Introduction to HRM

Human Resource Management MIM

What is HR?

Human Resources is the part of the organization that deals with people Managing the human resource

This means acquiring developing and supporting staff as well as ensuring they fulfill their role at work

Define HRM

Torrington et al It is a series of activities which; first enables working people and the organisation which uses their skills to agree about the objective and nature of their working relationship and secondly, ensure that the agreement is fullfilled.

HRM
The Policies and practices in carrying out the people or human resource aspects of a management position including, recruiting, screening, training, rewarding and appraising. (Dessler G) The Charted Institute of Personnel Management The design, implementation and maintenance of strategies to manage people for optimum business performance including the development of policies and process to support these strategies

Continue
So the Human Resource Manager job includes: Conducting Job analysis ( determining the nature of each job) Planning labour needs and recruiting job candidated Selecting Job candidates Orienting and training new employees Managing wages and salaries (compensating employees) Providing incentives and benefits Appraising performance Communicating ( interviewing, counselling, disciplining) Training and development

Cont.
Training and Developing managers Building employee commitment And what a HRM Manger should know about Equal opportunity and affirmative action Employee health and safety Handling grievances and labour relations

Personnel Management V Resource Management

Personnel Management is workforce centred HR is resource centred Does not identify with Management interests Directed at management needs for deployment People have the right to proper treatment Focus is on individuals and needs and potential Intervene between manager - subordinate relationships Planning, monitoring and control rather than mediation

Introduction to HR

The 1980s and 90s saw Human Resource Management(HRM) replace Personnel Management

fashionable term re-organisation of work of personnel department distinctively different with new management approach

Long term rather than short term perspective Psychological contract of commitment Self-control rather than external controls Management integration Maximum utilisation of resource

Why is it Important?
Staff are the largest revenue cost of any organisation. Staff are a volatile resource, they can leave you any time. Staff are a store of corporate knowledge and the means of service delivery. Retaining and developing good staff allows you to use skills and develop as a business. Individuals should contribute more than they cost. In the industry customer care critical and delivered by staff as representatives.

Introduction to HR

The 1980s and 90s saw Human Resource Management(HRM) replace Personnel Management

fashionable term re-organisation of work of personnel department distinctively different with new management approach

Long term rather than short term perspective Psychological contract of commitment Self-control rather than external controls Management integration Maximum utilisation of resource

Which in turn lead to the 'four C's' or HR policies that have to be achieved:
Commitment Congruence Competence Cost effectiveness

Factors Affecting HR
Legislation The Economic environment The global economy The structure of the labour market The Political environment Changes in technology Need to constantly retrain staff

Legislation

In the EU employment law is highly complex In the UK changes made twice a year

The contract of employment is key to the employer/employee relationship

The Policy Decisions

The formalities to bargain with Government legislation, trade unions and workers council consultations The decision to minimise external power and influence Encompass management and employee group interaction

HRM Function

The company rather than the state or trade union provide employee security and welfare HRM focuses on achieving organisational goals through individual achievement Providing the right person in the right place Directing positive employee communication and involvement Optimise co-operation and loyalty Imposition of different forms of control to develop management

Moving with the Times

Forces interact in complex ways to move and change markets, businesses and the economics of regions.

The changing expectations of a growing population. a greater sense of self-determination expectation of rewards and recognition for efforts expended a growing appetite for a better life.

Business Changes

HRM equipped with strategy - a new set of tools and measures People issues are now recognised as being central to the success of any organisation as a consequence, human resources has assumed a higher profile. senior management meeting address concerns

staffing levels, recruitment, management development retention.

between Employers and Employees

Mutuality

The theory that policy will elicit commitment which in turn will yield better economic performance and greater human development Mutual goals mutual influence mutual respect mutual rewards mutual responsibility

Walton, 1985