Human Resource Management: Strategies for Business Success
Human Resource Management (HRM)
Human resource management (HRM) is the strategic approach to the effective management of an organization’s workers so that they help the business gain a competitive advantage.
HRM Purpose and Roles:
- Planning the workforce needs of the business
- Recruiting and selecting staff using a variety of techniques
- Appraising, training, and developing staff at every stage of their careers
- Preparing contracts of employment
- Involving all managers in the development of their staff
- Improving staff morale and welfare
- Developing appropriate pay systems
- Measuring and monitoring staff performance
Workforce Planning
Workforce planning: analyzing and forecasting the numbers of workers and the skills of those workers that will be required by the organization to achieve its objectives.
- Workforce audit: a check on the skills and qualifications of all existing workers
- The number of staff required depends on: forecast demand for the firm’s products; the productivity levels of staff; the objectives of the business; changes in the law regarding workers’ rights; the labor turnover and absenteeism rate
- The skills of the staff required depends on: the technological change in the industry; the need for flexible and multi-skilled staff
Recruitment and Selection
Recruitment: the process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, attracting suitable candidates for the job, and selecting the best one.
Recruitment and selection process involves the following steps:
- Establishing the exact nature of the job vacancy and drawing up a job description: a detailed list of the key points about the job to be filled.
- Drawing up a person specification: a detailed list of the qualities, skills, and qualifications that a successful applicant will need to have.
- Preparing a job advertisement reflecting the requirements of the job and the personal qualities needed.
- Drawing up a shortlist of applicants.
- Conducting interviews or using other selection methods.
Training and Development
Training: work-related education to increase workforce skills and efficiency.
- On-the-job training: instruction at the place of work on how a job should be carried out.
- Off-the-job training: all training undertaken away from the business.
- Induction training: introductory training program to familiarize new recruits with the systems used in the business and the layout of the business site.
Staff Appraisal
Staff appraisal: the process of assessing the effectiveness of an employee judged against pre-set objectives.
Employment Contracts
Employment contract: a legal document that sets out the terms and conditions governing a worker’s job.
- Temporary: employment contract that lasts for a fixed time period, e.g., six months.
- Part-time: employment contract that is for less than the normal full working week.
- Flexi-time: employment contract that allows staff to be called in at times most convenient to employers and employees.
Outsourcing and HRM Approaches
Outsourcing: not employing staff directly, but using an outside agency or organization to carry out some business functions.
- Hard HRM: an approach to managing staff that focuses on cutting costs, e.g., temporary and part-time employment contracts, offering maximum flexibility but with minimum training costs.
- Soft HRM: an approach to managing staff that focuses on developing staff so that they reach self-fulfillment and are motivated to work hard and stay with the business.