Unit 1 – Introduction to Human Resource

Tutor – Ms. Shania Mohammed

Certificate in Human Resource Management

Introduction to Human Resource

Human Resource Management (HRM) is an operation in companies designed to maximize
employee performance in order to meet the employer's strategic goals and objectives. More
precisely, HRM focuses on management of people within companies, emphasizing on policies
and systems.
In short, HRM is the process of recruiting, selecting employees, providing proper orientation
and induction, imparting proper training and developing skills.
HRM also includes employee assessment like performance appraisal, facilitating proper
compensation and benefits, encouragement, maintaining proper relations with labor and with
trade unions, and taking care of employee safety, welfare and health by complying with labor
laws of the state or country concerned.

The Scope of HRM

The scope of HRM is very wide. It consists of all the functions that come under the banner of
human resource management. The different functions are as follows −

Human Resources Planning

It is the process by which a company identifies how many positions are vacant and whether the
company has excess staff or shortage of staff and subsequently deals with this need of excess or
shortage.

Job Analysis Design

Job analysis can be defined as the process of noticing and regulating in detail the particular job
duties and requirements and the relative importance of these duties for a given job.
Job analysis design is a process of designing jobs where evaluations are made regarding the data
collected on a job. It gives an elaborate description about each and every job in the company.

Recruitment and Selection

With respect to the information collected from job analysis, the company prepares
advertisements and publishes them on various social media platforms. This is known
as recruitment.
A number of applications are received after the advertisement is presented, interviews are
conducted and the deserving employees are selected. Thus, recruitment and selection is yet
another essential area of HRM.
 Unit 1 – Introduction to Human Resource
Tutor – Ms. Shania Mohammed
Certificate in Human Resource Management

Orientation and Induction

After the employees are selected, an induction or orientation program is organized. The

employees are updated about the background of the company as well as culture, values, and
work ethics of the company and they are also introduced to the other employees.

Training and Development

Employees have to undergo a training program, which assists them to put up a better
performance on the job. Sometimes, training is also conducted for currently working
experienced staff so as to help them improve their skills further. This is known as refresher
training.

Performance Appraisal

After the employees have put in around 1 year of service, performance appraisal is organized in
order to check their performance. On the basis of these appraisals, future promotions,
incentives, and increments in salary are decided.

Compensation Planning and Remuneration

Under compensation planning and remuneration, various rules and regulations regarding
compensation and related aspects are taken care of. It is the duty of the HR department to look
into remuneration and compensation planning.

Features of HRM

Human Resource Management as a discipline includes the following features −

 It is pervasive in nature, as it is present in all industries.

 It focuses on outcomes and not on rules.

 It helps employees develop and groom their potential completely.

 It motivates employees to give their best to the company.

 It is all about people at work, as individuals as well as in groups.

 It tries to put people on assigned tasks in order to have good production or results.

 It helps a company achieve its goals in the future by facilitating work for competent and
well-motivated employees.
 Unit 1 – Introduction to Human Resource
Tutor – Ms. Shania Mohammed
Certificate in Human Resource Management

 It approaches to build and maintain cordial relationship among people working at various
levels in the company.
Basically, we can say that HRM is a multi-disciplinary activity, utilizing knowledge and inputs
drawn from psychology, economics, etc.

Human resource management is the procedure of linking the function of human resource with the
goals of the firm so as to drive and improve productivity. In simple terms, management of human
resources involves hiring, recruiting, and managing employees. A human resource that is
successful requires many pieces of the company, involving the administration of safety and
health and the organizational culture. When you understand every element of human resource
management, you can structure your business processes effectively.

Organizational culture

Organizational culture involves bringing together values, company vision, belief and traditions,
and working rules that a firm has adopted over time. The human resource system plays a crucial
role of influencing the organizational culture within the business premises. Establishing company
standards, procedures, and guidelines allows the employees to know and learn acceptable
behaviors and practices at workplace premises. For instance, a policy may be in place stating that
punctuality if vital within the firm to promote time management skills among employees.

The human resource team may also come up with a flexible time management policy that will
value the freedom of employees to manage their schedules. Therefore, the culture of the
organization will affect how people will function on their duties.

Planning for change

The business world is changing at a very fast rate. Technology is changing and it is updating
constantly, finances of businesses keep changing over time, and employees come and go. It the
sole responsibility of the human resource development team to help the company to stabilize the
firm for continuous change. Planning for change involves helping employees understand their
functions by taking into account the perspective of the firm.

It involves constructing bridges between managers and departments and get people to start
talking about certain circumstances. The human resource team uses this info to develop a
management plan for changes in work flow, disasters, and for reassuring employees in times of
alarming change or disaster.
 Unit 1 – Introduction to Human Resource
Tutor – Ms. Shania Mohammed
Certificate in Human Resource Management

Training and development

Nearly all employees, including the ones with skills and qualities, require training at a particular
point because each organization differs with the other. Procedures and policies need to be
conveyed firmly to all employees as a procedure of on-boarding. This procedure will ensure that
all employees are on the same wavelength. The human resource management system takes the
responsibility of the ongoing employee development. This continuous education keeps the skills
of employees up to date for them to bring modern and original ideas to the firm.

Management of conflicts

There are those moments when there may arise a conflict between the employee and the
employer. No one can avoid a conflict from taking place. However, you can just try to manage
them. The human resource team will bear the role of the mediator or counselor to sort these
differences effectively. They take the right course of action to ensure that nothing gets out of
hand.

Health and safety

According to the founder of  a web design company, Kenneth, the Human resource management
system plays the role of safety and health in the workplace. You can achieve this through
policies and procedures, but the function of the human resource goes a further step to ensure that
employees understand the risk of carrying out particular activities. For instance, if there are
heavy machines in the office, this team will have to make posters and warning signs and relevant
steps in case there is an emergency. These posts minimize the possibility of an accident
occurring and helps to eliminate subsequent legal action that might face the company.
Recruitment and retention

While recruitment and retention seems to be a function of the human resource team, it remains
the main hub of all policies and systems of human resource departments. Acquiring qualified
employees, retaining them in the company, giving them the right training to complete their jobs
and encouraging them to further their education, skills, and awarding them with compensation
and benefits will drive your organization to success.

Development of good relations

The human resource department has the basic function of ensuring that it grows good working
relations among employees. They possess the responsibility of seminars, meetings, and other
official gatherings for the management. This department also lends a helping hand when drafting
marketing and business plans.
 Unit 1 – Introduction to Human Resource
Tutor – Ms. Shania Mohammed
Certificate in Human Resource Management

Implementing and developing the right human resource system for your firm is vital. While it
may seem possible to handle these functions manually, using an automated system will give
enough time to the human resource team to maintain and develop the data that gets into the
system. You need to remember that each company requires its human resource management
system because companies differ in size.