Human Resource Management Free College

This summary paper provides a full description and analysis of the Human Resource Management (HRM) function. Included in this paper are key topics discussed in this module: the basic functions of Human Resource Management: planning and forecasting human resource requirements, recruitment and selection, appraisal, evaluation and employee motivation. Additionally, this paper addresses employee quality of life and productivity programs and improving the physical work environment. The relationships between successful business and Human Resource Management are examined as well as how Human Resource Management strategies can be incorporated into business strategies to improve profit.

The history of the development of human resource management can be traced back to the early 1900s. Human resource managers¡¦ original function was to basically manage the relationship between businesses and labor unions. Galbraith and Nathanson were among the first organization theorist to discuss explicitly the concept of human resources strategies in the context of strategic management. They developed a model for the human resource management function that divided the human resource management function into four basic subfunctions. Subsequent review of the human resource management function divided the function into seven parts. Although human resource management was originally seen as a necessary evil to deal with labor unions currently Human resource managers are viewed as an essential part of any successful organization.

Human Resource Management focuses on securing, maintaining, and utilizing an effective work force, without which organizations cannot survive. Human Resource Management involves a variety of activities, which include recruitment, and screening of prospective employees, the study of training needs, preparing human resource forecasts, the development of compensation systems, and an understanding of the laws that effect the performance of these activities. The Human Resource Management function has evolved significantly since the early 1900. The need to deal with labor unions and the human relations movement has increased the need for competent human resource professionals.

Planning organizational human resource needs is a key task for human resource managers. Key strategies for effective human resource management planning is:

*align human resource management strategy with business strategy

*determining priorities

*gaining line management support

The Organizational mission generates the organization¡¦s Plan, which in turn generates the human resource management plan. The external environment and the internal environment of the organization influence the human resource management plan. Human resource managers must align the operational needs of managers with the mission and organizational goals of the business. Human resource managers must communicate effectively with operational level managers to influence, analyze and supply expected staff needs. Additionally, Human Resource Managers must consider the expected future environment and internal and external factors affecting human resource needs when planning future personnel requirements. Human resource managers must establish priorities for staffing needs. Human resource managers must balance the requirements of line managers against the organizational goals to ensure staffing growth is consistent with the overall organizational objectives.

Further, resource managers must gaining line management support for it’s programs. Resource managers must develop a good working relationship with line managers. Line managers must understand the human resource managers’ strategy and the value human resource management adds to an organization. This may be done by demonstrating the value resource management adds to each section. Resource managers must speak the language of business and illustrate the value of human resource management programs in dollars and cents.

Recruiting can be defined as seeking the right people for the right job. Two factors influence recruitment. Expected staff supply and demand and human resource management policies and practices. Human resource management policies and practices may influence the recruitment process, in that people may be attracted to apply for jobs if the organization becomes known for its good human resource management approach. Conversely, poor human resource management practices may increase turnover. Effective recruiting is essential to an organizations financial future.

An excellent example of the need for good recruiting programs is the personnel shortages the US Army is facing now. After the Gulf war the military under went a reduction of forces. The number of Army personnel was cut fifty percent and a greater emphasis was placed on technology. Currently the US economy is booming and Army recruiters have difficulty attracting personnel to enlist in the Army. The military is evolved in several peacekeeping missions around the world that have significantly stretched its personnel resources. As a result a greater emphasis has been placed on recruiting and millions of dollars has been spent to improve recruiting.

Human resource managers are responsible for pay system design. This task is essential and has evolved significantly since the rise of labor unions. Many organizations have suffered because management and unions have failed to effectively mange their relationship. Human resource managers must design pay systems that compensate employees fairly in relation to the economy at large and the financial health of the organization. Additionally, human resource managers must develop reward systems that recognize extraordinary performance or creativity. This task is an important part of developing employees. The US Army changed the calculation for retirement pay in 1982. This change reduced the value of retirement pay from fifty percent of a service members base after twenty years of service, to thirty five percent of the service members base pay after twenty years of service. The result of this change increased the number of service members leaving the military prior to twenty years of service. Many service members felt the reduction of this benefit diminished the value of military service.

Human resource managers must ensure that all the personnel actions taken by an organization are performed within the law. Legislation related to human resource management has had a major influence on personnel management. For that reason legal issues are a crucial part of human resource management policies. Many laws passed during the 1960s and 1970s dealt with wage and compensation primarily. Currently human resource managers must be aware of laws relating to disabilities and civil right. Human resource managers must be aware of questions that can be asked during the interview process. Additionally, testing requirements and procedures for potential employees must analyze to ensure these measures are applied within the law.

Human resource managers must actively develop training and assist line managers in the performance appraisal process. Managers must effectively review employee performance to provide feedback to employees and address performance issues. Performance appraisals should be unbiased and focused on substantive performance issues. Managers should make sure employees understand what is expected of them and the requirements of their job. A good example is the performance appraisal in the military or OER’s and NCOER’s, they are base in how good you know the person that you are rating and not you’re actual performance. Managers should maintain a record of substandard performance. This record should be used to substantiate comments reflecting poor performance. Managers should listen to employee comments and let staff members know what they think. Written evaluations should be reviewed with the employee.

When reviewing employee performance supervisors should reinforce good habits Employee reviews should avoid yes, no questions and ask fact-finding questions. Managers should know what they want to achieve in the performance review process. Managers should remember to critique behavior not the employee. Reviews should be kept on professional level. Finally reviews must be followed up to encourage performance improvement. The Army currently requires quarterly counseling for mid level and senior level personnel. This counseling is extremely structured and addresses issues such as performance and expectations of supervisors. Conversely supervisors are also reviewed on the quality of performance assessments produced and the quality of personnel reviews. Human Resource Managers must provide managers and supervisors with training that helps line manager / supervisors perform better assessments of the employee.

The Human relations movement and the need to compete in a global market has placed a heightened emphasis on employee quality of life. Employee quality of life refers to the need to manage employees working overseas and the need to develop management techniques and polices that are consistent with other cultures. The need to compete in overseas markets has placed greater emphasis on human resource management task of selection and placement. Human resource managers must be aware of the issues associated with the selecting and train individuals to work in foreign environments. Additionally, human resource managers must ensure organizations adequately compensate employees that take on these assignments. Human resource managers must be aware of the problems associated with managing in a foreign culture and the traits to look for in individuals they recruit for these positions.

When a company goes overseas human resource managers must select an appropriate individual that is capable of working in a foreign environment. Human resource managers must assess the cultural issues of the country and the candidate. The human resource managers must also evaluate the training requirement for the position and develop strategies that can successfully supply managers the resources needed for the company to compete overseas. Human resource managers must also development compensation packages that are consistent with the assignment. Compensation and reward benefits are a significant issue when working overseas because of fluctuations in currency value and the potential damage a large influx of US dollars can have on some economies. Some companies have attempted to address these issues by providing cost of living adjustments and housing allowances.

Human resource management contributes to an organization success by hiring effective employees, assessing training programs and effectively planning the human resource needs of the organization. By hiring effective employees and terminating those individuals that can not contribute to the organization Human Resource managers improve the performance of the company. The value of the Human Resource management function could be expressed in a monetary value of the cost associated with ineffective employees. Human resource managers should asses training programs within a company and assist manager in developing effective training programs. Dollars values should be placed on the cost associated with poor ineffective training. This value could be determined by expressing the dollar value of production lost as a result of a lack of training or poor training. Human resource managers should also act as performance coaches. Additionally, human resource managers should evaluate line managers counseling technique and provided feedback to managers and provide guidance focused on improving employee performance and conflict resolution.

The History of Human Resources Management in the past has been characterized by a continuing attempt to justify the function within an organization. Increased labor laws and the rise of unions have made effective human resource management essential. Additionally, the expansion of companies into foreign markets has created the need for managing human resources from an international perspective. The developing global economy and the continually increasing need to manage labor and management relations has given greater importance to Human Resource Management (HRM). HRM has moved from the position of justifying its position in an organization to adding to the organization profits by managing its most important asset: people.