Human Resource Management (HRM)

Introduction to HRM

• Definition: Management of people to maximize their performance for organizational success.
• Quote by Stephen Covey: Empowerment through knowledge and skills leads to collective success.

Key Concepts

• Human Resource: An individual within the workforce.
• Human Capital: Economic value of an employee’s experience and skills.
  • Introduced by economist Arthur Cecil Pigou in 1928.

Importance of HRM

• Organizations with skilled employees are more successful.
• Key areas HRM impacts:
  • Hiring
  • Onboarding
  • Rewarding
  • Performance optimization

History of HRM

• Origin: Began as personnel management during World Wars.
  • Focus on compliance and work efficiency.
  • Women joined workforce; makeup lessons were part of HR.
• Evolution:
  • 1980s: Transition to Human Resource Management (HRM).
  • Focus on strategic impact and business alignment.
  • Increasing research supports HRM practices to boost financial performance.

HRM Activities

• Recruitment and Selection: Identifying and hiring the best candidates.
• Performance Management: Enhancing employee performance through feedback and reviews.
• Succession Planning: Building talent pipelines for future strategic roles.
• Culture Management: Creating a culture aligned with organizational goals.
• Learning and Development: Enhancing skills through dedicated budgets for training.
• Compensation and Benefits: Fairly rewarding employees to maintain motivation.
• Employee Relations: Managing groups and engaging in collective bargaining.
• Information and Analytics: Utilizing HR technology and data for strategic decisions.

Challenges in HRM

• Perception: Often viewed as administrative and non-strategic.
• Boardroom Seat: Lack of inclusion in strategic decision-making.
• Hygiene vs. Strategic Differentiators:
  • Hygiene: Basic maintenance activities.
  • Strategic: Building competitive advantage through people practices.

Trends in HRM

• Aging Workforce: Challenges in sustainable employability.
• Globalization: Access to global talent markets and remote work opportunities.
• Gig Economy: Shift towards flexible employment contracts.
• Data and Analytics: Need for HR professionals to develop tech skills.
• Automation: Transforming administrative HR tasks.
• Task and Industry-specific Human Capital: Leveraging prior experiences for better performance.

Conclusion

• HRM is evolving rapidly and becomes more strategic and impactful.
• Encouragement to learn more about HRM through available courses.

Additional Notes

• HRM is essential for aligning human capital with business strategy to enhance organizational success.