Friday, April 17, 2009

What is Human Resources Management

May be some of you surprised to see my such post. But to tell you the truth, I feel so sad when I tried to search the above mentioned subject with two renowned search engine by Internet, surprisingly I found very poor and inappropriate reply. So, from onwards I will try to put some basic information about Human Resources Management in my blog. Certainly this kind of post not for the professionals but for the beginners who by any means shows their interest about HRM recently.
Thanks for all of cooperation. :-)

What is Human Resources Management?

Human Resources Management is an approach to the management of people, based on four fundamental principles. First, human resources are the most important assets an organization has and their effective management is the key to its success. Second, this success is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with, and make a major contribution to, the achievement of corporate objectives and strategic plans. Third, the corporate culture and the values, organizational climate and managerial behavior that emanate from that culture will exert a major influence on the achievement of excellence. And finally, HRM is concerned with integration - getting all the members of the organization involved and working together with a sense of common purpose.

According to Mondy & Noe (2008) five functional areas are associated with effective HRM: staffing, human resource development, compensation, safety and health, and employee & labor relations.
Human Resource Planning:
HRP is a process of anticipating and making provision for the movement (flow) of people into, within, and out of an organization. In this function, the number and type of employees needed to accomplish organizational goals are determined. Research is an important part of this function because planning requires the collection and analysis of information in order to forecast HR supplies and to predict future human resources needs. The basic human resource planning strategy is staffing and employee development.
Performance Appraisal:
Performance appraisal function of HRM monitors employee performance to ensure that it is at acceptable levels. HR professionals are usually responsible for developing and administering performance appraisal systems, although the actual appraisal of employee performance is the responsibility of supervisors and managers. Besides providing a basis for pay, promotion, and disciplinary action, performance appraisal information is essential for employee development since knowledge of results is necessary to motivate and guide performance improvements. In short, performance appraisal judges effectiveness of recruitment efforts, validates selection function, determines training needs, a factor in determining pay and it justifies personnel actions. Few popular performance appraisal methods now a day are Balance Score Card, KPI etc.
Managing Compensation is another vital function of HRM. HR personnel provide a rational method for determining how much employees should be paid for performing certain jobs. Pay is obviously related to the maintenance of human resources. Compensation affects staffing in that people are generally attracted to organizations offering a higher level of pay in exchange for the work performed. It is aid or impairs recruitment, pay rates affect selectivity and pay can motivate training.
Training and Development:
In present competitive business world training and development function is a major challenging function of HR which gives employees the skills and knowledge to perform their jobs effectively. In addition to providing training for new or inexperienced employees, organizations often provide training programmes for experienced employees whose jobs are undergoing change.

End Note:
Despite these points and areas management professionals and practitioners would probably agree that Human Resources Management focuses on analyzing an organization’s HR and other needs as the organization’s conditions change, and then supplying strategies to help respond proactively to those changes over time. HRM helps ensure that the right numbers of the right kinds of people are available at the right times and in the right places to translate organizational plans into reality.