Managing People Tutorial

🌷  HRM mean and what is the importance of HRM for Organizational Success

Human Resource Management (HRM) is to describe formal systems devised for the management of people within an organization.

The responsibilities of a human resource manager fall into three major areas: staffing, employee compensation and benefits, and defining/designing work.

 Essentially, the purpose of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees.

 This mandate is unlikely to change in any fundamental way, despite the ever-increasing pace of change in the business world.

Until fairly recently, an organization's human resources department was often consigned to lower rungs of the corporate hierarchy, despite the fact that its mandate is to replenish and nourish what is often cited-; legitimately-; as an organization's greatest resource, it's the workforce.

 But in recent years recognition of the importance of human resources management to a company's overall health has grown dramatically.

 This recognition of the importance of HRM extends to small businesses, for while they do not generally have the same volume of human resources requirements as do larger organizations, they too face personnel management issues that can have a decisive impact on business health.

importance

Human Resource is all the people which directly contribute to organisation goals, are people who contributed in the past, now and for the company future, HR is the only resource capable to control and allocate all the other resource to produce goods and services.

 Greats companies and countries have effective and efficient Human Resource Management to manage its resources.

Managing human resource is very complicated and it is not just HR duties, it is all the managers’ duty.

Some purpose of HRM is to reduce the differences between people, remove conflictions among employees and direct all the employees to organisation goals.

According to Armstrong (2003), Human Resource Management (HRM) is an important department of an organization, that make people who work there, responsible indirectly and directly for the company goals. Because one of the principal aims to HRM is to help the organisation to achieve success through the people.

According to (Singh. Y, K, and Rawat.) Human Resource function is guiding employees to obtain competencies to achieve the organisation goals. In order to this, to HR be successful it is necessary an employee’s partnership comprehend their present and future expectation to develop their abilities and exploit to the maximum potential, for both expectations (individual and organisation). Some process is used to develop these abilities such as performance appraisal, training, organisation development, feedback and counselling, career development, potential development, job rotation, and rewards.

However, in many companies now the biggest assets are people. The knowledge, abilities and skills have to be used to the maximum in the organisation to create value. It is an uncountable value for companies’ employees who are recognized for investors, society and for the competitors. (CIPD, 2010)

Moreover, it is very important for all companies to manage their people within a planned and coherent framework which reflect the business strategically. It is also can guaranty the various aspects of people management are commonly reinforcing in developing the performance and behaviours necessary to achieve business success. (CIPD, 2010)

🌷 Explain the benefits of successful Human Resource planning.

1. Retaining top talents:

Hiring is one thing. But retaining high-performing employees is another. According to a new study, 60% of workers have quit or considered quitting their jobs and it’s not because of how much they are paid, but how they are treated. HR planning encompasses talent retention. The thing is, businesses lose more money on attrition than on recruitment. So, the lower the attrition rate, the better for companies.

A high retention rate suggests that a company is doing wrong, especially in managing their employees. The HR department is in charge of creating programs that promote the welfare of its employees, such as giving them access to payday loans, health and wellness benefits, incentives, and much more.

In addition to providing competitive compensation, planning helps the HR team identify the factors that keep employees engaged. Employee engagement is a critical component of talent retention. Research shows that when employees feel valued within the organization, they are likely to stay.

2. Addressing the organization’s manpower needs:

HR departments are primarily responsible for recruitment and staffing. Recruiting and screening employees are time-consuming processes that require detailed attention. They involve many steps, from advertising or creating job posts, managing application process, screening applicants based on the qualifications set, interviewing prospective candidates, creating an offer and contract for successful applicants, on-boarding newly hired personnel, and training them.

With an effective planning process in place, the HR team can ensure that the business staffing needs are met. They can prepare ahead of time for any vacancies should an employee resigns (which can greatly affect productivity). Also, they can effectively handle the hiring process should there be an urgent need to ramp up and prevents potential problems that come along with attrition.

3. Ensuring that the right people are hired:

Another benefit of a recruitment plan is ensuring that only the most qualified individuals are hired to handle varying roles. Part of HR planning is determining the skill sets needed for a specific role and creating an interviewing process so that managers or interviewers can ask the right questions to their applicants. Companies that have an effective HR planning in place are prepared for their current and future staffing needs that ultimately result in business growth and expansion.

4. Training employees:

HR planning also involves creating training models and procedures. After finding the people who possess the right skill sets, the next thing that the HR department needs to do is to ensure that they are able to perform their roles based on the needs of the organization and 5. the customers. Training and onboarding are also necessary to teach new employees about the company rules and policies, its culture, ways of working, internal databases, tools and software, benefits and compensation, and other things they need to know.

HR planning also addresses the need for creating training programs for current employees. Regardless of qualification and background, most employees have some weakness in their workplace skills. A clearly defined training program allows the organization to strengthen the skills of its employees and equip them with the latest techniques and knowledge to perform their roles.

5. Managing employees:

While it is the role of managers and supervisors to ensure that their staff members are able to effectively perform their job, an effective HR planning process also incorporates employee management, particularly performance reviews and disciplinary procedures. Standardizing performance reviews, for example, guide managers in rating the performance of their subordinates and ensure that every employee is reviewed using the same set of metrics. Furthermore, standardizing disciplinary procedures sees to it that company rules are strictly followed and not adhering to them imply consequences.

6. Facilitating expansion programs:

These days, it is not uncommon for companies to undergo expansion activities. Growth is the goal of every startup. Due to the technological advances of the modern world, many companies have achieved rapid growth. While it’s a huge leap for an organization, there is no denying that it can be a difficult challenge for the HR department.

As a company increases in size, the demand for human resources. Whether it’s as simple as ramping up through massive hiring, or as complex as mergers and acquisitions, HR planning is crucial in facilitating company expansion programs needed to address the growing manpower needs.

7. Coping with change:

In any business organization, change is inevitable. Human resource planning is utilized to create appropriate measures to deal with change associated with varying factors, such as customer demands, business expansion, and political and economic conditions.

Another thing that HR has to cope with is the rapid change in technology. With such change, job and job requirements also change. Needless to say, technology has gotten its way into the workforce, taking over repetitive tasks via automation and the like. Through HR planning, an organization can forecast and meet the changing needs of manpower.

🌷why a business may choose to use internal recruitment over external recruitment.

There are many factors to consider when deciding to hire internally as opposed to getting external talent. These factors depend on the company and job characteristics so that the right strategy for a firm depends on its context and situation.

However, there are certain circumstances when a company can give preference to internal recruitment or, at the least, consider it before hiring personnel externally.

The first consideration is the cost of a bad hire.

If the cost of a wrong hiring decision is significantly high for the company, it is best to go with an internal hire. For instance, the cost of hiring the wrong CFO is significantly higher than say, an inept project coordinator.

This is the reason for many leadership and managerial roles being filled through lateral moves and promotions. In 2014, the Harvard Business Review published a list of the world’s 100 best-performing chief executive officers (CEOs).

While both internal and external recruitment has been used to hire the top ten CEOs on that list, internal promotion is far more prevalent than the latter. Clearly, internal recruitment is more crucial the higher you go up the corporate ladder.

The second consideration is whether employee productivity in a role depends highly on specialized knowledge and skills applicable to the company in question.

If that is the case, then it’s best to hire from the experienced pool of workers from within the company so that companies are not spending a lot of time and money seeking these skills outside.

The third consideration is the reliability and swiftness with which skills can be assessed externally. If a firm already has a robust screening and recruiting process that can quickly pick out quality talent and help avoid bad hires, then it can rely on external recruiting alone.

This is also crucial if the skills are dynamic and ever-changing, and the role is such that the company thinks it’s best to get someone who will infuse it with fresh ideas.

Nevertheless, it is still recommended you first open these positions up for other employees within the organization to ensure you don’t miss out on any talent available within the company.

Internal recruitment is not meant to replace external recruitment; instead, it should be used alongside other recruitment tactics to get a balanced mix of candidates and talent.

To truly retain employees, companies must prioritize having open discussions with employees to understand their strengths, motivations, and goals to keep their “marriage” with the employee long, happy and prosperous. If not, these employees will walk out when they find more tempting offers outside.

🌷 Explain the advantages of external recruitment.

• Increased chances
• Fresher skill and input
• Qualified candidates
• Better competition
• Generation of creative ideas
• Lesser internal politics
• Better growth
• Competitive spirit
• Being fair
• Ideas from other industries

🌷 Benefits of Performance Appraisals to the Organization.

1. Improves Performance.

Performance appraisals major focus on improving employees performance as it analyses and evaluates the opportunity factors like social process and technology.

2. Employee Development.

Performance appraisal helps determine who is in need of more training as it gives information regarding the strengths and potentials as well as weaknesses of the employees.

3. Corrects Deficiencies.

Performance appraisal detects employee deficiency and suggests corrective measures to be taken.

4. Career Growth.

Appraisal serves as a tool for the employees’ career planning and development as it assists in preparing each employee’s SWOT analysis.

5. Promotion.

Appraisals help the management determine which employee is to be promoted, transferred or rewarded.

6. Motivation.

Appraisals motivate employees to work harder.

🌷 Which of the following activities constitute HRM?

a. Human Resource Planning
b. Recruitment and Selection
c. Job Design
d. Campus Design

Answer

🌷 Which of the following might the examiners ask you if they include an HR question in your examination?

a. The planning of capacity utilization
b. The awareness of laws relating to consumer protection
c. The benefits of field and desk research
🍓The links between recruitment, selection and training

🌷In an organization, techniques such as downsizing, reduction in workforce and rightsizing are classified as

🍓 workforce realignment
b. workforce alignment
c. merger and acquisition alignment
d. all of the above

🌷 'HR' plans of any organization do not include

a. personnel plans
🍓 production plans
c. compensation plans
d. training and development plan

🌷 A personnel plan requires a forecast of

a. personnel needs
b. supply of inside candidates
c. supply of outside candidates
🍓 all of the above

🌷 The situation which occurs when employees who have been replaced by their job is called as

a. retirement buyouts
b. layoffs
c. attribution
🍓 attrition

🌷 Why would an HR manager monitor probable labour requirements of rivals?

a. To allow for voluntary redundancies
b. To let the government have details on labour turnover
🍓. To note what labour requirements might be needed by competitors and therefore affect
    the labour pool available to us
d. To note natural wastage