Human Resource Management is a distinctive approach to people management, which seeks to achieve competitive advantage of organization through the strategic deployment of a committed and capable workforce, using an integrated array of cultural, structural and personal techniques. In other words, the HRM process consists of planning, attracting, developing, and retaining the human resources of an organization. (http://www.ntc.net.np/department)
Because HRM seeks to strategically integrate the interests of an organization and its employees, it is much more than a set of activities relating to the coordination of an organization's human resources. HRM is a major contributor to the success of an enterprise because it is in a key position 'to affect customers, business results and ultimately shareholder value'''??1.
II. Activities within the HRM Process
Fig: The Modern HRM Process (Human Resource Management, 8th Edition, Raymond J. Stone)
There are seven different basic activities, which make up the HRM process.
1. Strategic HR Planning and Analysis
a. HR Planning
b. Job Analysis
c. Human Resources information System (HRIS)
2. HR Auditing and Needs Assessment
c. Affirmative Action
3. Workforce Planning
a. Job Analysis
4. HR Development
c. Employee Development
d. Career Planning
e. Performance Management
5. Total Compensations, Benefits & Rewards
6. Health, Safety and Security
a. Health Wellness
7. Employee & Labor Relations
a. HR Policies
b. Employee Rights and Privacy
c. Union/Management Relation
Among the seven different basic activities of HRM Process this paper looks upon the two basic activities (3 and 5).
3. Workforce Planning
Workforce Planning is a term used to describe the planning process undertaken to ensure an organization has the right people, with the right skills, at the right time. They depend more on their human resources. Revolutionary changes, complex technologies and global competition mean increasing vulnerability. A proper match between work and employee capabilities is now an economic necessity. Moreover, work itself is in a state of constant flux as organizations downsize, outsource, restructure and re-engineer their work processes, and introduce self-directed work teams and independent contractors to gain a competitive advantage. Such workplace changes dramatically affect the work lives of employees. Organizations that change their existing strategies, or develop new business strategies, for example, need to reassess their structure. If there is a poor fit between the chosen strategy and the organization's structure, the structure will need to be redesigned.
The workforce planning also deals with the prediction of the future demand for different types of staffing and trying to match with the supply. Workforce planning process involves following steps. (Human Resource Management, 8th Edition, Raymond J. Stone)
a. Job Analysis, which is a process of collecting information, related to various aspects of the job. It focuses its attention on the job content, the job requirements and the job context. This process demonstrates who and why is eligible at a particular place. It promotes the alignment of other HR processes and functions.
As the process of Job Analysis provides a detailed analysis of the role and responsibilities, functions and duties, it is one of the integral parts of strategic planning. This process helps the organization to understand the eligibility of personnel to fit at a particular place to get the work done. But on the other hand the basic target of the SHRM is to determine how to exploit human capital to achieve organizational goal.
The steps, which are involved in job analysis, include:
' Information Collection
' Review Background Information
' Selection of Representative Position to be Analyzed
' Analysis of Job by Collecting Data
' Develop Job Description
' Develop Job Specification
b. Recruiting, process includes attracting, interviewing and hiring new employees. The following four different areas are primarily searched for the Recruitment via Recruitment Channels, Agencies etc.
Fig: The Recruitment Process (http://www.cogniview.com/blog/wp-content/uploads/2013/04/recruitment-process1.jpg)
' External Market
' Internal Recruitment
' Succession Planning
The failure in recruitment in an organization creates adverse effect on its profitability and inappropriate levels of staffing and skills and the insufficient number of recruitment leads to workforce shortages, irregularities in decision-making process. The recruitment process requires management decision-making and extensive planning to employ most suitable manpower.
HR professionals as the 'least' interesting task or responsibility of their role can sometimes shrug off the recruitment function2. It is true that transactional function can be quite routine and administrative, but it is so much more than that. Recruitment allows the organization to shape and influence the company from the ground up to build the workforce organization to deliver on business priorities and getting involved in that can be pretty exciting and dynamic.
c. Selection is the process of interviewing and evaluating candidates for a specific job and selecting an individual for employment based on a certain criteria.
Fig: The Selection Process (Human Resource Management, 8th Edition, Raymond J. Stone)
The selection Procedure includes:
' Interviewing Candidates
' Selection Tests
' Reference and Background Analysis
' Physical Examination
' Job Offer
' Employment Contract
When there is opening in an organization, organization look for people, as per the process, as per the department and they schedule their interview accordingly which makes them know about the job vacancy, job opening and help the candidates in performing so the HR basically deals with this process and completes all the necessary details of the process of selection of the candidates as per the process and methods. This is a very challenging and a difficult task or a job to select and reject the candidates in the interview process because it requires no heart in the field and only requires the interviewer to think from their mind and apply the tools and necessary strategies for making this concept clear. This process helps the company in filling the suitable employees with suitable positions to perform the task and duties in the organization. Selection is not same as recruitment because it talks about choosing the best and the right candidate for the position, for the vacancy and for the organization. It requires the candidate should possess skills, abilities, knowledge, eligibility, qualification and many more.
5. Total Compensations, Benefits and Rewards
a. Compensation can be defined as the give and take in the monetary terms between the employer and the employee. It is the employer's feedback for an employee's work. (http://nnazir.hubpages.com/hub/Compensation-and-Benefits-Definition-and-importance)
Fig: Compensation Management Reward System (creativeeducationbd.com)
Compensation is mainly based on the research done on the market about the importance or value of the similar jobs in the marketplace, the employee contributions and accomplishments and the availability of the employees with similar or better skills. Each employee's performance measurement should reflect the organization's business strategy and financial goals. Compensation should also reflect the employee's performance level and his or her contributions to the organization's success. The compensation helps organization develop effective strategies which:
' Reflect an employee's performance and contributions
' Improve employee and customer engagement
' Increase productivity
' Focus employees on clear, objective, and measurable outcomes
' Link to the organization's strategic direction and business goals
' Reward employees who achieve results.
b. Benefits are the extras that come with the cash or salary. It is also known as the fringe benefits, which are non-financial form of compensation offered in addition to the cash salary to enrich the workers life. The right combination of benefits can assist an organization in reaching its strategic business objectives by attracting, motivating and retaining valued employees. 4 Equal pay for equal work and pay-for-performance philosophies are promoted by many organizations. The reality, however, is that many benefit programs are in direct conflict with these principles. For example, employees with families are frequently provided with extra coverage under medical programs; retirement benefits are extended to all; and the allocation of company cars, club memberships, the payment of union dues are linked to status, not performance. (http://nnazir.hubpages.com/hub/Compensation-and-Benefits-Definition-and-importance)
c. Rewards reflect an employee's value to the organization. High performers may be promoted or transferred to help them develop their skills, while low performers may be demoted or transferred to less important positions. The reward management strategies and practices of an organization contribute to the improvement of organizational performance by developing and operating reward systems which help to attract, retain and engage the people upon which the business relies. (http://healthandfitnessbay.blogspot.com.au/2011/10/7-steps-involved-in-hrm-process.html). Modern Rewards Management appears and develops in the context of managing transformation; it not simply acknowledges and redounds upon what the members have contributed to the organization, in fact, it's a specific action scheme of company strategic objective and values outlook conversion. To some extent, Modern Rewards Management breaks through the categories of 'Money' and substance, which indicates that indirect income and some no-monetary compensation have been playing parts of increasing importance in Reward Structure Design. Generally, Modern Rewards Management is carried out through Total Reward Management, which matches with the work ethic and pursuit of the present employees, and it is an important reflection of emphasizing the relationship between enjoyment of reward elements and performance 5.
With the proper utilization of HRM we can conclude that Workforce planning encompasses all the activities needed to maintain a productive workforce. It is also regarded as a subset of HRMS, which have transformed itself into workforce optimization, encompassing Talent Management. The workforce management is all about associating and assigning the right employees with the right skills and matching them to the right job at the right time. This traditional approach has since evolved into the more integrated, demand-oriented workforce management, which takes advantage of talent management and talent acquisition disciplines to the benefit of workforce planning and management.
Likewise Reward system is the instrument used to increase employees' productivity. It seeks to attract and retain suitable employees, encourages good management ' employee relationship and commitment and minimizes tension and conflict as it deals with all forms of final returns, tangible service and mechanism for good relationship. Furthermore, the major case of industrial conflict is based on the fact that employees feel their benefit are denied or about to be denied thus the importance of compensation system is to provide a good platform for equity and farness. This provides a challenging environment and increase productivity of employees. The compensation system ensures that both intrinsic and extrinsic needs of employee at all levels are adequately provided for compensation develops organizational integrity, policy, procedures and practices capable of improving organizational productivity. Reward and compensation is concerned with employees and organization performance development through which better result can be achieved by understanding and managing reward and compensation within an agreed framework, planned goals, standard and competency requirements.
1. Anthony, R.J. (1995) 'Human resources in the forefront', HR Focus, October, p. 6.
2. Schneider, B. and Schmitt, N. (1992) Staffing Organizations, 2nd edn, Ill; Waveland Press, p. 170.
3. Skotnicki, T. (2000) 'Employees feel the worst from campaign 2000', BRW, 16 June, p. 35; and Lee, E. (2001) 'For love or money'? South China Morning Post, 31 March, p. 17.
4. Werner, Jon M. and DeSimone, Randy L. (2009) Human Resource Development, South Western Cengage Learning, p. 337.
5. Zhou, Jiang and Qian, Xiao (2009) 'International Journal of Business and Management', Vol. 4, No. 11
IV. Jones, David A.; Shultz, Jonas W.; Chapman, Derek S. (2006) Recruiting Through Job Advertisements: The Effects of Cognitive Elaboration on Decision Making International Journal of Selection and Assessment, Volume 14, Number 2, pp. 167-179(13)
V. Korsten A.D. (2003) Developing a training plan to ensure employees keep up with the dynamics of facility management Journal of Facilities Management, Volume 1, Number 4, pp. 365-379(15)
VI. Page 159, Human Resource Management, 8th Edition, Raymond J. Stone
VII. Papers For You (2006) "P/HR/254. HRM: methods of recruitment and selection", Available from http://www.coursework4you.co.uk/sprthrm18.htm.
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