Introduction to Human Resource Management

Definition, Introduction to the practice of HRM in organizations, Need for effective HRM, Role of HRM in modern business organizations, managerial role of HRM

Introduction: Human resources management is a critically important and challenging area of management. The importance lies in the fact that it is concerned with the human dimension in an organization. It is an area which grew along with the evolution of the early stages Modern Management, known as Classical Management approach. Initially, the People Dimension was not recognized. In fact, People Dimension was not in the management parlance, since people, or workers were considered as just another one in the factors of production perspective. During the Scientific Management era, more emphasis was placed in the technological aspects of an organization. Productivity was considered a function Technology, in which the worker was only a cog in the Machine. However, with the emergence of the Human Relations School, credited to Elton Mayo as the chief proponent, the managerial attitude towards the employee changed across many more guiding philosophies witnessed during the transition from Classical Management to Modern Management. In the Metamorphosis of the management theory the most impelling force had been the growing focus and recognition of the critical importance of the people Dimension in Organization Strategy. This is known as Strategic Resource Management. Definition:

Human resource management is to make the most productive use of human resource to the greatest benefits of the organization and individuals. 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.

As Edward L. Gubman observed in the Journal of Business Strategy, "the basic mission of human resources will always be to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the business. Those three challenges will never change." Read more: http://www.answers.com/topic/human-resource-management#ixzz1aecn0P00 Irving Burstiner commented in The Small Business Handbook, "Hiring the right peopleand training them wellcan often mean the difference between scratching out the barest of livelihoods and steady business growth. Personnel problems do not discriminate between

small and big business. You find them in all businesses, regardless of size." Read more: http://www.answers.com/topic/human-resource-management#ixzz1aed8MyKF

Strategic Human Resource Management (SHRM)

Strategic human resource management can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. In an organization SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company's strategies through HR activities such as recruiting, selecting, training and rewarding personnel. Article Source: http://EzineArticles.com/549585

Human Resource Management at Work HR policies are based on the organizational culture and objectives and they define the role of the HR department in an organization. They determine the relationship between the management and the employees and the way the employees are treated and valued in the organization. Therefore, they determine the levels of employee satisfaction and motivation. HR procedures help the management in implementing the HR policies. Human resources play an important role in the development of businesses and countries. Moreover, challenges posed by the turbulent business environment, rapid technological changes, a diverse workforce, and the changing legal and governmental regulations also affect organizations. In this situation, a new role has emerged for HR function, as a value provider, as a key player in organizational working and as a contributor to organization's strategy. Need for effective HRM Three basic challenges The need to support corporate productivity and performance improvement efforts. Those employees play an expanded role in employers performance improvement efforts.

HR must be more involved in designingnot just executingthe companys strategic plan. HR professionals should be part of the firms strategic planning executive team.

Identify the human issues that are vital to business strategy. Help establish and execute strategy. Provide alternative insights. Are centrally involved in creating responsive and market-driven organizations. Concept HR helps top management formulate strategy in a variety of ways by. Supplying competitive intelligence that may be useful in the strategic planning process. Supplying information regarding the companys internal human strengths and weaknesses. Build a persuasive case that shows howin specific and measurable termsthe firms HR activities can and do contribute to creating value for the company.

Human Resource Management Functions HRM functions are broadly classified into two categories: Managerial functions: planning, organizing, directing and controlling. The operative functions of HRM are related to specific activities of HRM such as recruitment, development, compensation and employee relations.

An important part of HRM is the Human Resources Plan. The purpose of this plan is to analyze the strategic requirements of the business in terms of manpower - and then to find a way of meeting the required demand for labour. This is the subject of a separate revision note. HR Planning Human Resource Planning is the process of systematically reviewing HR requirements to ensure that the required numbers of employees, with the required skills, are available when needed Recruitment is the process of generating a pool of capable people to apply for employment to an organization. The process by which a job vacancy is identified and potential employees are notified.The nature of the recruitment process is regulated and subject to employment law.Main forms of recruitment through advertising in newspapers, magazines, trade papers and internal vacancy lists. Applicants may demonstrate their suitability through application form, letter or curriculum vitae (CV) Selection is the process by which managers and others use specific instruments to choose from a pool of applicants a person or persons most likely to succeed in the job(s), given management goals and legal requirements.

Reward and Compensation: Pay is an important feature of human resource management - after all, it is the main reason why people work. Milcovich et al (2001: 6) state that: "Employees may see compensation as a return in exchange between their employer and themselves, as an entitlement for being an employee of the company, or as a reward for a job well done. It is important to appreciate that Reward and compensation are major factors leading to motivation and job satisfaction in a majority of employees. Performance Appraisal is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) by the corresponding manager or supervisor PA is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Industrial Relations is a recognizable and legitimate objective for an organization, are difficult to define since a good system of industrial relations involves complex relationships between: (a) Workers (and their informal and formal groups, i. e. trade union, organizations and their representatives); (b) Employers (and their managers and formal organizations like trade and professional associations); (c) The government and legislation and government agencies l and 'independent' agencies like the Advisory Conciliation and Arbitration Service. Training and Development is potentially a powerful strategic function. It can make a major contribution to organizational, group and individual effectiveness, efficiency, growth and success. It is important that other functional managers accept the training and development specialist as a business partner, whether operations are coordinated as a centralized specialist function or are controlled by line managers. The link between Human Resources and Business Strategy All elements of the business strategy have implications for human resources, as illustrated in the table below. The challenge for management is to identify and respond to these HR challenges: Examples of Key Strategy Issues Possible Human Resource Implications

What markets should the business compete in?

What expertise is required in these markets? Do existing management and employees have the right experience and skills

Where the business should be located to compete optimally? How can we achieve improvements in our unit production costs to remain competitive?

Where do we need our people? How many do we need? How productive is the workforce currently? How does 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? How can the business respond to rapid technological change in its markets?

What are the current values of the workforce? How can the prevailing culture be influenced/changed to help implement a change program? What technological skills does the business currently possess? What additional skills are needed to respond to technological change? Can these skills be acquired through training or do they need to be recruited?

Conclusion: Theory and Practice of Management had evolved over the years in terms of the needs of the business caused by dynamic changes in the environment. Along with such developments, the worker, referred to as the human factor in the early stages of Scientific Management School, became a more important resource with the emergence of Human Relations School. The growing importance of People Dimension in management drastically changed the managerial views on Efficiency and Productivity. This also resulted in the expansion of the traditional role of Personnel Management leading to Human Resource Management. AS a result of n further development in the theory and practice of management establishing a firm link between the Employee involvement and ownership with the strategic planning process of the organization, Human Resource Management acquired a broader role in the strategic management functions of the organization, evolving a new area known as Strategic Human Resource Management. In Sri Lanka, the practice of HRM is yet in the early stages of development though the theory and concepts are not alien to us. The application of various HRM practices had been sluggish, in spite of a reasonable focus on training in HRM. The current pace of expansion of the state and private sector organizations in this country, and the emergence of young and qualified managers, the opportunities for a higher degree of application of the theories and concepts in a more meaningful manner could be anticipated.