we achieve improvements in ourunit production costs to remain

competitive?

How productive is the workforce currently? Howdoes this compare with competitors? What

investment in the workforce (e.g. training,recruitment) and their equipment is required to

achieve the desired improvement in productivity?

How can the business effect cultural

change?

What are the current values of the workforce. How

can the prevailing culture be influenced/changed tohelp implement a change programme?

How can the business respond to rapidtechnological change in its markets?

What technological skills does the business currentlypossess? What additional skills are needed to

respond to technological change? Can these skills beacquired through training or do they need to be

recruited?

An important part of HRM is the Human Resources Plan. The purpose of this plan is to analyse thestrategic requirements of the business in terms of manpower - and then to find a way of meeting therequired demand for labour. This is the subject of a separate revision note.

Home HR Role HRM Function in the Organization


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HRM Function in the Organization

The HRM Function in the organization plays the role of the unit taking care of the human capital.

The HRM Function is responsible for the processes, which allow the organization to stay

competitive on the external market and internally efficient.

Generally, the role and responsibilities of the HRM Function are defined well in theory, but the

reality can be different from the organization to the organization. The HRM Function plays adifferent role in the manufacturing company and a completely different role it plays in the high

tech ITCompany. The investments needed to keep the current staff and the competition on themarket usually define the playground for the HRM Function.

The HRM Function has to develop its role in the organization from the basis to the processeswith the value added to the organization. The common route is to begin with the perfect services

in the Personal Administration, Recruitment and Staffing and when the HRM Function is

generally recognized as a reliable Business Partner to continue with other processes as theLeadership Development.

The value added HRProcesses need a more recognized HRM Function in the organization or inthe company. The HRM Function without credibility has no chance to introduce functioning

value added processes and it needs to return to the basic processes to build its own credibilityamong the management population to have a trust.

The HRM Function is about a trust. To build the trust among the management population takes

time and it cannot build over the night. The HRM Function has to work with a vision and thisvision has to be sold the line management slowly. The HRM Function has to recognize the time

as it cannot expect the perfect results immediately.T

o introduce efficient and workingPerformance Management System takes usually about 3 years to get proper results. There is no

reason to expect a quicker implementation as the whole system is about employees andmanagers.

The HRM Function plays the role as the Finance Department plays in the organization. TheHRM Function is not for a direct management of the processes, the HRM Function develops

processes, procedures and tools for the top and line management to manage and conduct theprocesses in their own departments.

The HRM Function has to develop the management staff (and this is a direct responsibility of

Human Resources and the top management) to work, manage and develop the employees in theorganization correctly to ensure the organization healthiness.

The HRM Function is responsible for the following areas in the organization or the business:

y Recruitment


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y Compensation and Benefitsy Performance Managementy Trainingy Reportingy Leadership Developmenty Personal Administrationy Legal Compliant Processes

The HRM Function can be a strong player in the organization with a significant impact on theoverall results of the organization. But also, in the organization its role and responsibility can be

reduced on the pure Personal Administration, just taking care of satisfying the needs of the topand line management.

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