HRM Study Notes
Human Resource Management (HRM)
Overview of HRM
HRM is the strategic management of employees.
Focuses on effectively utilizing human capital to achieve organizational goals while ensuring employee satisfaction and growth.
Key Functions of HRM
Staffing
Training and Development
Compensation and Benefits
Performance Management
Employee Relations
Staffing
Process of acquiring, placing, and retaining the right people.
Key Activities:
Human Resource Planning: Forecasting manpower needs.
Recruitment: Attracting qualified candidates.
Selection: Choosing suitable candidates via interviews, tests, assessments.
Placement: Assigning the right person to the right position.
Retention: Strategies to keep employees motivated and satisfied.
Training and Development
Focus on enhancing employee skills and performance.
Key Activities:
Orientation Programs: Introduce new employees to culture and policies.
On-the-Job Training: Hands-on learning.
Skill Development Programs: New technical and soft skills.
Leadership Development: Preparing employees for higher responsibilities.
Continuous Learning: Encouraging lifelong learning.
Compensation and Benefits
Design and manage competitive pay structures and benefits to attract and retain employees.
Performance Management
Setting goals, appraising performance, providing feedback to improve effectiveness.
Employee Relations
Foster positive relationships, address grievances, ensure a harmonious work environment.
HRM Process
HR Planning: Identify employee needs, skills, and timing requirements.
Recruitment: Attract candidates through various methods.
Selection: Screen and evaluate applicants.
Onboarding: Integrate new employees into the organization.
Training: Enhance skills, knowledge, and competencies.
Performance Appraisal: Evaluate employee performance and provide feedback.
Compensation: Pay and benefits structure - includes direct and indirect pay.
Retention: Keep employees to reduce turnover.
Key strategies include competitive pay, career growth, positive work environment, and work-life balance.
Case Study: HRM at Bayan Agro Farm
Challenges: High turnover and low productivity.
HRM Process:
Planning: Assessed labor needs.
Recruitment: Hired locally to improve attendance.
Training: Provided training through local experts.
Compensation: Fair wages, meals, bonuses.
Retention: Organized community events.
Results: 40% turnover reduction, 25% productivity increase, stronger local workforce relationships.
Human Resource Management (HRM) is the strategic approach to managing employees, aiming to achieve organizational goals while ensuring employee satisfaction and growth. Its core functions encompass staffing, training and development, compensation and benefits, performance management, and employee relations. The HRM process typically follows steps like planning, recruitment, selection, onboarding, training, performance appraisal, compensation, and retention.
Key learnings from effective HRM, as exemplified by the Bayan Agro Farm case study, include:
Strategic Planning and Localized Recruitment: Addressing specific challenges, such as high turnover, can be mitigated by assessing local labor needs and hiring from the community.
Targeted Training and Skill Enhancement: Utilizing local experts for training can enhance skill development, improve attendance, and address specific operational challenges efficiently, leading to increased productivity.
Fair and Competitive Compensation and Benefits: Providing competitive wages, additional benefits like meals, and performance-based bonuses helps attract and retain employees, improving morale and reducing turnover.
Proactive Employee Retention Strategies: Implementing specific initiatives, such as competitive pay, career growth opportunities, and a positive work environment, is crucial for reducing turnover and ensuring a stable workforce.
Fostering Positive Employee Relations and Community Engagement: Cultivating strong relationships among employees and integrating with the local community through events can significantly improve retention, workplace harmony, and overall workforce satisfaction.