What is Human Resource Management?
Human resource management are those strategic interrelated actions that are taken by a manager with the sole aim of managing an entity’s most valuable asset –the workforce. Human resource management goes by many names including the following: human capital management, HR system, personnel management, etc. The management of the working population of a company is a strategic issue that must be taken seriously by any organization that wants to survive in this era of ‘resources flight’.
The number of employees a company has does not remove the importance of properly managing your human resource capital for greater results achieved through keeping sets of motivated staff using CCTV.
DEFINITION AND MEANING OF HR SYSTEM | WHAT HRM?
Human resources management are those top level management functions that are geared towards the management of a company’s staff and human capitals. It is a soft science that has both ideological and philosophical implications within the policy of a company. This is why Storey (1989) argues that for any process to be called HRM, it must be a function of four variables –which he called aspects.
Human Resource management or human capital management does not stop at putting out adverst for new job openings, interviewing the prospective staff and issuing them employment letters. It goes well beyond these. No wonder Storey (1989) argues that HR functions has the following four aspects as listed below:
- A particular constellation of beliefs and assumptions;
- A strategic thrust informing decisions about people management;
- The central involvement of line managers; and
- Reliance upon a set of ‘levers’ to shape the employment relationship
The complex nature of human resource management makes it an important issue that is handled at the strategic management level. The reason behind making human resource management a strategic function is the fact that HRM system and organization needs to be handled in such a way that it will lead to goal congruency in an organization.
SYSTEMS COMPONENTS OF HRM
Just like other systems, human resource management is a system within a system, yet, it is made up of systems. Successful HR systems are built upon proper management of the sub systems within it. There are principally six components of HRM.
SIX (6) INTERRELATED SYSTEMS OF HUMAN RESOURCE SYSTEM
- HR IDEOLOGIES AND PHILOSOPHIES: these are the main pillars in the form of values and guidelines upon which ways of managing people within an organization is fashioned. The problem here is that philosophies are somewhat vague and difficult to define without causing one form of resentment or the other. Not minding this problem, this is a vital first step that must be taken towards establishing a meaningful HR department.
- HR TACTICS OR STRATEGIES: these are plans that collectively help the company achieve her human resource objectives.
- HR POLICIES: these are body of guidelines that stipulates how principles, strategies and values coherently work for the attainment of a common organizational goal.
- HR PROCESSES: these are the systems that contains the formal procedures and steps needed to take in order to implement what is contained in the policy.
- HR CONVENTIONS: similar to the HR processes but, deals with informal procedures as opposed to the formal procedures found in the former.
- HR IMPLEMENTATION: this is a subsystem that sees to the actualization of plans. It ensures that strategies (tactics), practices and policies are properly executed.
CHARACTERISTICS OF HRM
Over the years while consulting for some HR firms in the area of PAYE calculation using excel, I have noticed that most successful HR systems have certain characteristics in common. This section of this article will list those observed features of human resource management system.
- Diverse in terms of experience, race, sexual orientation, training and gender
- Values people more than their other assets, as those other assets cannot consistently yield result without the invaluable input from humans
- Determined on getting the best while focusing on the common goal of a company
- Is built on dialogue and negotiation
- Strategically integrated
- Treats every person as an individual and in a fair manner
- Are committed to identified course as stated in a company’s mission and vision statement
- Management fully get involved
- Sensitive to environmental variables
AIMS, GOALS AND OBJECTIVES OF HUMAN RESOURCE MANAGEMENT
Generally speaking, the overall aim, goal or objective of human resource management is to make sure that a company through people achieves whatever it sets out to achieve. For the aim of setting up an HR department in a company not to be defeated, reasonable success must be attained in the following areas: knowledge management, employee relations, and reward management system. All these work together to ensure that high level of staff motivation is achieved in an organization.
Other goals of human resource management include:
- Satisfying customers through motivated and happy workforce: it is a no brainer. Happy workers will definitely transfer their happy mood to the customers. These customers can be both internal and external customers.
- Encouraging the self-development of employees and imbibing learning culture: through a well thought of training and development program, employees naturally become eager to learn and acquire new useful skills.
- Encouraging teamwork and co-operation within an entity
- Building a scalable organization that quickly respond to changes rather than react to it.
- Creating a harmonious environment that helps to align corporate strategy and HRM policies. This is usually achieved through implementation of a workplace security and violence management as this will get rid of ‘what gets measured, gets done‘ risks.
- Forming a strong bond between various components of the HR system.
PRACTICAL IMPORTANCE HUMAN RESOURCE MANAGEMENT PRACTICE
The presence of quality human resource in an organization creates an atmosphere that warrants teamwork which will ultimately lead to achievement of organizational goal in one accord. There will be no incentive for managers to make suboptimal decision because nothing will be gained by so doing as the HR system in place has already taken into cognizance of it all.
INFREQUENT STAFF TURNOVER = COST SAVING FROM NEW STAFF TRAINING
When the right kind of human resource system is in place, workers will not see the need for moving out of the company in a rush. This way, the cost of training staff all the time will be saved and this in turn will reflect on the profit line of the business.
SECURITY OF OTHER ASSETS
Getting and retaining trusted people in an organization is not an easy task. The chances of exposing your other assets to abuse and misuse is significantly increased when as a result of weak HR system or complete lack of one, workers come in out of a company. Having a robust human resource management system on ground is one major security issue that successful companies or business take seriously.
From the discussion above, you have seen that the answer to what is human resource management goes beyond one or two lines of definition of HRM as many authors do. You cannot learn all that you need to know about human resource management in one article of this length, so. I encourage you to explore other materials on this subject matter for better and broadened understanding.