To run a business, every organization, large or little, employs a range of capital. Cash, valuables, and items used to produce money for a business are all examples of capital. A retail store, for example, employs registers and goods, but a consulting firm may have its own software or buildings. Regardless of industry, all businesses require people to make their capital work for them. Throughout the text, we will concentrate on generating cash by utilizing people's skills and competencies.
What Is HRM?
Human resource management (HRM) is the process of hiring, training, compensating, and setting policies for them, as well as developing retention tactics. HRM has evolved significantly during the previous two decades, allowing it to play an even more critical role in today's enterprises. HRM used to involve processing payroll, sending birthday gifts to staff, organizing business outings, and double-checking forms—in other words, more of an administrative duty than a strategic position critical to the organization's success.
It's important to note right away, at the start of this article, that every manager plays a part in human resource management. We will do all or at least some HRM tasks even if we do not hold the title of HR manager. Most managers, for example, deal with employee compensation, motivation, and retention, making these characteristics not only of HRM but also of management. As a result, this book is essential reading for anyone interested in becoming an HR manager or running a firm.
HRM's Role
Keep in mind that many HRM activities are also performed by other department managers, which is why this information is relevant regardless of career route. HRM has seven primary responsibilities in enterprises, according to most experts. The next sections go through each of these in detail.
Staffing
People are required to complete tasks and complete work in the company. Humans are still required even with the most advanced technologies. As a result, one of the most important duties in HRM is staffing. From posting a job to negotiating a wage package, staffing encompasses the full employment process.
From posting a job to negotiating a wage package, staffing encompasses the full employment process. There are four basic steps in the staffing process:
Creating a staffing strategy:HRM can use this approach to figure out how many workers they should hire based on revenue projections.Policy development to promote multiculturalism at work.Multiculturalism in the workplace is becoming increasingly significant as the workforce includes more people from various origins.Recruitment.
This entails locating candidates to fill open positions.
Selection.
People will be interviewed and chosen at this point, and a fair remuneration plan will be arranged.
Policy Development in the Workplace
Every business has policies in place to ensure the organization's fairness and continuation. One of HRM's responsibilities is to design the language that surrounds these policies. HRM, management, and executives are all involved in the policy creation process. For example, an HRM professional may detect the need for a policy or a policy modification, solicit input on the policy, draft the policy, and then convey it to employees. It's important to remember that HR departments don't and can't work on their own. Everything they perform should involve all of the company's other departments.
Everything they do needs to involve all other departments in the organization. Some examples of workplace policies might be the following:
- Discipline process policy
- Vacation time policy
- Dress code
- Ethics policy
- Internet usage policy
Compensation and Benefits Administration
HRM experts must ensure that compensation is fair, satisfies industry standards, and is sufficient to lure employees to work for the company. Anything an employee receives in exchange for their effort is considered compensation. HRM professionals must also ensure that the salary is equal to that of other employees in similar occupations. This entails establishing pay structures that account for length of service, years of experience, education, and other factors.
Examples of employee compensation include the following:
- Pay
- Health benefits
- Retirement plans
- Stock purchase plans
- Vacation time
- Sick leave
- Bonuses
- Tuition reimbursement
Retention
Employee retention refers to keeping and motivating employees to stay with the company. Employee retention is influenced by a variety of factors, including compensation. The following are the reasons why 90% of employees leave a company:
- Problems with the job they're doing
- Conflicts with their boss
- Incompatibility with the organization's culture
- Poor working conditions
Despite this, 90% of managers believe that employees leave because of money (Rivenbark, 2010). As a result, managers frequently try to adjust compensation packages to keep employees from leaving, even when compensation isn't the primary reason for their departure.
Training and Development
The following are some examples of training programs:
- Job-related skills training, such as learning how to use a specific computer software
- Communication training
- Activities that promote teamwork
- Legal and policy training, such as sexual harassment and ethics training
Others:
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