HRM M1: INTRODUCTION AND STRATEGIC OF HRM

Module 1: INTRODUCTION AND STRATEGIC OF HRM

CAPITAL

- includes all resources a company uses to generate revenue.

Capital²

Examples:

• Money

• Machines

• Buildings

• Technology

• People

PEOPLE

Among all resources, what are the most important?

Human Resource Management (HRM)¹

the process of: 

• Hiring employees

• Training employees

• Compensating employees

• Creating policies

• Retaining talented workers

Human Resource Management (HRM)²

ensures employees help the organization achieve its goals.

Human Resource Management (HRM)³

Examples:

Scenario: Imagine a new restaurant opening.

They need:

• Chefs

• Waiters

• Cashiers

• Cleaners

• Manage

Scenario: Someone must:

• Recruit employees

• Train them

• Set salaries

• Manage schedules

• Handle complaints

Origin of Human Resource Management

Early HR activities started with Welfare Officers.

Responsibilities included:

• Employee health

• Housing

• Financial assistance

• Worker welfare

4 Evolution of HR Roles

1. Humane Bureaucrat

2. Consensus Negotiator

3. Manpower Analyst

4. Organization Man

Humane Bureaucrat

focuses on establishing formal procedures for hiring and discipline.

Consensus Negotiator

works with unions and employees to resolve issues.

Manpower Analyst

plans long-term workforce needs.

Organization Man

– works strategically with management in planning the organization’s future.

Role of HRM¹

- HRM’S job is to plan, create, and implement policies and programs that make the best use of a company’s human resources.

• Efficient use of human resources

• Good working relationships

• Employee development

• Organizational success

HRM ensures:

Role of HRM²

- The first and most important duty of HR people is to provide continual education to employees about the company’s policies and procedures.

DAVE ULRICH’s Four HR Roles

1. Strategic Partner

2. Change Agent

3. Employee Champion

4. Administrative Expert

1. Staffing

2. Setting Policies

3. Compensation and Benefits

4. Retention

5. Training and Development

6. Employment Laws

7. Worker Protection

Seven Major Responsibilities of HR Managers

Staffing

includes the entire hiring process.
Steps:

Workforce planning

Recruitment

Selection

Hiring

Setting Policies

- HR develops workplace policies.

Examples:

• Dress code policy

• Attendance policy

• Internet usage policy

• Ethics policy

• Discipline procedures

Compensation and Benefits

- Compensation includes everything employees receive for their work.

Examples:

• Salary

• Bonuses

• Health insurance

• Retirement plans

• Paid vacation

• Sick leave

Employee Retention

- Retention means keeping good employees in the company.

Reasons employees leave:

• Poor relationship with boss

• Lack of career growth

• Poor work environment

• Cultural mismatch

Training and Development

- Training helps employees improve skills.

Examples:

• Software training

• Communication training

• Leadership training

• Team building activities

Benefits:

• Increased productivity

• Higher motivation

• Better performance

Employment Laws

HR must follow laws related to:

• Discrimination

• Minimum wage

• Worker safety

• Labor rights

• Healthcare benefits

Worker Protection¹

- Workplace safety is a top priority

Worker Protection²

- HR ensures employee safety.

Worker Protection³

Examples:

• Safety equipment

• Hazard prevention

• Proper ventilation

• Confidential employee records

HR Skills Needed

1. Organizing and Multitasking

2. Communication

3. Fairness and Strong Ethics

4. Strategic and A Critic

5. Specific Job Skills

HR Career Opportunities Samples

Examples of HR job titles:

• Recruiter

• HR Assistant

• Compensation Analyst

• Benefits Manager

• Training and Development Manager

• HR Manager

• Vice President for HR

HRM Challenges

HR managers face many challenges:

• Cost management

• Technology changes

• Economic conditions

• Workforce diversity

• Ethical issues

Human Resource Planning (HRP)

the process of predicting: 

• Future employee needs 

• Skills required in the future 

• HR policies to meet those needs

Human Resource Planning (HRP)²

Example Scenario: A technology company plans to expand in 3 years.

They will need:

• Software engineers

• Data analysts

• IT security specialists

HR must plan:

• How many employees to hire

• What training they need

• When recruitment should start

1. Forecast HR requirements 

2. Manage organizational changes 

3. Achieve organizational goals 

4. Support employee promotions 

5. Improve HR effectiveness 

Goals of Human Resource Planning 

1. Technological changes 

2. Skills shortages 

3. Demographic changes 

4. Government regulations 

5. Labor market conditions 

Need for HR Planning

HR Planning helps organizations: 

1. Identify future workforce needs 

2. Recruit talented employees

3. Support strategic planning 

4. Improve productivity 

5. Reduce labor shortages 

Importance of HR Planning

1. Align HR plan with business goals

2. Monitor and update the plan regularly

3. Measure success with clear goals

4. Be flexible when changes occur

5. Stay updated with labor laws

Tips for Effective HR Strategic Planning