HR professionals are crucial to an organization's success.
Good HRM is essential for businesses of all sizes.
Main points covered: HRM definition, origins, key activities, impact, and current trends.
Definition of HRM
Human Resource Management: The management of people to help them perform to the best of their abilities, leading to better organizational performance.
Stephen Covey's Quote: "An empowered organization is one in which individuals have knowledge, skills, desires, and opportunities to personally succeed in a way that leads to collective organizational success."
Human Resources: Set of people who make up the workforce.
Human Capital: Economic value of an employee's experience and skills.
History of HRM
Origins: Began as personnel management during the World Wars.
During wars: Women took over jobs, led to new practices (e.g., makeup lessons for female employees).
Introduced IQ testing and social policies.
Post-Wars: Focus on compliance and efficiency.
1980s: Introduction of the term HRM to go beyond efficiency and make business impacts.
Research supported that HRM practices improved financial performance.
HR integrated with business strategy (strategic HRM).
Examples:
Citibank: HR director on corporate board.
Hewlett Packard, WH Smith: HR involved in corporate strategy.
Key HRM Activities
Recruitment and Selection: Attracting and selecting the best employees.
Performance Management: Boosting employee performance through feedback and reviews; includes succession planning.
Culture Management: Building a culture aligned with organizational goals.
Learning and Development: Helping employees build skills; involves managing a limited learning budget.
Compensation and Benefits: Fairly rewarding employees through pay and benefits.
Employee Relations Management: Managing relationships with employee groups, unions, and councils.
Information and Analytics: Managing HR technology and data; using HRIS for tracking and insights.
Strategic vs. Administrative HRM
Hygiene Factors: Maintenance tasks (e.g., keeping labor unions happy, knowing workforce numbers). Essential but not noticeable if done well.