Question: What Is Human Resource Management?

Human Resource Management (HRM) is the function within an organization that focuses
on recruitment of, management of, and providing direction for the people who work in
the organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues
related to people such as compensation, hiring, performance management, organization
development, safety, wellness, benefits, employee motivation, communication,
administration, and training.

Human Resource Management

This resource is designed specifically for Unit 2 of the Edexcel BTEC qualification,
'Business and Management'.

Aim
The main aim of this unit is to develop an understanding of how management functions
can affect the performance of a business.

Human resources are one of the most important features of many businesses - especially
in an economy where there is an increasing shift towards service-based industries.
Human resources account for a large proportion of many businesses' costs and it is the
people that invariably drive a business. Management of these resources therefore is an
integral part of business success.

Let's look at the range of factors you will have to consider in the management of human
resources.

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Functions of Human Resource Management:

Human Resource Management involves the development of a perfect blend between

traditional administrative functions and the well-being of all employees within an
organization. Employee retention ratio is directly proportionate to the manner in which
the employees are treated, in return for their imparted skills and experience. A Human
Resource Manager ideally empowers inter-departmental employee relationships and
nurtures scope for down-the-rung employee communication at various levels. The field is
a derivative of System Theory and Organizational Psychology. Human resources has
earned a number of related interpretations in time, but continues to defend the need to
ensure employee well-being. Every organization now has an exclusive Human Resource
Management Department to interact with representatives of all factors of production. The
department is responsible for the development and application of ongoing research on
strategic advances while hiring, terminating and training staff. The Human Resource
Management Department is responsible for:
Understanding and relating to employees as individuals, thus identifying individual needs
and career goals.
Developing positive interactions between workers, to ensure collated and constructive
enterprise productivity and development of a uniform organizational culture.
Identify areas that suffer lack of knowledge and insufficient training, and accordingly
provide remedial measures in the form of workshops and seminars.
Generate a rostrum for all employees to express their goals and provide the necessary
resources to accomplish professional and personal agendas, essentially in that order.
Innovate new operating practices to minimize risk and generate an overall sense of
belonging and accountability.
Recruiting the required workforce and making provisions for expressed and promised
payroll and benefits.
Implementing resource strategies to subsequently create and sustain competitive
advantage.
Empowerment of the organization, to successfully meet strategic goals by managing staff
effectively

Qualifications to Prepare for a Career in Human Resources

Some of the key skills and personal qualifications you will need to work successfully in
Human Resources include:

1.Effective interpersonal skills so you can interact successfully.

2.Knowledge of computers and information systems.
3.Effective spoken and written communication.
4.Comfort with diverse people who have various educational levels, cultural heritages,
religious practices, ages, work experience, and opinions.
5.Understanding of statistics and finance.
6.Conflict resolution skills.
7.Able to set and accomplish goals and work as a member of a team.
8.Demonstrate a high level of integrity, confidentiality, and fairness.

Benefits of Human Resource Management

The benefits of human resource management are numerous. Good human resource
management strategies make a lot of difference in the output given by the employees. In
this article, some of the benefits of human resource management have been explained.

The key functions of human resource management include recruiting people, training
them, performance appraisals, motivating them as well as workplace communication,
workplace safety, and much more. The benefits of these functions have been discussed
here in detail:

1.Recruitment and Training

This is one of the most important responsibilities of the human resource management
team. The human resource managers work out plans and strategies of hiring the right kind
of people. They design the criteria suitable for a specific job description. Their
responsibilities also include formulating the obligations of an employee and the scope of
tasks assigned to him. Based on these two factors, the contract of an employee with the
organization is developed. When required, they also provide training to the employees
according to the requirements of the organization. An organization cannot build a good
team of working professionals without the help of a good human resource management
team.

2.Performance Appraisals
Human resource management encourages every individual in the organization, to work
according to his potential and also helps him increase his potential. The management
team communicates with the employees, all the necessary information regarding their
performances and also defines their respective roles from time to time. This helps the
employee to form an outline of their anticipated goals in much clearer terms and thereby,
helps them execute the goals with best possible efforts. Performance appraisals taken
from time to time also help in motivating the employees.

3.Maintaining Work Atmosphere

The performance of an individual in an organization is largely driven by the work
atmosphere or work culture that prevails at the workplace. A good environment can bring
out the best in an employee. A congenial atmosphere gives the employees job satisfaction
as well. A good work environment is one of the benefits employees can get from human
resource management.

4.Managing Disputes
There are several issues on which disputes may arise between the employees and the
managers in an organization. In such a scenario, it is the human resource department
which acts as a consultant and mediator to sort out the issues in an effective manner.

5.Developing Public Relations

The responsibility of establishing good public relations lies with the human resource
management to a great extent. They organize business meetings, seminars and various
official gatherings on behalf of the company in order to establish relationships with other
business sectors. Sometimes, the human resource department plays an active role in
preparing the business and marketing plans for the organization too.

Human Resource Management Systems

The invention of client server Human resource management systems helped HR
executives to take the responsibility and ownership of their systems. These client server
HRMS are mainly developed on four principal areas of HR functionalities. They are:

(1)Payroll: The payroll module automates the pay process by gathering information of an
employee such as time and attendance, calculating various deductions and takes,
generating periodic paycheques and employee tax report.
(2)Time and labor management module: It applies the technology and methods to gather
and evaluate employee work and time information. This module is the key ingredient to
establish organizational cost accounting capabilities.

(3)Benefits Administration module: This module permits human resource professionals

to administrate easily and track employee participation in programs ranging from
healthcare provider, insurance policy and pension plan to profit sharing or stock option
plans.

(4)Human Resource Management module: It is the component covering all other aspects
from application to retirement.

HRMS is a web- based system .Only a web browser (internet explorer, Netscape) is
needed to access the system. Human Resource Management System serves three
categories of users:

(1)Heavy user- This user’s job includes entering, requesting and updating data.
Transactions are submitted frequently.

(2)Light user- A light user submits requests of updates infrequently i.e. a few times a day.

(3)Self service user- This category of user requests and updates his or her own personal
data or visits services such as job listings infrequently.

HRMS merges Human resource management as a discipline and in particular it s basic

HR activities and processes with the information technology field whereas the planning
and programming of data processing systems evolved in to standardized routines and
packages of Enterprise Resource Planning (ERP) software. As a whole these ERP
systems have their origin on software that integrates information from different
application in to one universal database which makes the software application both rigid
and flexible.

Experience to Prepare for a Career in Human Resources

It is difficult to break into a career in Human Resources above the entry level. Successive
positions at the HR generalist and manager level, or above, require the knowledge and
experience obtained in entry-level positions.
Occasionally, experienced individuals who have held managerial-type positions in
business, government, or the military might be considered for positions above entry level.
They should consider obtaining certifications or taking coursework related to their
Human Resources area of interest in preparation.

If you are seeking an entry level HR position, try to obtain some experience while you
are in college as an intern. Even part time work or an internship in other fields adds to
your potential as a candidate. Leadership roles in clubs, volunteer experiences, club or
college sports, and real world projects for a company add to your credibility as a
candidate.

Seven Tips for Management Success

A successful manager, one whom others want to follow:

Builds effective and responsive interpersonal relationships. Reporting staff members,

colleagues and executives respect his or her ability to demonstrate caring, collaboration,
respect, trust and attentiveness.
Communicates effectively in person, print and email. Listening and two-way feedback
characterize his or her interaction with others.
Builds the team and enables other staff to collaborate more effectively with each other.
People feel they have become more - more effective, more creative, more productive - in
the presence of a team builder.
Understands the financial aspects of the business and sets goals and measures and
documents staff progress and success.
Knows how to create an environment in which people experience positive morale and
recognition and employees are motivated to work hard for the success of the business.
Leads by example and provides recognition when others do the same.
Helps people grow and develop their skills and capabilities through education and on-the-
job learning.

7: Employee education, training and development

In general, education is 'mind preparation' and is carried out remote from the actual work
area, training is the systematic development of the attitude, knowledge, skill pattern
required by a person to perform a given task or job adequately and development is 'the
growth of the individual in terms of ability, understanding and awareness'.

Within an organization all three are necessary in order to:

Develop workers to undertake higher-grade tasks;

Provide the conventional training of new and young workers (e.g. as apprentices, clerks,
etc.);
Raise efficiency and standards of performance;
Meet legislative requirements (e.g. health and safety);
Inform people (induction training, pre-retirement courses, etc.);

The diagnosis of other than conventional needs is complex and often depends upon the
intuition or personal experience of managers and needs revealed by deficiencies. Sources
of inspiration include:

Common sense - it is often obvious that new machines, work systems, task requirements
and changes in job content will require workers to be prepared;
Shortcomings revealed by statistics of output per head, performance indices, unit costs,
etc. and behavioral failures revealed by absentee figures, lateness, sickness etc. records;
Recommendations of government and industry training organizations;
Inspiration and innovations of individual managers and supervisors;
Forecasts and predictions about staffing needs;
Inspirations prompted by the technical press, training journals, reports of the experience
of others;
The suggestions made by specialist (e.g. education and training officers, safety engineers,
work-study staff and management services personnel).
Designing training is far more than devising courses; it can include activities such as:

Learning from observation of trained workers;

Receiving coaching from seniors;
Discovery as the result of working party, project team membership or attendance at
meetings;
Job swaps within and without the organization;
Undertaking planned reading, or follow from the use of self–teaching texts and video
tapes;
Learning via involvement in research, report writing and visiting other works or
organizations.
So far as group training is concerned in addition to formal courses there are:

Lectures and talks by senior or specialist managers;

Discussion group (conference and meeting) activities;
Briefing by senior staffs;
Role-playing exercises and simulation of actual conditions;
Video and computer teaching activities;
Case studies (and discussion) tests, quizzes, panel 'games', group forums, observation
exercises and inspection and reporting techniques.
Evaluation of the effectiveness of training is done to ensure that it is cost effective, to
identify needs to modify or extend what is being provided, to reveal new needs and
redefine priorities and most of all to ensure that the objectives of the training are being
met.

In making their judgments senior managers will question whether the efforts expended
have produced:

More effective, efficient, flexible employees;

Faster results in making newcomers knowledgeable and effective than would follow from
experience;
More effective or efficient use of machinery, equipment and work procedures;
Fewer requirements to implement redundancy (by retraining);
Fewer accidents both personal and to property;
Improvements in the qualifications of staff and their ability to take on tougher roles;
Better employee loyalty to the organization with more willingness to innovate and accept
change.
Employee Satisfaction

Definition:
Employee satisfaction is the terminology used to describe whether employees are happy
and contented and fulfilling their desires and needs at work. Many measures purport that
employee satisfaction is a factor in employee motivation, employee goal achievement,
and positive employee morale in the workplace.

Employee satisfaction, while generally a positive in your organization, can also be a

downer if mediocre employees stay because they are satisfied with your work
environment.

Employee Management and Leadership in the Workplace?

Employee management is your first concern if you are a supervisor or manager at work.
Effective management and leadership of employees allow you to accomplish your goals
at work. Effective employee management and leadership allow you to capitalize on the
strengths of other employees and their ability to contribute to the accomplishment of
work goals. Successful employee management and leadership promote employee
engagement, employee motivation, employee development, and employee retention.

Employee Training, and Development

How you welcome a new employee into your organization is critical. Your employee
orientation or onboarding process forms the foundation for a lasting, successful
employment relationship. Effective ongoing training and development, whether in the
classroom or on-the-job, ensures employee success in their current role. Effective
employee training and development guarantees that you have employees ready for their
next promotion or lateral move. Your succession planning for each position depends on
training and development.

Top Ten Ways to Show Appreciation to Employees

You can tell your colleagues, coworkers and employees how much you value them and
their contribution any day of the year. Trust me. No occasion is necessary. In fact, small
surprises and tokens of your appreciation spread throughout the year help the people in
your work life feel valued all year long.

Praise something your coworker has done well. Identify the specific actions that you
found admirable.

Say "thank you." Show your appreciation for their hard work and contributions. And,
don't forget to say "please" often as well. Social niceties do belong at work. A more
gracious, polite workplace is appreciated by all.
Ask your coworkers about their family, their hobby, their weekend or a special event they
attended. Your genuine interest - as opposed to being nosey – causes people to feel
valued and cared about.

Offer staff members flexible scheduling for the holidays, if feasible. If work coverage is
critical, post a calendar so people can balance their time off with that of their coworkers.

Know your coworker’s interests well enough to present a small gift occasionally. An
appreciated gift, and the gesture of providing it, will light up your coworker’s day.

If you can afford to, give staff money. End of the year bonuses, attendance bonuses,
quarterly bonuses and gift certificates say "thank you" quite nicely. TechSmith staff
receive a percentage of their annual salary for their end of year bonus.

Almost everyone appreciates food. Take coworkers or staff to lunch for a birthday, a
special occasion or for no reason at all. Let your guest pick the restaurant.

Create a fun tradition for a seasonal holiday. ReCellular employees draw names for their
Secret Santa gift exchange. Alison Doyle, About's Guide to Job Searching, also works in
Career Services at Skidmore College where they do a "gift grab" at their holiday party.

LuAnn Johnson who works in Human Resources at the Schaller Anderson Mercy Care
Plan says, "We celebrate Treat Tuesday, every Tuesday between Thanksgiving and
Christmas. We match up departments or people who don't normally work together as a
unit and assign a day to provide gooey, healthy or scrumptious treats for the other groups.
It's a great mixer, an opportunity to show off our culinary skills and a morale builder - to
say nothing of the sugar high!"

Bring in bagels, doughnuts or another treat for staff and coworkers. Offerings such as
cookies or cupcakes, that you've baked personally, are a huge hit. (Have you tried baking
cupcakes in ice cream cones? People love them.) Another hit? Bring chocolate -
chocolate anything.

Last, but not least, provide opportunity. People want chances for training and cross-
training. They want to participate on a special committee where their talents are noticed.
They like to attend professional association meetings and represent your organization at
civic and philanthropic events.

Performance Management

Managers cite performance appraisals or annual reviews as one of their most disliked
tasks. Performance management eliminates the performance appraisal or annual review
and evaluation as the focus and concentrates instead on the entire spectrum of
performance management and improvement strategies. These include employee
performance improvement, performance development, training, cross-training,
challenging assignments, 360 degree feedback and regular performance feedback.

Coaching / Mentoring

Employees are developed and educated through methods other than training classes and
seminars. Chief among these are management responsibilities of coaching, mentoring,
and building your organization into a learning organization. Find coaching, mentoring,
consulting, knowledge management and how to build a learning organization resources.

Interpersonal Communication

Face-to-face or person-to-person interpersonal communication is the most frequent

communication method most people use at work. Additionally, people communicate via
email, newsletters, phone messages, presentations and meetings. Poor communication is
the most frequently cited problem in organizations. Learn how to communicate
effectively.

Leadership

Employees have the opportunity to both lead and impact the leadership skills of others.
Use these ideas to further develop leadership skills. Every employee has the potential to
be a leader.

Employee Motivation and Engagement

Employee motivation, employee engagement, positive employee morale, rewards and

recognition are explored in these resources. How do you create engaged, motivated,
contributing people? How do you maintain high employee morale when people work
long hours? Does your reward and recognition system contribute to or deflate employee
motivation, positive morale and retention? Answers are here.

Meeting Management

Ineffective meetings use critical resources, sap organizational energy and movement, and
affect employee morale. Find out how to make your meetings work for you. Learn what
to do before, during, and after a meeting to produce results. Deal with difficult people in
meetings. Learn the art and science of meeting management.

Manage Change

As a manager or leader in a work environment that is constantly changing - and what

work environment isn't these days? - change management is a crucial skill. Find what you
need to know about how to manage change, address employee resistance to change, and
how to ensure employee ownership of company goals. Change management is a skill that
is worth your time to develop.

Employee Retention

Employee retention, especially of your best, most desirable employees, is a key challenge
in organizations today. Use these tips, articles, tools and ideas to learn employee retention
strategies that will help you retain your best staff. Learn loyalty strategies for employee
retention.

Job Interviews

How to conduct a safe, legal interview that also enables you to select the best candidate
for your open positions is important. The interview is one of the significant factors in
hiring. Perhaps the traditional interview is accorded too much power in selection. Learn
more interviewing tips and interviewing techniques to make your interviews a powerful
tool and process to evaluate candidates.

Rewards and Recognition

Looking for ideas about employee recognition, employee rewards, employee awards and
just thanking employees? Look no further. Ideas for both formal and informal employee
recognition and employee rewards are here. Your only limit in employee recognition and
in rewarding and thanking employees is your imagination.

Progressive Disciplinary Action

Progressive discipline is a process for dealing with job-related behavior that does not
meet expected and communicated performance standards. The primary purpose for
progressive discipline is to assist the employee to understand that a performance problem
or opportunity for improvement exists. Find out more about progressive discipline.

Management Tips

Use these work relationship tips, leadership tips, and management tips to become an
effective, successful employee, business leader, and/or management professional. These
work success and happiness tips, leadership tips, and management tips convey best
workplace and business leadership and management practices.