“ The effective use of human resources is the

key to creating and sustaining a successful

organization” Peter Drucker

• is about obtaining and maintaining a satisfied and motivated workforce

• focused on maximizing the effectiveness of the workplace through a sound and proven HR policies and best practices

• is a constant alertness and awareness to human relations and their importance in day-day-operations

HRM is a management function which includes: recruiting, selecting, training, compensating, appraising and developing the workplace

HRM is linking of HRM to the organization’s vision, mission, goals and objectives in order to improve performance, and develop organizational cultures that foster innovation and flexibility

The HRM concepts and techniques are important to all managers because you want to avoid the following from happening:

• To hire the wrong person for the job

• To experience high labor turnover

• To find your employees not doing their best

• To waste time with useless interviews

• To have your organization taken to court due to discriminatory actions

• To have your organization cited under occupational safety laws for unsafe practices

• To have some of your employees think their salaries are low, unfair, and inequitable compared to others in the organization

• To allow lack of training to undermine your organization’s effectiveness

• To commit any unfair labor practices

The HRM functions of management includes the following:

• Conducting job analyses to determine the nature of each employee’s job

• Planning labor needs and recruiting

• Selecting candidates for the job

• Orienting and training new employees

• Managing compensation of employees

• Providing incentives and benefits

• Appraising performance

• Communicating (interviewing, counseling, and disciplining)

• Training and development

• Building employee commitment

• Providing good working condition

• Handling grievances and industrial relation

HRM as a function (a major management activity) and HRD (Human Resource Development, a profession). Others include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, including, career development, training, organization development, etc.

Difference between HRM and HRD

• Placing the right person on the right job

• Orienting new employees

• Training employees for jobs that are new to them

• Improving the job performance of each employee

• Gaining creative cooperation and developing smooth working relationships

• Interpreting policies and procedures

• Controlling labor costs

• Developing the abilities of each employees

• Creating, boasting and maintaining morale

• Protecting employees’ health and physical condition

a. Exerting line authority – exerts a line authority within the HR department; to exert implied authority

b. Exerting a coordinative function – coordinator of all personnel activities that all personnel policies are consistently carried out

c. Providing staff service – assists line mangers in hiring, training, evaluating, rewarding, counseling, promoting and firing of employees as well as assist in complying with equal employment opportunity, occupational safety laws, grievances and labor relations

Manager’s Course UP Institute for Small Scale Industries , 2003

Reference