Human Resource Management: Models, Laws, and Practices

Human Resource Management (HRM)

Definition: HRM is a strategic and coherent approach to managing an organization’s most valued assets: its people. It focuses on individuals who, collectively, contribute to achieving organizational objectives. HRM involves the effective use of human resources through the management of people-related activities. It is a central and strategic organizational activity of increasing complexity and importance.

HR System

An HR System Comprises:

  • HR Philosophies: Overarching values and guiding principles for managing people.
  • HR Strategies: Defining the direction HRM intends to pursue.
  • HR Policies: Guidelines on how values, principles, and strategies should be applied in specific HRM areas.
  • HR Processes: Formal procedures and methods to implement HR plans and policies.
  • HR Practices: Informal approaches used in managing people.
  • HR Programs: Initiatives to implement HR strategies, policies, and practices.

Michigan Model

This approach posits that the interests of the company and employees are fundamentally opposed. Management’s role is to influence employee behavior to achieve company goals, often using a “carrot and stick” approach. This model primarily focuses on organizational needs, often overlooking employee needs and motivations, sometimes labeling employees as inherently lazy.

It treats people as resources to be utilized, similar to machinery.

Harvard Model

This model recognizes that employees have emotions, feelings, and motivations. It views employees not as mere machines but as individuals who find personal fulfillment through work. Managers should strive to maintain high employee motivation and enable them to reach their full potential. This approach emphasizes that people are not inherently lazy but are self-responsible and capable of being proactive and creative. Management should encourage, rather than coerce, employees to achieve organizational goals.

Laws in HRM

Key areas of law impacting HRM include:

  • Discrimination Law
  • Labor Law
  • Worker Safety Law
  • Compensation Requirements (e.g., minimum wage)
  • Healthcare Requirements

Challenges to HRM

HRM faces numerous challenges, including:

  • Globalization
  • Technological advancements
  • Achieving profitability through growth
  • Managing intellectual capital
  • Constant and rapid change

Worker Protection

Important aspects of worker protection include:

  • Implementing “no fragrance” zones
  • Protecting private employee information
  • Addressing chemical hazards
  • Meeting heating and ventilation requirements

Awareness of External Forces

HRM must be aware of external factors such as:

  • Workforce diversity
  • Globalization and offshoring
  • Changes in employment law
  • Evolving employee expectations
  • A more highly educated workforce
  • Technological advancements (e.g., HR databases)
  • Increased use of networking for information dissemination

Training and Development

Key components of training and development include:

  • Mentoring
  • Employee orientation
  • External training
  • In-house training

Recruitment and Selection

The recruitment and selection process typically involves:

  • Identifying job requirements
  • Choosing candidate sources
  • Reviewing applications
  • Conducting interviews
  • Administering employment tests
  • Creating a shortlist
  • Selecting a candidate and negotiating the employment package

Sources of Candidates

Potential sources for candidates include:

  • Recruiters
  • Professional associations
  • Websites
  • Social media
  • Events
  • Referrals

Performance Appraisal

The performance appraisal process generally includes:

  • Establishing performance standards
  • Evaluating performance (often annually)
  • Discussing results with each employee, providing corrective feedback, and soliciting suggestions
  • Using the results for decisions on promotions, compensation, additional training, job transfers, etc.

Job Analysis

Job analysis can be:

  • A task-based analysis, focusing on job duties.
  • A competency-based analysis, focusing on the specific knowledge and abilities required.

Job analysis is used to develop both job descriptions and job specifications.

Interviewing

Various interview formats exist, including:

  • Traditional interview
  • Telephone interview
  • Panel interview
  • Informational interview
  • Group interview
  • Video interview
  • Nondirective interview