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Human resource managementÂ or shortly said H.R.M. is a designedÂ andÂ articulateÂ way toÂ managementÂ of people working in the company or organization. The other term used for this is personnel management which is used instead of human resource management. It can be defines as:-
"A continues processes managing people in any organizations in a way to achieve its objectives and goals."
While Kaila (2007) defines it as "all the decisions, strategies, factors principals operations, practices, functions, activities and methods related to the management of the peoples as employees in any type of organization (including small and micro enterprises and virtual organizations). So, Human Resource Management is basically a study as well as a department in any organization that stands on ideas and techniques set to improve employee motivation, efficiency and performance.
The HRM models makes necessary emphasizes:
search for new ways and methods of working
key role of managers in making progressive change
treating all the workers as individuals
encouragement of staff to think management as their partners instead of bosses
Human capital is the important quality and capability of businesses especially in service based business. Human resources are some time major proportion of costs for many businesses. Management of such important and valuable resources is necessary for the success of business.
Human resource managementÂ means recruiting employees, arranging their training to improve their skills, utilizing these skills, maintaining their performances and paying off their services as required. Employees are a value asset for an organization. The purpose of all this arrangement is to contribute in achievement of company or organization targets.
Human Resource Management practitioners have modern view about workplace management comparing to traditional thinking. HRM basically focuses on its key role of reduction of the risk on within any organization.
2 HRM and Employees Performance
HRM is mainly responsible for the employee's performance in the business (Jones, 2007). For the achievement of its purposes it is responsible of dealing with the employees from their induction into business, improvement of their commitment, lowering the absenteeism and turnover, improving the levels of skills and productivity, enhancing the quality and efficiency of their work.
3 Key Standards for HRM
There are some well developed key standards set by some HR experts to achieve higher performance standards the strongly recommend to the organization to follow these rules standards for quality performances from their staff. These are Best practice, Best Fit and the Resource Based View.
3.1 Best practice
It is also called as "high commitment" HRM ensures that the implementation of any of best practices in human resource will bring betterment to organizational performance. There are seven best practices for developing a competitive advantage with help of your employees and making profits by giving importance to the people.
These practices are: - 1) employment security, 2) careful hiring, 3) wide-range training, 4) information sharing, 5) capable teams, 6) higher pays as much according to profits and the reduction in employees position disparity.
3.2 Best fit, or contingency approach
It says that HRM can perform well when there is necessary vertical fit involving the HRM performance and strategy of the company. There must be close unity between the HR process and policy with the external company policy. There are many theories about vertical integration. Examples are lifecycle models which argue about HR that policies and practices of organization can be known at the stage of development or lifecycle. Others are competitive advantage models that took idea of Porter on strategic choice. It maps Variety of HR practices at organization's options for establishing a competitive strategy. Third are configurational models which provide more refined approach that supports a secure assessment of organizational strategy to decide the suitable human resource policies and practices.
3.3 Resource Based View
According to some is foundation of modern HRM, it focuses mostly on the internal organizational resources and it sees how these resources contribute to competitive advantage. The rareness of the resources is ideal to harmony and HRM has its central role for developing organizational human resources which have value, these are rare, sometimes difficult to replace and to effectively organize.
Generally, theory about HRM sys that goal of any human resource management focuses to help organizations to meet up planned goals by magnetizing, and keeping employees and to manage these employees effectively. The key word in HR is "fit" it's about the employees who fit to meet the targets and goals set by the organization.
4 Academic theory of HRM
It is based on the basic principle of humans are not like machines; therefore any organization need to have interdisciplinary assessment of all the people in workplace. Many fields for instanceÂ psychology,Â sociology, industrial relations, economics, industrial engineering and critical theories play important and major role. Universities and colleges offer many types of master degrees and bachelors in Human Resources Management.
One commonly used method to explain the function of HRM was developed byÂ Dave Ulrich, that defines four fields of HRM role:
As strategic business collaborator
As a change Agent
As champion of employees
As expert for administration
5 Responsibilities of HR Department
Different companies have different departments that work within organization; these departments are including the sales department to human resource department.Â
Human resource department staff strength depends on the size of company. Employment opportunities in this department comprise HR coordinator, HR assistant and HR director. Responsibilities of human resource department can be as following:-
1: HR department is doing all the planning, advertisement, interviewing and selection of the employees according to the needs.
2: department bound to the understanding of all federal, state or provincial and localÂ laws related to staff employment.
3: This department assists companies with the training and development of staff. Companies train their employees for diverse reasons, like employee motivation to new learn new things. The length varies from hours time to number of weeks depends on the nature of trainings. Some time it includes the safety measures on job site. As mentioned by Derek, et al (2004) that "it shall be the duty of every employer to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all his employees."â€Ž
4: any company should use special motivation to attract capable, skilful and hardworking employees. After payment these benefits are common encouragement to keep employees for long times on organization jobs. These benefits can be for example unemployment insurance. Companies offer variety of benefits including dental insurance, insurance for vision and payments for off days.
5.1 Tasks performed
As human resources of any company requires the management which involves several steps in this processes. They are believed to attain all these above mentioned goals. All of these activities can be performed in a HR department, but some tasks can be outsourced or these can be performed by line managers even by the other departments. When these are efficiently included these can provide major economic benefit to any business or the company. Here are major tasks performed by HR departments:-
Employment related planning
Employee's Induction,Â their orientationÂ andÂ making on boarding
Employee's skills management
Employee's training and development
PayrollÂ (some companies give this task to accounts)
Employee's benefitsÂ management
Staff cost planning
Figure (bized, 2010) shows the role of HRM department in better way.
Source: HRM functions http://www.bized.co.uk/educators/16 19/business/hrm/lesson/hrm1map.gif
6 Human Resource strategy
Any human resource management strategy includes implementation of specific functions of department dealing HRM. Organization's HR functions may include policies of staffing and selection, procedures related to disciplinary action, policies of rewards and recognitions, a specific HR plan and policies learning and development. But all these things should be aliened into organizational overall business strategy. Human resource management strategy is overall plan, relating to the implementing human resource policy in practical.
An HRM strategy typically consists of the following factors:-
Here are the strategies of Best fit and best practice that mean there is connection between HRM strategy and corporate strategy. HRM as a field for human resources utilization properly to achieve organizational goals can be done when it is focusing on corporate goals. As organization's HRM strategy implemented by staff so, it is like making all management efforts to manage the objectives of the organization align with needs of organization and that should be the best strategy available called best fit or best practice.Â So all these recruitment, selection, reward, recognition, planning, learning and development policies of HRM should be best for the achievement of all corporate goals.
Close co-operation among HR and senior management to the growth of company's corporate strategy. Theoretically, any of the senior HR managers must be present at the occasion when organization's corporate policies are developed. This is important because he or she is company's staff who in fact builds a good service. Employee's suitable administration is very important in the company for its success. Therefore, HR is one of the significant departments inside an organization.
Constant monitoring of HR strategy, through employee feedback, study and surveys is necessary for the organizations. So they should be timely aware with any problems in HR policy.
A human resource strategy implementation is not always needed to follow certain rules and this depends on a number of factors for example organization, its culture, culture of industry in which it operating and also to the size of company.
7 Career Education
A number of universities and colleges offer courses of study in HRM and related fields.Â Cornell UniversityÂ was the first in world who started study in HRM as full educational department.Â There are many kinds of experts who either are generalist or specialist in HRM jobs. There are new careers which involved wall the stuff related to employment, staffing and appointment and these generally done by interviewers, equal employment opportunity specialists or institution recruiters. Training with development specialization is regularly carried out by trainers. Damages and reimbursement responsibilities are done by compensation analysts and salary/benefits administrators.
8 Functions of RHM
Human Resource Management includes multiple measures and among these are the key decisions about staffing needs.Â One must be clear about the requirements for all activities and their importance.Â Both do not have to use any contractor or hire employees to fill in your company needs, or for hiring and training staff, and ensure their performance and adjust the system. These activities include managing their approach to employee benefits and compensation, employee records and personnel policies.Â Usually small businesses or non-profits needs to do their work because they could still have part or full time help. However, they should always have the staff to ensure people are aware of the policy in accordance with current regulations.Â These policies are often in the form of employee manuals, which all employeesÂ have.
There is thing to be noted that some people recognize the difference between HRM whole activity and HRD (Human Resource Development).Â These people might include human rights in HRM, human rights based on this that includes a wider range of activities to develop employees within the organization, including, for example, career development, training, organization development, andÂ others. There is a long-standing argument about where HR related functions should be organized into large organizations, e.g., "should HR be in the Organization Development department or the other way around?"
Professional HRM function and human rights must be major changes which the past years have been.Â Several years ago, large organizations looked to Personnel Department, mostly to manage the paperwork around hiring and paying people.Â More recently, organizations consider "human resources" group as playing an important role in human resources, training and helping people manage so that people and organizations perform at maximum capability in a manner very fulfilling.
8.1 The Responsibilities of a Manager
Human Resources Division has many functions and roles. Historically, the department responsible for hiring and training within the organization.Â HR has evolved which includes a wide range of skills that is necessary for growth and organization success. Managers in connection with the Human Resources are continuing. Effective human resource planning requires company directors and company executives to identify needs and develop strategic plan to address those needs.
Educated and qualified employees with experience are vital for the success of the organization (Mehran Nejati, 2009).Â Managers must be responsible for interviewing candidates and making further recommendations to hire a particular individual.Â Managers also hire events and assessment of applicants to determine whether the candidate will be personality in an appropriate institutional environment.
Employee retention is an integral part of tasks assign to HR manager.Â Managers required ensuring that employees work led to individual success. Managers are responsible for motivating staff and developing programs that encourage employees to remain loyal with the company. Managers communicate feedback they receive from human resources to staff so that they may extend the retention plan.Â The project has been designed to keep employees happy and satisfied of the jobs.
Training within the organization always needs to be completed on time (Wentland, 2007).Â Introductions to new products and industry trends any new shift in industry directions, additional training and staff development will be necessary for the staff.Â Human resources department watches the market closely to ensure their organizations to update and prepared in their internal changes quickly.Â Managers must also ensure that employees who lack of understanding of products and services should not be allocated with the work of duties for supervision.Â In addition, managers responsible for making recommendations that additional training can be done if employees fall behind in some specific purpose.
8.1.4 Employee Relations
Employees relations, including various aspects of human resource planning.Â Employees relations are events or conditions that the welfare of employees, such as discrimination, conflict management or employees selection priority for any task.Â Relations to employees are including the salaries, benefits, health care and pensions.Â If an employee access to work, it is usually considered the first manager to bring.Â Employee relations managers responsible for keeping confidential matters and referring complex issues to the appropriate department to correct the situation
8.2 Job Duties for a Human Resource Specialist
HR professionals provide a specific nature of work in human resources for a company.Â Although each person can specialize in different areas of duties where need is to avoid any professional task overlapping.
8.2.1 Conducting Effective Interviews
As a candidate is conscious about being interviewed and he is thinking about the interviewer and wants to get information as much as possible about his or her interview. Similarly an interviewer is trying to get maximum results from this effort. Here are some basic things that an HR expert should always care when he is working as interviewer. He should make the atmosphere peaceful and comforting; both to himself and to the interviewee to arrange the best outcome in result of the interview.
Before conducting an interview one must decide what kind of information one required. There must be list of things that should be done and should be focused during an interview.
It is also very important to listen to candidate cautiously, try to get all the information you need to get for better selections. There should be conscious effort to avoid asking many questions that may confuse a candidate. There should be no stress on questions and candidate should be given options in certain questions.
8.2.2 Recruitment and Placement
HR people required specializing in employee hiring management and applicant selection for recruitment process to fill the open positions.Â They may be looking for talented applicants through job boards or professional exhibition and helping them to get appropriate jobs.
8.2.3 Benefits and Compensation
There are area specialist in the design and manage employee benefit programs such as health insurance, retirement plans and flexible spending accounts.Â They should be informed about the various benefit programs offered by company as well as laws that may affect these benefits.
8.2.4 Job Analysis
Job analysts work is to determine the job title, job description, and positioning development categories.Â In some companies, analyzing compensation and benefits are also done by the specialist jobs analysis.
8.2.5 Professional Training and Development
These professionals for training and development provide staff training, including new employee orientation and continuing education.Â They often develop and provide materials for professional development workshops and also for on job gudance.
8.2.6 Labor Relations
Labor relations experts are to help employees in resolving disputes and grievances, as well as negotiate contracts and safety at work.Â They act as liaisons between staff and management to negotiate.
Human resource management is one of key department in any organization. All the initial decision about the selection of staff ultimately results in the overall performance of the companies, because it's all about the professionals which make difference in the success of any company. Organizations must be careful while dealing with their HRM. Their success and failure can be decided by this key department. Organizations must adopt all modern tools and methods and models which are necessary for effective HR department establishment to achieve their goals effectively.