1.Human Resources Management

 

1.Human Resources Strategy

1. 1. HUMAN RESOURCE MANAGEMENT.. 

Organizations utilize various forms of capital, including cash, valuables, and goods, to generate income. However, they all share a common focus on human capital, which involves utilizing people's skills, education, knowledge, expertise, and abilities for organizational effectiveness.

What Is Human Resources Management?

Human resources (HRM) is a critical function within organizations that involves the effective deployment and development of employees. It involves processes like hiring, training, compensating, developing policies, and retaining them. HRM professionals ensure the right people are hired, trained, and perform to customer and company standards, ultimately guiding employees towards success and achieving organizational goals.

Strategic Plans

A strategic plan aligns an organization's internal strengths and weaknesses with external opportunities and threats. It is developed through a SWOT Analysis, armed with industry data. The plan is then managed through strategic management, focusing on vision, mission, objectives, and goals. Human resources professionals can facilitate the process, participate in research, and manage the plan's people.

HRM as an Integrated Set of Processes

HRM is a complex process that manages human capital, ensuring its effectiveness depends on its alignment with the organization's mission and strategy. Effective policies require employee training, performance appraisal, and collaboration with labor unions, especially in unionized environments, to ensure their integration into collective agreements.

1.2. EVOLUTION AND HISTORY OF HUMAN RESOURCES MANAGEMENT.

HRM, rooted in psychology, organizational behavior, and industrial engineering, has evolved significantly over the past twenty four years. Previously known as the personnel department, HRM now includes human resource management and human resource development. It plays a crucial role in organizational success and strategic planning, as many businesses rely on people to support their vision and mission.

Figure 1:-Evolution of HRM

Personnel Management Focus	HRM Focus
Administering of policies	Helping to design, implement and administer talent management policies
Stand-alone programs, such as training	HRM training programs that are integrated with company’s mission and values
Personnel department responsible for people administration	Partner with management in all areas of hiring and management of people
Creates a cost within an organization	Contributes to the profit objectives of the organization

Table 1 - Examples of Differences between Personnel Management and HRM

In the book HR From the Outside In (Ulrich et al., 2012), the authors describe the evolution of HR work in four “waves.”

Wave 1 of the early 1900s    :-    focused on administrative HR tasks like terms and conditions, service delivery, and regulatory compliance, now achieved through technology and outsourcing solutions.

Wave 2  1970s             :-    Wave 2 focused on innovative HR practices like compensation, learning, and sourcing, fostering collaboration among HR professionals to improve HR management and enhance credibility through best-practice HR solutions.    

Wave 3  2000s             :-    HRM continues to be a partner to the business, but has also become a competitive practice for responding to external business conditions. Organizations get ahead of the competition with their HRM practices. 

Wave 4 2020 & Beyond         :-    The role of HRM has dramatically changed with the onset of Covid19. The pandemic disrupted organizations across the world. To prevent spreading, employees became remote workers. Face-to-face collaborating changed to email and videoconferencing. Human resources were not only concerned for people’s work health, but their well-being. Their role expanded to quasi-counsellors who provided supports to the employees. As well, millions of employees were laid off. The workers who stayed on their jobs needed to be protected, stay motivated as a new normal emerged. Quickly, company management, along with human resources, needed to change their approaches to health care. Companies hired doctors, nurses and other health care professionals to provide care. Human resources needed to revise job descriptions and decide who could work in specific situations if other employees were absent. Human resources assisted the entire family, helped with child care, and elder care, distributed accurate information about the virus to keep people safe. Human resources dealt with employee’s who were stressed and depressed, and presented with physical symptoms like fatigue and headaches. Organizations wanted people to know they cared. It was human resources who supported the organization’s people.

The human resources role has evolved from focusing on salaries and employee engagement to health and wellness. The pandemic has accelerated this shift, with companies adopting remote work, videoconferencing, and online tools. HR professionals face increased administrative tasks and must manage each wave effectively to maintain an organization's external reputation and successes.

1.3. THE ROLE OF HRM IN ORGANIZATIONS

  Figure 2:-Roles & Responsibilities of HR

Human Resources Management (HRM) encompasses various interrelated functions, with managers responsible for achieving organizational goals through employee efforts. Although not a HR manager, they perform HRM tasks like employee selection, compensation, and motivation. Experts agree on eight main roles HRM plays in an organization, which are described in subsequent sections.

• Legislation and Law

HRM managers must be knowledgeable about workplace laws, including federal and provincial governments, health and safety requirements, labor laws, and employment standards. They must communicate changes to the entire management organization, and these laws are addressed in each relevant chapter.

• Corporate Policies

Organizations often have unique policies to ensure fairness, enhance effectiveness, or reinforce culture. HRM plays a role in identifying issues for policy implementation, such as tardiness or lack of decorum. HRM, management, and executives collaborate on policy development, seeking opinions, writing, and communicating the policy to employees. Innovative policies include employee volunteer time and job title elimination.

• Job Analysis and Design

Organizations require efficient task execution, structured by clear, distinct, and capable employees. HRM supports this through job analysis and design, ensuring clear documentation and organization.

• Talent Acquisition

Talent acquisition is a crucial HRM task that involves the entire hiring process, from posting jobs to negotiating salaries, ensuring the right people are employed.

there are four main steps:

Figure 3:-“The Steps of Talent Acquisition” by Alyssa Giles, CC BY-NC-SA 4.0

• Training and Development

Investing in employee training leads to increased productivity and employee motivation. Training courses can cover job skills, communication, team-building, policy and legal training, and time management skills. These programs boost employee performance, productivity, and retention, resulting in increased job satisfaction and retention.

• Performance Assessment and Management

HRM plays a crucial role in employee performance, designing, maintaining, and administering performance management policies and systems. Performance is defined differently for each job, and HR professionals use performance appraisal systems like 360 appraisals, behavior checklists, graphic rating scales, MBOs, annual performance appraisals, and Performance Improvement Plans (PIPs) to measure and improve performance. These measures are used for feedback, compensation determination, disciplinary measures, and career development support.

• Compensation and Benefits Administration

HRM professionals ensure fair, industry-standard compensation for employees, considering factors like years with the organization, experience, education, and external salary surveys. They set pay systems that are comparable to similar job salaries, attracting and retaining talent.

Figure 4:-“Compensation Package Contents” by Alyssa Giles, CC BY-NC-SA 4.0

• Labour Relations

A labour union, a trade union or worker's union, represents employees' collective interests, with HRM professionals managing union contracts covering compensation, work schedules, benefits, and discipline, prevalent.

• Health and Safety

Workplace safety is crucial in organizations, with new laws and union contracts influencing standards. Human Resource Managers must ensure workplaces meet federal, provincial, industry-specific, and union standards, including chemical hazards, heating and ventilation requirements, and privacy protection.

• HR Analytics

Technology has significantly impacted HRM, collecting vast employee information through Human Resource Information Systems (HRIS). This data can support management decisions using analytical tools. Financial institutions can use quarterly surveys to identify employee stressors, implement communication efforts, and improve processes during critical business cycles.

1.4. HUMAN RESOURCES AND ENVIRONMENTAL FACTORS

HR Managers must continuously monitor and respond to external and internal influences on policies and practices to ensure the organization's protection and positive change, ensuring continuous monitoring and proactive responses.

• External Factors

I. Labour Market 

The world is diverse, with demographics, values, and norms varying across societies. HR departments must recognize and respect these diverse groups in the workplace.

II. Economy

Economic conditions influence employment supply and demand, with good economic conditions leading to increased hiring and low unemployment. Companies must develop strategies like higher wages, benefits, and early retirement programs to retain talent. HR departments are responsible for hiring and laying off employees based on long-term demand projections. 

III. Production

Productivity refers to outputs of goods and services compared to inputs like people, capital, materials, and energy. Companies must understand competition and HR strategies to produce more with fewer resources.

IV. Generations of Workers

The workplace now has four generations of workers: traditionalists (1922-1945), baby boomers (1946-1964), generation X (1965-1980), and generation Y (1981-late 90s). HR departments must balance these generations' needs, ensure job satisfaction, and facilitate communication and collaboration.

Figure 5:-“The Multi-Generational Workplace” by Fanshawe College CC BY-4.0  Traditionalists are experienced, loyal, and stay in a job for life. Baby Boomers are dedicated, and committed. Generation X are open minded, celebrate diversity, and competitive.  Generation Y may switch roles frequently and look for mobility. They are also socially aware and vocal. Generation Y are selective multi-taskers who are comfortable with technology.

V. Education

Workplace expectations now include higher education, post-secondary education, and literacy skills. HR departments ensure employees' talents are utilized, career advancement opportunities are provided, and literacy programs are offered.

• Internal Factors

I. Organizational Culture

Organizational culture refers to the shared values, beliefs, and attitudes within an organization, influencing employee behavior and defining roles. It is reflected in mission and vision statements, symbols, stories, and ceremonial events. HR departments play a crucial role in creating and maintaining a positive culture, incorporating activities like employee recognition, parties, and logos to attract and retain employees.

II. Management Practice

Traditional hierarchical structures, with CEOs leading and subordinates, can hinder communication and lead to specialized focus. Over time, management practices have shifted to flat structures, promoting better communication and relationship building between management and employees. This leads to a simpler chain of command, increased responsibility for decision-making, and reduced budget costs. HR departments play a crucial role in implementing these practices through performance management, compensation, training, and goal setting.

III. Organizational Climate

Organizational climate refers to the atmosphere and employee perception of a company, influencing their behavior, autonomy, and organizational structure. It influences trust, development, and rewards for high performance. HR can support the organizational climate by using surveys to measure satisfaction and skill development, leading to higher productivity, employee retention, and increased profits.

IV. Technology 

Technology has significantly impacted organizations by automating processes, reducing overhead costs, increasing productivity, and enabling remote work. Digital innovation facilitates faster communication, collaboration, and creativity. HR departments utilize technology for hiring, administration, training, and analytics, aiding in strategic alignment and decision-making. This technology also enhances communication between the company and employees, resulting in cost savings and increased revenue.

V. Globalization

Technology has significantly impacted organizations by automating processes, reducing overhead costs, increasing productivity, and enabling remote work. Digital innovation facilitates faster communication, collaboration, and creativity. HR departments utilize technology for hiring, administration, training, and analytics, aiding in strategic alignment and decision-making. This technology also enhances communication between the company and employees, resulting in cost savings and increased revenue.

1.5. HRM AND BUSINESS CHALLENGES

HR processes enhance organizational effectiveness by hiring, training, and compensating the right people. They also need an external focus to help organizations overcome challenges. HR managers must consider external forces and adapt to changes in the environment.

• Business Challenges

Organizations must adapt to external factors, which are beyond their control but can impact their human resources and environment, requiring awareness and adaptability.

HRM professionals must be aware of external factors to develop policies that meet both company and employee needs. Operating without understanding can lead to alienation, unmotivated employees, and potential legal issues. Four broad categories of external factors are discussed.

Prasant business challengers as following :-

• Globalization
• Offshoring
• Changes to employment law
• Health, safety, and employee protection
• Employee expectations  (eg:- compensation, standard hours)
• Diversity of the workforce
• Changing demographics of the workforce
• Changes in education profile of workers
• Layoffs and downsizing
• Advanced technologies
• Evolving industry

Conclusion

Human Resources Management is an integrated set of process, practices, programs and systems in an organization that focuses on the effective deployment and development of its employees. Through the strategic plan HR departments facilitate the process, are involved in research, and manage the people of the organization.
The evolution of HRM began in the 1900s and continues to evolve today as a strategic partner within organizations. The role of HRM is vast including laws/legislation, policies, job analysis/design, acquiring talent, training and development, performance assessment, compensation and benefits, labour relations, health and safety and analytics.
The HR Manager’s role has responsibilities to the HR department, the executive groups and the employees of organizations. They require specific competencies, skills, education and experiences. Many factors influence companies through external and internal factors that are driven by the strategic plan. In today’s world of HRM, all HR employees need to be professionals that include qualifications to manage the complexities of the employees in businesses.

References

You tube

In the book HR From the Outside In (Ulrich et al., 2012)

“The Steps of Talent Acquisition” by Alyssa Giles, CC BY-NC-SA 4.0

“Compensation Package Contents” by Alyssa Giles, CC BY-NC-SA 4.0

“The Multi-Generational Workplace” by Fanshawe College CC BY-4.0