HUMAN RESOURCE
MANAGEMENT
What is HRM?
Human resource management (HRM) is the process of employing people,
training them, compensating them, developing policies relating to them,
and developing strategies to retain them. As a field, HRM has undergone
many changes over the last twenty years, giving it an even more important
role in today’s organizations. In the past, HRM meant processing payroll,
sending birthday gifts to employees, arranging company outings, and
making sure forms were filled out correctly—in other words, more of an
administrative role rather than a strategic role crucial to the success of the
organization
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“Human Resource Management (HRM) focuses on managing people within the employer-employee
relationship. Specifically, it involves the productive use of people in achieving the organization’s strategic
business objectives and the satisfaction of individual employee needs” (Stone, 2002).
Human Resource Management (HRM) consists of an organization “people practice” which includes the
policies, practices and systems that influence employees’ behavior, attitudes and performance. Human
Resource Management and Development influence people who work for the organization and how those
people work. The human resources, if well managed, have the potential to be a source of sustainable
competitive advantage, contribution to the basic objectives such as quality, profits and customer satisfaction
(Noe et al., 2004).
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As mentioned by Mello (2006), the following are the different descriptions of the HRM functions: staffing
involves job analysis, human resource planning, employees’ specific tasks and responsibilities and the
abilities, skills and qualifications needed to perform a job are identified. Human Resource Planning ensures
that the organization has the right number of qualified people in the right jobs at the right time. In employee
recruitment, the organization seeks and attracts a pool of applicants from whom qualified candidates are
considered for job vacancies. In employee selection, the organization chooses from among the available
candidates the individual predicted to be most likely to perform successfully in the job.
HRM also involves training. It is the acquisition of attitudes, skills, and knowledge required for employees to
learn and perform their jobs, improve on their performance, prepare themselves for more senior positions, and
achieve career goals.
In HRM, the process of determining how well employees is doing their jobs is called performance
management. In this activity, the employees are assessed and given feedback on their strengths and areas for
improvement.
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Importance of Human Resource Management
1. To maintain quality of work life. It is concerned with the employee’s perception of physical as well
as psychological wellbeing at workplace and it can be obtained by maintaining work autonomy, work
freedom, job recognition, belongingness, rewards, etc.
2. To increase productivity and profit. HRM shall ensure right quality and quantity of personnel in
workplace. Motivated employees work hard to meet their personal career goal which directly
influences productivity of organization.
3. To retain employees and motivate them to accomplish company’s goal. By this, the HRM
performs tasks like providing benefits, compensation and rewards to the deserving employees.
4. To recognize merit and contribution of employee.
5. To resolve conflicts. In any company, either big or small, conflicts may arise between any
parties/group. Conflicts are inevitable and they should not be ignored. Human resource management
acts as a consultant to sort out such conflicts timely and conduct other organizational activities
smoothly.
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HRM Objectives
1. Societal Objectives. To be ethically and socially responsible to the needs and challenges of the
society, while minimizing the negative impact of such demands upon the organization. The failure of
organizations to use their resources for the society’s benefit in ethical ways may lead to restrictions.
Organizational Objectives. To recognize the HRM exists to contribute to organizational
effectiveness. HRM is not an end in itself, it is only a means to assist the organization with its
primary objectives.
2. Functional Objectives. To maintain the department’s contribution at a level appropriate to the
organization’s needs. A department’s level of service must be appropriate for the organization it
serves.
3. Personal Objectives. To assist employees in achieving their personal goals, at least in so far as
these goals enhance the individual’s contribution to the organization.
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Features of Human Resource Management
Human Resource management is a continuing process of managing
people and their activities at work while squeezing out the best potential
from them so they become productive individuals. It has the following
features:
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1. It is prevalent in nature. This means that HRM is present and performed in all operational and functional areas of
management within organization on a continuous basis.
2. It is dynamic. It does not depend on written rules and policies to solve problem, rather it focuses on what can be done
through logical and well-grounded solutions and decisions. It constantly finds ways to change situations and events for
the betterment of the organization and its employees.
3. It is individually-oriented. HRM works toward getting the best out of each employee by seeing to it that they are
continually offered the opportunity to be equipped with new skills through training, development, and other productivity
improvement schemes.
4. It is employee-oriented. Rewarding them for their contributions to organizational success is a strong reinforcement to
increase the level of job performance.
5. It is forward-looking. HRM should effectively envision and assess labor needs for a given period of time.
6. It is growth-oriented. HRM should constantly enhance the conceptual and analytical skills of its employees. A carefully
planned design for employee development is almost compulsory if the organization aims for excellence.
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Differences between Personnel Management and Human Resource Management
PERSONNEL MANAGEMENT (PM) HUMAN RESOURCE MANAGEMENT
(HRM)
PM refers to the people manning the organization. HRM is the effective supervision and management of
Managing them is referred to as personnel
management. employees’ capabilities and other attributes.
PM is conventional and concentrates on supervisory HRM is a non-stop function directed at developing the
administration of people knowledge and skills of employees
PM is a separate purpose with separate sub-function HRM is an indispensable part of the entire
organization
PM is seen as a supplementary activity HRM anticipates and effectively handles adverse
situations even before they arise
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Differences between Personnel Management and Human Resource
Management
PERSONNEL MANAGEMENT (PM) HUMAN RESOURCE MANAGEMENT
(HRM)
PM reacts to adverse situations as they arise HRM sees the organization as one that embodies a dynamic personality
PM takes complete authority in people management HRM sees to it that both personal and professional needs of employees
are addressed correctly in order to achieve work-life balance
PM has a limited range as it only focuses on administration of people Motivational activities and team-building activities are top priorities
for HRM
PM is particularly involved with recruitment, selection and In HRM, a fulfilling job is the antecedent and job satisfaction is the
administration of workforce outcome
PM treats people as an expense, thus, employers have the power to Encouraging all forms of communications is the driving force in HRM
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manage the cost
Differences between Personnel Management and Human Resource
Management
PERSONNEL MANAGEMENT (PM) HUMAN RESOURCE MANAGEMENT
(HRM)
Primarily stimuli in PM are monetary and non-monetary rewards In HRM, there is a great relationship between productivity and
satisfaction and employees’ social well-being
In PM, a high-level of contentment means better performance HRM considers people as valuable assets
PM regards employees as tools for the organization to make more HRM regards employees as excellent contributors to the organization’s
profit wellness, and thus acknowledges their contributions through growth
and advancement opportunities
PM treats employees as commodities that can be brought in exchange HRM sees to it there is a constant healthy relationship between the
for money. organization and its employees, which extends to the family members
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of the employees
Difference between Human Resource Management (HRM) and Human Resource Development (HRD)
HUMAN RESOURCE DEVELOPMENT(HRD)
HUMAN RESOURCE MANAGEMENT
(HRM)
HRM focuses on enhancement of employees, potential from a long- HRD is concerned with enhancing the capabilities of employees that
term perspective will result in positive behavior change
HRM gives attention to the effective utilization of employees and HRD sees to it that there is continuing opportunities for growth and
their capabilities development
HRM takes decisions on HRD plans HRD depends on the decisions of HRM
HRM at its center has HRD The goal of HRD is anchored to the that of HRM, which boils down
the benefit of the workers
HRM attends to every employee demand resulting in increased HRM promotes upscaling of skills and knowledge resulting in
satisfaction and productivity outstanding performance 14
Role of Human Resource Management
Internal and External
Staffing
Factors
Development of Workplace
Compensation and Benefits Admin Retention
Training and Development Dealing with laws affecting the employment
Communication Healthy Workplace
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Organizations need people to
perform tasks and get work done in
the organization. Even with the
most sophisticated machines,
humans are still needed. Because
of this, one of the major tasks in
HRM is staffing. Staffing involves
STAFFING the entire hiring process from
posting a job to negotiating a
salary package.
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Every organization has policies to ensure
fairness and continuity within the organization.
One of the jobs of HRM is to develop the
verbiage surrounding these policies. In the
development of policies, HRM, management,
and executives are involved in the process. For
example, the HRM professional will likely
recognize the need for a policy or a change of
policy, seek opinions on the policy, write the
DEVELOPMENT
policy and then communicate that policy to
employees. It is key to note here that HR
OF WORKPLACE
departments do not and cannot work alone.
Everything they do needs to involve all other
departments in the organization.
POLICIES
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HRM professionals need to determine that
compensation is fair, meets industry
standards, and is high enough to entice
people to work for the organization.
Compensation includes anything the
employee receives for his or her work. In
addition, HRM professionals need to make
sure the pay is comparable to what other
people performing similar jobs are being
paid. This involves setting up pay systems
COMPENSATION that take into consideration the number of
years with the organization, years of
AND BENEFITS experience, education, and similar aspects.
ADMINISTRATION
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Human resource people must be
aware of all the laws that affect the
workplace. An HRM professional
might work with some of the HRM
Retention involves keeping and
motivating employees to stay with
the organization. Compensation is
a major factor in employee
RETENTION
retention, but there are other
factors as well.
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Once we have spent the time to hire
new employees, we want to make sure
they not only are trained to do the job
but also continue to grow and develop
new skills in their job. This results in
higher productivity for the organization.
Training is also a key component in
employee motivation. Employees who
feel they are developing their skills tend
TRAINING AND to be happier in their jobs, which results
in increased employee retention.
DEVELOPMENT
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There is a need for leaders of
organizations to get a solid
background and knowledge of
employment and collective labor
law, and how to use labor law in
their daily handling of employment
DEALING WITH LAWS matters.
AFFECTING
EMPLOYMENT
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Safety is a major consideration in all
organizations. Oftentimes new laws are
created with the goal of setting federal
or state standards to ensure worker
safety. Unions and union contracts can
also impact the requirements for worker
safety in a workplace. It is up to the
human resource manager to be aware
WORKER of worker protection requirements and
ensure the workplace is meeting both
PROTECTION federal and union standards.
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For HR professionals,
communication is a two-way
process that involves top-down
dissemination of HR plan and
bottom-up questions from
employees.
COMMUNICATION
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“
BE STRONG AND COURAGEOUS! DO NOT
BE AFRAID OR DISCOURAGED. FOR THE
”
LORD YOUR GOD WILL BE WITH YOU
WHEREEVER YOU GO.
JOSHUA 1:9
Thank you
