HR practitioners in a small business who have well-rounded expertise provide services to employees. Strategy HR improves the company's bottom line with its knowledge of human capital. Compensation specialists set company wages competitive with other businesses in area. Benefits specialists can reduce company's costs associated with turnover, attrition.
HR practitioners in a small business who have well-rounded expertise provide services to employees. Strategy HR improves the company's bottom line with its knowledge of human capital. Compensation specialists set company wages competitive with other businesses in area. Benefits specialists can reduce company's costs associated with turnover, attrition.
HR practitioners in a small business who have well-rounded expertise provide services to employees. Strategy HR improves the company's bottom line with its knowledge of human capital. Compensation specialists set company wages competitive with other businesses in area. Benefits specialists can reduce company's costs associated with turnover, attrition.
Human resources is important to organizations in 10 specific
areas, ranging from strategic planning to company image. HR
practitioners in a small business who have well-rounded expertise provide a number of services to employees. The areas in which HR maintains control can enhance employees perception of HR throughout the workforce when they believe HR considers employees to be its internal customers and renders services with that in mind. Strategy HR improves the company's bottom line with its knowledge of how human capital affects organizational success. Leaders with expertise in HR strategic management participate in corporate decision-making that underlies current staffing assessments and projections for future workforce needs based on business demand. Compensation HR compensation specialists develop realistic compensation structures that set company wages competitive with other businesses in the area, in the same industry or companies competing for employees with similar skills. They conduct extensive wage and salary surveys to maintain compensation costs in line with the organization's current financial status and projected revenue. Benefits Benefits specialists can reduce the companys costs associated with turnover, attrition and hiring replacement workers. They are important to the organization because they have the skills and expertise necessary to negotiate group benefit packages for employees, within the organization's budget and consistent with economic conditions. They also are familiar with employee benefits most likely to attract and retain workers. This can reduce the companys costs associated with turnover, attrition and hiring replacement workers. Safety Employers have an obligation to provide safe working conditions. Workplace safety and risk management specialists from the HR area manage compliance with U.S. Occupational Safety and Health Administration regulations through maintaining accurate work logs and records, and developing programs that reduce the number of workplace injuries and fatalities. Workplace safety specialists also engage employees in promoting awareness and safe handling of dangerous equipment and hazardous chemicals. Liability HR employee relations specialists minimize the organization's exposure and liability related to allegations of unfair employment practices. They identify, investigate and resolve workplace issues that, left unattended, could spiral out of control and embroil the organization in legal matters pertaining to federal and state anti-discrimination and harassment laws. Training and Development HR training and development specialists coordinate new employee orientation, an essential step in forging a strong employer-employee relationship. The training and development area of HR also provides training that supports the company's fair employment practices and employee development to prepare aspiring leaders for supervisory and management roles. Employee Satisfaction Employee relations specialists in HR help the organization achieve high performance, morale and satisfaction levels throughout the workforce, by creating ways to strengthen the employer-employee relationship. They administer employee opinion surveys, conduct focus groups and seek employee input regarding job satisfaction and ways the employer can sustain good working relationships. Recruitment HR recruiters manage the employment process from screening resumes to scheduling interviews to processing new employees. Typically, they determine the most effective methods for recruiting applicants, including assessing which applicant tracking systems are best suited for the organization's needs. Selection HR professionals work closely with hiring managers to effect good hiring decisions, according to the organization's workforce needs. They provide guidance to managers who aren't familiar with HR or standard hiring processes to ensure that the company extends offers to suitable candidates. Compliance HR workers ensure that the organization complies with federal state employment laws. They complete paperwork necessary for documenting that the company's employees are eligible to work in the U.S. They also monitor compliance with applicable laws for organizations that receive federal or state government contracts, through maintaining applicant flow logs, written affirmative action plans and disparate impact analyses. What is Human Resource The most important resource of any organization is the human resource. All organizations have three important resources. These are: Material Capital Human Human resource is the most vital resource in an organization Why is Human Resource Vital This resource is vital because it drives or moves all the other res ources in the organization. This resource can increase the efficiency, economy and effectiveness of other resources. It is this resource that is most difficult to control because human beings are most unpred ictable. However, if you are able to manage it properly, it can give wonderful results which no other resourc e can give. Human Resource Management (HRM) is the management function and it is also staff function, through which managers recruit, select, train, and develop organization members. We will begin by discussing the importance of human resource management and point out how HRM can as sure the organization of an adequate and constant supply of skilled and right employees. Importance of Human Resource HRM is a staff function. HRM managers advise line managers throughout organization about what Figure 1 Human Resource Recruitment Selection Planning Training and Socialization Development Performance Promotions, Transfers, Demotions, Appraisal and Separations 80
Introduction To Public AdministrationMGT111 VU people to recruit for different departments of the organization. In addition, organization may need employees and managers from time to time. Therefore, the HRM becomes important function The HRM process is an ongoing procedure that tries to keep the organization supplied with the right people in the right positions, when they are needed. The HRM process is shown in Figure 1. It includes seven basic activities which are: 1) human resource pla nning, 2) recruitment, 3) selection, 4) socialization, 5) training and development, 6) performance appraisal and 7) promotion, transfers and demotion. Human Resource Planning Human resource planning is the first step in HRM. It deals with the future requirements of hu man asset for the organization. The need for human resource planning may not b e readily apparent. However, an organization that does not do planning for human resources ma y find that it is not meeting either its personnel requirements or its overall goals effectively. How is Human Resource Planning done? It has following compo nents: 1. Planning for future needs: The organization must decide how many people it will need in the future. What kind of skills those people will possess. In other words org anization should be able to forecast its future human requirements for planning for its futur e needs. 2. Planning for future balance: organization should be able to determine the future balance of its human resource. It has to see how many people will retire or the likely hood of people leaving the organization. HRM should compare the number of employees needed to the number of present employees who can be expected to stay with the organization, which leads to 3. Planning for recruiting or laying off employees: This will dete rmine how many employees will be recruited and how many will be laid off. 4. Planning for the development of employees, Once new employees are recruited there need to trai n these employees for the jobs in organizations. Recruitment The purpose of recruitment is to provide a group of candidates that is large enough to let managers select the qualified employees they need. Recruitment is defined as the development of a pool of job candidates in accordance with a human resource plan. Job and Position Descriptions Before employees can be recruited, recruiters must have some clear ideas regarding the activities and responsibilities and qualifications required for the job being filled. Job analysis is therefore an early step in the recruitment process. In Job analysis each job in the organization is categorized. For each job the activities and responsibilities are enumerated and then qualificat ion, experience, knowledge and skills required to perform the job are written down. Following are the three co mponents of job analysis which are discussed below: 1. Job description: A written description of a non- management job, covering title, duties, and responsibilities, and including its location on the organization chart. 2. Position description: A written description of a management position, covering title, duties, and responsibilities, and including its location on the organization chart. 3. Hiring specification: A written description of the education, experience, and skills needed to perform a job or fill a position effective. Once a specific job has been analyzed, a written statement of its content and location is included in the organization chart. This statement is called either a job description or a position description. Job analysis which comprises hiring specification and job descriptio n is important before recruitment is done. Organizational Psychology holds that successful organizations do not owe their success solely to market realities and sustainable competitive advantages. Actually, there is a lot more. Successful companies are those that consider their human capital as their most important asset. Facts and figures are the quantitative elements of successful management, yet the qualitative, i.e. the cognitive aspects, are those that actually make or break an organization. Human Resources Management (HRM) is the strategic management of the employees, who individually and collectively contribute to the achievement of the strategic objectives of the organization. Assuming that the employees of an organization are individuals with own mental maps and perceptions, own goals and own personalities and as such they cannot be perceived as a whole, HRM holds that the organization should be able to employ both individual and group psychology in order to commit employees to the achievement of organizational goals. Aiming to enable the organization to achieve its strategic goals by attracting, retaining and developing employees, HRM functions as the link between the organization and the employees. A company should first become aware of the needs of its employees, and at a later stage, understand and evaluate these needs in order to make its employees perceive their job as a part of their personal life, and not as a routine obligation. To that end, HRM is very crucial for the whole function of an organization because it assists the organization to create loyal employees, who are ready to offer their best. The HRM activities in modern organizations are typically performed in communication with the General Management in an effort to provide a variety of views when a decision must be taken. In that way, decision making is not subject to the individual perceptions of the HR or the General Manager, but it becomes the outcome of strategic consensus. The main goals / responsibilities of HRM are: To retain low employee turnover rate by inspiring people to work for the company To attract new employees To contribute to employee development To achieve these goals, Human Resources Management trains and motivates the employees by communicating ethical policies and socially responsible behaviour to them. In doing so, it plays a significant role in clarifying the organization's problems and providing solutions, while making employees working more efficiently. On the other hand, challenges do not cease for the HRM. Modern organizations can survive in the dynamic, competitive environment of today only if they capitalize on the full potential of each employee. Unfortunately, many companies have not understood the importance of the human capital in successful operations. The recruitment and selection of the best employees is a very difficult obligation. Even companies that are voted in the top-ten places to work at, often endure long periods of hard work to realize that human element is all an organization should care about. New challenges arise even now for the organization, and it is certain that new challenges will never cease to emerge. Therefore, the use of proper Human Resources techniques is a really powerful way for organizations to overcome these challenges, and to improve not only their quantitative goals but also their organizational culture, and their qualitative, cognitive aspects. The backbone of any successful company is the HR department, and without a talented group of people to hire, culture, and inform employees, the company is doomed for failure.
The importance of human resources within an organization is becoming increasingly understood in today's rapidly changing and uncertain business environment (Davidson & Griffin 2000: 18).
In order to assist employees in helping an organisation to reach its strategic business goals, effective human resource managers often gather job related information in a job analysis and job description, which is vital to creating or re-designing jobs which provide employees with a high level of job satisfaction (Stone 2002: 123).
The basic human resource activity of gathering detailed information about a particular job's duties, tasks and responsibilities, can help organisations achieve strategic goals more efficiently and effectively by avoiding both duplication and overlapping of work in jobs, and also providing a job description by which employers are able to recruit and select the most appropriate employees for the job (Stone 2002: 12 Behind production of every goods and service there is human mind, effort and time invested. without human being no product or service can be produced. Human being is the fundamental resource for making anything. Today many experts claim that machines and technology are replacing human resource and minimising their importance. But in fact machines and technology are build by the human, there has been continuous pressing need for talented, skilled and qualified professionals to further improve machines and technology.
Who are human resource? Human Resources refers to the individuals and support systems within an organization responsible for personnel hiring and firing, applicant tracking, skills development, training, benefits administration, and compliance with government regulations. HR professionals keep their companies in compliance, develop viable employment policies and practices, and keep up-to-date with emerging trends.
Meaning: Human Resource Management is the process of recruitment, selection of employee, providing proper orientation and induction, providing proper training and the developing skills, assessment of employee (performance of appraisal), providing proper compensation and benefits, motivating, maintaining proper relations with labour and with trade unions, maintaining employees safety, welfare and health by complying with labour laws of concern state or country.
Why name human resource management?
Human: refer to the skilled workforce in the organisation. Resource: refer to limited availability or scarce. Management: refer to maximise or proper utilisation and make best use of limited and a scarce resource.
Altogether, human resource management is the process of proper and maximise utilisation of available limited skilled workforce. The core purpose of the human resource management is to make efficient use of existing human resource in the organisation. The Best example at present situation is, construction industry has been facing serious shortage of skilled workforce. It is expected to triple in the next decade from the present 30 per cent, will negatively impact the overall productivity of the sector, warn industry experts.
Every organisations' desire is to have skilled and competent people to make their organisation more effective than their competitors. humans are very important assets for the organisation rather than land and buildings, without employees ( humans ) no activity in the organisation can be done. Machines are meant to to produce more goods with good quality but they should get operated by the human only.
"you must treat your employees with respect and dignity because in the most automated factory in the world, you need the power of human mind. That is what brings in innovation. If you want high quality minds to work for you, then you must protect the respect and dignity. " ---Mr N.R. Narayana Murthy, Chairman Emeritus, Infosys Ltd >>.
Our progress as a nation can be no swifter than our progress in education. The human mind is our fundamental resource. - John F. Kennedy.
Great Quotations
The greatest tragedy in America is not the destruction of our natural resources, though that tragedy is great. The truly great tragedy is the destruction of our human resources by our failure to fully utilize our abilities, which means that most men and women go to their graves with their music still in them. - Oliver Wendell Holmes.
The human mind is our fundamental resource. - John F. Kennedy.
For any organisation to function effectively, it must have resource of men (Human Resource), money, materials and machinery. The resources by themselves cannot fulfill the objectives of an organisation, they need to be collected, co- ordinated and utilised through human resources. And, the effective management of human resources is also vital. Hence, Human Resource Management (HRM) has emerged as a major function in organisations.Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring,performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.
The administrative discipline of hiring and developing employees so that they become more valuable to the organization.
Human Resource management includes:
1. conducting job analyses, 2. planning personnel needs, and recruitment, 3. selecting the right people for the job, 4. orienting and training, 5. determining and managing wages and salaries, 6. providing benefits and incentives, 7. appraising performance, 8. resolving disputes, 9. communicating with all employees at all levels. Formerly called personnel management. 10. Maintaining awareness of and compliance with local, state and federal labor laws. 11. These are also called as functions of human resource management for the purpose of effect you utilisation of human resource. The historical rule of thumb for HR staffing requirements is one full-time professional HR person should be hired for every 100 employees. The actual ratio for a business can vary depending upon factors such as the degree OBJECTIVES OF HRM Societal objective.To be socially responsible to the needs and challenges of society while minimizing the negative impact of such demands upon the organization. The failure of organizations to use their resources for society's benefit may result in restrictions. For example, societies may pass laws that limit human resource decisions.
Organizational objective. To recognize that HRM exists to contribute to organizational effectiveness. HRM is not an end in itself; it is only a means to assist the organization with its primary objectives. Simply stated, the department exists to serve the rest of the organization. Functional objective.To maintain the department's contribution at a level appropriate to the organisation's needs. Resources are wasted when HRM is more or less sophisticated than the organisation demands. A department's level of service must be appropriate for the organisation it serves.
Personal objective. To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual's contribution to the organisation. Personal objectives of employees must be met if workers are to be maintained, retained and motivated. Otherwise, employee performance and satisfaction may decline, and employees may leave the organisation.
Nature of Human Resource Management Human Resource Management involves management functions like planning, organizing, directing and controlling It involves procurement, development, maintenance of human resource It helps to achieve individual, organizational and social objectives Human Resource Management is a multidisciplinary subject. It includes the study of management, psychology, communication, economics and sociology. It involves team spirit and team work. It is a continuous process.
Why Is Human Resource Management Important to All Managers? Why are these concepts and techniques important to all managers? ' Perhaps it's easier to answer this by listing some of the personnel mistakes you don't want to make while man- aging. For example, you don't want to: Hire the wrong person for the job Experience high turnover Have your people not doing their best Waste time with useless interviews Have your company taken to court because of discriminatory actions Have your company cited under federal occupational safety laws for unsafe practices Have some employees think their salaries are unfair and inequitable relative to others in the organization Allow a lack of training to undermine your department's effectiveness Commit any unfair labor practices Human resources are undoubtedly the key resources in an organization, the easiest and the most difficult to manage! The objectives of the HRM span right from the manpower needs assessment to management and retention of the same. To this effect Human resource management is responsible for effective designing and implementation of various policies, procedures and programs. It is all about developing and managing knowledge, skills, creativity, aptitude and talent and using them optimally. Human Resource Management is not just limited to manage and optimally exploit human intellect. It also focuses on managing physical and emotional capital of employees. Considering the intricacies involved, the scope of HRM is widening with every passing day. It covers but is not limited to HR planning, hiring (recruitment and selection), training and development, payroll management, rewards and recognitions, Industrial relations, grievance handling, legal procedures etc. In other words, we can say that its about developing and managing harmonious relationships at workplace and striking a balance between organizational goals and individual goals. HUMAN RESOURCE MANAGEMENT - NATURE, SCOPE, OBJECTIVES AND FUNCTION Human resources may be defined as the total knowledge, skills, creative abilities, talents and aptitudes of an organizations workforce, as well as the values, attitudes, approaches and beliefs of the individuals involved in the affairs of the organization. It is the sum total or aggregate of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the persons employed in the organization. The human resources are multidimensional in nature. From the national point of view, human resources may be defined as the knowledge, skills, creative abilities, talents and aptitudes obtained in the population; whereas from the viewpoint of the individual enterprise, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees. Human Resource Management: Defined Human Resource Management has come to be recognized as an inherent part of management, which is concerned with the human resources of an organization. Its objective is the maintenance of better human relations in the organization by the development, application and evaluation of policies, procedures and programs relating to human resources to optimize their contribution towards the realization of organizational objectives. In other words, HRM is concerned with getting better results with the collaboration of people. It is an integral but distinctive part of management, concerned with people at work and their relationships within the enterprise. HRM helps in attaining maximum individual development, desirable working relationship between employees and employers, employees and employees, and effective modeling of human resources as contrasted with physical resources. It is the recruitment, selection, development, utilization, compensation and motivation of human resources by the organization. Human Resource Management: Evolution The early part of the century saw a concern for improved efficiency through careful design of work. During the middle part of the century emphasis shifted to the employees productivity. Recent decades have focused on increased concern for the quality of working life, total quality management and workers participation in management. These three phases may be termed as welfare, development and empowerment. Human Resource Management: Nature Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include: It is pervasive in nature as it is present in all enterprises. Its focus is on results rather than on rules. It tries to help employees develop their potential fully. It encourages employees to give their best to the organization. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. It tries to build and maintain cordial relations between people working at various levels in the organization. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc. Nature of HRM: 1. HRM involves management functions like planning, organizing, directing and controlling. 2. It involves procurement, development, maintenance and management of human resource. 3. It helps to achieve individual, organizational and social objectives. 4. HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics and sociology. 5. It involves team spirit and team work. Human resource management (HRM) is the governance of an organizations employees. HRM is sometimes referred to simply as human resources (HR). A companys human resources department is responsible for creating, implementing and/or overseeing policies governing employee behaviour and the behaviour of the company toward its employees. Human resources are the people who work for the organization; human resource management is really employee management with an emphasis on those employees as assets of the business. In this context, employees are sometimes referred to as human capital. As with other business assets, the goal is to make effective use of employees, reducing risk and maximizing return on investment (ROI). Areas of HRM oversight include among many others -- employee recruitment and retention, exit interviews, motivation, assignment selection, labor law compliance, performance reviews, training, professional development, mediation, and change management. Human resources is the set of individuals who make up the workforce of an organization, business sector or an economy. "Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view; i.e., the knowledge the individuals embody and can contribute to an organization. Likewise, other terms sometimes used include "manpower", "talent", "labor", or simply "people" A resource is a source or supply from which benefit is produced. Typically resources are materials, money, services, staff, or other assets that are transformed to produce benefit and in the process may be consumed or made unavailable. Benefits of resource utilization may include increased wealth, meeting needs or wants, proper functioning of a system, or enhanced well being. From a human perspective a natural resource is anything obtained from the environment to satisfy human needs and wants. [1] From a broader biological or ecological perspective a resource satisfies the needs of a living organism In economics a resource is defined as a service, or other asset used to produce goods and services that meets human needs and wants. [3] Economics itself has been defined as the study of how society manages its scarce resources. [4] Classical economics recognizes three categories of resources: land, labor, and capital. [5] Together with entrepreneurship, land, labor, and capital. [6] Land includes all natural resourcesand is viewed as both the site of production and the source of raw materials. Labor or human resources consists of human effort provided in the creation of products, paid in wage. Capital consists of human-made goods or means of production (machinery, buildings, and other infrastructure) used in the production of other goods and services, paid in interest. Entrepreneurs serve as managers, risk-takers, leaders, and visionaries.
Investopedia explains 'Human Capital' Economist Theodore Schultz invented the term in the 1960s to reflect the value of our human capacities. He believed human capital was like any other type of capital; it could be invested in through education, training and enhanced benefits that will lead to an improvement in the quality and level of production. Definition of 'Human Capital' A measure of the economic value of an employee's skill set. This measure builds on the basic production input of labor measure where all labor is thought to be equal. The concept of human capital recognizes that not all labor is equal and that the quality of employees can be improved by investing in them. The education, experience and abilities of an employee have an economic value for employers and for the economy as a whole 1. Cash or goods used to generate income either by investing in a business or a different income property. 2. The net worth of a business; that is, the amount by which its assets exceed its liabilities. 3. The money, property, and other valuables which collectively represent the wealth of an individual or business.
Human Resource Management The Heart of All Organizations 15 % success is due to technical skills and 85 % due to the skills in human engineering The process of Human Resource Management consists of all the actions that an organization takes to attract, develop, and retain quality employees. It helps in selection and recruitment of individuals that are right for a given position in the company. Recruitment Today, talented employees are hot items on the global labour market, thus, employers are forced to work more hard to be able to retain, motivate and develop good employees. The recruits must have mandatory of at least twenty- four hours within the first two to four weeks. As for the managers, they have to train from eight to twelve weeks. Management training includes classes and assignments. 2.Assists employees and managers in adapting to organization change. Provide a great working environment and treat each other with respect and dignity. 3.HRM can make contribution to the organizations effectiveness, efficiency,productivity improvements The goal of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees while simultaneously improving the work life of employees and treating employees as valuable resources. Consequently, HRM encompasses efforts to promote personal development, employee satisfaction, and compliance with employment-related laws. HRM The function performed in organizations that facilitate the most effective use of people (employees) to achieve organizational and individual goals. It helps in recruiting and selecting appropriate Staff, using a variety of techniques. Helps the managers in measuring and monitoring staff performance. HR help to strategize necessary ways by showing the options that are available for the organization to achieve the set target. Build and strengthen the businesss for long-term competitive position in the market by providing a quality product and excellent customer service. HR is one of the key to a successful organization.