Basics in HR Management

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Chapter 1

Professional Certificate in Human Resources ManagementIntroduction toHuman Resources Management

Mahesh WeeratungeCertified Professional MarketerMBA (UK), CPM(APMF), MAPMF, PG. Dip(M) SL, Dip M(SL), MSLIMSnr. Lecturer, Examiner, Corporate Trainer and Practitioner

What is Human Resources Management?The policies and practices involved in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.Garry Dassler Torrington et al It is a series of activities which; first enables working people and the organisation which uses their skills to agree about the objective and nature of their working relationship and secondly, ensure that the agreement is fulfilled.

What is Human Resources Management? The design, implementation and maintenance of strategies to manage people for optimum business performance including the development of policies and process to support these strategiesThe Charted Institute of Personnel ManagementWhat is Human Resources Management?HR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals.

Why HRM is Important?Staff are the largest revenue cost of any organization. Staff are a volatile resource, they can leave you any time.Staff are a store of corporate knowledge and the means of service delivery.Retaining and developing good staff allows you to use skills and develop as a business.Individuals should contribute more than they cost.In the industry customer care critical and delivered by staff as representatives.

Myths that keep HR from being a professionOld MythsPeople go into HR because they like people.

New RealitiesHR departments are not designed to provide corporate therapy or to act as social or health-and-happiness retreats. HR professionals must create the practices that make employees more competitive, not more comfortable.Myths that keep HR from being a professionOld MythsAnyone can do HR.

New RealitiesHR activities are based on theory and research. HR professionals must master both theory and practice.

Old MythsHR deals with the soft side of business and therefore is not accountable.

New RealitiesThe impact of HR practices on business results can and must be measured. HR professionals must learn to translate their work into financial performance.Myths that keep HR from being a professionOld MythsHR focuses on costs, which must be controlled.

New RealitiesHR practices must create value by increasing the intellectual capital within the firm. HR professionals must add value, not only reduce costs.Myths that keep HR from being a professionOld MythsHR is full of fads.

New Realities HR practices have evolved over time. HR professionals must see their current work as part of an evolutionary chain and explain their work with less jargon and more authority.Myths that keep HR from being a professionOld MythsHR is staffed by nice people. New Realities At times, HR practices should force vigorous debates. HR professionals should be confrontative and challenging as well as supportive.Myths that keep HR from being a professionOld MythsHR is HRs job.

New Realities HR work is as important to line managers as are finance, strategy, and other business domains. HR professionals should join with managers in championing HR issues.Myths that keep HR from being a professionHRM and ManagementHRM is management, but management is more than HRM. HRM is that part of management dealing directly with people, whereas management also includes marketing research and development, and accounting and finance. Because the purpose of HRM is to improve the productive contribution of people, it is intimately related to all other aspects of management. Organisations needing to trim overheads or reduce corporate flab cut HRM.

New Role of a HR ManagerSTRATEGIC PARTNERHR professionals play a strategic role when they have the ability to translate business strategy into action. This facilitating role allows the HR manager to become part of the business team.ADMINISTRATIVE EXPERT To become administrative experts HR professionals must be able to re-engineer HR activities through the use of technology, process engineering and total quality management.New Role of a HR Manager. ContEMPLOYEE CHAMPIONThe HR professional must be able to relate to and meet the needs of employeesCHANGE AGENTThe HR manager needs to serve as a catalyst for change within the organisation. This can be achieved by leading change in the HR function and by developing problem-solving communication and influence skills. In short, the HR manager must know how to manage change.

HRM ActivitiesJob analysis defines a job in terms of specific tasks and responsibilities and identifies the abilities, skills and qualifications needed to perform it successfully.Human resource planning or employment planning is the process by which an organisation attempts to ensure that it has the right number of qualified people in the right jobs at the right time.HRM Activities. Cont.Employee recruitment is the process of seeking and attracting a pool of applicants from which qualified candidates for job vacancies within an organisation can be selected.Employee selection involves choosing from the available candidates the individual predicted to be most likely to perform successfully in the job.

Performance appraisal is concerned with determining how well employees are doing their jobs, communicating that information to the employees and establishing a plan for performance improvement.Training and development activities help employees learn how to perform their jobs, improve their performance and prepare themselves for more senior positions.HRM Activities. Cont.Career planning and development activities benefit both employees - by identifying employee career goals, possible future job opportunities and personal improvement requirements - and the organisation - by ensuring that qualified employees are available when needed.Employee motivation is vital to the success of any organisation. Highly motivated employees tend to be more productive and have lower rates of absenteeism, turnover and lateness.

HRM Activities. Cont.Compensation refers to the cash rewards, such as the base salary, bonus, incentive payments and allowances which employees receive for working in an organisation.Benefits are sometimes referred to as indirect or non-cash compensation.HRM Activities. Cont.Industrial relations is concerned with the relationship between an organisation and its employees.Effective health and safety programs help guarantee the physical and mental wellbeing of employees.Management of diversity and successfully integrating Australias multi-cultural population into the work force maximises the contribution of all employees.

HRM Activities. Cont.

Objectives of HRM

Objectives of the HRM FunctionHRM contributions to organizational effectiveness:Helping the organization reach its goals Employing workforce skills and abilities efficiently Increasing job satisfaction, self-actualization, and quality of work life Communicating HRM policies to all employeesMaintaining ethical policies and socially responsible behavior Managing change to the mutual advantage of individuals, groups, the enterprise, and the publicObjectives of the HRM FunctionIncreasing employees job satisfaction and self-actualizationEmployees must feel that the job is right for their abilities and that they are being treated equitably Satisfied employees are not automatically more productive However, unsatisfied employees tend to be absent and quit more often and produce lower-quality work Both satisfied and dissatisfied employees can perform equally in quantitative terms Objectives of the HRM FunctionQuality of work life (QWL) is a general concept that refers to several aspects of the job, including:Management and supervisory style Freedom and autonomy to make decisions on the job Satisfactory physical surroundings Job safetySatisfactory working hoursMeaningful tasksThe job and work environment should be structured to meet as many workers needs as possibleObjectives of the HRM FunctionCommunicating HRM policies to all employees:HRM policies, programs, and procedures must be communicated fully and effectively They must be represented to outsidersTop-level managers must understand what HRM can offerObjectives of the HRM FunctionMaintaining ethical policies and socially responsible behavior:HRM managers must show by example that HRM activities are fair, truthful, and honorablePeople must not be discriminated againstTheir basic rights must be protected These principles should apply to all activities in the HRM area Objectives of the HRM FunctionManaging increased urgency and faster cycle times:Firms are placing a growing emphasis on:Increasing customer serviceDeveloping new products and servicesTraining and educating technicians, managers, and decision makersShorter cycle times mean less time to:Train, educate, and assign managersRecruit and select talented peopleImprove the firms imageLearning provides a framework for decreasing cycle time

Circumstantial FactorsInternal factors:organisational history, size, structure and location, the values, philosophies and management styles of top management, the nature of the workforce, the type of industry. Circumstantial FactorsExternal factors: economic conditions, legislative requirements, industrial relations

PlanningOrganizingLeadingStaffingControllingHuman Resources Management ProcessThe Human Resource Managers ProficienciesNew ProficienciesHR proficienciesBusiness proficienciesLeadership proficienciesLearning proficiencies

The Human Resource Managers ProficienciesManaging within the LawEqual employment lawsOccupational safety and health lawsLabor lawsManaging EthicsEthical lapsesHuman Resources SpecialistsRecruiterEEO coordinatorLabor relations specialistTraining specialistJob analystCompensation managerHuman Resource Specialties