Human Resource Management (HRM)

Introduction

Presenter: Erik from AIHR
Topic: Human Resource Management (HRM)
Overview: Definition, origin, key activities, impact, and current trends in HRM.

Definition: Management of people to maximize their performance and achieve better organizational outcomes
Stephen Covey Quote: An empowered organization where individuals succeed collectively
Terms:
- Human Resource: Individual employee
- Human Resources: Workforce in an organization
- Human Capital: Economic value of an employee’s skills and experience

Initial Phase: Began as personnel management during the two World Wars
Workforce Changes:
- Women took factory jobs and served in armed forces
- Introduction of assessments like IQ testing
Post-War Era: Focused on compliance and efficiency; involved in hiring, benefits, collective bargaining, salaries
Mid-1980s: Shift to HRM focusing on business impact and strategic issues
- Example: Citibank, Hewlett Packard integrated HR with corporate strategy

Strategic Human Resource Management (SHRM): Integrating HRM with business strategy
Modern HRM:
- Integral to organizational success
- Focus on strategic positioning and long-term benefits

Recruitment and Selection: Attracting and choosing the best candidates
Performance Management: Improving individual and organizational performance through feedback, reviews, and succession planning
Culture Management: Developing an organizational culture aligned with business goals
Learning and Development: Building employee skills for current and future needs
Compensation and Benefits: Rewarding employees with fair pay and benefits
Employee Relations Management: Managing relationships with employee groups, collective bargaining, labor unions
Information and Analytics: Managing HR data, HRIS systems, and utilizing dashboards for strategic insights

Administrative Perception: HR is often seen as non-strategic
- Hygiene Factors: Maintenance tasks (e.g., tracking employees, handling labor unions)
- Strategic Differentiators: Value-adding tasks (e.g., culture optimization, effective onboarding)
Current Trends:
- Aging Workforce: Sustainable employability and upskilling
- Globalization: Access to a global labor market; remote work
- Gig Economy: Flexible employment contracts
- Data and Analytics: Increasing importance of HR technology and data-driven decisions
- Automation: Digital transformation and administrative task automation
- Task and Industry-Specific Human Capital: Matching people to assignments based on specific skills and experiences