Topics covered in this snack-sized chapter:
In business, one of the essential elements to consider is having a productive and efficient staff.
Human resources can be defined as the total knowledge, skills, creative abilities, talents, and aptitudes of an organization's workforce.
Human Resource Management (HRM) is the process of managing people in organizations in a structured and thorough manner.
Human Resource Management consists of all the activities undertaken by an enterprise to ensure the effective utilization of employees toward the attainment of individual, group, and organizational goals.
The role of HR is quickly changing and organizations that keep up with that change have a better chance of surviving in a highly competitive global environment.
The major roles of Human Resource Management are as follows:
- The HRM department is seen as the ‘Expert’ in matters relating to Human Resource Management and makes decisions about what should be done in this area.
- The HRM department monitors organizational activities to ensure that HRM policies are being properly implemented by all concerned.
- This role requires the HRM department to facilitate the work of other managers in the organization.
- It also helps them to acquire and use the skills, techniques and attitudes that they need to make sure that HRM policies are implemented throughout the organization.
- The HRM department provides advice and guidance to managers at all levels on matters pertaining to the management of personnel.
- This requires the HRM department to be the provider of useful information on HRM matters.
Following are the major functions that Human Resource Management has to play:
Involvement in strategic planning process
HR manager gets involved in the strategic planning process of the organization.
Forecasting the labor requirement
The HR manager holds the responsibility of forecasting the labor requirements of the organization in the future at the sales/production level.
Once the labor forecast is done, the organization can need more labor if the existing identifies workforce is insufficient to handle the future workload.
Selection is the process by which the most suitable candidate is selected from the recruited pool of candidates.
Induction is the process by which employees are familiarized with the organizational environment.
After induction process, the need for training arises when there is a gap between expected level of skills and the current level of skills of a new employee.
The HR manager is responsible for motivating employees to carry out their duties on a timely and accurate basis.
This is where employee’s performance is evaluated based on the relative levels of expected and actual performance.
Once the employee performance is evaluated, the HR department needs to design good employee rewards packages to reward top employees; this package can be monetary or non-monetary.
Managing career growth of employees
HR department is responsible of managing the career growth of employees, i.e., when (and to where) they should be promoted.
When the organization decides that they no longer need the service of certain employee.
Employees need to be given the redundancy notices and have to be paid the redundancy charges.
Managing employee grievance
HR department needs to accept the grievances and complaints submitted by employees. The department should come up with the best possible solutions to these grievances.
Managing complaints about employees
HR department needs to hear any complaints regarding employees, and take necessary steps to solve related issues.
External elements directly as well as indirectly influence HRM activities and thus, it is important for the management to look after it:
The dynamic environment of HRM
The work in today’s global environment is more complex than it was a few decades ago, requiring employees with more sophisticated skill sets.
Without them, many employees will lack the capacity to successfully perform in tomorrow's organizations.
Government legislation has given employees the right to take unpaid leave upon the birth of a newborn, and return without any loss in seniority.
Laws supporting this and other employer actions are important to the HRM process.
As the certified third-party representative, the union acts on behalf of its members to secure wages, hours, and other terms and conditions of employment.
They promote and foster what is called a grievance procedure, or a specified process for the resolving of differences between workers and management.
Nonunion employees often look at what those in the unionized work force gain through contract negotiations.
Management practices have played a major role in promoting today's HRM operations.
Frederick Taylor, who is often regarded as the father of scientific management, developed a set of principles to enhance worker productivity.
Motivational techniques designed to enhance productivity have made their way into HRM activities.
“Ethics” are rules of conduct or moral principles that guide individual or group behavior.
The focus of business ethics is on awareness of organizational values, guidelines, and codes, and behaving within those boundaries when faced with dilemmas in business or professional work.
Many organizations have voluntarily adopted codes of ethics that describe their general value system, ethical principles, and specific ethical rules.
HRM must:
- Make sure employees know about corporate ethical policies
- Train employees and supervisors how to act ethically.
The Sarbanes-Oxley Act, passed in 2002, establishes procedures for public companies regarding how they handle and report their financial status.
The Sarbanes-Oxley Act has many provisions that involve or touch on ethics-related policies and practices that HR professionals may administer or influence:
- Requires companies to have a code of ethics designed to deter wrongdoing
- Requires companies to develop a complaint system and an anti-retaliation statement and to communicate these to employees
- Establishes penalties for noncompliance