What Is Human Resource Management?

Question: What Is Human Resource Management? Answer: 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 is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.
The number one glossary suggestion and question that people request is: What is the definition of human resources? William R. Tracey, in The Human Resources Glossary defines Human Resources as: The people that staff and operate an organization as contrasted with the financial and material resources of an organization. The organizational function that deals with the people ... Long a term used sarcastically by individuals in the line organization, because it relegates humans to the same category as financial and material resources, human resources will be replaced by more customer-friendly terms in the future.

HR Functions

Staffing Both the job description and the job specification are useful tools for the staffing process, the first of the seven HR functions to be discussed. Someone (e.g., a department manager) or some event (e.g., an employee's leaving) within the organization usually determines a need to hire a new employee. In large organizations, an employee requisition must be submitted to the HR department that specifies the job title, the department, and the date the employee is needed. From there, the job description can be referenced for specific job related qualifications to provide more detail when advertising the positioneither internally, externally, or both (Mondy and Noe, 1996).

Not only must the HR department attract qualified applicants through job postings or other forms of advertising, but it also assists in screening candidates' resumes and bringing those with the proper qualifications in for an interview. The final say in selecting the candidate will probably be the line manager's, assuming all Equal Employment Opportunity Commission (EEOC) requirements are met. Other ongoing staffing responsibilities involve planning for new or changing positions and reviewing current job analysis and job descriptions to make sure they accurately reflect the current position. Performance Appraisals Once a talented individual is brought into an organization, another function of HRM comes into playcreating an environment that will motivate and reward exemplary performance. One way to assess performance is through a formal review on a periodic basis, generally annually, known as a performance appraisal or performance evaluation. Because line managers are in daily contact with the employees and can best measure performance, they are usually the ones who conduct the appraisals. Other evaluators of the employee's performance can include subordinates, peers, group, and self, or a combination of one or more (Mondy and Noe, 1996). Just as there can be different performance evaluators, depending on the job, several appraisal systems can be used. Some of the popular appraisal methods include (1) ranking of all employees in a group; (2) using rating scales to define above-average, average, and below-average performance; (3) recording favorable and unfavorable performance, known as critical incidents; and (4) managing by objectives, or MBO (Mondy and Noe, 1996). Cherrington (1995) illustrates how performance appraisals serve several purposes, including:(1) guiding human resource actions such as hiring, firing, and promoting; (2) rewarding employees through bonuses, promotions, and so on;(3) providing feedback and noting areas of improvement; (4) identifying training and development needs in order to improve the individual's performance on the job; and (5) providing job related data useful in human resource planning. Compensation and Benefits Compensation (payment in the form of hourly wages or annual salaries) and benefits (insurance, pensions, vacation, modified workweek, sick days, stock options, etc.) can be a catch-22 because an employee's performance can be influenced by compensation and benefits, and vice versa. In the ideal situation, employees feel they are paid what they are worth, are rewarded with sufficient benefits, and receive some intrinsic satisfaction (good work environment, interesting work, etc.). Compensation should be legal and ethical, adequate, motivating, fair and equitable, costeffective, and able to provide employment security (Cherrington, 1995). Training and Development Performance appraisals not only assist in determining compensation and benefits, but they are also instrumental in identifying ways to help individuals improve their current positions and prepare for future opportunities. As the structure of organizations continues to changethrough

downsizing or expansionthe need for training and development programs continues to grow. Improving or obtaining new skills is part of another area of HRM, known as training and development. "Training focuses on learning the skills, knowledge, and attitudes required to initially perform a job or task or to improve upon the performance of a current job or task, while development activities are not job related, but concentrate on broadening the employee's horizons" (Nadler and Wiggs, 1986, p. 5). Education, which focuses on learning new skills, knowledge, and attitudes to be used in future work, also deserves mention (Nadler and Wiggs, 1986). Because the focus is on the current job, only training and development will be discussed. Training can be used in a variety of ways, including (1) orienting and informing employees, (2) developing desired skills, (3) preventing accidents through safety training, (4) supplying professional and technical education, and (5) providing supervisory training and executive education (Cherrington, 1995). Each of the training methods mentioned has benefits to the individual as well as to the organization. Some of the benefits are reducing the learning time for new hires, teaching employees how to use new or updated technology, decreasing the number and cost of accidents because employees know how to operate a machine properly, providing better customer service, improving quality and quantity of productivity, and obtaining management involvement in the training process (Cherrington, 1995). When managers go through the training, they are showing others that they are taking the goals of training seriously and are committed to the importance of human resource development. The type of training depends on the material to be learned, the length of time learners have, and the financial resources available. One type is instructor-led training, which generally allows participants to see a demonstration and to work with the product first-hand. On-the-job training and apprenticeships let participants acquire new skills as they continue to perform various aspects of the job. Computer-based training (CBT) provides learners at various geographic locations access to material to be learned at convenient times and locations. Simulation exercises give participants a chance to learn outcomes of choices in a nonthreatening environment before applying the concept to real situations. Training focuses on the current job, while development concentrates on providing activities to help employees expand their current knowledge and to allow for growth. Types of development opportunities include mentoring, career counseling, management and supervisory development, and job training (Cherrington, 1995). Employee and Labor Relations Just as human resource developers make sure employees have proper training, there are groups of employees organized as unions to address and resolve employment-related issues. Unions have been around since the time of the American Revolution (Mondy and Noe, 1996). Those who join unions usually do so for one or both of two reasons to increase wages and/or to eliminate unfair

conditions. Some of the outcomes of union involvement include better medical plans, extended vacation time, and increased wages (Cherrington, 1995). Today, unions remain a controversial topic. Under the provisions of the Taft-Hartley Act, the closed-shop arrangement states employees (outside the construction industry) are not required to join a union when they are hired. Union-shop arrangements permit employers to hire non-union workers contingent upon their joining the union once they are hired. The Taft-Hartley Act gives employers the right to file unfair labor practice complaints against the union and to express their views concerning unions (Cherrington, 1995). Not only do HR managers deal with union organizations, but they are also responsible for resolving collective bargaining issuesnamely, the contract. The contract defines employment related issues such as compensation and benefits, working conditions, job security, discipline procedures, individuals' rights, management's rights, and contract length. Collective bargaining involves management and the union trying to resolve any issues peacefullybefore the union finds it necessary to strike or picket and/or management decides to institute a lockout (Cherrington, 1995). Safety and Health Not only must an organization see to it that employees' rights are not violated, but it must also provide a safe and healthy working environment. Mondy and Noe (1996) define safety as "protecting employees from injuries caused by work-related accidents" and health as keeping "employees free from physical or emotional illness" (p. 432). In order to prevent injury or illness, the Occupational Safety and Health Administration (OSHA) was created in 1970. Through workplace inspections, citations and penalties, and on-site consultations, OSHA seeks to enhance safety and health and to decrease accidents, which lead to decreased productivity and increased operating costs (Cherrington, 1995). Health problems recognized in the workplace can include the effects of smoking, alcohol and drug/substance abuse, AIDS, stress, and burnout. Through employee assistance programs (EAPs), employees with emotional difficulties are given "the same consideration and assistance" as those employees with physical illnesses (Mondy and Noe, 1996, p. 455). Human Resource Research In addition to recognizing workplace hazards, organizations are responsible for tracking safetyand health-related issues and reporting those statistics to the appropriate sources. The human resources department seems to be the storehouse for maintaining the history of the organization everything from studying a department's high turnover or knowing the number of people presently employed, to generating statistics on the percentages of women, minorities, and other demographic characteristics. Data for the research can be gathered from a number of sources, including surveys/questionnaires, observations, interviews, and case studies (Cherrington, 1995). This research better enables organizations to predict cyclical trends and to properly recruit and select employees.

Conclusion Research is part of all the other six functions of human resource management. With the number of organizations participating in some form of international business, the need for HRM research will only continue to grow. Therefore, it is important for human resource professionals to be up to date on the latest trends in staffing, performance appraisals, compensation and benefits, training and development, employee and labor relations, and safety and health issues both in the United States and in the global market. One professional organization that provides statistics to human resource managers is the Society for Human Resource Management (SHRM), the largest professional organization for human resource management professionals. Much of the research conducted within organizations is sent to SHRM to be used for compiling international statistics.

Human Resource Management functions may be briefly described as: 1. Manpower Planning: The HR considers the actual requirement of the staff for the organization. Because the overstaffing is wasteful and expensive, and understaffing leads to loses of the organization economics and profits. 2. Employee selection: Selection of employees for the suitable job. 3. Employees motivating: Motivating employees and encourage them to give their best in work productivity. Providing financial rewards to the staff. 4. Employees relation: Keeping a healthy relationship with the employees and their problems are redressed. 5. Payroll module: Payment of salaries and wages to the workers at the proper time.
Functions of the proposed Human Resource System

Human resource functions; Human Resource Provisioning Training and Development Human Resource Utilisation Industrial Welfare Organisational

Description This includes human resource planning, recruitment, election, placement, transfers, promotions, and dismissals This includes induction, training, management development, and career planning This includes performance appraisal, productivity, and motivation This includes safety, health, welfare services, housing recreation and advice This includes organisational structure, job design, and organisational

Development Industrial Relations Remuneration Administration Research Management

personnel planning This includes communication, negotiation, consultation, agreements, grievances, and disciplinary procedures This includes job analysis, job evaluation, salary and wage structuring, fringe benefit scheme, and incentive systems This includes personnel records, statistics about personnel, and information processing This includes the analysis of information, system development, investigations, surveys, and applied personnel research This includes the planning, organising, directing and controlling the personnel function, and coordination with other functions

Functions of the System The system will be expected to function on five levels and meet the detailed requirements of human resource planning, management and development. These five levels are:
National Department Provincial Departments Districts Facilities Contracted service delivery agencies outside of government, viz. civil society structures such as non-governmental organizations Provide detailed knowledge for human resource planning and health system governance as described in Section 36 of the National Health Act (Certificate of Need); Promote human resource management in public health through support for processes and record keeping; Contribute to purposeful and meaningful development of all health employees in addition to the automation of development plans and reports; and Provide management as well as monitoring systems for service delivery agencies funded by the Department of Health with respect to volunteering.

The four main outputs of the system will be to:

Human Resource Planning The system should assist in collecting information, which can be mined to support:
Projections for the production of health workers in both at a pre-professional as well as professional level. The identification of trends in critical areas such as coverage and outputs from training and education institutions.

Providing workload indicators to project staffing needs.

Human Resource Management The system should support functions such as:
Facilitate job evaluations Manage Senior Manager Service (SMS) and Middle Management (MMS) positions. It should capture the personal details of these employees, hold their performance agreements and employment contracts as will as facilitate their evaluation. Facilitate the use of Personal Development and Management Systems. This includes holding job descriptions, competency profiles, generic performance areas, performance indicators and personal development plans. Hold each employees personal profile including a summary of his or her work history; appointments and promotions should also be captured. It should track the amount spent on his or her performance and appraisal bonuses. Feature that helps identify career pathing opportunities for employees. Report on recruitment outcomes (only for applicants who are placed). Support the recording of labour relation actions. These records should be secure and in line with the Labour Relations Act. On expiring, the system should automatically archive a record in line with the Act. The cost of losses related to a labour relation action for example theft or abuse of property should also be captured. Capture termination and exit interview information. Allow for the recording of grievances, abscondments and demotions. Record drivers license expiry dates with notification features as well as driver behaviour reports. Record profession registration status and verify that status against official council records, warning supervisors it employees are practising without registration. Store work permit expiry dates and notify supervisors when they are near. Contain a collapsible organogram reflecting the staff establishment and funding status thereof. Maintain the details of a posts previous occupant and the reason for vacancy for 6 months. Have a front-end for use by employees, allowing them to access their personal data but not change it. Archive ex-employees details for a period of three years and have powerful search capabilities for partial information. Have leave management capabilities particularly for identifying leave abuse trends. Allow for probation period notices and re-instatement letters to be printed automatically on their anniversary. Record employees with special skills.

Human Resource Development The system should support functions such as:
Encapsulating all relevant information related to the Skills Development Act in addition to supporting workplace assessment and training. Capturing training application and management data. Holding a training service provider list Facilitate computer-mediated learning using comprehensive design and administration tools

Volunteer Management The system should:

Record basic information regarding the volunteer. Keep records of their previous placements Record training received and their personal development plan. Link the volunteer to beneficiaries either as households or support to primary health care clinics. Act as a payroll system to effect the payment of stipends

The 9 Essential Skills of Human Resources Management - How Many Do You Have?
Tuesday, July 18, 2006 9:40 AM by Jay Schleifer

Category: HR Management

Check your inventory against ours and see! When interviewing a potential new hire, its standard procedure for a Human Resources professional to assess the candidate as compared to a list of key skills and personal characteristics needed for the job. In considering ideas to start our new HR Daily Advisor service, some at BLR thought it might be interesting to turn the tables on the profession, and come up with a list of such attributes for Human Resources professionals themselves. In no way is this authoritative, but it is the opinion of people, including BLR Founder and Publisher Bob Brady, whove spent decades meeting with HR professionals, supporting their goals and reporting their achievements. You may agree or not with our assessments, but either way, wed like to hear about it via the share comments link on this page. That said, here goes:

Human Resources Management Key Skill #1: Organization

Human Resources management requires an orderly approach. Organized files, strong time management skills and personal efficiency are key to the Human Resources function. Youre dealing with peoples lives and careers here, and when a manager requests a personnel file or a compensation recommendation that lines up with both the organization and the industry, it wont do to say, Hold on. Ill see if I can find it.
Human Resources Management Key Skill #2: Multitasking

On any day, an HR professional will deal with an employees personal issue one minute, a benefit claim the next and a recruiting strategy for a hard-to-fill job the minute after. Priorities and business needs move fast and change fast, and colleague A who needs something doesnt much care if youre already helping colleague B. You need to be able to handle it all, all at once.
Human Resources Management Key Skill #3: Discretion and Business Ethics

Human Resources professionals are the conscience of the company, as well as the keepers of confidential information. As you serve the needs of top management, you also monitor officers approaches to employees to ensure proper ethics are observed. You need to be able to push back when they arent, to keep the firm on the straight and narrow. Not an easy responsibility! Of course, you always handle appropriately, and never divulge to any unauthorized person, confidential information about anyone in the organization.
Human Resources Management Key Skill #4: Dual Focus

HR professionals need to consider the needs of both employees and management. There are times you must make decisions to protect the individual, and other times when you protect the organization, its culture, and values. These decisions may be misunderstood by some, and you may catch flak because of it, but you know that explaining your choices might compromise confidential information. Thats something you would never do.
Human Resources Management Key Skill #5: Employee Trust

Employees expect Human Resources professionals to advocate for their concerns, yet you must also enforce top managements policies. The HR professional who can pull off this delicate balancing act wins trust from all concerned.
Human Resources Management Key Skill #6: Fairness

Successful HR professionals demonstrate fairness. This means that communication is clear, that peoples voices are heard, that laws and policies are followed, and that privacy and respect is maintained.
Human Resources Management Key Skill #7: Dedication to Continuous Improvement

HR professionals need to help managers coach and develop their employees. The goal is continued improvement and innovation as well as remediation. And looking to their own houses, the HR professional also uses technology and other means to continuously improve the HR function itself.

Human Resources Management Key Skill #8: Strategic Orientation

Forward-thinking HR professionals take a leadership role and influence managements strategic path. In gauging and filling the labor needs of the company, devising compensation schemes, and bringing on board new skill sets leading to business growth, they provide the proof for the oftenheard management comment, People are our most important asset.
Human Resources Management Key Skill #9: Team Orientation

Once, companies were organized into hierarchies of workers headed by supervisors. Today, the team is king. HR managers must consequently understand team dynamics and find ways to bring disparate personalities together and make the team work.
Nine Skills, But Also One Caveat

As we listed these skills, one thing we didnt do was try to prioritize them. Because no general list of skills can take into account the business strategy at your particular organization. Which leads to the caveat we mentioned, as expressed by Bob Brady. HR is a creature of, and serves the business strategy, Brady says. Its important for HR people to know what that strategy is and what makes the business tick so the approach to HR can be tailored accordingly. Never think of HR in isolation, he advises. Because if Human Resources professionals think of themselves as just HR, thats what the rest of the organization will think too.