12/4/11 Human Resource Management - Introduction - A Revision Article - a knol

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Human Resource Management - Introduction - A
Revision Article
Human Resource Management Revision Article Series
The human resources of an organiation consist of all people who perform its activities.
Human resource management (HRM) is concerned with the personnel policies and
managerial practices and sstems that influence the workforce. In broader terms, all
decisions that affect the workforce of the organiation concern the HRM function.
Contents
Introduction
What is the focus of HRM department?
Contributing to the Bottom-line of the Compan through HR Top-line Activities
The Activities of Human Resources Management
Major Trend Affecting HRM
The Importance of HRM Measurement
Competitive Advantage and HRM
Importance of Stud of HRM for Students Specialiing in Other Functional Areas of Management
Reference
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Summar of Chapter 1. Strategic Human Resource Management in a Changing Environment in
H John Bernadin, Human Resource Management, Fourth Edition, McGraw Hill, 2007

Introduction

The human resources of an organiation consist of all people who perform its activities.
12/4/11 Human Resource Management - Introduction - A Revision Article - a knol
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Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems
that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the
HRM function.

The activities involved in HRM function are pervasive throughout the organization. Line managers, tpicall spend
more than 50 percent of their time for human resource activities such hiring, evaluating, disciplining, and
scheduling emploees. Human resource management specialists in the HRM department help organizations with all
activities related to staffing and maintaining an effective workforce. Major HRM responsibilities include work design and
job analysis, training and development, recruiting, compensation, team-building, performance management and
appraisal, worker health and safety issues, as well as identifying or developing valid methods for selecting staff. HRM
department provides the tools, data and processes that are used by line managers in their human resource management
component of their job.

What is the focus of HRM department?

The HRM focus should always be maintaining and, ideally, expanding the customer base while maintaining, and ideally,
maximizing profit. HRM has a whole lot to do with this focus regardless of the size of the business, or the products or
services you are trying to sell. (Dr. James Spina, former head of Executive Development at the Tribune Company).
HRM is involved in managing the human resources with a focus on expanding customer base that gives profit to the
company. The bottom line of the company is the focus of the HRM department as well as the function.

Contributing to the Bottom-line of the Compan through HR Top-line
Activities

A growing body research shows that progressive HRM practices have a significant effect on corporate bottom-line and
middle-line performance. The positive effect on financial performance, productivity, product and service quality, and
cost control are documented by researchers.

High-performance work systems (HPWS) is a term used to describe a collection of HR practices or characteristics of
HR systems designed to enhance employees competencies so that employees can be a reliable source of competitive
advantage. A summary of the research on HPWS indicated that a one standard deviation of improved assessment on a
HPWS measurement tool increased sales per employee in excess of $15,000 per employee, an 8 percent gain in labor
productivity.

The Activities of Human Resources Management

The activities performed by HRM professionals fall under five major domains:
12/4/11 Human Resource Management - Introduction - A Revision Article - a knol
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(1) Organizational design,
(2) StaIIing,
(3) PerIormance Management and Appraisal,
(4) Employee and Organizational Development, and
(5) Reward Systems, BeneIits ad Compliance

Acquiring human resource capability should begin with organizational design and analysis. Organizational design involves
the arrangement oI work tasks based on the interaction oI people, technology and the tasks to be perIormed in the
context oI the objectives, goals and the strategic plan oI the organization. HRM activities such as human resources
planning, job and work analysis, organizational restructuring, job design, team building, computerization, and worker-
machine interIaces Iall under this domain.

Recruitment, employee orientation, selection, promotion, and termination are among the activities that Iit into the staIIing
domain. The perIormance management domain includes assessments oI individuals and teams to measure, and to
improve work perIormance. Employee training and development programs are concerned with establishing, Iostering,
and maintaining employee skills base don organizational and employee needs.

Reward systems, beneIits and compliance have to do with any type oI reward or beneIit that may be available to
employees. Labor law, health and saIety issues and unemployment policy Iall under compliance component.

Majo Tend Affecing HRM

The Iollowing trends have an eIIect on human resource management Iunction and department. The importance oI HRM
increases due to some oI them and the practices oI HRM are aIIected to some extent due to some oI them.

1. Increased globalization oI the economy.
2. Technological changes and environmental changes.
3. The need to be Ilexible in response to business changes.
4. Increase in litigation related to HRM.
5. Changing characteristics oI the workIorce.

The Impoance of HRM Meaemen
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Many HRM systems and activities are not subjected to systematic measurement. Many organizations do not assess
either the short- or long-term consequences oI their HRM programs or activities. A recurring theme oI the book is that
measurement and accountabilit are ke components to organiational effectiveness and competitive
advantage. Good measurement, allied with business strategies, will help organizations select and improve all oI their
HRM activities and provide a much stronger connection between HRM activities and organizational eIIectiveness.

StanIord University proIessor JeIIrey PIeIIer considers measurement to be one oI the keys to competitive advantage.
His book Compeiie Adanage Throgh People cites measurement as one oI the 16 HRM practices that
contribute the most to competitive advantage.

A new book entitled The Workforce Scorecard by ProIessors Mark Huselid, Brian Becker, and Dick Beatty extends
research on the "balanced scorecard" to a comprehensive management and measurement system to maximize workIorce
potential.

Competitive Advantage and HRM

Competitive Advantage reIers to the ability oI an organization to Iormulate strategies that place it at Iavorable position
relative to other companies in the industry. Two major principles, namely customer value and uniqueness, are relevant
Ior gaining competitive advantage.

Competitive advantage occurs iI customers perceive that they receive more value Iorm their transaction or relationship
with an organization than Irom its competitors. HRM needs to make eIIorts to ensure that all employees are Iocused on
understanding customer needs and expectations.

The second principle oI competitive advantage derives Irom oIIering a product or service that your competitor cannot
easily imitate or copy.

The status oI HRM is improving relative to other potential sources oI competitive advantage Ior an organization.
ProIessor PIeIIer notes that "traditional sources oI success (e.g., speed to market, Iinancial, technological) can still
provide competitive leverage, but to a lesser degree now than in the past, leaving organizational culture and capabilities,
derived Irom how people are managed, as comparatively more vital."

For success in 21st century, HRM activities must be (1) responsive to a highly competitive marketplace and global
business structures, (2) closely linked to business strategic plans, (3) jointly conceived and implemented by line and HR
managers, and (4) Iocused on quality, customer service, productivity, employee involvement, teamwork, and workIorce
Ilexibility.

Importance of Stud of HRM for Students Specialiing in Other
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Functional Areas of Management

Even as line managers in any functional department, management students are likely to manage people at some point in
their career. Research shows that the manner in which one conducts the human resource responsibilities of the
management job will be the key for effectiveness and growth in ones career.

Reference

H John Bernardin, Human Resource Management, Fourth Edition, McGraw Hill, 2007
For more information of the book and other revision chapters, visit
http://knol.google.com/k/narayana-rao-kvss/human-resource-management-an/2utb2lsm2k7a/737#
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Last edited Jul 11, 2011 6:15 AM
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Narayana Rao
Short urls
http://knol.google.com/k/human-resource-management-introduction-a-revision-article
Last edited Jun 3, 2011 6:24 AM
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Karthikeyan Thiru
HR automation softare
Organizational design,Staffing, Performance Management and Appraisal, Employee and Organizational Development,
and Reward Systems, Benefits ad Compliance for your information above all services are maintained by separate
software, link: http://www.ceoinfotech.com/Solutions.html
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Impoe ocome ing inegaed okfoce managemen olion.
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12/4/11 Human Resource Management - Introduction - A Revision Article - a knol
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Last edited Feb 7, 2011 9:05 PM
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Narayana Rao
Line managers, tpicall spend more than 50 percent of their time for human resource activities
Line managers, typically spend more than 50 percent of their time for human resource activities such hiring, evaluating,
disciplining, and scheduling employees.
This sentence needs to be emphasized in HRM courses taught to various functional managers.
Last edited May 15, 2010 9:21 PM
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