HRM Notes

What is HRM?

  • HRM (Human Resource Management) is the process of hiring and developing employees to increase their value to the organization.
  • It includes:
    • Conducting job analyses
    • Planning personnel needs
    • Recruiting the right people
    • Orienting and training employees
    • Managing wages and salaries
    • Providing benefits and incentives
    • Evaluating performance
    • Resolving disputes
    • Communicating with all employees at all levels

Functions of HRM

  • Acquisition (getting people)
  • Development (preparing people for work)
  • Motivation (activating people)
  • Maintenance (keeping people in the organization)

Components of HRM

  • Organizational Culture
    • The collection of values, working norms, company vision, habits, and beliefs that the business promotes.
  • Planning for Change
    • Helping employees understand their roles in the larger picture of the company.
  • Training and Development
    • Continuing education keeps employees' skills fresh, fostering new and innovative ideas.
  • Health and Safety
    • Ensuring health and safety in the workplace through policies and procedures.
    • (RA 11058 – An Act Strengthening compliance with Occupational Safety and Health Standards and Providing Penalties for Violations Thereof)
  • Recruitment and Retention
    • Finding qualified workers, keeping them engaged, training them effectively, and providing incentives for further education, benefits, and compensation are drivers to organizational success.

Scope of HRM

  • Personnel Aspect
    • Manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity, etc.
  • Welfare Aspect
    • Working conditions and amenities such as canteens, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
  • Industrial Relations Aspect
    • Union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

Benefits HR Professionals Bring to the Workplace

  • Improve employee turnover
    • High employee turnover hurts a company’s bottom line, costing twice as much as a current employee’s salary to find and train a new recruit.
  • Conflict resolutions
    • Workplace conflict is inevitable due to different personalities, lifestyles, and work ethics.
  • Employee satisfaction
    • Human resource specialists determine employee satisfaction.
  • Improve employee performance
    • Human resources teams develop performance management systems.
  • Training and development
    • Human resource departments conduct needs assessments to determine skills training and employee development programs.
  • Helps with budget control
    • It’s critical for human resources to define as many processes as specific projects, the annual pay review or the development of a new program.