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LESSON 22
HUMAN RESOURCE MANAGEMENT (HRM)
At the end of the lecture the students will be able to understand the following:
- Concept of Staffing (Human Resource Management)
- Importance of HRM to the organization
- Process of HRM
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 resources 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 unpredictable. However, if you are able to manage it properly, it can give wonderful results which no other resource 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 assure 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 Planning Recruitment Selection
Socialization
Training and Development
Promotions, Transfers, Demotions, and Separations
Performance Appraisal
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 planning, 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 human asset for the organization. The need for human resource planning may not be readily apparent. However, an organization that does not do planning for human resources may find that it is not meeting either its personnel requirements or its overall goals effectively. How is Human Resource Planning done? It has following components:
- 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 organization should be able to forecast its future human requirements for planning for its future needs.
- 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
- Planning for recruiting or laying off employees : This will determine how many employees will be recruited and how many will be laid off.
- Planning for the development of employees, Once new employees are recruited there need to train 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 qualification, experience, knowledge and skills required to perform the job are written down. Following are the three components of job analysis which are discussed below:
- Job description: A written description of a non-management job, covering title, duties, and responsibilities, and including its location on the organization chart.
- 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 description is important before recruitment is done.
